COLUMNS INDUSTRY BEAT

Hits & Misses

Anthony Kaufman assesses Sundance 2012s crop.

ack to reality. That may be the best way to describe both the status of our global economy and the previous 12 months in independent film. Little irrational exuberance; no breakout blockbusters; but a few profitable indie films, perhaps countable on one hand, that stand out as carrots for hundreds of others to try to reach out and emulate. Calmer heads prevailed at Sundance 2012 as sellers and buyers got down to the more complicated business of the current indie marketplace, with its delicate mix of theatrical and VOD platform releasing. No one was throwing money around like it was 2006, though familiar players stepped into the dance with fairly aggressive moves, such as Fox Searchlights roughly $6-million deal for awards contender The Sessions and Lionsgate/Roadside Attractions reported $2.5-million buy of the Richard Gere thriller Arbitrage, which is projected to gross as much as $12 million on VOD and nearly $8 million in theaters. But 12 months later, there is little else to talk about in terms of blowout successes with the exception, perhaps, of Beasts of the Southern Wild, Fox Searchlights far cheaper acquisition (for a reported $1 million) that

has since earned nearly $12 million at the U.S. box office. That Searchlight managed to take this bold, brash and eccentric lowbudget film about a coastal Louisiana community to such a high level of commercial success should be significant cause for optimism in the specialized sector. Then again, as an indicator of how risk averse the business continues to be, and how little has changed when it comes to the tastes of movie consumers and the habits of the industry, the biggest Sundance hit of the year was actually a horror pick-up from 2011: Open Roads wide-release of Silent House, which grossed $12.7 million, half of which came from its 2,124-theater opening weekend. Similarly, CBS Films pushed its star-studded acquisition The Words out to 2,801 theaters, but even Bradley Coopers handsome mug couldnt muster decent pertheater averages. While the movie grossed $11.5 million, its opening average was a weak $1,696/screen. More modest well-received Sundance movies such as Safety Not Guaranteed and Robot & Frank performed admirably in theaters, making $4 million and $3.2 million

Beasts of the Southern Wild

respectively, setting the stage for healthy lives on ancillary platforms. For low-budget movies released on only about 200 screens, thats pretty darn good. But its hard to say whether those numbers are big enough to inspire much confidence at Sundance 2013. Given the dicey nature of the marketplace, its a wonder we havent seen more bold distribution experiments in the last year. Perhaps the bigger players can adhere to the older models because theyve got the cash to conventionally promote their pictures, but for the rest of us its surprising that more filmmakers arent trying to do what Oscilloscope Laboratories accomplished with their successful onenight-only event screening of the LCD Soundsystem documentary Shut Up and Play the Hits (for more on the release, see below). And with most companies still keeping mum on their VOD numbers, there isnt enough concrete information to help quantify how well the sector is or is not making up for with respect to less than spectacular theatrical ticket sales. According to Magnolia Pictures, its omnibus horror film V/H/S was above average, and Julie Delpys 2 Days in New York grossed multitudes more on VOD than its $633,210 theatrical box office. But what, really, do these statements mean? The fact is that the VOD marketplace is far more competitive and crowded than it was just a couple of years ago. As IFC Films Ryan Werner admits, Now there are hundreds of films on VOD. Adding little fuel to the fire, this years award season is fairly quiet when it comes to indie breakthroughs. Sure, Sessions and Beasts will make an appearance, but its only the largest specialty films, with budgets of around $20 million or more (The Master, Moonrise Kingdom, Anna Karenina) that are likely to get recognized, along with a major push from the studios, who appear to be making a comeback this year (i.e., Zero Dark Thirty, Lincoln). For the dozens of indie filmmakers trying to break into the business with their D.I.Y. productions and releases, the fact is that the mainstream industry simply doesnt

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PHOTO COURTESY OF FOX SEARCHLIGHT

have room for you. (And the niche industry is pretty overcrowded, too.) Sorry, thems seats are taken. While its extremely difficult to identify what constitutes a hit in the current landscape, especially given the long-tail nature of independent film, here are several case studies from the Sundance class of 2012 ranging from the biggest hits to those who have a more extended run to race.

