Recession Cinema

Illustration by David Pohl

The secialty-film business will survive hard times—but it’s up to you to find it

As financial chaos has erupted across international markets, Hollywood has been careful to project an image of calm: Look to recessions past, their narrative suggests, and remember that going to the movies is an inexpensive alternative for cash-starved consumers. Of course, in this scenario, the industry’s profits swell as a result.

By now, though, the notion that the movie business is “recession-proof” has taken so many blows that it seems a fantasy at best. The first-ever decline in DVD sales came in 2007. And with the credit markets so tight, some studios are now unable to finance a full slate of films.

The worst casualty of this trend won’t be the garish, branded studio movies, especially since those are exactly the kind of escapist features Hollywood loves to tout during grim times. (See Transformers: Revenge of the Fallen, coming soon to a theatre near you.) It’s the market for so-called “specialty films” that’s in the most vulnerable position, as consumers alter their viewing habits and the demand lessens.

Last summer saw huge shakeups on the studio side of the business, with Warner Independent, Picturehouse and Paramount Vantage—distributors of films like There Will Be Blood and Pan’s Labyrinth—shuttering or slashing operations. Markets at film festivals were much leaner, so much so that even major fare like Che and Synecdoche, New York didn’t land distribution until well after their premieres. Crowd-ready movies like Slumdog Millionaire and The Wrestler, both released by Fox Searchlight, are among the few that remain beneficiaries of this model.

That's not to mention the true independent films, which have long struggled to get attention alongside the specialty flicks bankrolled by major studios. So how will challenging, decidedly noncommercial films thrive in a marketplace that’s pulling in the opposite direction?

Marc Mauceri, the vice president of film distributor First Run Features, acknowledges that the overall independent marketplace is changing, but he doesn’t expect upheaval in his part of the business. “We certainly have not changed the way we acquire and choose films,” Mauceri says. “There are tough, obscure, challenging films dedicated cinephiles will still want to see.”

Celebrating its 30th anniversary this year, First Run is among the oldest guards of independent distribution, putting 12 to 15 films in theaters each year and releasing dozens more on DVD. Its highest-profile titles last year included a pair of provocative documentaries, Constantine’s Sword and For the Bible Tells Me So, both of which had platform releases in theaters.

Mauceri says that, although he expects the number of private independent distributors to drop, it would largely be a response to the booming number of companies that have emerged over the years, crowding the marketplace. “I think," he says, "owning a film-distribution company became a cool thing.”

His view is encouraging, and suggests that, just as before, great films will be out there—it’ll just be up to discriminating consumers to seek them out. Distributors like IFC Films have made this a more direct possibility for discerning moviegoers, with video-on-demand services for many theater-released films and others acquired directly from festivals.

Threats to the DVD market still loom over distributors, though, and questions about consumer confidence and the willingness to spend $20 to $30 to buy individual movies remain a concern. The declines in DVD sales in 2008 have, to some extent, sullied the outlook. With fewer copies sold, fewer titles will become available. It’s a potential evaporation in one of the most important markets for independent film.

Mauceri recognizes these problems, but says there remains a bottom line even now. “People will always go see movies,” he says. “There are always the people. It’s just really about finding the right films.”