The Wall Street Journal has a piece on how indie movies are finding it really tough going in these economic times.
“For years, distributors in such markets as France, Germany, Japan and Latin American nations at times would pay millions of dollars for the rights to distribute American movies, like last autumn’s teen hit “Twilight” from and indie sensation “The Wrestler.”
In the 1990s, those sums frequently would cover a film’s entire budget. In more recent years, it would cover a significant amount and, with a portion of their budgets in hand, producers could more easily secure loans or equity for the rest of their financing.
The rise of copyright piracy and increasing competition from local films have held a lid on presales of foreign rights in recent years. But since the credit crunch hit Wall Street and expanded across the globe, producers say they feel lucky if presales cover half of their budgets — if anything at all.”
The LA Times lets readers know that it’s not just indie films that are struggling. Marketing dollars that used to be easily spent are now coming under bigger scrutiny. They don’t want to cut marketing dollars, but where to spend them is like looking into a crystal ball. TV advertising remains key, and fortunately may be getting a little cheaper:
“There will be a natural savings because the election is over, and a lot of giant buyers just aren’t there,” said Rob Friedman, chief executive of Summit Entertainment, which produced last year’s hit “Twilight.” “That will translate into lower rate cards and create a better marketplace for media buyers.”
Taking all of this in consideration, the Examiner is betting that New Moon will be the number one movie at the box office in 2009. It has some serious competition from summer blockbusters Harry Potter, Transformers 2, and the kids’ movie Where the Wild things Are.
What do you think, will New Moon end up in the number 1 position at the end of the year?