Perspectives on Independent Film Finance

The landscape for independent film funding is dire in the U.S and across the UK and Europe and many filmmakers are finding it increasingly difficult to secure financing. My personal perspective is that a core issue is the fundamental difference between the terms, ‘investment’ and ‘patronage’. These two concepts are distinctly different, and describing finance for films that are unlikely to be profitable as investment is contributing to the ongoing struggles in the independent film sector.

The Investment Problem in Indie Films

The unfortunate reality is that very few independent films make a profit. For investors, the name of the game is?return on investment?(ROI), and when returns are not forthcoming, they become discouraged. This is why so many investors are risk-averse when it comes to Indies; they are seeking financial returns, while being offered ventures that simply aren't equipped to deliver them.

Mat Archer of FMA Media, astutely points out, risk-taking is exactly that, risky. We tend to celebrate the few indie filmmakers who succeed, while overlooking the countless others whose projects falter. Mat highlights a critical issue: if taking risks regularly led to success, it wouldn’t be called “risk-taking,” it would be called “a safe bet.”

The problem is systemic. The majority of independent films simply don’t generate the box-office returns investors expect. This creates a vicious cycle where less money is available for indie filmmakers, fewer films get made, and fewer potential successes emerge. Meanwhile, production companies with the backing of major studios and extensive marketing power, dominate the landscape.

The False Narrative of ‘Top Indie Films’

?I also feel that it’s important to dispel a popular myth: many so-called ‘independent films’ that gain widespread recognition often have significant studio backing or distribution deals. This support allows them to punch above their weight, but it distorts the perception of what is truly ‘independent’. As I’ve noted in discussions with colleagues, some of these films aren’t really indie at all, they're backed by big money to one extent or another, or that last $100,000 came from a Hollywood studio. The ones that truly are indie often end up sitting in vaults, unwatchable and unnoticed, with the only proof of their existence being the financial records that show the money was spent.

Patronage vs. Investment

The solution I’ve long advocated is simple:?Invest in commercially viable films, and be a patron to indie and art films. What indie films need is a campaign to encourage a different kind of funding, one that isn’t rooted in the pursuit of profit but in the support of artistic integrity and societal value. The world of fine arts has a long tradition of patronage, where wealthy individuals or institutions support artists without the expectation of financial return.

Film, as an art form, deserves the same approach. Patronage means accepting the potential for financial loss in exchange for the completion of a work that has intrinsic artistic or cultural merit. In this model, films would be funded because they?should?exist, not because they’re expected to turn a profit. Those with the means to support indie films must begin to see themselves not as investors in the conventional sense, but as patrons of art. Only then will we see a resurgence of independent films that push boundaries, explore new ideas, and contribute to the cultural richness of society.

Risk-taking in the indie film world will always be risky, but with patronage, we can ensure that at least some of these films see the light of day, regardless of whether they turn a profit.

To those currently championing indie films, I feel there’s an important takeaway: your efforts are vital, but they may not be having the impact you hope for. Raising awareness or securing funding within the traditional investment model is inherently limiting because of the issues tied to the expectation of financial returns. For the indie sector to thrive, we need to change the conversation from investment to patronage on many indie films.

Suppliers and Crew

There is constant discussion and debate about supplying or working on indies, about the rates they offer and deferred payments terms. I’m not going to enter into a debate on how suppliers or crew get paid, however, I will suggest that a change of perspective may help us to lose some of the stigma surrounding indie projects, if they are viewed through the optic of patronage.

Colleague Perspectives

In this piece I also wanted to bring some other voices to the fore from colleagues and businesses active in the independent film space…

Lisa G. Black , CEO of Garnet Girl, an award-winning producer with over 20 years of C-suite leadership experience in business development and strategic alliances, has built a distinguished career in independent film production. Her expertise in forming global, profitable ventures and her commitment to the script-to-screen process make her a strong advocate for supporting first-time directors and nurturing new voices in cinema. Projects such as, ‘Almost Paris,’ directed by Domenica Cameron-Scorsese, and her latest production, ‘Olde Boys,’ are shining examples of Lisa’s dedication to elevating fresh narratives.

