A Sobering Bit of Reality

That's why professional editors were so pissed off with FCPX, it wasn't an upgrade for FCP7, it wasn't even a product aimed at them, it was aimed at the next generation of bedroom directors/editors/filmmakers, who only existed in relatively small numbers at the time but Apple obviously wanted to get themselves a market position early, ready for when the masses arrive.

What you have written here is almost word for word verbatim what I heard 15-20 years ago in the video production business.

I'm clearly younger than you - but not that much. When I started professionally I was part of the first generation of digital video "bedroom directors/editors/filmmakers"; by day I was working on someone else's $50k editing system on video shot on $40-80k cameras, at night I was working on my own $5k (including camera) setup with the first version of FCP and marveling at how much better it worked than the other system.

That was 1998. I'm not arguing that what you describe happening in the music world won't happen in the film world - I'm arguing that it started happening over a decade ago and is leveling off now.

decent film cameras are well into the 4 figures, which puts them in a specialist, niche market

Actually, decent cameras are widely available in the 3-figures, have been for several years, and are part of a mass-market. Everybody and their brother (and dad, and mom) seems to have a DSLR capable of shooting footage good enough for theatrical projection. Hell, with skill many of their cell phones could probably fit the bill. Most of them don't bother. If you're trying to make an independent film right now the cost of equipment isn't really a barrier to entry and hasn't been for at least 5 years now. That's my point.

Let me put your question the other way around: Accepting that the market is already more saturated than it was and is getting more saturated everyday, that the equipment is constantly getting cheaper/better, that the manpower requirements and skills are reducing/costing less and that the number of filmmakers is growing, what makes you think this trend has stopped or is stopping rather than increasing?

At the risk of repeating myself (you do have a knack for ignoring the most relevant part of my posts) - cost of equipment isn't the limiting factor in determining whether someone who wants to make a feature film nowadays can. You could start handing out production packages for free and it wouldn't cause a significant increase in production. Desire and drive isn't even enough to get it done - a simple look back at the trials and tribulations of our own h44 should make that obvious.

It takes a combination of desire (not everyone wants to be a filmmaker), drive (not everyone who wants to be a filmmaker will put in the effort to do it), competency (not everyone who puts in the effort will have the ability to learn it), skill (not everyone who learns the basic fundamentals of filmmaking will practice enough to be good at it) and time (not everyone who has all the other prerequisites will have the time to dedicate to producing a feature film) - plus you need to find other people with many of the same attributes for your cast and crew. Now you can offset all of those things with money - but clearly as there's less money to be made there's also less money to be raised for production budgets (markets tend to be self-correcting that way). It takes significant non-monetary, non-technological resources to produce a feature film - time, and people, primarily - and nothing much has changed, or appears to be likely to change, in terms of reducing that need any further than it already has been.

You're missing the point. Apple don't just sell an iPhone 5S at whatever price they want, they extremely carefully place the iPhone at a price the market will accept. Which is roughly the same price or slightly higher than other manufacturers' equivalent models and they can charge a small premium by adding value in terms of build quality, design, ease of use, security and brand prestige. With a 100x more films in the market, the price of films will fall and eventually the expected/acceptable market price will be zero or close to it.

Actually, they charged an insane premium for the first generation iphone, and every single pundit in the market predicted they were shooting themselves in the foot and that the iPhone would be a monumental blunder that could even wipe out the company (makes for some entertaining reading: iPhone Punditry). And then, when the opposite happened and the rest of the market started chasing them, those same pundits confidently predicted that they'd be wiped out as the market commodified on cheap or free phones from competitors. Instead they've climbed to take 80%+ of the industry profits as major competitors have floundered or died.

What all these pundits miss is that they look at the market only in terms of widgets and dollars. One widget is as good as another. If you can get widget A for free, then they assume no one will pay much for widget B. The problem is people don't buy like that - they don't just make a list of features they want and pick the cheapest widget - from all available widgets - that meets that list. They make purchases 'irrationally' - based on emotional factors that are nearly impossible to measure, quantify or predict in a generalized market sense.

