American Film Market Dailies

Finance Conference 1: The Big Picture – QUOTES:

Adrian Alperovich

COO, OddLot Entertainment

“From a producer’s standpoint, the proliferation of new streaming platforms is a good thing. As a producer, it means there are so many more buyers and so many more ways to expose our projects.”

“The SVODs have certainly caused some disruption in the way things are done: each platform is different and each one has their own unique acquisition strategy.”

“When making films now, we need to think about what will get people out of their homes and in the theatres.”

“When streaming was first introduced, I was sceptical that people wouldn’t like it because transmissions were constantly interrupted. But the ease of streaming was good enough that people overlooked those issues.”

“There’s been a major transition in how business is being done, for years now, and that transition will continue.  It’s difficult to forecast.”

Tom Ara

Shareholder, Greenberg Traurig, LLP

“Each platform has a different approach to how they handle theatrical releases. Netflix focuses on a day-to-day approach with the idea that their consumers have plenty of options. Everyone does things differently. As a whole, all of this is really good for everyone in this room.”

“I think platforms will continue to finance original films, and this will be generally good for the industry, but as a result, there are going to be victims and we’ll have to see who they’ll be.”

“In terms of VR, it’s still early days. Content creators in that space are facing challenges because the majority of VR investors aren’t looking to fund content, they’re looking to fund the technology behind VR.”

“VR content is usually financed by the tech makers in order to showcase their own VR content. I don’t think we’re at a stage where we’ll see VR feature films. There are a lot of challenges in doing that well, but VR is certainly a place that everyone is interested in going.”

“Right now, experiencing VR in your home is a costly experience and the content is limited.”

Alexis Garcia

Partner, Endeavor Content

“There can never be too much content. The challenge now is how do you get content to break through when there is so much available?”

“The rise of the platforms essentially translates to more buyers, so generally speaking this is great for people making content. The real threat to the film space is really in its format.”

“The rise of the mini/limited series was tied in to the rise of these streaming platforms – now, because of the mini series, it’s hard to compete for talent and stories.”

“We’re seeing a challenge in the film space largely due to streamers – how do we get people to go out to the movies when there’s high-quality content available at home? That’s how streamers have been challenging in the film space but overall, there can never be too much content.”

“If you can create content and know you are capturing at least one market (in terms of country and demographic), then you’re succeeding in the world.”

John Penotti

President, Sidney Kimmel Entertainment

“There’s never enough content. While streaming services are terrific, I am wishful for some new model that will make theatricals still relevant.”

“As theatrical opportunities were shifting here in the States, we recognised that the theatre experience was more vibrant in a lot of the international markets. This is why we primarily focused on doing business in Asia.”

“The challenge we’re currently experiencing is ‘how do you make content attractive enough for these global platforms, and still hold some investment upside?’ ”

“I don’t see these digital platforms as dumping grounds for content. They’re specific and thoughtful in how they acquire things.”

Finance Conference 1: Spotlight Sessions – QUOTES:

Cassian Elwes

Independent Producer/Agent

“As a filmmaker, your passion has to be unbelievably immense, because the hurdles you’re going to face are ridiculous and impossible at times.”

“Generally the way film financing works is you find your foreign estimates, figure out what you’re going to sell domestic for, calculate your tax credit and then get a loan based on actual pre-sales.”

“The common thread throughout my career is that it’s always been difficult to make movies: it’s never been easy. The tricky thing for foreign sales companies - when a company like Netflix buys the film - is that a lot of international distributors who have pre-bought the film want to give it back.”

“Piracy is the main issue facing us more than anything. It has affected the industry in a big way.”

“The problem with Netflix is, if they buy your movie, it’s really hard for foreign distributors to put the movie out. They have to go day and date and abandon traditional models. A lot of international buyers are building ‘what if’s’ it into their contracts.”

“The real answer to all of this is to make great movies. If you make great movies people will buy it. If it’s not a great movie, then you have a problem […] The key to financing a film is having a great movie. I’ve never seen a bad movie from a great script.”

“There are a lot of foreign sales companies out there, probably only 15 or 20 that really make a difference and that’s because those are the ones that are actually collecting the money. It’s one thing to sell your film in Japan, it’s another to see the physical cash. Banks look at this and use this to determine lending. Collection is very important and gives confidence to your financiers and partners.”

“Producers have a large responsibility to be so on top of every single aspect. If you’re a real producer, you have to produce, and that means doing everything.”

“When you make a movie that you’re really proud of, IMDb credits, award accolades and box office stats aren’t important. What makes a difference to you is what is important. If you’re really serious about being a producer, that’s what it’s about.”

Jesse Sisgold

President & CEO, Skydance Media

“We believe in the future of technology and data, and growing it from the ground up organically. Taking vision to action is a real blend of harvesting the best ideas from wherever we can get them and not being hung up on legacy or tradition, which has in turn allowed us to become a true player in the industry.”

“[At Skydance] The first step of consumption is the most important. No matter where an IP starts there is a vision to create a world where fans can interact with its characters and build stories within those worlds. It’s not as simple as ‘I need to package a movie’ but rather a more comprehensive vision.”

“Technology and our consumption habits have changed dramatically. People want to consumer when they what, where they want and how they want…it’s changed how we as a company make our choices. While we’re all producers and creators and want to focus on telling a story, I think we need to respect our audience enough to also think about how they best want to digest it.”

On the challenges currently facing the theatrical marketplace: “We have started aiming for big, tentpole event experiences. We have to justify that if people are going to go to the theatre and take the time, it’s going to be an experience they cannot get at home.”

“The drop in the current marketplace is audience fatigue with seeing the same thing. When the numbers get tight, people stop taking risks. At Skydance we believe it’s still a worthwhile risk to put together an original and do something different that you want to see in a theatre.”

Wayne Marc Godfrey

President/COO, The Fyzz Facility

“The most important thing for producers is understanding your financing plan upfront, where lending, tax credits, etc. can underpin your overall financing for the movie so that you don’t overreach for equity and you spread the risk across the pot.”