Inside AFM 2024: Mixed Reviews, Cautious Buyers, and More Gains for Streamers

The American Film Market’s first Las Vegas event at the Palms Casino Resort has sparked a wide range of opinions from attendees, with some embracing the convenience of the new location and others refusing to attend if the event doesn’t return to Los Angeles.

While some sellers and producers saw success with international buyers, ongoing challenges in the distribution landscape were front and center, particularly for theatrical releases.

The U.K.’s new Independent Film Tax Credit (IFTC) also attracted interest, setting the stage for more UK-based co-productions.

A One-Stop Shop for AFM in Las Vegas

For the first time, AFM’s 562 exhibitors and thousands of attendees could access screenings, meetings, and accommodations all in one place at the Palms Casino Resort, theoretically making it easier to navigate. Some appreciated the convenience of having everything in one building, especially with the theaters just an elevator ride away. The cinema quality was also impressive, and the screen sizes and seating quality positively impacted screenings.

However, others found the venue challenging, with long elevator waits and constant foot traffic around the casino creating a less-than-ideal environment for business. The high costs and tech issues also soured the experience for some exhibitors. Many attendees saw this move to Las Vegas as a one-off experiment, voicing their preference for a return to Los Angeles, calling Vegas a distraction and not an appropriate environment for the premier film market in the U.S.

Furthermore, with Toronto planning to introduce a formal market in 2026, the compressed timeline between TIFF and AFM, both held during the fall, has led to questions about whether North American sales agents and international buyers will continue to attend both events.

Sluggish Theatrical Market Prompts Focus on VOD and Streaming

A recurring theme at AFM 2024 was the uncertainty surrounding the theatrical market, with buyers increasingly hesitant to take risks on mid-budget films. Instead, distributors and exhibitors primarily focused on big-budget projects with A-list talent or low-budget films suited for streaming platforms.

While the market attempts to adapt, buyers are adjusting to shortened windows and high PVOD (premium video on demand) pricing.

Overall, the market is currently polarized, with interest focused either on large-scale projects with potential for theatrical release if conditions improve or on smaller films that distributors can quickly flip for cash flow. There is no middle ground in the pre-sales market at the moment.

There’s a robust desire among attendees to return to Los Angeles since most American sales companies, studios, and agents are based there, making it a more convenient and familiar location. Smaller hotels, serviced offices, and unique rental spaces are easily found around town to accommodate the needs of smaller companies, allowing them to work together or share space. For many, if AFM doesn’t return to Los Angeles, they won’t be coming back to Vegas.

While company representatives from most major regions attended the event in Las Vegas, fewer buyers came from Europe, Latin America, and some parts of Asia. A large delegation from Amazon Studios made the trip, yet the overall dealmaking pace remains much slower than before lockdowns.

The continued caution among U.S. theatrical buyers is still a notable roadblock in the distribution market. The U.S. theatrical market for independent films remains dormant, reflecting the current sluggishness.

Many are hopeful momentum might build with meetings extending and additional online follow-ups scheduled post-market to make up for yet another slow film market.

Audiences are responding well to films that deliver genuine entertainment and uplifting messages. This trend has seen exceptionally high buyer engagement in regions like Latin America, Spain, and the U.K.

High-profile projects, like the latest in the Gerard Butler-led Fallen franchise, aimed to leverage its star power to entice buyers, despite production not starting until the end of next year. However, with higher-than-normal minimum guarantees sought for these far-off projects, buyers will likely hold out until production is more imminent.

Meanwhile, mid-budget titles struggled to gain traction as buyers became more selective in the challenging U.S. marketplace. While these modestly budgeted films and those with strong international appeal can sometimes bypass a U.S. theatrical release, the industry remains focused on a future where the health of domestic theaters is fully restored.

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Streamers Continue to Outpace Theatrical Buyers

Reflecting the ongoing shift in viewer preferences, streaming platforms, and VOD distributors emerged as some of the most active buyers at AFM 2024. With audiences increasingly favoring at-home viewing options, these digital players are capitalizing on the growing demand for content by securing a wide range of films across genres. The strong presence of streamers at AFM underscores the industry’s pivot toward digital-first distribution strategies and the intensified competition among subscription and ad-supported streaming services to meet subscriber demand with fresh, exclusive content.

Buyers focused on two categories: big-budget productions with A-list casts or smaller films with quick turnaround potential. This focus aligns with buyers increasingly prioritizing content that guarantees a strong return on investment.

Many buyers highlighted the importance of “must-have” cast for streamers, noting that A-list actors are crucial for attracting high prices. Streaming services are expected to ramp up acquisitions, with deep-pocketed platforms like Peacock and Max looking to secure more titles for their 2025-2026 slates.

Meanwhile, mid-sized films without high-profile names face a tough market, as buyers hesitate to invest in projects without clear commercial appeal.

Genre Films Led the Pack in Las Vegas

Genre films once again proved to be strong contenders at AFM 2024. Horror, sci-fi, and thrillers were in high demand, with standout titles like FilmNation’s, a new spin on the Dracula tale starring Maika Monroe, and AGC Studios’ Druid, featuring Russell Crowe. Buyers found genre films desirable for their global appeal and potential to perform well on streaming platforms, which have become dominant buyers in the industry.

Sales executives reported solid interest in genre films with strong storylines and star power. This year, top streaming services like Netflix and Amazon came to AFM prepared to pick up new titles, with horror and action films as solid options for filling upcoming slots in 2025 and beyond.

U.K. Tax Credit Boost Draws Attention from U.S. Producers

With the introduction of the U.K.’s Film Tax Credit (IFTC), U.S. producers at AFM 2024 showed a strong interest in relocating projects to the U.K. to take advantage of the 40% effective tax relief. The new credit especially appeals to smaller productions.

Eligible films can claim up to £15 million in qualifying expenses under the Audio-Visual Expenditure Credit (AVEC). This credit program is expected to boost U.K. partnerships, helping U.S. producers mitigate rising costs and access reliable infrastructure.

SOURCE:FILMTAKE