Films are the same way - even more so, in fact. It doesn't matter to me if there's one new zombie movie this year, or 10,000 - I'm probably not going to watch any of them, no matter the cost, because I'm just not interested any more. But if Wes Anderson put out a zombie movie this year I'd be in the theater opening week because I've really liked most of his films. The same goes for Michael Mann, Wong Kar-Wai, Steven Soderbergh - have you ever been the only guy in a packed theater of screaming women? I have, on opening night of Magic Mike. I personally have no particular interest in male strippers, or films about them - but I really like Soderbergh's style and brand of filmmaking so I bought a ticket and enjoyed the film. I hadn't seen a male stripper-themed film before, and likely won't again - but I'll go see Soderbergh's next film (if he decides to start making them again) no matter how many other films flood the market that year.

No, I understand exactly what Wong Fu is doing, and that's what worries me!! What you're saying is that the next generation of professional filmmakers aren't actually full-time professional filmmakers anymore, filmmaking is only one of their Brand's products and maybe no more than a sideline.

Not a sideline, just not the product. The films are the brand. Without them there's no audience, and thus no market for the brand's products.

At that point, our next generation professional filmmakers won't actually ever make any films! Or if they do, the films are no more than a marketing tool or loss leaders for the "Brand's" other, profitable products. Either way, 100x more films in the marketplace could very possibly herald the virtual end of the professional filmmaker, even for those with a very substantial established following/subscriber base!

That's actually kind of my point. If you define 'professional filmmaker' purely as one who makes a living selling tickets to their films, then yes it may be the end of the professional filmmaker. I, on the other hand, see 'professional filmmaker' as someone who makes money from their films - whether direct or indirectly. Filmmakers (and studios) have been making money indirectly for decades - it's just the balance of indirect to direct that's changing now. The next generation of professional filmmakers will be business people - not just artists.
 
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I'd agree - but the problem is that sustainable or not all the films largely go into the same pool of competition, which makes it more difficult for any of them to be sustainable.

That's just the reality of the situation. While it's all nice to talk about it, it's doubly important to talk about how the situation actually is rather than dream about how we'd like it to be. Yes, it's going to be a lot harder to reach sustainability at the independent or low budget level. The question should be, "What can we do about it?"

But that's a model based on the market as it was nearly 25 years ago. What's the new model? When will we get the new Tarantino, Rodriguez, etc that the next generation will be emulating?

The new ones are making films. When there is a demand for them, the cream will rise. Market forces (supply and demand) will dictate the future.

what makes you think this trend has stopped or is stopping rather than increasing?

The music industry and the film industry is slightly different, though I believe you hit the nail on the head. As in, spot on, accurate assessment of the future of the (bottom end of the) industry. While there is a chance that technology will develop to the end where you can make a film that currently costs $250mil for less, I'm not quite sure it'll get to the same point that it has in music. I am of course talking about the top end of filmmaking.

At the bottom end, I think you're dead on right. It's increasing and will continue to increase.

I saw an article today that looked like a reaction to this article. It called for 5000 filmmakers who have no financial future in filmmaking to sign a petition and agree to give up their dreams and quit filmmaking for good to help save the industry. Dreaming about decreasing the amount of films being made isn't going to help anyone. It's akin to wishing less people to post stupid crap on Facebook. It's a dream based in fantasy.
 
This is a great thread.

It's over my head. But I can watch and try to learn.

I sympathesize with those who want to make a living working on crews in the indie film industry. But you know, how many people in other sectors or industries make a "living wage", whatever that is, these days? I want people working in the film industry to do well financially. But still, maybe it's just not the reality for most, just as it's not the reality for so many in other sectors, particuarly in the service sector, who live paycheck to paycheck.

I mean, the hard reality is, if you want to make a living, you might have to get a "real job".

Most people.

Another observation. My impression is that most filmmakers, here on IT, anyway, and no, not all, of course, really aren't dreaming and working towards a life in the independent filmmaking "sector". What they're really dreaming of is making it into the Hollywood and studio system.

