AFM Praised for New L.A. Venue, but High-Priced Film Packages Deter Buyers

The American Film Market (AFM) recently concluded its event in a new Los Angeles location, garnering significant praise for its improved venue and operational efficiency. However, despite the positive reception for the physical setting, a recurring sentiment among buyers pointed to a disconnect between the asking prices for film packages and the current economic realities of the global film market. Many industry professionals observed that “expectations haven’t fully adjusted to the realities of the market,” leading to a challenging sales environment for numerous projects.

AFM’s New L.A. Location: A Resounding Success

Following a previous iteration that drew considerable criticism, the American Film Market’s move to the Fairmont Century Plaza in Los Angeles was met with widespread approval from attendees. The new venue was described by many as a significant improvement, fostering an environment conducive to business and networking.

Key highlights of the new location included:

• Enhanced Accessibility: Delegates reported easy access to offices and screening facilities, with efficient lifts and well-organized spaces that streamlined their workdays.
• Improved Amenities: The surrounding area offered ample amenities, contributing to a more comfortable and productive experience for attendees.
• Positive Atmosphere: The energy at the new location was noted as vibrant, with one producer remarking on the “great” atmosphere that encouraged interaction and collaboration.

Sales agents, in particular, expressed relief, with one executive stating that “AFM organizers have finally cracked the code this year” due to the optimal “location and hotel setup” and immediate proximity to talent agencies. This operational success created a strong foundation for the market, even as external challenges loomed.

The Sticking Point: Pricey Film Packages Turn Buyers Off

Despite the functional success of the new venue, the core business of buying and selling films faced significant headwinds. A predominant issue cited by distributors and buyers was the perceived inflated pricing of many film packages, particularly for larger projects. This sentiment was encapsulated by a distribution executive who noted that “expectations from producers and sellers haven’t yet fully adjusted to the realities of the market and, importantly, to what audiences are actually responding to right now.”

The sluggish pace of announced deals during the event underscored this challenge. While the AFM boasted a sold-out exhibition space and strong international buyer representation from countries such as South Korea, Germany, the U.K., France, and Italy, major acquisitions were notably scarce. One of the few publicly reported deals was Neon’s acquisition of rights to Hirokazu Kore-eda’s “Sheep in the Box.”

Market Realities: A Shifting Landscape

Several interconnected factors contributed to buyers’ reluctance to meet asking prices:

Struggling Theatrical Market

The industry continues to grapple with a challenging theatrical landscape. Recent independent box office disappointments further highlighted the difficulties in securing strong returns from cinema releases, making buyers more cautious about upfront investments.

Post-Theatrical Window Erosion

A significant concern raised was the worsening situation regarding post-theatrical window deals, which directly impacts the ancillary revenues distributors can expect. Stuart Ford, chairman and CEO of AGC Studios, observed that the “Pay-1/SVOD affliction that the U.S. has been enduring” is now affecting “a lot of other major territories, such as Germany, Spain and Italy,” consequently “constraining impact on people’s buying power.” This global trend means less revenue from streaming platforms and other distribution channels, forcing buyers to lower their acquisition budgets.

Decreased Ancillary Revenues

Beyond SVOD, the overall decline in ancillary revenues across various platforms presents a substantial problem for distributors. Rupert Preston of Vertigo Releasing in the U.K. emphasized that the “biggest problem” for distribution companies is this drop, which “affects the economy, it affects everything.”

Spotlight on Select Projects: The Hunt for Value Continues

Despite the prevailing caution, some projects managed to generate considerable buzz and interest, indicating that quality and a clear market proposition can still cut through the noise. Among those mentioned were:

• “Ibelin”: Morten Tyldum’s film, a real-life story about a man who found a rich life through “World of Warcraft,” starring Charlie Plummer, Stephen Graham, and Toni Collette, was a notable launch for Black Bear.
• “Bad Bridgets”: A 19th-century New York revenge thriller from director Rich Peppiatt, featuring Daisy Edgar-Jones and Emilia Jones, was being sold by FilmNation and WME Independent. However, its rumored asking price of approximately $10 million for U.S. rights and $20 million internationally proved prohibitive for most buyers.
• “Phantom Son”: AGC’s thriller starring Renee Zellweger and directed by David Yates, was a “really strong” seller due to its “very strong marketing proposition and a clean concept.”
• “Sharknado Origins”: The return of “Sharknado” from B-movie icons The Asylum also garnered attention, demonstrating continued interest in established, low-budget franchises.

These examples suggest that while high-budget, risky projects face scrutiny, films with strong concepts, established talent, or proven franchise potential can still attract buyers, albeit at price points that align with current market realities.

Conclusion

The recent American Film Market showcased a tale of two halves: an expertly managed and highly praised new location in Los Angeles, providing an ideal setting for industry professionals, juxtaposed with a challenging sales environment dictated by a market in flux. While the ease of doing business at the Fairmont Century Plaza was a significant win, the persistent issue of film package prices that have yet to fully “adjust to the realities of the market” created a discernible friction. The difficulties in the theatrical market, coupled with dwindling post-theatrical and ancillary revenues, are reshaping buyers’ appetites and budgets.

As the independent film industry navigates these complexities, the focus remains on finding unique, compelling “special film[s]” that can perform even in a challenging climate. The AFM continues to be a crucial platform for community building and creative exchange, but its future success in facilitating sales will hinge on a collective recalibration of expectations between sellers and buyers, ensuring that film packages are priced in alignment with what the global market can truly bear.