Beasts of the Southern Wild

THE FILM: Following in the wake of his ambitious, celebrated short film Glory at Sea, director Benh Zeitlins fantastical indie drama follows the adventures of a six-year-old girl named Hushpuppy and her father, Wink, who survive a giant storm, prehistoric giant warthogs and federal authorities trying to shut down their close-knit bayou community. After rousing Sundance screenings, the film wins the Grand Jury Prize, a cinematography award and then an international berth at Cannes, which begets more big accolades: the Camera dOr prize for best debut film as well as FIPRESCI critics and Youth Jury prizes. FINANCING: Almost all of the films reported $1.3-million budget comes from the for-profit production division of Cinereach. There are also a handful of grants from the San Francisco Film Societys Kenneth Rainin Foundation, the NHK International Filmmakers Award, Sundance, a package from ARRI cameras and the Rooftop Films Eastern Effects Grant, which provides a grip trucks worth of equipment. DEAL: Beating out competition from Sony Pictures Classics, Focus and The Weinstein Company, Searchlight pays a reported $1 million for U.S. rights. Foreign sales company E One makes a raft of international sales after other hot festival runs. RELEASES: As summer counter-programming to the Hollywood onslaught, Beasts surges in its opening weekend, making $169,702 in four theaters (the primo real estate of the Sunshine and Lincoln Plaza Cinemas in New York, and the Arclight and Landmark in L.A.) making for one of the years best per-theater debut averages. In its third week in release, Searchlight expands to 81 theaters. By week six, the film maxes out on 318 theaters, earning $1,154,768, its single biggest haul, over one weekend. On Aug. 26, after nine weeks in release, the entire cast appears on Oprah Winfreys show Super Soul Sunday, follow-

Searching for Sugar Man

ing a reported recommendation of the film by President Barack Obama; the subsequent weekend, Searchlight adds 55 theaters and the films Labor Day box office increases by 50.8 percent over the previous weekend. Beasts producer Michael Gottwald praises Searchlight for their ability to get the film to a variety of audiences, but also their openness to ideas weve had to get it to some audiences that are important to us. For example, they hold the national premiere in the filmmakers hometown of New Orleans and present a special screening in Montegut, La., for those who took part in the film. And when something like Oprah happens, adds Gottwald, they have been admirably aggressive in their ability to maximize the opportunity. With the films high profile international festival presence, Beasts also performs well in overseas markets, such as the U.K., where it cracks $1 million, and Australia, Norway and the Netherlands, where it has earned hundreds of thousands of dollars, as of December. (Other major foreign markets such as France, Germany and Brazil will also play the film.) GROSS RESULTS: After more than 20 weeks in release, the film earns more than $11.2 million in the U.S. alone. Well positioned after its strong theatrical run, the films DVD release on Dec. 4 is also poised for further success. FINAL UPSHOT: A new indie auteur is

born: Zeitlin wins the Breakthrough Director award at the Gothams, best director and feature noms at the Spirit Awards and potential Oscar recognition. He also begins chatting up his next project (another fantasy where people can age quickly or very slowly). Though producers declined to discuss their profit potential, Zeitlin likely wont be broke and homeless anymore. Producer Josh Penn adds that the success of the film gives us confidence that we can keep making the movies we want to make in the way that we and Benh want to make them.

Searching for Sugar Man

THE FILM: One of the opening-night films at Sundance, first-time director Malik Bendjellouls musical doc mystery was also one of the first movies at the festival to garner a standing ovation and a teary-eyed crowd. A moving, inspirational chronicle of a forgotten Detroit folk singer who gets another chance to shine in the spotlight, the movie was an early breakout, with Sony Pictures Classics already in hot pursuit before its premiere. Trade reviews forecast lucrative niche sales, but few predict any breakout potential. FINANCING: A labor of love for Bendjelloul, the Swedish filmmaker, who quit his day job at Swedish television and worked on the project for four years, doing the editing, animation and sound design himself on an
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PHOTO COURTESY OF SONY PICTURES CL ASSICS

The Queen of Versailles

iMac. The director cold-calls Oscar-winning producer Simon Chinn (Man on Wire), who eventually comes on board the project, along with John Battsek (Project Nim). But according to Bendjelloul, the biggest funder is a late-in-the-game grant from the Swedish Film Institute. DEAL: Sony Pictures Classics pays a reported mid-six figures for North American rights. RELEASES: In late July, Sony Classics launches a typical arthouse rollout in New York and Los Angeles, following the new release of a Rodriguez soundtrack album from sister company Sony Legacy. The opening weekend in three theaters yields a decent, but by no means extraordinary, $9,153 average. The grosses were not what we expected, admits Sony co-president Tom Bernard. So the company shifts its campaign, de-emphasizing the storyline, instead calling it the feel-good movie of the year. The film finally holds in theaters, thanks to strong word-of-mouth and a few key media appearances like Late Show with David Letterman (one of the biggest boosts, says Bernard); after 11 weeks in release, a full 60 Minutes segment (which kicks up grosses 120 percent); and several promotional concerts (The Newport Folk Festival in Rhode Island and a free performance in Red Bank, N.J., for Hurricane Sandy victims). Celebrity backers like Bob Dylan and Kid Rock also support Rodriguez and the film on Twitter. So his success and the movies success are hand-in-hand helping each other, Bernard says.
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GROSS RESULTS: In December, the film surpasses $2.8 million at the box office. Sony Classics expects the film to hold through award season and easily break $3 million. A DVD release is set for January, with an iTunes release two weeks prior to that. But it wasnt as easy as it looked, Bernard says. FINAL UPSHOT: The film could end up as the second biggest indie doc of the year (behind only 2016: Obamas America); Rodriguez gets a second shot at fame, even though he still lives in a run-down house in Detroit; and with its frontrunner status in the Oscar race for Best Documentary, Bendjelloul gets a bigger payday than he could have ever imagined: A significant career ahead of him.

