If the Sundance game is all about creativity, the art of films, the uniqueness of the writer’s story, the splendor of a director’s vision - the American Film Market is a wholly different game. At the end of February each year in Santa Monica, independent filmmakers must speak a completely different language if they are to communicate with the raft of sales agents and distributors whose only concern is: How can your product positively affect my bottom line?

For those all-too naive filmmakers, surely none of whom are readers of IMAGINE, who believe that if you create the perfect film, they, i.e. buyers, distributors, audiences, will come and bang down theater doors to see your film, the AFM extravaganza on the beach of Santa Monica will truly produce an eye opening, mind-altering, compellingly distressing experience. There is no substitute for walking the floors of the Loews Santa Monica Beach Hotel and viewing the posters and marketing paraphernalia of the 319 exhibitors.

The distributors came to sell their products in various stages of completion, with a variety of contractual terms too complicated to discuss. This is the side of the business that most of us would be happy not to experience. Experiencing how a film is sold through the distribution cycle is like watching sausages being made. Sales agents and distributors at AFM who show up year after year are connected to production companies and a random assortment of independent producers, director/writer teams and financing sources that allow them, simply on the basis of a few marketable names attached to production contracts- plus an enticingly graphic poster- allows them to begin pitching to foreign buyers. The buyers are European, Asian, the Latin American and the Notre Americanos, who represent market segments within their own country, (e.g. German TV networks, Brazilian Video Markets, Dutch Theatrical Markets); and in more than a few cases, they are total country buyers who represent entire market segments (Theatrical, premium cable, standard cable, video and DVDs, broadcast networks, hotels, basically any place that you can see a film).

Globalization of the film market forces independent filmmakers to increasingly "dumb down" their product. The capacious dilemma that many American filmmakers are faced with is reconciling their vision of what makes for a gloriously entertaining and involving film, to which their ego and reputation will be proud to be attached to, vs. the geometrically opposed chorus of international buyers, who are hooked on fast action, graphic horror, cheap sex and macho violence. It has been said that the optimum AFM poster centers on a naked woman with a gun. The cliché is all too true. Nevertheless, despite the morass of unsurpassed mediocrity that dominates the films that are being sold and talked about there are positive signs of a greater appreciation of quality films that do not fit the conventional AFM mold.

Non-studio films that have been smash hits in the past year; LORD OF THE RINGS: I and II, THE GOOD GIRL, and quintessentially, MY BIG FAT GREEK WEDDING, as well as foreign language titles like Almodovar’s, TALK TO HER have boosted producers spirits (not to mention their bankers) and most importantly distributors bank accounts. The success of these films and a few others have opened the eyes of distributors and sales agents at AFM that quality, unique stories, and in their language, product differentiation, can pay off big time.

The "RINGS" have raised the bar on the size of Indie budgets and the quality that Indie production can have. Indies are no longer in the low rent neighborhoods of Hollywood. They are generating enormous revenues - rivaling the studios in their ability to attract name cast and generate encompassing international distribution.

This year while "stompin’ the halls at the Loews", bouncing in and out of distributor offices, I noted a growing inequality between distributors at AFM who are working with the major Indie producers to offer quality product with major names for sale in all market segments and all territories vs. the smaller sales companies, perhaps that they do not have access to financing or that they are so branded to distributing certain types of film, (see Troma Films for sex laden cheapie creature features.) that so called respectable production companies avoid them.

In the recent past those companies could rely on foreign buyers for picking up material for local television stations and direct to video releases. They are now coming to terms with the fact that in a more competitive, highly segmented market place, there is an increasing number of quality conscious buyers that are looking for a viable theatrical movie that has/or will be released in the United States before they step up.

Here are some interesting considerations I found this year, slightly different than from previous years: I found that this year’s AFM was more welcoming of non-buyer and non-seller attendees. If you represent a post-production company - or if you are a films commissioner or producer with a concept or a script, there is no better opportunity to meet with 300 motion picture companies under one roof. The panoply of the entire film industry is located under one roof.

Perhaps because we are in desperate times and every ones budget is being stretched, there is a seemingly greater need for more joint ventures and greater sharing of risk in the development of new ideas and projects. During the last three days of the market when a number of the Asians and Europeans had left, acquisition and creative affairs executives representing major production/distribution companies were more amenable to receiving pitches to new products than in past.

The geometric growth of the DVD market (a 20 billion dollar 2002 market vs. a 10 Billion dollar box-office market) is motivating a number of production companies to make investment in films that have a marginal probability for a wide theatrical release. These production companies recognize that the advertising and promotion branding associated with a theatrical release raises the likelihood of generating demand for a sufficient number of sell-thru DVD units to justify the initial risk investment.

A lack of global film finance knowledge is terminal to a producer’s ability to make successful cross border production deals. The production game is all about location. Where you shoot determines the tax incentives and other investment schemes that over two dozen countries are offering to lure production from the United States. One of the first questions a financing source will ask you is: “where are you shooting and what is the soft dollar contribution to the budget?”

Each year the AFM film finance panels are the most popular. This year over 500 attendees heard moderator Lou Horowitz, undoubtedly the nation’s most experienced and savvy hand on the subject of independent film financing: “Today no independent film gets done without three things: Foreign pre-sales, gap financing and soft money whether from co-productions, tax deals or investor funds. Producers must know how to structure investment opportunities around the world.” Ever since the collapse of the German stock market and pay TV in 2001, producers must look more to equity investments or “soft money”, which comes in the form of tax deals from such places as Canada, United Kingdom and Australia, even Fiji (if you would believe) and investor funds, primarily from Germany or co-production deals with studios or other production companies.

Breaking news at the market concerned Canada’s new policy on production tax credits. In order to more effectively compete against the growing number of European, Asian and Latin countries offering tax credits, equity investment and subsidies for productions shot in their borders, Canada announced shortly before the market that its government is raising production tax credits from 11 to 16% for foreign producers shooting there. The film or video production tax credit (FVPSTC), introduced in 1997, to encourage runaway production to Canada, now will provide a refundable tax credit of 16% on eligible Canadian labor costs on all international film and TV shoots in Canada.

For a non-LA based producer and/or film maker, there is no substitute to hearing directors discuss the problems of international co-production, the advantages of shooting in various countries and the importance of film locations and co-production deal making as those discussions influence the selection of talent and production. The AMF panel entitled Persistence of Vision: Maintaining Creative Focus in a Bottom-line Environment featuring Michael Apted, (GORILLAS IN THE MIST, COAL MINER’S DAUGHTE), Kathryn Bigelow, (K-19: THE WIDOMAKER), Wes Craven, (A NIGHTMARE ON ELM STREET, SCREAM 1,2 & 3), Neil LaBute (COMPANY OF MEN) and Mark Romanek, (ONE HOUR PHOTO), provided riveting insight into these major questions. All the directors milled around for over an hour answering specific questions of the attendees. Needless to say, this is not an experience that a Boston filmmaker takes lightly

If you are really, really serious about your career in film; if want to know your standing within the filmmaking universe you must attend the AFM. You must be able to pitch your product, showcase your production expertise and demonstrate your commitment to the pros who are making it in the industry - remember, they’re doing just fine without you, thank you… You must convince them that they should, want or need to do a deal with you. Obviously this is no easy chore. At AFM, you’re either a player or you are out in the bleachers.

There is a lot that happened at this years market for those who revel in detail and want more information, or have a specific project to discuss I’d be most happy to respond to your questions via email.