AFM Balloons as Film Industry Deflates.

Despite dire predictions for the international film industry this year's American Film Market (AFM) is healthier than it's ever been, with a record-breaking number of film distributors signed up and floor space selling out unusually early. According to Jonathan Wolf, managing director of the AFM, maximum capacity for exhibitors at the 2001 event was reached by October of 2000, whereas last year's February event was not sold out until one week prior to the market. With that said, expectations for AFM 2001 (which will take place in Santa Monica, California from February 21-28) are high. But how can this happen when film companies' earnings have plummeted?

While many directors and writers wonder if their current projects will ever be realized, the AFM offers screenings in abundance. The exhibitor explosion "indicates to us an extremely vibrant industry to be sold out four months earlier than last year," Wolf remarked. "The market will be busier, more heavily attended and there will be more business being done." The AFM, which presents eight days of more than 650 screenings to an estimated 7,000 people, is indeed thriving. Where the previous AFM offered a smattering of seminars on topics such as cinema financing, the Latino presence in Hollywood and the Internet's influence on the showbiz capital, the 2001 edition will double the number of sessions, perhaps due to the enhanced interest in the market.

Why has the AFM blossomed over the past few years? Wolf gave three reasons: technology, deregulation and business innovation. "Twenty years ago, many countries had only a handful of television stations. Now, there's significant, if not total, deregulation, which has fueled an appetite for the film industry," he observed.

Location also plays a significant role in attracting the interest of film and TV executives, particularly U.S.-based ones. Wolf commented, "Most of those who are active in the industry find the need to be in Hollywood at least once a year, so AFM not only becomes their primary destination, but they can do other things during their trips, while if they were in Milan, there would be less of a purpose to be there." Jon Kramer, CEO of Promark Entertainment, agreed. "It's based in Los Angeles. We don't have to go anywhere."

Not only is the AFM in the right place but it's at the right time, too. President of HBO Enterprises Charles Schreger remarked, "We have four or five movies a year that we release theatrically [in the U.S.] and the market is a place where we can accomplish that overseas." Kramer concurred "It's the first market of the year and it gives us a chance to introduce our film slate and, as always, meet with our clients and discuss [business]."

Financially, the film industry has been struggling. This is mostly because banks aren't loaning as much money and as frequently as they used to. But many questions still haven't been answered: Why is the AFM on the upswing while the entertainment business is not? Many film distributors are closing up shop or merging, so why are there so many films being produced and sold at the AFM? What makes this year so important?

A possible answer: The home-video industry, which once was cutting-edge, is as dull as a butter knife. On the other hand, the TV business has been steadily growing, which seems to have contributed to the advance sellout of the AFM. As Creative Light Worldwide's Ray Haboush noted, "Television has been driving the independent fare, opening doors for people who realize that [movie] titles, which don't sell by home video or theatrically, can be sold to TV markets."

With the fierce competition in the film industry and TV broadcasters becoming sellers, this year's AFM will have money flowing in from all sides. Haboush affirmed, "The slack [from merged companies at the MM] is being picked up by broadcasters, who realized that they can exploit their own [programming] libraries."

Art Schweitzer, vp of Castle Hill Productions, opined that one of the major reasons for the AFM surge is due to the plethora of independent film companies that faltered after MIFED. Schweitzer, who heads one of the few U.S. independent distribution companies, elaborated, "The feeling of urgency is brought on by the number of independents [distributors]. Companies without libraries who don't sell their newest product will fall apart.

Since this is primarily a film market, the big-money exchanges occur between the film behemoths. However, showbiz honchos are tightening their purse strings because of increased competition. According to Schweitzer, TV companies now make movies and MOWs have gone mainstream. The "kill-or-be-killed" mentality is what makes this market paramount. Every film company (most of them independent) needs to sell its newest products now.

For the second year in a row, the AFM will host screenings that are open to the public instead of invitation-only. Not only is this a money-making venture for market organizers, but there are advantages for the entertainment business as well. In theaters that can accommodate up to 300 or 400 people, only 30 to 40 buyers used to attend the private screenings. Like last year, AFM 2001 will boast a full house. "Some of the companies want the public and the press to come to their screenings like they would at any festival where it's very crowded ... Film students can come as well. Those who are building their careers who may not be able to come to the MM can now come to eight days ... of screenings," declared AFM managing director Wolf.

Promark's Kramer commented that with only buyers in the audience, "You're just going on a buyer's opinion. Hopefully, that opinion is in sync with the marketplace. This way, you get a better read in the theater." However, some distributors like Haboush of Creative Light felt that although packed theaters add atmosphere, they can also contribute to a chaotic feeling at professional industry events.

Telefilms: The First 40 Years

Telefilms is celebrating four decades of accomplishment with two premieres: a new logo and a new home. In March, Telefilms' headquarters will be relocated to Buenos Aires newest skyscraper, the Blue Sky Building, where clients and friends can find one of Latin America's most important independent TV distribution companies.

The firm was founded in 1961 by Leon Darcyl, a Paris Match correspondent. His company was the first to distribute Latin American free-TV news-clip libraries. Telefilms later added documentaries and feature films to its catalog, with Pathe Cinema being the first supplier. Little by little, classics like Bonanza and Get Smart plus titles from top-level producers were added to the collection. Always a market leader, Telefilms was a pioneer in buying formats and investing in original TV productions.

During the past decade, Leon's sons Tomas and Sebastian Darcyl took control of the firm, increasing the volume of its business by 1000%. The company's best introduction card is its prestigious client base, many of whom have been with Telefilms since its inception and others who have joined more recently.

Telefims incorporates the latest technology in order to deliver the highest-quality broadcast material. Customer satisfaction is a goal for the company. Each staff member establishes personal contact with the servicing and dubbing departments and the programming heads at various channels.

Telefilms now boasts an archive of more than 2,000 features. Recent acquisitions include Affliction (Academy Award for Best Supporting Actor and nomination for Best Actor), Gods and Monsters (Academy Award for Best Adapted Screenplay), The Brave (Johnny Depp's directorial debut, starring Depp and Marion Brando) and Resurrection (starring Christopher Lambert).

Telefilms' sales and collections system reaches every nook and cranny of Latin America, with a penetration rate unrivaled by any regional distributor. Here's to another 40 years of success.