The Queen of Versailles

THE FILM: One of many docs pegged to the economic meltdown, Versailles is also uniquely positioned to capitalize on the Occupy Wall Street craze, with its intriguing focus on the financial struggles of the top 1 percent in real estate tycoon David Siegel and his larger-than-life wife, Jackie. Even before the movies Sundance premiere, the film catches public media attention when Siegel files a lawsuit against the filmmakers for defamation. (An evidentiary hearing took place in early December in Floridas Middle District Court.) Buzz in Park City is strong and trade reviews are solid, with suggesting the film is timely and involving and should impress in theatrical and tube play. FINANCING: The high six-figure budget is funded by a mix of foreign presales (includ-

ing BBC Storyville and the Danish Broadcasting Corp), grants (Sundance Institute Documentary Film Program, Cinereach) and private equity (from Impact Partners). DEAL: Submarine Entertainment brokers a sale to Magnolia Pictures for North American rights, holding onto TV rights with the belief that a larger separate deal for television can be made and, indeed, Bravo steps up to the plate. Total combined acquisition price: mid to high six figures. Submarine also makes theatrical sales to Australia, U.K. and France. RELEASES: Rather than release as part of their VOD program, Magnolia Pictures begins a conventional theatrical run in New York and Los Angeles on July 20, with digital releases to follow. We tend not to do VOD with documentaries, says Magnolias Neal Block, who notes the film performed well in Orlando, where the movie is set, but flopped in other Florida locales. In its third weekend, Magnolia expands the doc to 68 theaters, where it earns its highest single total, $270,377. It holds particularly well in New York and Washington, D.C., thanks, in part, to some high-profile publicity spots on The Today Show and Good Morning America, and Siegels continuing public relations campaign against the film, which ironically, only promotes it further. It was just one of those movies that stuck around for a long time and the reviews were uniformly positive, Block says. People were really attracted to Jackies story. [She] starts out as the outrageous character, but then becomes a sympathetic [one]. GROSS RESULTS: All in all, Versailles plays in more than 345 theaters and takes in about $2.4 million domestically, making it one of the top-grossing nonfiction indie releases of the year. Its also a top seller on VOD and iTunes. FINAL UPSHOT: David Siegel becomes an unlikely pop celebrity a slightly lower-rent Donald Trump. Meanwhile, the filmmakers are taking the film all the way to the bank. According to Queen executive producer Frank Evers, they expect their investors to be repaid based on their existing deals. We wont know where we stand until the first quarter of next year or the spring, but Im feeling good about what Magnolia has done, he says. We are in a great position. The films success has also opened up a lot of doors, adds Evers, who says he and director Lauren Greenfield are taking a lot of meetings, on both the television and feature side. see page 110

PHOTO COURTESY OF MAGNOLIA PICTURES

nologies. Are second-screen experiences missing a larger opportunity by limiting themselves to the living room?

HITS & MISSES

from page 18

Sleepwalk with Me
THE FILM: Stand-up comic turned filmmaker Mike Birbiglia directs this story, based on his own stand-up routine and theatrical play, about a struggling comedian dealing with a failing relationship and a severe sleepwalking disorder. The movie charmed Sundance attendees, mostly won over reviewers and walked away from Park City with an Audience Award. FINANCING: About three-quarters of the roughly $1-million budget comes from Bedrocket, a new media start-up in its first foray into feature film, with the rest coming from producer Ira Glasss WBEZ Chicago-based radio show This American Life, which Birbiglia contributed to in the past. DEAL: Shortly after Sundance, IFC Films acquires a swath of distribution rights for low six figures, including North America, Latin America, France, Spain, Asia and a few other smaller territories as part of its day-anddate theatrical/VOD releasing strategy. RELEASES: Based on the Sundance Audience Award, IFC takes the film to other festivals to build word-of-mouth, from SXSW to BAMcinemaFest. The movie opens in a single theater in late August, earning a solid $68,801. With promotion through Glasss radio show, the film continues to build with the help of some marketing stunts, including late-night screening pajama parties, a viral video tte--tte with The Avengers director Josh Whedon and a high-profile screening hosted by Tom Hanks. The grosses hit their highest mark in week four, with $345,713 from 118 theaters. According to IFCs Ryan Werner, Birbiglia and Glass traveled extensively around the country with the film. The combination of Mike, who is on the rise, with Ira was a winning combo, Werner says. They worked their asses off to turn it into an event. In Glasss Chicago hometown, the film raked in a record box office opening at the Music Box Theatre. GROSS RESULTS: Theatrically, the film reaches nearly $2.5 million, while simultaneously, VOD downloads are also healthy. Its going to be one of our most successful day-and-date releases, says Werner, comparing it to their 2009 triumph In The Loop.
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FINAL UPSHOT: We do expect it to be profitable! says producer Ira Glass, who adds that the success of the film has further emboldened This American Life to move forward in the feature film space, with projects ranging from Errol Morriss cryonics drama, starring Paul Rudd, to a film to be directed by Tim Robbins. Birbiglia is also hard at work writing a new movie.