There are so many complaining about the growing "noise" thanks to the growing accessibility of the means to create videos. I do see the downside of that. But you know, on the bright side, I can imagine an upside to that, as well. Imagine a world in which more stories, a greater diversity of stories, can be told by more, and a greater diverstiy of, people who would otherwise remain members of the great majority of humans who live and die in (comparative) silence and obscurity, as though they never existed at all --not that you need to have made a film to have counted or to have lived a meaningful life.

I don't say this out of politcal correctness or out of some "bleeding heart" or conformist sense of mulitculuturalism, either. That's really not my thing. It's more selfish than that. I say it out of a sense of the potential enrichment it could mean for us all...to see more into other people's lives and dreams, as well as to see the world more broadly compared to only what Hollywood or other important filmmaking centers (gatekeepers) deign to pass through to us.

On the march towards louder and louder noise, for those who would have less of it, I would venture to speculate that there is a possible "antidote" for them. And that could be an act of God, Nature, or the realities of business, etc.

For example. It seems to me that a lot of the noise is dependant upon YouTube. What if YouTube went away? I know it seems almost unfathomable now. But hey, huge, seemingly invulnerable companies have tanked before. It happens. It's a fact of life, of business, of the market. Kmart, Sears, Circuit City, Yahoo, GM, ...what else? What if Google decided to kill YouTube for some reason? I know, must be very unlikely. Still, what if YouTube went away for some reason? Would there be a replacement forthcoming? If not, the silence would be deafening, would it not?

Similarly, what about net neutrality? What if the dire, doomsday predictions of some come true? What if the internet becomes so stifling and constricted due to the end of net neutratility that people just abandon the internet for anything other than shopping, say?

I'm sure these things are largely fanciful. I'm just saying that we don't really know for sure how things are going to pan out in the future. Part of the fears inherent in this discussion might be driven by the assumption that the likes of YouTube and Netflix will survive, perhaps, indefinately. Could be that something technological or market related will come along, unpredicted by us, that will radically change the landscape, unforeseen.
 
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That was 1998. I'm not arguing that what you describe happening in the music world won't happen in the film world - I'm arguing that it started happening over a decade ago and is leveling off now.

Maybe you're right and it is levelling off but I personally am not seeing any evidence of this, all the evidence I'm seeing is that it's accelerating not slowing.

If you're trying to make an independent film right now the cost of equipment isn't really a barrier to entry and hasn't been for at least 5 years now. That's my point. ... (you do have a knack for ignoring the most relevant part of my posts)

I didn't ignore the most relevant parts of your posts at all, maybe you didn't understand the way I addressed them though?

I absolutely agree that the cost of the equipment isn't as much of a barrier as it used to be and is maybe little/no barrier at all for the middle earning sector of the most affluent countries. However, when the cost of equipment reaches the point where it's also no longer a barrier to the lower earning sector of the most affluent countries and to the middle/low earning sectors of less affluent countries, do you think the amount of film production is going to stay the same, decrease or increase?

With regards to the personnel. Yes, making films requires a great deal of time, dedication, skill and manpower. But technology is constantly reducing the amounts of all these requirements. Are future versions of FCPX going to be more difficult to use, require more time and skill to achieve near professional results and cost more or, are future versions going to make it easier, quicker and cost less? Isn't this also going to be the case with most of the other filmmaking equipment (hardware and software)? Like with filmmaking, making an album used to take 6 months or more and require teams of dedicated and skilled professionals. Now it can all be done by 1 person in a few weeks (or they can take as long as they want because they have no operating overheads). Now I can't see exactly the same thing happening in film, where just 1 person will be able to make a feature on their own but I can see it requiring less skill, knowledge, manpower and cash than it does now. And as these requirements reduce, I believe, the result will be an increasing amount of production, not less or the same amount. 30 years ago I couldn't see (or even imagine) how an album could ever be made without teams of skilled people, let alone by one person, so who knows, maybe one day it will be easy for one person to make a feature.

