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Credit Crunch Saps Funding for Indie Films

Drop-off in foreign rights sales leaves producers looking for cash

By Nick McMaster,  Newser Staff

Posted Apr 20, 2009 2:00 PM CDT
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(Newser) – Independent film producers are losing a once-reliable source of funding, the sale of foreign-distribution rights. Traditionally, the demand for American movies has been so high that producers can sell the rights to distribute the film—in many cases, even before it’s finished—in order to cover costs. But the credit crunch, rampant piracy, and burgeoning local production are conspiring to make distribution rights a tougher sell, the Wall Street Journal reports.

The euro’s fall against the dollar has also made American movies more expensive for foreign distributors. Producers also used to count on Wall Street financing to make up the budget gap after distribution sales—but that has dried up as well. "You always had economic woes somewhere, and you could make it up by selling movies to another country," laments one producer. "Now it's on a global basis.”

In this image released by Fox Searchlight, Mickey Rourke is shown in a scene from, The Wrestler.
In this image released by Fox Searchlight, Mickey Rourke is shown in a scene from, "The Wrestler."   (AP Photo/Fox Searchlight, Niko Tavernise)
US actor Johnny Depp waves as he leaves the set of the movie The Rum Diary, in Old San Juan, Puerto Rico, Wednesday, April 1, 2009.
US actor Johnny Depp waves as he leaves the set of the movie "The Rum Diary", in Old San Juan, Puerto Rico, Wednesday, April 1, 2009.   (AP Photo/Jose Antonio Rosario)
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In the old days, it was like selling sausages. We'd joke, 'how many pounds of movies do you want?' But those days are gone.
- Kathy Morgan, Kathy Morgan International

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COMMENTS
Showing 1 of 1 comment
Assassin
Apr 20, 2009 11:04 AM CDT
Be creative like Spike Lee was. Remember Him? He was the Producer, Writer, Director, Actor of a Black & White film called "She's Gotta Have It". He made his Dream come true by running up All his credit cards & his friends & relatives cards. But that was in the "Old" days when people actually struggled to get their dreams realized. Nowadays it is Expected that people should just hand over their money for any old "Indie" project. As Spike himself has said recently - with the advent of YOUTUBE & other New Media - if you Can't get a movie made & distributed - you aren't really trying - are you?

UK cinema market holds up despite recession
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independent film • Producer • foreign film • movie deal • movie financing • music distribution • financing

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