San Sebastian’s Creative Investors’ Conference Overview
The third edition of the Creative Investors’ Conference in San Sebastian, co-organized with CAA Media Finance, concluded with insightful discussions. A notable exchange took place at Mano A Mano between Roeg Sutherland, co-head of CAA Media Finance, and Patrick Wachsberger, CEO of 193, focusing on the dynamics between the US and Europe.
It’s clear that the current times are challenging. “We’re in a situation that feels quite difficult and ambiguous,” Sutherland remarked during his conversation with Wachsberger. “If you’re meeting your targets, it’s as if you’re still in the pre-pandemic world. But if you’re missing the mark, well, there’s really no fallback plan.” This stark reality provided a valuable European perspective, as other speakers delved into topics like independent production, scaling, and large-scale pre-sales across Latin America and Africa.
Talent is Key
“The crux isn’t just the concept; it’s the people behind it, the creators—those are what truly inspire me,” expressed Domingo Coral. This idea has guided him in his role as director of fiction and entertainment for Movistar Plus+ and is now part of his independent production approach. Regardless of the company size, it’s this talent-centric mindset that remains a reliable formula for achievement, ever since Gaumont started back in 1895. The question is, how do we best empower production companies to realize their cinematic visions? “Fremantle’s Christian Vesper includes both producers and creators in this conversation.”
Scaling Issues
Many European panelists brought up the challenges related to scaling projects. “Currently, Europe has access to capital markets and a considerable influence,” noted Sebastian Laybaugh from Anton. “However, one significant shortfall might be the project scales.” Rodolph Buett from Studio TF1 added, “Securing funding for films in the range of $20 to $50 million from Europe is tricky. Competing at big festivals like Cannes or Venice means you’re looking at a budget of at least $10 million.” Movistar Plus+ originally aimed to ensure creators and producers had sufficient resources for larger projects.
The Role of Brands
Some industry insiders are seeing brands, like fashion labels, becoming more noted sources of film financing. David Taghioff pointed out that brands recognize they can invest as marketers or acquire the same marketing benefits while seeing a return on their investment. The relationship with brands is evolving; Robert Walak from Iconoclast mentioned that in the past, product placement was the focus, but now it’s about aligning creative integrity with specific directors and themes.
Challenges in Sales Business
Reflecting on the flourishing pre-sales and licensing scene of the 1990s, Patrick Wachsberger noted that he once covered 125% of a film’s budget through bank financing and pre-sales—a situation that seems unlikely to repeat. He highlighted the complications with major US distributors, who are often focused on pre-purchasing for streaming rights. Laybaud added, “We bear most of the risk because, at the end of the day, we might not secure early sales in the US.” Currently, major distributors appear to be booked through mid-2027, though Sutherland remains optimistic and indicated that new distribution companies would emerge soon.
US Disadvantages: Costs and Tax Credits
It’s not just the allure of European cuisine drawing producers abroad. The cost disparities with the US have become quite pronounced. In a project involving Kristen Stewart, Fremantle’s Christian Vesper explained that they had to “minimize risk and seek more creative freedom.” Stewart had even envisioned shooting in Portland, but the Baltic countries are now seen as attractive alternatives for filming. “This is partly because getting tax credits in the US can be problematic,” Sutherland observed, further stating that states like Louisiana and New York present significant challenges alongside rising production costs.
Collaborative Production Models
Elizabeth Dalvue from Media One pointed out that clients are still inclined towards obtaining substantial local success, wanting local content. An approach some companies have adopted is partnering with production teams or even co-owning IP. She highlighted Media One’s work on notable European titles, such as “The Count of Monte Cristo,” and their collaboration with Jean-Pierre Jeunet on “Violette.”
Latin America’s Emerging Path
Interestingly, Andrés By from Amazon MGM Studios noted that action genres, though perhaps not traditionally associated with Latin America, are proving popular, citing thrillers like “Pinpinero: Blood and Oil.” He emphasized the need to scale films in the $25 million range to be competitive, particularly for distribution in Europe where funding could be more feasible. Laura Rossi from MUV Capital pointed out that recent box office successes, including Oscar-winning films, were entirely funded through private financing.
More developments are certainly on the horizon.
