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American Film Market faces new challenges and opportunities in Vegas
Adapting to changing times
In recent years, the film and TV industry has been navigating what can be described as “interesting times.” This year’s American Film Market (AFM), held from November 5-10 at the Palms Casino Resort in Las Vegas, offers a snapshot of these ongoing shifts. Among the changes, the AFM has witnessed both positive and negative impacts.
The streaming era’s peak and its repercussions
At the height of the streaming boom, major studios like Netflix, Amazon, and Apple were aggressive in securing exclusive content for their platforms. This led to the hottest titles selling their global rights well before hitting the AFM. While beneficial for project creators, it diminished the market’s relevance for smaller buyers.
Sales agents and producers found themselves bypassing traditional financing models, directly approaching streamers, which minimized the need for markets like AFM. However, this dominance by streaming giants has waned, leaving the film market to pave new roads.
“We’re back to the independent model, where interesting equity financing structures are emerging,” highlights industry insiders. This shift allows for greater flexibility in financing, devoid of constraints imposed by major streamers.
The decline and resurgence of theatrical releases
While in-person theater attendance has seen a significant decline, this isn’t a major concern for those financing AFM-friendly independent films, which haven’t historically focused on theatrical deals. According to industry data, only about 10% of financed productions have seen theatrical distribution.
However, theatrical releases still hold significant promotional value, offering legitimacy and visibility that can drive viewers to streaming platforms. For instance, the recent action-thriller Land of Bad, starring Russell Crowe and Liam Hemsworth, enjoyed strong performance downstream after its theatrical release.
Strategic premiere and distribution approaches
Independent producers are adopting strategic approaches to premiere and distribute films. For instance, recent films often debut at major international film festivals like Venice and Toronto, securing key territory rights before being taken to markets like AFM for the rest of the world.
In the current landscape, buyers typically demand comprehensive rights, from theatrical to VOD, highlighting how much the market has evolved over the years.
The shifting sands of home video and streaming
During the heyday of home video, the primary driver at AFM was securing video rights. Producers could easily cover production budgets through pre-sales, often leveraging B-list actors and high-concept posters to attract buyers. This model peaked during the DVD era but crumbled as piracy and streaming platforms like Netflix grew in prominence, decimating the demand for physical media.
Between 2006 and 2019, DVD sales plummeted by 86%, signaling the end of an era for both home video and AFM. Consequently, companies were forced to pivot, producing grander theatrical movies with bigger stars, albeit at the expense of profit margins.
Navigating the streaming era’s boom and bust
During the streaming boom, companies like Bondit Media Capital co-financed and produced numerous low-budget, late-career action films. However, with rising interest rates and the streaming space maturing, the appetite for such content diminished. Platforms refocused on traditional studio models, buying less independent film and TV content.
Today’s market buzzwords are “elevated” for genres like horror, action, and thriller, whereas dramas and biopics face tougher sales unless attached to notable directors and stars. Buyers are more cautious, requiring scripts and exhaustive analyses to ensure originality and uniqueness.
Competition and future outlook
The AFM’s star power may be challenged by the announcement of a new official marketplace by the Toronto International Film Festival (TIFF) set to launch in 2026. Supported by substantial government funding, this move could place additional pressure on the AFM.
With TIFF planning an official market, the question arises whether it can coexist with AFM or if companies will be forced to choose between the two. While it signals TIFF’s own struggle to maintain year-round programming, it also highlights the dynamic nature of the industry.
The landscape of film market financing, distribution, and audience engagement continues to evolve. Stay tuned for more updates on the exciting changes shaping the future of the industry, and don’t forget to share your thoughts and follow our site for further insights.