Actually, they [Apple] charged an insane premium for the first generation iphone, and every single pundit in the market predicted they were shooting themselves in the foot and that the iPhone would be a monumental blunder that could even wipe out the company ...

Yes, but the first gen iPhone had no competition, it was the first modern smartphone. They have competition now though and have to price current iPhones competitively, albeit with an additional premium and a commensurate amount of additional value as perceived by the market.

It doesn't matter to me if there's one new zombie movie this year, or 10,000 - I'm probably not going to watch any of them, no matter the cost, because I'm just not interested any more. But if Wes Anderson put out a zombie movie this year I'd be in the theater opening week because I've really liked most of his films.

You're still missing the point. There will always be crappy films, decent films, good and very good films AND films which for one reason or another can command a premium. The same is true in the music business, Yes, the good and very good music gets drowned in the ocean of crap and decent music, and there's so much that the value of all of it has effectively become worth zero. However, there is still such a thing as premium music, this premium music can still charge a premium and there is still great demand for it, none of this is the problem. The problem is, how much of a premium will the market accept? That acceptable amount of premium is influenced by the fact that even very good music product is worth zero. In the case of music, that premium is now down to just a few cents. Many premium music creators once got a dollar or more per unit, now they get a tiny fraction of 1 cent per unit and it's no longer profitable to make music product. Premium music is still made but it's no longer a product in it's own right, it's just marketing material for other more profitable products and the recording artists are no longer full-time recording artists because they spend the vast majority of their time creating, marketing and purveying those other products. Again, I'm talking about the premium products and artists here, the big names. The aspiring hopefuls (even the very talented ones) have no chance because what are they aspiring to (?), a profession which no longer exists?

...it's doubly important to talk about how the situation actually is rather than dream about how we'd like it to be. Yes, it's going to be a lot harder to reach sustainability at the independent or low budget level. The question should be, "What can we do about it?"

Absolutely!!!! The problem at the moment though is too many people just saying "this is all bullsh*t" or burying their heads in the sand and all the people who realise something needs to be done spending their time convincing the doubters/deniers rather than actually discussing solutions and doing something about it.

The music industry and the film industry is slightly different, though I believe you hit the nail on the head. As in, spot on, accurate assessment of the future of the (bottom end of the) industry. While there is a chance that technology will develop to the end where you can make a film that currently costs $250mil for less, I'm not quite sure it'll get to the same point that it has in music. I am of course talking about the top end of filmmaking.... At the bottom end, I think you're dead on right. It's increasing and will continue to increase.

Yes, the music and film industries are slightly different. Hopefully different enough that the same thing won't happen. Unfortunately though, everything I'm seeing in the film industry does appear to be following exactly the same path as the music industry did.

Yes, I have been talking in terms of the indie market, films with a budget from zero up to about $5m or so. However, I don't think the top end of the market is unaffected by what's happening at the bottom end. All the major studios are producing substantially fewer films per year than they were a decade or so ago. Disney for example used to make around 50 films a year, now it's more like a dozen. And, those dozen are generally higher budget (and therefore higher risk) than those 50 were, because they've got to differentiate themselves more from the ballooning lower budget fayre. To ameliorate the higher risk of a roster containing only a small number of extremely expensive films they lower their risk as far as content is concerned, which is why we mainly see sequels and remakes which push the boundaries of technological possibilities rather than pushing the boundaries of original content.

I saw an article today that looked like a reaction to this article. It called for 5000 filmmakers who have no financial future in filmmaking to sign a petition and agree to give up their dreams and quit filmmaking for good to help save the industry. Dreaming about decreasing the amount of films being made isn't going to help anyone. It's akin to wishing less people to post stupid crap on Facebook. It's a dream based in fantasy.

At least making suggestions to solve the problems is a step beyond just trying to spell out that there is a problem. Although I agree with you, this particular suggestion is just an unworkable fantasy.

