Cartel Or Collapse? Where Did Independent Film Profits Go?

1. Is It Cartel Or Is It Collapse?

We finalized a research study of the profits and payments to independent films since 1990. We all know MGs and profits have literally vaporized. The question is, why, and by how much. We have been studying this for many years, and designing the FilmPod and DBO paradigm in response. But for us to create that solution, we really do need to understand the problem. And that problem is that the system is designed to ensure your independent film will not make a profit. The conclusions of the paper:

“The economic difficulty faced by independent filmmakers is not a simple misfortune resulting from technological change; it is the calculated outcome of a system designed to suppress competition, acquire valuable IP at reduced cost, and eliminate the contractual obligation to share residual profits. The low profitability of the sector is structurally mandated by the dominant cartel."

A key factor, but not the only one, is the setting aside of the Paramount Decrees in 2020, after which the MPA was permitted to engage once again in monopolistic practices like block-booking, clean screens, and vertical ownership - among other things. But there's far more and you won't like it... And the environment has more challenges than just a dominant cartel intent in taking our profits as well as our market. Further discussions have been concluded and will be released here over the next couple weeks.

Meantime, you can read and download the full paper here.

This is YOUR industry. Take control. Empower others.

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