Festival Market Trends in Tougher Times

Everyone’s a critic?  In times of financial turmoil, apparently everyone is also an economic analyst…  Throughout the festival, market veterans, journalists, and onlookers alike have been trying to decipher what impact the world financial crisis, economic recession, or whatever term you prefer has had on the Cannes market.  Everyone has an opinion on this sensitive subject and of course not everyone agrees on the issues--  To what degree has the Cannes market been effected? What are the long term consequences?Market veterans are in agreement that the hallways of the Palais are not as crowded as in previous years.  Tuesday's Cannes Market News quotes LA Times' John Horn as saying that attendance is down by as much as 30%.What is less clear is how the decreased attendance has affected sales.  Many people have noticed that the large U.S. studios have stayed almost entirely on the sidelines at this year’s market.  On Monday, the Hollywood Reporter quoted one festival veteran as saying that "I've never seen so much to buy and no one's buying."  But not everyone agrees on the drabness of the market.  Variety ran an article on Monday which acknowledged that there were fewer players in the market but highlighted the success many international sales companies have had in filling that void.  They refer to the plethora of business done by as Focus Features International Mandate, Pathe, StudioCanal and Summit Entertainment.  In addition, it must be noted that many of the festival's buzz films have already been purchased for U.S. distributions, including "Agora", "The Prophet", and "Mother". In analyzing the action at the Cannes market, it is important not to draw conclusions too quickly about the cause of any slow downs.  The decreased presence of large distribution companies may reflect a larger trend in film markets and distribution rather than just the economic downturn.  The business is changing; in the past few years, we have seen fewer buys of completed films as key buyers are more interested in presales or their own productions.  In addition, sales companies are moving toward local production.