Indie Film Market Grew Again in ’97

Sales of independent films for theatrical exhibition, home video and television continued to experience strong growth internationally in fiscal 1997, according to just-released figures from the American Film Marketing Assn. Total revenue surpassed $1.8 billion, up 11% from 1996.

The statistics--which cover the 12 months ended June 30-- reflect another in a long string of robust years for independent film companies distributing mainly English-language works. But there is uncertainty about how the current fiscal year will play out.

“There is a lot of nervousness because of a lot of things happening, particularly in the Asian world,” said AFMA President Jonas Rosenfield, referring to the weakness in economies there.

Rosenfield said foreign pre-sales have dropped sharply in recent months, due in part to an abundance of product and competition from the major studios.

“There is a greater caution on the part of buyers. . . . As the business gets tighter and tougher, buyers get more demanding. They want finished product to look at,” said Rosenfield. “Plus, there’s increasing competition from the studios getting into this business.”

Companies such as Miramax and October Films function as independents and are among AFMA’s 120 members, even though they are owned by Walt Disney Co. and Seagram Co.’s Universal unit, respectively.

Independent film companies distribute their product outside the major-studio system, often selling their films country by country.

Rosenfield expressed optimism about this year’s American Film Market, scheduled for Feb. 26 through March 6 in Santa Monica. More than 300 exhibitors, the most ever, are expected. Company registrations are up 25% over last year, Rosenfield said, while individual registrations are 30% higher.

AFMA members hope the strength of the European market, which topped $1 billion in sales in 1997 for the first time and accounted for 59% of all revenue, will help offset problems in Asia.

Developing markets such as Eastern Europe are also coming on strong. Sales for that region jumped 182% over 1996, totaling $30 million for all media.

Television remained the strongest market, accounting for nearly $800 million, while the theatrical and home video markets--which were softer in 1996--showed stronger percentage growth. This reflects a boom in theater construction and VCR penetration in international markets.

In terms of critical acclaim, last year was not as stellar for independents as was 1996, when such titles as “The English Patient” and “Shine” dominated the Oscar nominations and lists of favorites. But Rosenfield said 1997 was more successful financially, with such films as “Scream 2” and “Bean” scoring at the box office.