Saving UK independent film: challenges in the distribution landscape
The film and cinema market in the UK has seen significant change over the last few years. Perhaps no area has been affected more than domestic independent film, which has seen total production spend stagnate and its share of box office revenue drop by over 40% in the UK, and even more worldwide, since the pandemic.
Independent film has long faced challenges at both ends of the value chain, from financing projects through to distribution. Both of these elements need to be addressed to ensure the long-term sustainability of the sector and its significant contributions to UK culture and skills development.
Immediate issues around financing could be helped by enhancing film tax relief support so it’s closer to the levels seen elsewhere in Europe – this is very important and would enable UK producers to secure funding and boost indie activity, while still delivering net positive value into the UK economy.
However, solutions for the latter challenge of strengthening the consumer market for indie film have been less forthcoming. The potential answer may lie in breaking down the inherit limitations of the traditional cinema distribution and programming model.
Mind the ‘mid-range’ gap
The performance of individual films at the cinema is of course affected by many factors, not least the quality of the film itself, but, in general, UK independent films can be categorised into three types of releases.
The chart below shows performance of recent UK indie films in their first weekend on release – with site average on the vertical (average box office takings per cinema in which it was shown, a key indicator of performance) against width of release (number of cinemas/sites). The size of each bubble represents the total scale of box office takings across its full theatrical run.
Narrow releases – shown mainly in independent and arthouse venues with very limited presence in multiplexes. Able to generate strong prominence and site averages in those places, but overall takings are limited by width of release. Films skew towards adult material e.g. God’s Creatures, Enys Men, Aftersun.
Mid-range releases – some multiplex presence, but do not secure distribution with all three major UK multiplex chains (Cineworld, Odeon, and Vue) or in their smaller venues. Site averages are much lower and, as such, their total box office is similar to narrow releases. Films have slightly more commercial appeal than above (i.e. genre cinema), often with emerging talent e.g. Polite Society, Rye Lane, Brian & Charles.
Nationwide releases – films with bigger budgets (often £10m+) and internationally recognised talent, shown in the majority of UK cinemas. Able to drive a strong site average across all sites, and total box office far above other categories (even for the worst-performing nationwide releases) e.g. Empire of Light, Greatest Days, The Unlikely Pilgrimage of Harold Fry.
The main concern in this landscape is the lack of opportunity for mid-range releases, our Category 2, creating a big gap in commercial outcomes between nationwide releases and all other indie films, which spills over into later release windows too.
Low site averages and box office takings in the mid-range space are driven by multiple factors, including limited marketing budgets and low-priority screening slots in multiplexes, where they’re also up against blockbusters. This shortens theatrical runs, and reinforces the status quo with little incentive to expand what might currently be a narrow release film further. Only those benefiting from free marketing via significant word-of-mouth and/or awards buzz seem able to break these constraints e.g. Aftersun. As a result, films which end up with a mid-range release are not appealing investments – leading to a smaller range and variety of films being made available to audiences.
Another big contributor to these difficulties is the fairly rigid approach to cinema programming. Traditionally, new films are booked in with at least a seven-day commitment, and a requirement for multiple showings per day at bigger sites. However, mid-range films can struggle to fill this volume of screenings (as seen in site averages) and adherence to this model from all sides may limit the ability of narrow releases to be shown in more cinemas, as exhibitors may not feel they warrant a week-long commitment.
Reinvigorating the programming model for indie films
In order to reach bigger audiences, greater flexibility is needed around theatrical commitments and block booking processes for indie films in multiplexes, and particularly around enabling shorter runs or one-off showings for smaller films at some sites. Previews of even very niche titles in multiplexes can draw sizable crowds of regulars, which could scale up to significant revenue for narrow release films, which otherwise tend to make around £50k or less in their opening weekend. A more diverse programming schedule also gives a chance for perceptions of the cinema to change over time, with audiences engaging more frequently with it as a hub of curated content discovery.
One route to increased visibility for indie film could be a national scheme offering a weekly screening of a new indie film, either UK or foreign, in cinemas nationwide – expanding the breadth of their release, creating a more curated feel to multiplex programming, and acting as a focal point to drive wider interest in indie film. Nationwide branding for the scheme may also help stretch distributor marketing spend with long-term awareness retained in the brand itself, whereas currently almost no value remains after a film leaves cinemas.
There are risks and obstacles to this, but the timing is right
Any changes to the existing model need to be carefully considered to drive expanded interest without unintentionally limiting release widths of some titles by segregating the indie distribution market further. More cross-sector collaboration is needed as well, not just between indie distributors and exhibitors, but also with the US studios, which control a lot of multiplex programming through their screening requirements – these may need to be softened for one quiet weekday each week to allow for innovations which could boost overall engagement with cinema to the benefit of all parties.
Now is the time to address these issues with indie film reaching a tipping point in viability. To continue to ignore the problem risks the cultural and societal value of UK indie film and its vital contribution to skills development which underpin the UK’s screen economy. And, if that wasn’t reason enough, the timing is also right with cinemas needing to fill a slowdown in the US content pipeline due to the talent strikes, and given the upcoming CMS Committee set to examine the challenges facing British film.
At O&O, we are used to developing new commercial approaches across complex stakeholder and market dynamics, testing consumer interest, and setting up the optimal proposition for success. Having worked directly on the issues in the indie film sector lately, we are aware of the challenges in overcoming them. However, opportunities in the post-pandemic landscape and new ideas must be explored if UK film is to thrive going forward.
Reach out to Marcus Kyte at marcus.kyte@oando.co.uk if you would like to know more.