There are so many complaining about the growing "noise" thanks to the growing accessibility of the means to create videos. I do see the downside of that. But you know, on the bright side, I can imagine an upside to that, as well. Imagine a world in which more stories, a greater diversity of stories, can be told by more, and a greater diverstiy of, people who would otherwise remain members of the great majority of humans who live and die in (comparative) silence and obscurity, as though they never existed at all --
... I say [this] out of a sense of the potential enrichment it could mean for us all...

I don't need to imagine a world like that, I've already experienced it! Exchange the word "stories" in the quote above for the word "music" and what you have said is exactly the dream we had in the music business 20-30 years ago. The reality is that while almost everyone now has access to creating music and there is a far greater amount and diversity of music, none of it can be heard for the "noise". But that's not the main problem! What we didn't see was how that democratisation of music creation would fundamentally affect the law of supply and demand and devalue all of music creation so that even very good music is as worthless as the "noise" and the consequence of that is that there are hardly any professional music creators anymore. As far a the general public are concerned the end result is not an increase in diversity or an "enrichment" but a decrease. There are fewer major artists and they are more formulaic and less innovative than ever before, as there are far fewer companies making music and they are more risk averse.

My impression is that most filmmakers, here on IT, anyway, and no, not all, of course, really aren't dreaming and working towards a life in the independent filmmaking "sector". What they're really dreaming of is making it into the Hollywood and studio system.

This is the point of what I've been trying to say in this thread. What if there is no professional independent filmmaking sector? AND (!) what happens when there are a 100x more filmmakers trying to get into a Hollywood that is many times smaller? AND, what if Hollywood didn't even really exist anymore and was in effect just a sub-division of a huge conglomerate's marketing department? Would you still dream of making it to Hollywood then?

This might all sound like a load of horsesh*t because there are just too many "what ifs" in there but (!) there are more and more filmmakers everyday, films are not becoming more diverse (they are becoming less diverse) Hollywood is shrinking (and diversifying out of film) and, there is a precedent for this bleak scenario, the music business. The danger is that we wait until we are absolutely certain the film industry will end up like the music industry, because by that time it will be too late to do anything about it!

It seems to me that a lot of the noise is dependant upon YouTube. What if YouTube went away? I know it seems almost unfathomable now. But hey, huge, seemingly invulnerable companies have tanked before. It happens. It's a fact of life, of business, of the market. Kmart, Sears, Circuit City, Yahoo, GM, ...what else?

Be careful what you wish for! In all the cases you have mentioned those companies were replaced by something better, cheaper or both and the result was generally more noise! From a business perspective, it's hard to imagine competing against a business like Youtube who gets all their content for free, unless your business also gets it's content for free but that doesn't really help the content makers (us)!

However, it might be possible (in theory!) to have a sort of super Youtube+, for which you charge a premium for the best ("noiseless") content and pay the content makers a reasonable amount. But, it would have to be done with the support/inclusion of Youtube (and similar platforms) because obviously you couldn't charge a premium for content which is available elsewhere for free.

G
 
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I saw an article today that looked like a reaction to this article. It called for 5000 filmmakers who have no financial future in filmmaking to sign a petition and agree to give up their dreams and quit filmmaking for good to help save the industry. Dreaming about decreasing the amount of films being made isn't going to help anyone. It's akin to wishing less people to post stupid crap on Facebook. It's a dream based in fantasy.

I saw that - it was a satiric response to the article that started this discussion. :)
 
By the way, has anyone considered the fact that there are simply more people on the planet now? Maybe instead of talking about doom and gloom, we should be looking for ways to find a niche audience.
 
By the way, has anyone considered the fact that there are simply more people on the planet now? Maybe instead of talking about doom and gloom, we should be looking for ways to find a niche audience.
I feel this is the key approach.

Find a niche market with a large enough population + concentrated/organized + discretionary income and you've got your market - if you know how to market to them.

Providing a generic product is likely to fail economically.
Providing a product to a few well funded fetishists is also likely to fail.
Providing a product to a widely distributed large audience adversely increases "per contact" expenses.
Providing a product to a large economically disadvantad market is likewise a fail.


Sufficient population.
Centralized.
Monied.
 
