Today’s moviegoers require variety, not just in what they see, but in the cinemas they choose to patronize. In partnership with Spotlight Cinema Networks®, Boxoffice Pro is proud to present Indie Focus, in which we explore the wealth of experiences that cinemas—from the high-end luxury multiplex to the beloved community art house—offer their audiences. In our fourth annual State of the Art House, thought leaders from art house cinema, film festivals, and independent film distribution provide insight into the health of the industry’s art house sector.
Sponsored by SPOTLIGHT CINEMA NETWORKS
“Spotlight is dedicated to supporting our partners in exhibition. We are thrilled once again to highlight their insights regarding the health of the industry in this year’s State of the Art House. It is an incredibly valuable opportunity for the exhibition and distribution community who love the independent side of the industry to share with and learn from one another, and we are excited to be a part of this collaborative experience.” – Bernadette McCabe, EVP, Exhibitor Relations & Event Cinema, Spotlight Cinema Networks
Last summer, Art House Convergence and the Film Festival Alliance co-hosted the first annual Independent Film Exhibition Conference (IND/EX) in Chicago. There was a real sense of optimism at the event about the health of the independent cinema space. What has the sector’s performance been like since then? Is it still enjoying positive momentum?
Kate Markham, Managing Director, Art House Convergence: Postconference—late summer and early fall—I would say there was some cautious optimism. There were a lot of titles that folks were looking forward to: Conclave, A Real Pain, The Brutalist, Nosferatu, etc. But 2025 so far has brought a lot of uncertainty. The devastating fires in L.A. have dealt strife and adversity to our filmmaking community. The uncertainty about federal funding is impacting not only nonprofit cinemas but the artists and filmmakers who create the films we screen, the community partners that we work with, and other funders, not to mention audiences themselves, who may be cutting back on discretionary spending, including going to the movies.
Barbara Twist, Executive Director, Film Festival Alliance: Film festivals have shown a ton of resilience postpandemic, and our membership has reported an encouraging surge in audience engagement within the last six months. Many film festivals have seen a return to prepandemic ticket sales and engagement, along with a significant increase in younger audiences. Many of our members from all over the country have reported multiple sold-out festival screenings at their latest iterations—from SF Indie and BlackStar to the McMinnville Short Film Festival. And the engagement goes beyond ticket sales: We are thrilled to hear of postfestival conversations, filmmaker roundtables, and community education shining a light on a deeper story of communities reconnecting with festivals as an important cultural experience. It seems there has been pent-up demand for the communal experience festivals provide, whether it’s watching films or being a part of a really engaging Q&A. This momentum suggests that audiences are discovering (or rediscovering) the value of experiencing cinema through a film festival.
We anticipate 2025 will continue to reflect positive momentum, in part because sharing art is a way for people to come together and make meaning during troubled times. That said, we are seeing a contraction in sponsorship funds and uncertainty in public grants. We will continue to advocate for film festivals and their impact both economically and culturally on a national scale. We hope that companies and public grantors will see the value in the work we do. And if they don’t, then we invite them to attend our festivals to see the work and its impact in action.
AHC’s audience survey from last year showed that art house audiences are getting younger. What are some of the essential things a theater can do to attract a younger audience?
KM: It is counterintuitive, but to attract younger audiences, theaters are showing older movies. Repertory cinema is very popular with younger audiences. It is so exciting to see audiences revisit films on the big screen. Though I would not call myself “young,” I am very selfishly delighted by the return to repertory; to be able to watch films in the cinema now that I watched on VHS tapes in high school is a delight and a privilege.
Neal, I’m curious to hear your thoughts on this, from a distributor’s point of view. Have you noticed any change in who is seeing your movies? How does Magnolia reach moviegoers in different age brackets?
Neal Block, Head of Distribution and Marketing, Magnolia Pictures: The pandemic put an end to the moviegoing habits of a percentage of the older audience that has supported, for decades, traditional art house films (and the theaters that play them), but that audience will still come out for films they feel are big or worthwhile. The missing percentage has been replaced by a younger audience segment, but that demographic is pickier, harder to pin down, and interested in a much different experience. We were lucky enough last summer to have a great test case for this issue, with our release of Thelma, which was a true cross-generational success that brought in both demographics. It’s a matter of just meeting audiences where they are, whether it’s on Letterboxd or Reddit, or reading the weekly AARP newsletter. A smart, precise media spend can push this along.
