AGC Studios CEO: Indie Film is Evolving, Not Dying

Stuart Ford, chairman and CEO of AGC Studios, has observed the independent film sector's transition, acknowledging its current struggles. He discussed these issues on Variety's "Strictly Business" podcast, highlighting evolving financial models and changing audience behavior, especially among younger demographics.

Ford's AGC Studios maintains a consistent slate of independent theatrical releases by providing diverse services, including financing and production. The company's ability to self-finance and its sales capabilities allow it to drive projects forward, operating in a space vacated by major studios by creating intelligent films for adult audiences.

He noted that while independent film is far from dead, it is undergoing a transformation. Production costs have risen due to goods and services expenses and increased streamer demand. Concurrently, revenue streams have remained stagnant, creating a challenging economic environment.

Financing structures have become more complex, with a greater reliance on potentially expensive gap financing as pre-sales become more difficult. This increased cost of capital is deterring investment. Ford suggested that the independent sector could revitalize if streamers offered more substantial license fees for the post-theatrical window.

AGC Studios, formed seven years ago, has also expanded into television production. The company remains prolific, producing multiple films annually, though Ford acknowledges that the market has become smaller and risk is more concentrated on producers and financiers.