As Co-Chair of the Producers Guild of America (Capital Region), Lisa believes that independent film is not only a powerful art form but also a distinct asset class. She champions the evolving landscape of film investment, combining financial opportunity with cultural influence. By strategically backing commercially viable projects and understanding market trends, Lisa taps into multiple revenue streams, box office, streaming platforms, and merchandising, while remaining deeply attuned to audience preferences.

Lisa emphasizes the need for grassroots marketing and collaboration with seasoned producers and distributors to ensure a film's success. She advocates for a hybrid funding model that combines European soft funds with U.S. equity, which mitigates risk and broadens a film’s market potential. Lisa’s influence also extends beyond the U.S. to international film finance, having played a crucial role in shaping Nordic and domestic tax incentives and optimising co-productions globally. With her deep experience in producing and passion for guiding first-time directors through the complexities of filmmaking, Lisa Black is a pivotal figure in the world of independent cinema.

Her current project, ‘Olde Boys,’ is a feel-good movie featuring a strong teen female lead. It’s about a mid-50s soccer team, led by a teenage girl, who helps the team rediscover the importance of life, love, and relationships during a trip to England, and is strategically aligned with the excitement surrounding the FIFA World Cup 2026, while targeting North American audiences.

Shawn Dawes of IndieScene, believes, “the film industry is undergoing significant shifts, with traditional financing models that once banked on star power and box office dominance becoming outdated. Even renowned directors like Martin Scorsese and Francis Ford Coppola now struggle to secure funding for studio-level projects, as films like?The Comeback Trail?underperform despite A-list casts. While studios hedge risks through pre-sales, filmmakers face the challenge of outdated expectations and the rise of transactional box office models that rarely guarantee long-term success.”

Shawn notes that, “independent films, often born from grassroots movements, are finding surprising success, such as?Talk to Me, which grossed $92.2 million on a modest $4.5 million budget, demonstrating that audiences are increasingly drawn to authentic, culturally relevant stories. Streaming platforms offer new life for these films, but the post-pandemic landscape is more selective. Emerging financing models, such as crowdfunding, are giving filmmakers alternative routes to raise funds and connect with their communities. The future of film financing lies in balancing commercial viability with cultural significance, empowering both blockbusters and art films to thrive in a transformed global market.”

Cristina Chereneta and Katya Orphali of G2E, have 35 years in film financing between them, and emphasise the importance of understanding the long-term financial structure behind film projects.

“Today it is more challenging to get into and stay in the theatres, so the downstream revenue from the Pay 1, 2 windows and the rest of the TV, Streaming, SVOD and AVOD windows are more important. With our JV partners, we have financed and sold over 300 films worldwide. So many submissions from people new to the business, who G2E wants to help, don't meet the G2E minimum criteria requirements. Minimum requirements are deck, script, viable full budget that fits finance models, and any talent attachments, or the ability to attach talent. “

"They go on to say, “If a film has a production cost of $80M, and with Prints & Advertising (P&A) the total budget reaches $100M, the breakdown of revenue can be daunting. Let’s say the film grosses $100M, with 40% going back to the production, 50% to theatres, and around 10% to the distributor (often as much as 12.5%). Now account for interest on the $100M at 18% or higher, plus around $4M in additional costs. When you start with 40% of the gross before any deductions, the production only recoups $40M. This doesn’t even cover the P&A and production budget spend. It’s also important to note that Rest of World Sales (ROW Sales) operate under different P&A models, where the focus is often on Minimum Guarantees (MGs), and that’s before the conversation about tax credits."

Christian Knaebel , Managing Director of Global Media Consult agrees. “Christina and Katya at G2E make a very important point that many aspiring filmmakers miss: the long tail effect of a production is more important than ever. Will that film not only be a (modest) success on the big screen but can it be exploited properly via additional distribution and monetization channels such as VOD, TV channels etc.”

A Final Note from Me

My years of experience supplying and working on independent films have given me unique insight into the indie scene, witnessing the struggles and challenges first-hand. Independent filmmaking is a labour of love, and while financing remains a tough hurdle, for me understanding the right approach for financing independent film and the difference between investment and patronage is key. Having supported indie filmmakers for years, I am available to participate in new projects, combining creative vision with strategy, practical production knowledge and realistic financial planning. Now more than ever, independent films need more than just investors, they need champions.

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