Thelma was definitely a big hit for Magnolia in 2024. What was the most creative way you saw some of your theater partners promote the film?
NB: We had Thelma needlepoint matinee screenings nationally with Alamo Drafthouse. Ticket buyers got a limited edition needlepoint kit and the theaters kept the lights on low so the audience could stich and watch and eat and drink. Lots of sellouts!
What films have worked particularly well for the art house sector in the past year, and what do you think shows the most promise for 2025?
KM: We’ve seen the trend toward horror and genre continue to do really well in the last year— for instance, The Substance, Longlegs, and Heretic. Films in special formats, like The Brutalist screenings on 70 mm, did really well. It is heartening to see that audiences value that experience. What will be popular in 2025 at this point in time is really up in the air. I wish I could say with certainty that “2025 is the year of the documentary” or anything definitive like that, but this is not the case.
What are some creative ways that you’ve seen art house/independent cinemas and film festivals pull in money, aside from ticket/concessions sales or grants?
KM: I am really heartened to see audience participation in events like film trivia nights, film bingo, page-to-screen book clubs, or craft night screenings (where cinemas keep the lights up a bit and audiences are encouraged to bring handheld craft projects like knitting or cross-stitch) at their local cinemas. It speaks to the community-building that these cinemas are doing. Cinemas are also doing amazing work with young audiences, offering summer and spring break camps and weekend workshops where they are learning things from stop-motion animation to completing a live-action narrative film in a week or honing their screenplays.
BT: Film festivals tend to have diverse revenue sources, particularly if they are nonprofits, and those sources are fairly even. In addition to ticket sales and grants, festivals rely on sponsorship, private donations, merchandise, and submission fees. Grants and submission fees tend to be the smallest revenue sources, despite what people might think. Festivals bring incredible value to their communities and regions, both economically and culturally. We strongly encourage festivals to generate their own economic impact reports. Festivals drive tourism, employ many workers, and support local businesses. Our impact as a community on the U.S. economy is not to be ignored. The same extends to the movie theater sector. We are small businesses creating jobs and bringing an invaluable cultural light to our cities and towns. As an industry, we need to strengthen our message about our impact, and we encourage festivals to do the same.
How can a film festival engage its patrons and its community year-round when they don’t have year-round screenings like brick-and-mortar cinemas do?
BT: Film festivals are pretty incredible with their year-round audience engagement. Many festivals will host pop-up screenings of past festival favorites, co-host partner screenings with their local art houses, or engage directly with local schools and libraries for festival programming throughout the year. In some cases, not having a brick-and-mortar space is a real advantage—it allows festivals to be nimble and flexible with resources, skills they have in abundance. It also allows festivals to give locals and visitors a new perspective on the city, as festivals have the opportunity to transform community spaces to match the tone and vibe of their programming. Each screening then becomes an opportunity to highlight different aspects of your community’s culture, whether you’re hosting a summer series at an art gallery, a drive-in, or a baseball stadium. Each new location can help attract a new audience and create distinctive experiences that wouldn’t be possible in a traditional cinema setting.
We are also big proponents of festivals engaging with their local cinema, and vice versa. Film festivals are places of discovery, and the audience they develop is open to new experiences and engaging events. Movie theaters are places for nurturing a love of cinema and building on that foundation. Together, there is a beautiful synergy where moviegoing audiences can be nourished, educated, and supported in their love of cinema.
Neal, as a distributor, what do you think independent exhibitors, whether cinemas or film festivals, can do more of to help movies find their audiences?
NB: It’s shortsighted for distributors to put the onus of promotion entirely on exhibition. It’s a partnership, and let’s be honest: Independent cinemas have not had an easy go of it the last few years. Do we have a budget, however small, to contribute to a social spend with them? Can we augment what they’re doing already? Can we work together to set up events, Q&As—ways to make screenings feel special?
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