What SXSW's Cancellation & Coronavirus Means for Indie Filmmakers
The city of Austin cancels SXSW, the city's most iconic and revenue-producing event. As Austin crumbles under the threat of Coronavirus and the markets continue plummeting, there's a new looming threat for indie filmmakers. I discuss the city's decision and what filmmakers can do to prepare for a potential market turndown as people stay home for this pandemic.
As I’m writing this, one of the longest bull market runs in history is taking a hit. Now, I’m not here to tell you that it’s the end of the world, or that the bull run is over, or any non-sense like that. I do not know the future, and anyone who claims that they do deserves no attention. But what I do see is a cautionary tale for an industry that has been corrupted, harmed and unstable during one of the longest-running bull market runs.
With the fall of Distribbr and Tugg, two of the biggest platforms that promised to fight for indie filmmakers, the film industry has proved to be (to put in light terms) disappointing. All these terrible downturns have happened in the most prosperous time and place in history. Filmmakers need to understand what is coming for them in a potential bear market or at the very least an unstable economic ground such as the one in which we find ourselves.
Secure your own financial wellbeing. Today is an excellent day to invest in the stock market, believe it or not. People who have been preparing for this day have the leverage to buy stock at bargain prices. However, people have been neglecting their finances during prosperous economic times will potentially find themselves in trouble. If your dream is to make films for a living, you have to first cover your own needs, spend less, save more, get out of debt and build an emergency fund. When you have the leverage, you are able to take better risks.
Riches are made in downturns. Warren Buffett said that you should “be fearful when others are greedy, and be greedy when other are fearful.” Look, filmmaking is an art but also a business. I advocate for promoting honest art and build a business with audience targeting. This may be the right time to listen to the market as people stay home in fear of disease and their consumption is reduced to what is available from home, i.e the internet. SXSW is seeking the option to move their festival online. This would be, in my opinion, not only the right decision, but potentially, and almost by accident, a game-changer for festivals all around the globe. When the world freaks out the wise and leveraged entrepreneur listens and reacts to the shifting market. If you want to be part of the film industry, make the best, cheapest film out there, and act when the market crumbles.
Pray for Austin. The event cancellation is not just bad news for the artists and audience of SXSW. Many businesses in Austin look forward to this event as their main source of income for the year and many of them took out loans and over-hired in preparation for the event. Hotels and restaurants, many of which are locally-owned businesses, will not count on this year’s festival revenue, not to mention gig workers and actual SXSW employees. Austin is a beautiful hippie town that has been home for many independent artists. It is extremely unfortunate that the festival had been planned just in time for a black swan event.
If all of this scares you, then you’re getting the right message. Again, I am not saying that everything is going to crap just yet, but realize that the film industry has been piggy-back riding on a prosperous market and that when the market shifts, we need to be ready for impact. Think of the many ways that you can grow your filmmaking career if the market were to shift. Have a plan in mind and don’t count on Hollywood to stick around for you.
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