I know how everybody's been comparing the music and film industries. I feel that the industries are a little different. I'm not exactly sure how. I can't quite articulate it, and so I suppose it's not much more than my opinion at this point. I feel like the music industry is more difficult to break out in. I don't see how any band or artist can make money in music anymore unless they're doing live performances. And then the chicken / egg question is how do you make money doing live performances if you're not already famous?

Also, there may be a lot of filmmakers out there, a lot of musicians out there, but if you look at the history of some musicians, those guys really, really worked hard until they got discovered. Maybe it's harder to get discovered now, because there are so many of us, but who amongst us is really working hard?

It took Springsteen and the E Street band, playing years and years up and down the Jersey shoreline and elsewhere, as a cover band or an opening act for somebody famous, before somebody took notice, and started writing about them in the papers. You may or may not like Springsteen, but getting 7 or 8 guys to play night after night, year after year, for minimum pay, is serious hard work and dedication. Is anybody here really working that hard? If we can exhibit that kind of fortitude of the mind and soul, and if we can develop a little talent along the way, I think we can do it.

Just wanted to provide some happy thoughts to anyone despairing :). Time to stop living life, and making films on the side, and time to give up life and stopping just short of cutting off one's ear.

Cheers :)
Aveek
 
I know how everybody's been comparing the music and film industries. I feel that the industries are a little different. I'm not exactly sure how. I can't quite articulate it, and so I suppose it's not much more than my opinion at this point. I feel like the music industry is more difficult to break out in. I don't see how any band or artist can make money in music anymore unless they're doing live performances. And then the chicken / egg question is how do you make money doing live performances if you're not already famous?

Also, there may be a lot of filmmakers out there, a lot of musicians out there, but if you look at the history of some musicians, those guys really, really worked hard until they got discovered. Maybe it's harder to get discovered now, because there are so many of us, but who amongst us is really working hard?

It took Springsteen and the E Street band, playing years and years up and down the Jersey shoreline and elsewhere, as a cover band or an opening act for somebody famous, before somebody took notice, and started writing about them in the papers. You may or may not like Springsteen, but getting 7 or 8 guys to play night after night, year after year, for minimum pay, is serious hard work and dedication. Is anybody here really working that hard? If we can exhibit that kind of fortitude of the mind and soul, and if we can develop a little talent along the way, I think we can do it.

Just wanted to provide some happy thoughts to anyone despairing :). Time to stop living life, and making films on the side, and time to give up life and stopping just short of cutting off one's ear.

Cheers :)
Aveek

I take it for granted that I will toil in unsociable hours for many years to shoot a load of shorts, music vids and adverts, will make just about nothing financially and probably die wallowing in a pit of despair, wondering why I've never been successful, crying at the injustice of it all.

Oh woe is me, woe is me.

Or if it doesn't work out, I could just go down the pub for a couple of pints.
 
My turn! Man that was a dense thread read. I glossed some but got 90% content...

So an aspect that you've been touching on but not calling out explicitly is that there is a a market for "Film-making as recreation" This is what is driving the lower cost of equipment. more and more people are interested and can now afford to make movies, but the reward is the recreation in the creation of the film, not the film itself. yes, we do it because its fun. Plenty of people spend as much or more on more traditional hobbies. Model Train enthusiasts, avid golfers, people with small planes, hobby race cars... etc.

Amateur Racing might be a close analogy of hobby film making. Equipment buy in is about the same, semi-volunteer crews of about the same size, on going fees etc. Some of these racers are pro mechanics, that's their day job so to speak. many filmmakers at a similar level are working in corporate video, local commercial production etc. and doing narrative creative work for the love of it.

I think there is a mind set that is outdated, that because I can make a move I can make money at it. Thats not the case. If you want to make money, even at movies, then drop out of film school and get a BA degree. Then setup your BIZ to let you make movies.

I challenge that it was EVERY profitable to be a small time movie maker outside of very specific niche markets.

11 hours, yep eleven hours, of video are uploaded to youtube every 60 seconds. People LOVE moving images.

