To Survive, Independents Must Create Unique Films


In his address at the IFTA Production Conference held recently in Santa Monica, keynote speaker Bill Mechanic, President/CEO of Pandemonium LLC and former Chairman/CEO of Fox Filmed Entertainment, said that independent producers are being blocked by too many insignificant movies clogging the distribution channels. Tightening economic conditions have sent sharp pains through the industry with vibrant markets such as DVD and TV having “evaporated in front of our eyes”. Mechanic said the question is whether the condition is fatal.

Mechanic said the reason he was pushed out the door of Fox was because, “My bosses couldn't deal with the unconventional choices (Braveheart and There’s Something About Mary) ... because the films weren't pre-sold and thus seemed less predictable. This, despite the fact that these unconventional movies guided Fox to the five best years in its history.”

After Mechanic left fox he spent the next nine years as an independent producer. He said, “Here’s the one key thing I've learned: there is no such thing as an independent producer. There are only dependent producers. (Independent filmmakers are) dependent on distributors, financiers, and bankers, and distribution channels that understand the needs of the market even less than the corporations that own the studios.”

Mechanic said the oddest lesson for him has been, “That the independent world, which should be aiming to do things better and different from the studios, doesn't have that as a mandate at all. If anything, the only thing that independent distributors and financiers look for is the same. Maybe costing a little less than the majors, but they want what the studios want, or in Fight Club speak, they want copies of a copy. I now understand that unconventional choices like X Men and Ice Age would barely have a prayer getting made independently. Why?, because at the time, they didn't look like anything else. It's disrespectful if not downright dumb to think audiences can't tell the difference between the original, which occasionally might even have some fresh faces, and the copy, which almost always is populated with retreads. It's like thinking you can sell yesterday's news under a different banner.”

“Following the lead of the majors,” according to Mechanic, “presumes that they know what they want. It presumes they have a fix on their audiences. I would say that's anything but true. Admissions are down over the past few years and, perhaps most troubling, the audience that Hollywood spends the majority of time focusing on, the under 25's, are the ones finding other things to do. ... In that way, Hollywood in the broadest sense of the word, is much like Detroit, it’s a manufacturer's mentality that reigns, seemingly indifferent to the consumers it serves.”

Mechanic said, “When was the last time you heard anyone either from a studio or an independent talking about improving their product, of creating positive buzz and expanding the audience? Here's one basic question to ask yourself: If the most popular film in history was Titanic and it did so by weaving together interest in all demographic pockets as well as pulling in non-film goers, why in the last 12 years has no attempted to do the same?”

The next few years will be about survival according to Mechanic, “If it's any consolation, it will be harder on the studios than the independents. Not only is it harder for big companies to change, to adapt, but there are legacy issues in terms of personnel. And within the next few years, their big market advantage, the bricks and mortar of their distribution operations, will become a disadvantage in the democratic age of digital. I would assume at least two of the majors to be sold or consolidated by the middle of the decade. Like much of the bad decision making that has helped take a lot of the profit out of the business, the air was let out of the tires by the studios themselves. No top management of a studio really cared what was going on over the past few years other than was their budget being met. Simply said, the studios have destroyed the price-value relationship in video, particularly when low priced rental alternatives have sprung up everywhere.”

“Those who will win will be smart about what they make and how they sell their films,” according to Mechanic, “They will hopefully make good films but perhaps even more key they will make unique films that stand out, which means they will not have to compete against the bulk of the films for talent. They won't look like all the other films so they won't have to spend as much money marketing them. Don't believe me? Ask Summit about Twilight. Ask Searchlight about Slumdog Millionaire. Ask Screen Gems about District 9. Ask Focus about Coraline.”