Scott Roxborough reports in The Hollywood Reporter that Wall Street Hits the Croisette: Why Private Equity Investors Are Bullish on Indie Film.
He claims:
“Private equity, or PE, firms are pumping money into the entertainment content, financing independent production and snatching up companies at a level never seen before in the indie industry…. Some of the biggest players packaging projects and inking deals on the Croisette have backing from private equity groups…. The bet PE investors are making is that the explosive growth in streaming services will lead to a similar demand boom for content. And that the companies that own the IP, the original films and TV shows the streamers need, will be best positioned to benefit.”
He traces this demand squarely back to government policy:
“Many see particularly strong growth potential in Europe, where European Union (EU) content quotas for SVOD platforms — 30 percent of all content on streaming services in Europe must be European-made — has created guaranteed demand for original, home-grown films and series which most streamers will be unable to fill on their own.”
As to Cannes, filmmaker Jeremy Lutter (pictured above) compares this year’s experience with previous ones:
“Cannes is in some ways the same and in some ways different. I would say it’s two thirds the size as previous non-COVID years in terms of events. But, considering the situation, it’s impressive! The crowds are smaller but it’s still busy. As for deals — people are looking — there’s been less movies made recently — everyone is hungry for movies. Oh yeah, instead of a gift bag, this year you get a PPE mask with a logo on it!”
My take: of course, quotas drive national production. We proved that with CanCon and Canadian music; witness the dozens of Canadian superstars, who, as Simu Liu points out about Shawn Mendes, Avril Lavigne and Arcade Fire, “like me have fulfilled the ultimate Canadian dream of making it in America — but to our credit, we always come back!”
