In the late 90s there was convergence between traditional independent films and Hollywood. AFM 05 reflected that most well known independent films exist midway between independent films and studio films. I have heard the word "Indiewood" to describe films that suggest their hybrid nature.

A classic example of a hybrid film is Craig Brewer's HUSTLE AND FLOW, this independent film could not have a more personal statement by Brewer about a pimp turned rapper, this film was a highlight at Sundance last year. Paramount pictures and MTV bought this $3.5 million film for a record $9 million. The film was distributed theatrically this past summer and generated more than $30 million in theatrical revenue and is expected to gross double that in DVD and cable revenue.

The Rush to DVD: In past years AFM like other film markets generated international licensing fees for their product off the theatrical showcasing of films that they were selling.  In other words, the more successful the film was in this theatrical showcasing in North America the higher the licensing fees would be in the sale of this film to international markets. This is still the case, but not the exclusive case.

Factual market data has been generated to indicate that certain films will sell well on DVD and ancillary markets, such as cable, even without a theatrical run. With DVD, a different set of economics apply. For example, short films, documentaries and certain independent features do not fit into traditional models of territory by territory distribution.

Many international buyers now realize that theatrical titles are more expensive to buy, cost a lot to publicize. On the other hand, straight to DVD titles can be released more quickly and flexibly in response to market trends. This no more true than with horror, thriller, and action genres that are preferred by the younger male audience who as Jan Rickers, managing director of Germany's Kinwold Home Entertainment states, "want to see as many explosions and shootings as possible."

Product Trends: Walking the halls of the Loews Santa Monica Hotel and talking to dozens of distributors and sales agents here are a few major categories that seem to be hot for independent film:

Documentary: The theatrical market for documentaries in the US has never been hotter.  The non-fiction market doesn't have the same theatrical growth potential as does the US, but especially for nature documentaries, such at the MARCH OF THE PENGUINS and AFM had dozens of docs on whales, sharks, antelope, zebras and lions; there is a solid overseas market. Less saleable are docs with a unique American political perspective.

Horror: Scary films cross cultural divides. Horror pics have long been a staple product at AFM; horror has always been hot because it works so well on DVD-and R rated horror is the genre you cannot get on television. There is less of a distinction between what sells in the horror genre in the US and what sells internationally.  For example SAW II is selling as well if not better than in the US to essentially the same market segment of young males from 12-25 years old.

Family Films/animation: With the proliferation of international cable networks, there has been a concurrent need for family programming on niche channels. Again, this is a genre that couples beautifully with the extremely lucrative children's home video market. This genre also lends itself to cross promotion marketing with corporations who are focused on the age group that the films target through the characters and storylines.

Chasing tax rebates and co-financing: Independent film making is all about raising money, raising money in today's market is all about tax rebates, tax credits and other soft money finance schemes and co-financing. At this years' AFM financing panel we learned that hedge funds have joined "very rich folk" in putting a toe into the film business to see if they can get a real return on their investment. This trend is difficult for independent producers to capitalize on as most of us raise money on a picture by picture basis.

However, after listening to this years panel, it is not unrealistic to think that independent producers could not gather their projects into one portfolio, perhaps covering five or six of the most popular genres selling and attract a hedge fund to invest lets say $50 million into that portfolio, this is not an impossibility for producers working on a strategic partnership with one another.

The Financing/Creative Trade Off: Ashok Armitarj cautioned that producers should not finance considerations overrule their creative decisions. "You try to stay true to the movie.  You try not to make a movie that is meant to be shot in New York City and shoot it in Bulgaria. You don't select a Canadian actor to put in your movie just to get tax credits. That's a mistake that is made quite often."

"As studios reserve their production budgets for making and marketing hugely expensive summer and Christmas tent pole films more and more films in the mid budget range will be financed independently," related Hal Sadoff during a panel discussion.

Films today, particularly in the $5-$25 million range must be organized to maximize the use of foreign tax shelter and overseas equity funds.  There is no greater trend in film financing then the rise of co-financing, including shooting outside the US - or in the selecting of states - to take advantage of tax credits and other soft money investments.

It is very easy in New England to work in a market vacuum, in which each of us can dig deeper into a hole not realizing that the hole does not lead you anywhere. It is essential to attend markets like AFM - and

I believe that AFM is the best market to attend and worth your time and money investment - to learn what is happening in the real film world. From the seminars and contacts that ensue from the seminars can be worth everything to you as you seek to advance your career, your film financing options, your ability to pitch new product, and develop the partnerships that all of us need to be successful in this most collaborative of all industries.

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Paul T. Boghosian is a long established independent producer. His company HarborSide Films produces feature films, public affairs programming for PBS, cable, and corporate documentaries.  He can be reached at ptbharborside@msn.com