Producers Reward Production

It sounds axiomatic, but, in reality, the very exclusive 2.000 member Producers Guild of America usually awards big budget, high grossing movies. However, after being battered by the internet and seeing Netflix grow more than any studio, the PGA today nominated a roster of films that clearly show an awareness of where and how to profit in the film industry.

Nominated for best picture, by the newly expanded Guild (grown by 20% last year) are Focus Features' "Brokeback Mountain," United Artists and Sony Pictures Classics' "Capote," Lionsgate's "Crash," Warner Independent Pictures' "Good Night, and Good Luck" and 20th Century Fox's "Walk the Line." The latter was made for $29M and three of the others were under $8M in production costs. Aside from the low budgets, we are seeing thought-provoking art films and again, biopics. And, mark my words, message is in. These films were mostly labors of love, they have behind them the heart wrenching stories of how they came to fruition.

This story will not get much attention, but, I think it's one of the biggest stories of the year. This marks a clear shift in philosophy from a very powerful group of people. 2005 will be seen as a pivotal year in the film industry. Just as Evans turned Paramount around in the late 60's by making relevant, rebellious films, the producers of today are sending a clear message that the business model is changing and they are looking to this (indie) section as the best road to profitability.

The music and and film industries are predicated on the massive hits needed to sustain fixed costs. In the past, the blockbusters were seen as the only real profit centers and increasingly became the focus of LA. Now that they've seen a year where only indie studios or indie arms of major studios are profiting at all, they understand that you can't subsidize the tech houses forever, the magic of Toy Story and Monsters is over.

Hey Steve, and Peter, you can't make it look any more real! It's so real I almost forget the gum on the floor, OK? There is a limit to what the American public will pay to watch the special effects and photo-real animation. It was truly incredible that the PGA formerly nominated The Incredibles over films like Lost in Translation, which is by a Coppolla for god's sake.

So, in a year where King Kong crashed, the PGA saw the light. They now understand that big budget films are risky business and are largely responsible for year-end losses and massive cost cutting at every studio this year. When you can bet on a smaller film and double your return, thoughtful, plot-driven films which still bank on major brands like Ray Charles and Johnny Cash start to look a lot different to producers.

Hollywood is driven from the top down. If your film doesn't get financed, it doesn't get made. The only way to change things is to vote with your dollars, and we have. We've turned away from Kong and to lots of very nice stuff from Netflix. If you want us in the theaters now, you'll have to offer more than $5. popcorn. We now want IMAX, one of the very few bright spots in the theater business.

There will always be people wanting to come out for an experience, but not the experience of cranking your neck back, looking over someone's head in some uncomfortable chair, watching commercials, getting hearing damage so you can be the first one on your block to see some very entertaining and maybe very beautiful and meaningful but nonetheless, average, film.

Average is looking better to the PGA every day as average films are getting better and better every day.