Another interesting thing I noticed. ... my kids of varying ages from 8 to 20 enjoy watching 60 minutes of video game play streaming \ youtube.
They are not alone!
100% virtual cinema is HERE.
If you want to make money, this is a market.
 
I take it for granted that I will toil in unsociable hours for many years to shoot a load of shorts, music vids and adverts, will make just about nothing financially and probably die wallowing in a pit of despair, wondering why I've never been successful, crying at the injustice of it all.

Oh woe is me, woe is me.

Or if it doesn't work out, I could just go down the pub for a couple of pints.

Is that what my post sounded like, "woe is me? the injustice of it all?"
 
100% virtual cinema is HERE.
If you want to make money, this is a market.

Yeah, there's a market. But most of us aren't leading crap lives because we want to exploit a market. There's a market for raspberry icecream too. But I'm only doing this because I want to tell the story I want to tell. Right? Somebody wants an alien invasion. Somebody wants to see batman. Somebody wants to see a murder. Somebody wants to see an asteroid explode. Somebody wants to see a father son relationship story. Which one do I want to tell? Which one drives me? There's obviously a half a billion dollar market for Superman. Am I supposed to go after it because it's a better market. I might as well sell ice cream.


It can be done in the art of film. There are enough people still buying downloads and ordering $25 DVDs. The success stories are few and far between, but they're there. If you actually make something good (and a lot of indie movies are serious crap), and honest, and meaningful to people, the world may not beat a path to your door, but enough may click on your download link to allow you a decent living.
 
Yes, the music and film industries are slightly different. Hopefully different enough that the same thing won't happen. Unfortunately though, everything I'm seeing in the film industry does appear to be following exactly the same path as the music industry did.

Yes, I have been talking in terms of the indie market, films with a budget from zero up to about $5m or so. However, I don't think the top end of the market is unaffected by what's happening at the bottom end. All the major studios are producing substantially fewer films per year than they were a decade or so ago. Disney for example used to make around 50 films a year, now it's more like a dozen. And, those dozen are generally higher budget (and therefore higher risk) than those 50 were, because they've got to differentiate themselves more from the ballooning lower budget fayre. To ameliorate the higher risk of a roster containing only a small number of extremely expensive films they lower their risk as far as content is concerned, which is why we mainly see sequels and remakes which push the boundaries of technological possibilities rather than pushing the boundaries of original content.

You're somewhat right there. The higher end (studio films) are a lot more protected than the lower end due to the barrier to entry. Part of the reason is the clutter in the media. You need a huge bundle of money to market films to get a big box office $$$ number. The advertising budgets are huge.

Small budget films (10mil or less) don't make a lot of sense to studios. Once you tack on the typical $25mil advertising budget, the fllm needs to do 70mil just to break even (not including other windows) whereas a $200mil movie, tack on a $50mil advertising budget, they only need to do $500mil (which is a lot more common - thus reducing their risk).

If $250mil isn't a barrier to entry (not to mention the distribution barrier to entry), I don't know what is.

I think it's sad that we don't see studios pushing the boundaries of original content though, I do see it as an opportunity for independent filmmakers to take advantage of their competitive edge and show more films that audiences are willing to pay to see. It is a dangerous area though. If the studios with their experience cannot make a profit from that area, your main advantage is less overheads / lower costs / creative control.
 
And I'm beginning to rethink this whole thing. I'm not even sure there IS a clutter of movies. What moviegoer is confused at the clutter? Their choices used to be movies peddled by studios, and remains movies peddled by studios. It's as if your movies and my movies don't even exist. The moviegoer has never heard of me or my movie. How can anything I make possibly add to a clutter to the moviegoer.

The clutter is faced by the distributor who has an abundance of choice. The moviegoer still gets to see what is peddled by the distributor/studio. So I guess the 'secret' is to bypass the distributor.
 
The moviegoer still gets to see what is peddled by the distributor/studio. So I guess the 'secret' is to bypass the distributor.
This is why it's important for no budget indie filmmakers to learn how to market their own films.