Shut Up and Play the Hits

THE FILM: Playing in the often-overlooked international documentary section at Sundance, this chronicle of New York-based music group LCD Soundsystem follows the band in its last 48 hours, leading up to the groups largest and last concert in Madison Square Garden in 2011. Many reviewers suggest the concert documentary will play mostly to fans of the Grammy-winning band and few others. FINANCING: U.K.-based production/ad house Pulse Films, known mostly for their concert docs (Katy Perry: Part of Me 3D), puts up the money for the low-budget documentary. DEAL: Well into Spring, Adam Yauchs Oscilloscope Laboratories closes a deal on all North American rights for low six figures. As part of the pact, the company announces a strategic one-night-only release for later that summer. RELEASES: Rather than platform release, Oscilloscope follows the pattern of a live show, staging its single-night screening in about 180 theaters around the country on July 18 and selling tickets four weeks in advance. Says Oscilloscopes Dan Berger, We sold out the Music Box in Chicago in three minutes and added a 10 p.m. show, and that sold out in eight minutes, so we added a midnight show. In New York, similar sellouts occurred at the Landmark Sunshine, as well as other venues such as the IFC Center and BAM. At Seattles massive 800-seat Cinerama, they sold out two shows. We kept scaling according to demand, Berger says. By event-izing this film, we were creating immediacy and a fleetingness, which created a necessity for people to go and see it. By the time the film was about to come out, any additional public relations or marketing such as a feature article was simply icing on the cake, as tickets were no longer available. Still, promotions such as an online series of videos, made in collaboration with the Creators Project, VICE Magazine and Intel, along with targeted online ads on sites like Pitchfork encouraging

fans of the band to spread the word about the film, helped raise the movies profile. Wild posting around New York City of a black-and-white poster that reads Shut Up and, followed by an open space for readers to graffiti in their own content, also aids fan involvement. GROSS RESULTS: If the film caters only to fans of the band, it turns out the band has lots of fans. Over a single day or two, ticket sales reach about $400,000; the film picks up another $100,000 in subsequent weeks, based on additional bookings that didnt take part in the single-night showing. A month later, the film is available exclusively on iTunes for two weeks, where it performed strongly, according to Berger; another couple weeks later, it is available across all VOD platforms. In October, a special home video version, which includes the bands entire four-hour farewell concert, is released on DVD and Blu-ray. Were very pleased, Berger says. It exceeded expectations. FINAL UPSHOT: Like the one-night-only release this year of another Sundance doc, Indie Game: The Movie, Oscilloscopes distribution of offers further proof that unconventional releasing patterns may be a strong way forward for releasing indie movies theatrically especially docs with a built-in fan base. Sadly, Oscilloscopes founder Adam Yauch dies in May, unable to witness the films suc

Detropia
THE FILM: From the successful documentary duo of Heidi Ewing and Rachel Grady (Jesus Camp) comes this impressionistic vision of urban blight. One of Sundances must-see docs, the film wins an award for best editing and is widely heralded for its craft. But reviews suggest the film is short on new revelations, which could limit its reach. Variety calls it the most aesthetically pleasing, if not the most informative doc about Detroits economic troubles. FINANCING: With a sizable budget for a documentary just under $1 million the movie is funded through several sources: the Ford Foundation, ITVS, Vital Projects, Impact Partners and the Sundance Documentary Fund. DEAL: After the films Sundance premiere, the filmmakers receive three offers from the usual suspects, which consist of small advances in exchange for a threeto-five-city-release guarantee, as well as all DVD and VOD rights. (Domestic TV rights already belong to ITVS/PBS.) Ultimately,