Avatar – Filmmaking In The Recession
Avatar. The word that is on everyone’s lips as they are going to the movies. James Cameron’s epic film is not just visual masterpiece, but it is also an indication on the way film making is continuing despite the recession. With a price tag a little less than a government bailout, it shows a new trend in film making budgets.
When the credit market began to dry up in 2007, the entertainment industry once saw its flush coffers begin to dry. Most movies are made on credit, so when the money became scarce, so did film projects. Big name actors could only get paid on the back end (after a film is complete, they get a percentage of the profits) and it is even rumored that a big name director has been traveling around India looking for people to fund his films. While there are other factors, like piracy and fewer ticket sales, Studios began releasing fewer films per year. With the fewer films being created, there was less opportunity to gain revenue. In that sense, studio executives began to think more along the lines of what could maximize their returns on the films they would produce. Films that have been released in the past 3 years from the studios usually have fallen into 4 categories:
1) Bigger films with a larger opportunity for worldwide success (Avatar)
2) Films with a loyal fan base (Star Trek, Transformers)
3) Sequels (Harry Potter and the Half Blood Price, New Moon)
4) Critically acclaimed films with established directors and actors (There Will Be Blood, The Reader.)
Films that would require medium sized budgets and would have unpredictable returns have been shelved.
However, the true shining moment of film making during this recession has been one called Paranormal Activity. Horror films have traditionally done very well as they are usually cheap to make and can have mainstream appeal, like the Blair Witch Project. However, this particular film with its modest budget of $15,000 and grossing over $100 million currently holds the title as the most profitable movie ever made with a 666,667% return on investment. What the success of Paranormal Activity means is that in the future, what was once a pyramid approach to film making has become an hour glass. Cheaper films and big budgeted ones will flush the market, while mid ranged budgeted films will become fewer. With the increase of cheaper technology such as the Red Hi-Res camera and the ease of distribution through the internet, more independent film companies are going to be able to bring their projects to light, meaning more opportunities for actors. So when you are watching giant blue creatures running around the lush Eden of Pandora, keep this article in mind.
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