Why can't you have good, quality, smaller movies, and allow them to build over time? Eventually making their money back.
I'm hoping that as the digital market expands, you'll see room for different types of releases.
It's the same problem Soderbergh noted with Liberace. I think his numbers were, the $5M budget movie needed to make $120M just to break even. Which is absurd. With $30-40M going to marketing, and $30-40M going to theater owners as part of their distribution split.
Obviously what I'm talking about would be non-theatrical releases. With growth hacker / lean startup marketing techniques.
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