After operating on the Santa Monica waterfront for 44 years, the American Film Market has increased its investment and is about to enter Vegas. The Independent Film and Television Alliance (IFTA) has found a new home in Nevada for its annual Film Market, which will set up shop at the Palms Resort Casino from November 5-10.
This is the second relocation of AFM in as many years, having been forced to leave its home in Loews in 2023 and move to a less desirable location in the mountains at Le Meridien Delfina.
The move to Las Vegas comes at a critical time for the independent film industry. Producers, distributors and financiers are struggling to find business models that match a new world in which costs are rising — thanks to inflation, but also because of unions’ involvement in last year’s writers’ and actors’ strikes. Hard-fought concessions were won—but revenue was flat or down. Especially the theatrical release, which turned into a terrible shoot. For every independent breakout hit – Neon’s long legsof magnolia selmacinematic universe terrorist 3 — There’s a long list of big-budget flops, look no further than Lionsgate’s Bow Borderlands and Megacityas well as acclaimed underperformers including Ali Abbasi apprentice and Coralie Farget’s. substancedistributed by Briarcliff Entertainment and Mubi respectively.
AFM is also facing new challenges. Next year, the Toronto Film Festival will launch its own fall film market, backed by a massive eight-figure grant from the Canadian government. Industry veterans will remember how back in 2004, AFM challenged and defeated Italy’s more mature MIFED market by moving the event from February to November. Now, TIFF may be vying for the AFM crown.
Over five days in Vegas, IFTA President and CEO Jean Prewitt will work to convince the independent industry to continue betting on AFM. She made her own claim hollywood reporter on the eve of its launch this year.
Why Vegas?
Well, there are a couple of practical reasons, but the real reason we chose this venue in Las Vegas is the strong messaging from buyers, particularly over the last few years, about the extent of their frustration with AFM. This market is primarily driven by meetings scheduled every 15 minutes or half an hour, which is really frustrating if you spend 15 to 20 minutes commuting in an Uber across Santa Monica to go to a movie or go to Lionsgate or somewhere else. People are depressed. People want a more efficient market. We checked out eight cities and soon landed on Palm Tree. This is literally the only place in any city, including Los Angeles, where everything happens in one place. Our meeting is there. Brendan Theaters is a 14-screen multiplex cinema. We are able to accommodate everyone attending AFM in the same building. Vegas ticks all the boxes.
AFM’s new home is The Palms Casino Resort in Las Vegas
Provided by IFTA
But this is a big change. What are buyers and sellers worried about?
It changes over time. A lot of people’s first reaction is: I don’t know Vegas. This is especially true for people from Europe, which surprises us because in the United States, Las Vegas is a destination for meetings and conferences. It took a while for people to get to know the city well enough to feel it was possible. Questions like: “Can I get an Uber?” Where do I want to park? Well, no one is complaining about not being able to get an Uber in Las Vegas. Parking in Vegas is free. Companies that previously paid $60 per employee per day to park in Santa Monica can now park for free. But this is the first time people in Los Angeles have had to go to AFM. Instead of going home at night, they have to pick people up, put them in hotel rooms, etc. Despite inflation, we have decided that this is not the year to raise prices.
The response has been great. Our booth is sold out and has been for a while. Every major independent film company, from Lionsgate to A24 to Neon, will be in the building. Everything is under one roof.
Is this a permanent move or will AFM return to Los Angeles or Loews soon?
As far as I know, the Loews Hotel will never be suitable for AFM again as it has been turned into the Regent Hotel. They follow the Carlton Hotel template [in Canne]the number of rooms is reduced by 50% and the nightly cost is tripled. We’ll be in Vegas as long as the market needs us to be in Vegas, and if it works for them (which we absolutely hope it does), we’ll be there indefinitely. Right now, we are 100% committed to making this market the best it can be this year.
In speaking with AFM attendees, what are your thoughts on the current state of the independent film market?
It’s really hard for independents. You’re dealing with all the issues studios talk about, plus constantly trying to attract talent, and if you get talent, figuring out financing quickly so you don’t lose out on their other offers. Even fighting to complete production. We have strikes in the United States, but other countries are having the same type of negotiations. Canada is negotiating. Britain is negotiating. Germany is developing a new code of conduct for production. The industrial environment is changing rapidly. This is part of what influences people to try to lock down packages. It all really started in Cannes and this feeling is back on track. Maybe it wasn’t the business of five years ago, but buyers come to the market because they need the product. They need to buy. Most companies are launching fewer projects into specific markets than they were five years ago, but they now have a stronger sense of what they can sell. To say people are hopeful, but they feel there’s still some deals to be done, is a strong statement.
neon long legsWith a global box office of over $100 million, it is one of the few independent hits this year.
Provided by Neon
What do you think is the most disruptive aspect of the independent business model?
There are noticeable breaks in the dramatic work. If being able to release your feature theatrically is a key part of your financing package, you’re going to be in trouble. But, for independents, this has been going on for four years. The drama department is dysfunctional at different levels and in different places. But this is a very creative field. If producers can’t get a percentage of their budget from drama, they’ll turn to focusing on TV or streaming and producing for that. Many companies that were previously very focused on theatrical sales have become experts at selling to streaming. Now, issues such as Netflix’s local content requirements in some European countries are driving non-local production, and it’s always our independent films that fall at the bottom. Big theater event movies get seats. European films made under existing subsidies have their place, leaving American independents to figure out their place.
Is there still a place for independently produced theatrical films?
What people talk about is, if you really want to make money with theater, you have to have an event. What drives box office is not big marketing headlines, it’s people calling 10 friends and saying, “Why don’t we all go see this?” Word of mouth is so prevalent on social media, which plays a big role in marketing effect. That’s where a lot of the energy goes into: How do we incentivize people to tell their friends to watch our movie? It leverages the skills they already have but tries to figure out how to leverage them to drive other forms of distribution to achieve profitability. However, we all know that the real way to market it right is to make a good movie.
