Cannes-orama: highlights as the market closes

As the Cannes Film Market, filmdom's most chaotic and varied film circus, ends today, it again has been a hotbed of dealmaking, announcements and acquisitions. The word from international sellers is that Asia continues to recover from its economic doldrums and has been an active buyer of US and European film titles (particularly Korea, which has its first ever film in the Competition section). On the other hand, Europe is falling behind, with theatrical attendance figures weaker, pay television slowing its rapid expansion and home video faltering. In addition, the weak euro which has dragged down all the European currencies is making the prices for films (determined in US dollars) even more inflated. However, the real story is the overwhelming presence of a new generation of Internet companies and the unveiling of several key international alliances that will reshape the landscape for some time to come.

US Pick Ups

Miramax is again on a buying spree, having nabbed North American distribution rights to the opening night film, Roland Joffe's period piece Vatel starring Gerard Depardieu. The film received mixed reviews but continues Miramax's relationship with French film giant Gaumont. A second French film was also announced for acquisition. Harry, He Is Her To Help, a drama about a man whose ordinary life is disrupted when an old school chum arrives directed by Dominik Moll, was purchased for US and Canadian rights from France's Mercure Distribution. In rare split rights arrangements, Miramax and Paramount Pictures have jointly acquired North American and Australian distribution rights to the British comedy Lucky Break, which will be directed this summer by The Full Monty's Peter Cattaneo and will split rights for the sequel to Dirty Dancing with Artisan Entertainment, reportedly to star Latin sensation Ricky Martin.

Lions Gate Films picked up North American rights to Cannes competition pic Bread and Roses, directed by veteran UK director Ken Loach. The film, a kind of Latina Norma Rae set in Los Angeles about office cleaners who organize to form a union, was well received by Cannes press and public. Lions Gate also announced the creation of a genre label (similar to Miramax's Dimension Films) that will roll out up to 10 films per year. Rumors are also floating around that Lions Gate has bought out indie distributor Trimark Pictures (Slam, Eve's Bayou, Romance) and will consolidate operations between the two companies.

Strand Releasing announced the pick up of the Certain Regard film Famous directed by Griffin Dunne. The film, a mockumentary about a young actress in New York, was shot on digital video and blown up to 35mm. A late announcement was the acquisition of the competition entry from Festval favorite War Kar Wai by USA Films, which will release the film later in the year.

Sony Pictures Classics, usually one of the most active buyers of foreign langauge films, is keeping a lower profile this year. Sony does have two films in the Festival (Ang Lee's Crouching Tiger, Hidden Dragon co-produced by Sony Classics, Good Machine and Columbia Productions Asia, screens out of competition and Andrucha Waddington's Brazilian pic Me You Them screens in the Certain Regard section). Sony executives have been meeting with producers and reading scripts for future projects.

International Alliances Announced

Several key international alliances have been announced. Fine Line Features has made a link with Zentropa, the Danish production company behind the films of international favorite Lars Von Trier (whose Dancer in the Dark is in the Competition section here). Fine Line will distribute the next three films from the company, which will be shot in English by Zentropa Internationale, the company's new international production arm. They include The Last Born, a sci-fi thriller set in France and Germany, Through A Glass Darkly, a teen drama directed by Susanne Bier, whose The One and Only was Scandinavia's biggest hit last year, and an undisclosed third picture.

European companies have announced key pan-European alliances to challenge the dominance of the American majors on their home turf. France's Bac Films is joining forces with German powerhouse Kinowelt to create a distribution network within Europe. Kinowelt is also partnered with Canada's Alliance Atlantic in Momentum Pictures, which will release films in England and other English-speaking markets. Also announced in Cannes is a strategic alliance between Kinowelt and Spain's leading producer Andres Vicente Gomez that will give his Lola Films rights to at least the first five films from Kinowelt USA, the newly announced Los Angeles production unit headed by long time producer Chris Sievernich.

UK's Redbus Film Distribution is forging a pan-European video-on-demand syndicated with German companies Helkon and Intertainment. The company also plans to actively pursue Internet rights for future broadband downloading applications. Meanwhile, another UK/German giant may emerge from the alliance formed by Germany's Constantin Film and the UK's Propoganda Films. The partners will co-produce and distribute films in the UK and Germany, with an expansion into France, Scandinavia, Italy and Spain in the coming years. The venture will have access to the Propoganda's roster of directors, including Spike Jonze, Simon West, Mark Pellington and Dominic Sena, and actors such as Nicole Kidman and Matthew McConaughey.

Dot Cannes

Internet business to business companies, most making their initial debuts in Cannes, are among the most visible and talked about companies along the Croisette. With marketing war chests that are staggering even by Cannes standards, the Internet upstarts have blanketed the Croisette with giant posters, enormous banners, multiple office suites and corporate logos on nearly every napkin, coaster and ashtray in sight. It is all part of an aggressive campaign to create industry awareness and dominate market share.

The current industry leader is Reelplay.com, a Los Angeles based company that has the deep pockets of SoftBank, a venture capital firm set up to launch internet companies. Reelplay.com boasts the largest database of films available for sale, presenting text information, promotion materials and downloadable film trailers for international film buyers to access at no fee. Reelplay.com also has the largest number of registered film buyers and is tracking how the system is being used to facilitate sales and acquisitions. Co-President Stephen Liu has announced an initiative to assist Independent Producers to access potential financiers and distributors via the system.

Other b-to-b companies making their mark on the Croisette include: Filmbazaar.com, which launched a similar service at the American Film Market and includes editorial coverage of film events and markets via a network of over 30 international writers; ShowbizData.com, which in collaboration with the Cannes Film Market and film tracking service Film Finders inaugurated the official Cannes Market website (cannesmarket.com) to help buyers and sellers find each other and transact business in the Cannes mayhem; Screen Exchange, a London-based promotion and tracking service that includes both film and television programming on its site; and OnLine FilmSales.com, a newly announced venture that is part of the Internet Studios, a provider of original programming for the Internet, that has the pedigree of two top executives from JVC and Polygram Films International at the helm.

With all the companies aggressively going head to head to lock up buyers and sellers, and all offering similar on a no-fee basis, it is pretty certain that not all will survive. All the companies acknowledge that there is room for perhaps only two of them in the marketplace and that the next twelve months will result in a shakeout. Stay tuned.

Sandy Mandelberger
President of International Media Resources