I told you so!!!

There's an article in the Hollywood Reporter entitled, "Hollywood rethinks use of A-List actors." You can also find it on IMDB-pro. The article explains, "studios have decided to think twice about splurging on A-list movie stars and costly productions in reaction to the poor economy." It went on to quote box office figures from such films as THE HANGOVER ($459 Million), DISTRICT 9 ($200 Million) and even the new low budget thriller PARANORMAL ACTIVITY ($100 Million) of examples of films made for less money with no major stars that have obtained a large return on their investment.

I've been saying this in my business plan for over twenty years. Constantly both Major and second tier distributors would listen to my pitch or watch my completed film and state "we like it but you need a name to drive the picture into profit." Filmmakers go out, find a star who likes the script, but now your budget has doubled or even tripled because you had to add the additional expense of "Star Power." Now, it takes longer to get to profit. However, when it comes right down to it, the film is either entertaining or it isn't. It doesn't matter who's in it. Was the comedy funny and was the thriller, thrilling?

I went to the movies this weekend and even in this economy the West Orange 5 theater in Ocoee was packed. I spoke with the owner of the theater (Patrick) and he mentioned that "2012" will do quite well and that "DISNEY'S SCROOGE" not so much. "2012" is an effects driven film with John Cusack as the main star and SCROOGE is animated with Jim Carrey. SCROOGE has done in two weeks what "2012" has done in three days and PARANORMAL ACTIVITY has grossed more than the two films combined and I don't even remember the star of that film. It shouldn't take a marketing genius to know to get a film to profit you've got to keep costs down and production value up. If the studios listened to the independent filmmaker decades ago there wouldn't be a slow economy for studios.

My point is --- people are still going to the movies in droves! The good films do good and the bad films tank! The studios have been putting out more bad films with major stars creating enormous budgets and loss. then they toss good money after bad by buying advertising and trying to shove the film down our throats. Studios used to place 35-40 films on a production slate. There is an enormous amount of red tape to get a film "Green Lit" for production. Years ago, independent film makers earned what was called a "Negative Pick up." The studio would purchase the film because they knew it would make money and add it to their distribution slate. "CROCODILE DUNDEE' was made by Paul Hogan for a modest eight million or so Australian dollars. Paramount purchased the distribution rights for $10 million and invested a few million more in prints and advertising and it grossed $178 Million at the box office. No one knew who Paul Hogan was but a year later he was a household name and the studios raked in the bucks for two sequels as well. BLAIR WITCH was purchased for a couple of million and there was another large investment in retouching the film and for prints and advertising. The film was the highest grossing film in quite sometime and still ARTISAN managed to go broke in a couple of years making or distributing high priced films like REPLICANT. Hell, they made a remake of BLAIR WITCH (without the original filmmakers) for fifteen million and lost money! The original grossed over $250 Million worldwide and was made for under forty thousand. Artisan is now part of Lion's Gate, who has created a knack for picking up low budget horror films and turning a profit.

Remember Cannon International with the cousins Golan-Globus at the helm? They made and purchased low end product in the 80s and made a fortune. Once they got the studio mentality and started hiring big box office stars and shifting their business plan they were doomed for failure. Remember PIRATES (1986/Walter Matthau) made for an estimated $40 million and had a box office gross of $1.7 million? How about RUNAWAY TRAIN (1985/Jon Voight and Eric Roberts) made for and estimated $35 million and had a box office gross of just under $8 million? Cannon for years made more money on their low end product line than they did with their high priced, star driven films. Remember SLING BLADE? Who was Billy Bob Thornton until SLING BLADE was released? FARGO, LITTLE MISS SUNSHINE, JUNO, and don't force me to go down the list of horror films like CABIN FEVER, SAW (original), FRIDAY THE 13TH (original) and George Romero's classic NIGHT OF THE LIVING DEAD.

What I'm really surprised at it that it took the studios this long to make the announcement of something independent filmmakers have know for decades. If you're looking to invest in a film, seek out an independent filmmaker. Take a look at his business plan and roll the dice. You might be surprised at the outcome. People still go to the movies. They rent them online, watch them on the web and even still view them on cable TV.

.....and cut!