Deadline Hollywood has just posted that Sony Pictures will be laying off about 6.5% of their total workforce. You can read the whole story here [link].
In the wake of the positive news from Sundance with regard to increased sales figures over last year, this is a big blow. The economy is underwater and when a big studio does something like this it can’t help but shake up confidence.
And confidence is what the film industry needs right now. I think that’s why everyone is so excited about Avatar crossing the $2 billion mark. That type of money being funneled toward a single film is good news, but the equity markets are shaky. For indie producers like myself who seek out equity funding, when the investors get nervous it gets the rest of us nervous.
So what do we do as indie producers? Keep plowing ahead. As the economy recovers there will be bumps in the road that shake up the equity market. It means that our business plans have to be rock solid, and show an acceptable rate of return given the current market. It may mean trimming the budget or ditching that big named star.
Right now if you have a project that’s under a million dollars with a unique hook, you’re in a lot better shape than many folks going for big numbers. Remember that the top film at Toronto this year sold all rights for a mere one million dollars–may seem like a lot to you and me, but it’s not. The top seller at Sundance came in at just under $5 million.
Websites like Film Specific have terrific information about what’s happening with sales in world markets. Seeing what distributors are buying really helps in crafting a good plan.
