Post MIPCOM, Pre-AFM

"It was the best of times, it was the worst of times..." - Charles Dickens

Things are so crazy right now finishing up from all of my MIPCOM follow up and getting ready for AFM next week. However, I just wanted to talk real quickly about something that was the talk of MIPCOM: the global financial crisis and its effect on the international film business.

Everyone that I talked to at the market was wondering aloud about the global financial crisis and how that would effect our business. And the conclusion is that there are both good and bad aspects of what is happening internationally. Firstly, there is less cash around for some of the smaller companies and distributors, who seemed to be less of a presence at the market. But all of the major buyers, broadcasters and distributors were still out in force and buying. But I think that the downtown in the economy is mitigated by one thing: the writer's strike.

The writer's strike kept the studios from producing as many movies and TV shows as they would normally. That meant that the appetite from some of the broadcasters was greater due to a lack of studio product to fill their pipeline.

However, the further implications of the financial crisis has yet to be seen. Plus, there is the anxiety over the negotiations for the SAG contract. At one point, a strike seemed imminent and studios halted production. But with the recent increase in production, it seems that the studios seem to believe that there will be a resolution to the SAG conflict in the near future. But only time will tell.

Looking forward to the AFM market next week, things seem a little quieter than in years past. I think it may be due to several things:

1. A lot of the US minimajors have gone away. Warner Independent, Picturehouse, New Line are all going away or are already gone. On top of that, the recent exodus of executives at the Weinstein Company will most likely mean their acquisition appetite may be diminishing as well.

2. Back in 2000-2001 when I first started going to AFM, there were still plenty of bigger budgeted completed pictures that were available. A lot of these films were financed by big film funds from European countries. Unfortunately, one too many risky investments didn't pay off and these funds wound up drying out as a source of investment. (There are also other reasons for this as well that I don't have the time to go into.)

3. It could also be a simple perception issue due to the fact that AFM is now more spread out. It is no longer just in the Loews but has spread over to Le Merigot as well. And with the addition of screening rooms in Le Merigot and the Fairmont as well, buyers are more spread out than ever.

4. Timing: AFM used to be in February between MIPCOM and MIFED in the Fall and Cannes in the Spring. But people complained about the proximity to Sundance and Berlin so they moved it to November.

5. Communication: It used to be a lot more difficult to connect with and talk to distributors from around the world. With the spread of email, video conferencing and digital online screening rooms, it's easier than ever to get someone to buy your product without ever having met face to face. For a lot of the smaller distributors, it could be a cost cutting measure to not have to travel halfway across the world for a film market.

Either way, we'll be fine. We have a steady flow of product and big pockets. It's some of the smaller companies out there that may have to scramble harder to stay afloat in this new world economy.