Insights from San Sebastian’s Creative Investors Conference

Navigating the post-COVID entertainment landscape

The third edition of San Sebastian’s Creative Investors Conference, held in collaboration with CAA Media Finance, was a whirlwind of discussions and insights. The event, which took place on September 24-25, delved deep into the evolving contours of the film and TV industry in a post-pandemic world. Here are some key takeaways from the intense sessions.

Rapid changes in the industry

British historian Lord Acton once said, “In history, the only absolute is change.” This sentiment was echoed throughout the conference. David Linde, during the wrap-up panel titled “Where Are We Going Next?”, remarked on the unprecedented speed of change in the industry. “We had this huge pandemic, then a strike, and now AI is rapidly advancing. I’ve seen many changes over the years, but never at this speed,” he noted. Vincent Maraval of Goodfellas agreed, emphasizing the accelerated pace of technological advancements. “Before, changes occurred over five-to-seven-year periods. Now, it’s just a couple of years.”

The new audience revolution

One of the most significant shifts discussed was the changing audience demographics. Scott Shooman, head of film at AMC Networks, highlighted this during the opening round table, “Taking The Temperature Of The U.S. Market.” He noted that the specialty market has become more genre-friendly, with younger audiences being more receptive to diverse content. “A24, Neon, and Magnolia Pictures are experiencing their best weekends ever in 2024, largely due to genre films,” he said. This shift is reminiscent of the changes chronicled in Peter Biskind’s seminal book, “Easy Riders, Raging Bulls.”

European cinema’s evolving demographics

The changing demographics of cinemagoers in Europe were also a focal point. Yohann Conte of Charades pointed out that in France, post-COVID, younger audiences are flocking to theaters to discover disruptive and provocative content. In Italy, the social class of cinema-goers has shifted. Lorenzo Gangarosa, formerly of Wildside and now at Our Films, explained that Italian films now focus on lower classes, as the bourgeois audience no longer frequents cinemas.

The challenges of U.S. indie production

U.S. indie production has been hit hard by the pullback in investment from studios and streamers. Christine Vachon highlighted the brutal experience of getting “The Brutalist” made, emphasizing the challenges posed by fixed union shooting costs. Jennifer Fox added that making American independent movies has become incredibly challenging due to contracted budgets. Roeg Sutherland of CAA Media Finance suggested that U.S. producers should look to Europe, leveraging the continent’s tax incentive schemes and casting their films as European productions.

The broken pre-sales model

The traditional pre-sales model for financing independent films is facing significant challenges. Vachon noted that the system, which has relied on foreign sales-based financing for decades, is now broken. Jonathan Kier of Upgrade Productions mentioned that only a handful of territories, such as Germany, Japan, and Latin America, remain active in this model. The U.S., once a crucial market for film finance and marketing, is no longer as pivotal.

Opportunities amidst challenges

Despite the challenges, the conference highlighted numerous opportunities. The contraction of investment from U.S. studios has created a void that independent financiers can fill. Sutherland cited the example of “Better Man,” a $110 million film about Robbie Williams, which was independently financed. Such projects, which would have been impossible to make independently before, are now viable due to the distressed market.

The rise of animation

Animation has emerged as a significant opportunity. Vincent Maraval of Goodfellas noted that 2023 was their best year in 25 years, largely due to the success of animated features like “The Boy and the Heron.” The popularization of Hayao Miyazaki’s movies on streaming platforms has contributed to this success. Yohann Conte of Charades added that they have never lost money on animation, despite still trying to understand why.

The U.K. and Spain: A tale of two countries

The U.K. is facing challenges, with a heavy reliance on big studio films and shrinking budgets for locally funded films. Danny Perkins of Elysian Film Group highlighted the need to focus on relationships and talent, citing the example of “The Magic Faraway Tree,” a $50 million film starring Andrew Garfield.

In contrast, Spain is thriving, thanks to robust tax incentives. Mariela Besuievsky of Tornasol Films emphasized the importance of developing content with a local focus to attract streamer or broadcaster finance. Spanish stories have been hugely popular on global platforms, with titles like “Society of the Snow” and “Berlin” leading the way.

Collaborative efforts: The Creatives

Collaboration is seen as a way forward for the industry. The Creatives, an alliance of 10 leading independent production companies backed by Fremantle, showcased their progress at the conference. Caroline Benjo of Haut et Court emphasized the importance of collective effort in dealing with difficult situations. Mike Goodridge of Good Chaos added that they have started working together on projects, such as “Sukwan Island,” which involves multiple members of The Creatives.

Looking ahead

The San Sebastian Creative Investors Conference provided a comprehensive overview of the current state and future prospects of the film and TV industry. The discussions highlighted both the challenges and opportunities that lie ahead, emphasizing the need for adaptability and collaboration.

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