Most "distributors" are hosting distributors with no financial interest in promoting our films, thereby shunting the entirety of that task onto the filmmaker.

Well... LOL. Just host it yourself!

But you still gotta (should) build a market before making your film - UNLESS - you wanna go the "hobby" route and just make 'em for fun, an approach which I can honestly support.
 
... if you look at the history of some musicians, those guys really, really worked hard until they got discovered. It took Springsteen and the E Street band, playing years and years up and down the Jersey shoreline and elsewhere, as a cover band or an opening act for somebody famous, before somebody took notice...

It can be done in the art of film. There are enough people still buying downloads and ordering $25 DVDs. The success stories are few and far between, but they're there. If you actually make something good (and a lot of indie movies are serious crap), and honest, and meaningful to people, the world may not beat a path to your door, but enough may click on your download link to allow you a decent living.

There are countless other, some even more culturally important, bands/musicians who took that route (The Beatles spring to mind). Indeed, that was once the main route into the industry and even in it's decline it still guaranteed at least a degree of meritocracy in the popular music industry, until relatively recently.

This route is now effectively dead in the music industry but I agree, that while it's extremely difficult, it's not dead yet in the film industry. With talent, damned hard work, persistence and some luck, there's still success and a living to be had. The goal, is to make sure this continues to be true in the future!

The higher end (studio films) are a lot more protected than the lower end due to the barrier to entry.

I don't think the Big Studios are a lot more protected, I think they're a lot less protected than they've ever been! The increasing number of relatively low budget films being made means far more competition, lower value and less likelihood of a decent return on investment. So, the big studios have reduced their production of dramas, more original/experimental or any other types of films which can face competition from those with lower budgets. Instead, they are concentrating more of their resources into a fewer number of tentpole movies which face much less competition due to the barrier to entry (as you've described). While this approach does protect them from the masses of competition, it makes them far more vulnerable in another way: If you're making 50 or so films a year, you can afford to take some risks and have at least a few of them tank and still turn in a decent overall profit for the company from all the other films which don't tank and from the odd risky one which makes an unexpectedly large profit. However, putting huge amounts of money into a smaller number of films, means that just one or two of them tanking is a serious problem. The studios therefore have to reduce the risk of one tanking and do that by following a proven formula. However, proven formulas have a lifespan, the critics and film aficionados get bored of formulaic films first and sooner or later even the masses have had enough. If the market changes quickly enough (and it often does), the studios are going to have not just one tanker on their hands but several and with so much invested in each one, few (if any) other risky/more experimental films which might have provided a windfall to cover the losses, they're looking at financial ruin for the whole studio and maybe for more than one studio!

G
 
Came across this blog post via Twitter, which is a bit of a follow-up to the Salon piece in the OP.

"Is the Just-Do-It Ethos Bad for the Independent Film Business?"

http://winterfilmawards.com/2014/03...-ethos-bad-for-the-independent-film-business/

Excerpt:
Barnes refers to a Mark Duplass interview earlier this year in The Hollywood Reporter. In it, he says there’s a “Reaganomics of the film industry, which is we have an upper class and a lower class; there is no longer a middle class left—I think subconsciously is a part of it, to be honest. I personally believe if I made Cyrus today—which was a $6 million movie and made $10 million—I think today it would make more like $3 million because there are more movies out there; there’s more competition. I don’t want that pressure in my life right now of box-office performance hanging over my head to determine the merits of whether my film was a success or not. That, frankly, annoys the shit out of me and has driven me to a place where I like making smaller movies, like Safety Not Guaranteed, which when that movie made $5 million at the box office and $10 million through DVD and VOD, the $15 million cume of that movie was a massive success, because it was made for a million dollars.”

I'm actually blown away that "Safety Not Guaranteed" earned $15mil, not because it didn't deserve that sort of ROI (it was a fun film) but that for a $1mil indie to rake that much in is another reminder that it's still possible (Although Not Guaranteed;)) to show up on the ROI radar.
 
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