Following the debut of “Die My Love” at the Cannes Film Festival, stars Jennifer Lawrence, Robert Pattinson, and director Lynne Ramsay gathered for a chat at a restaurant near the Croisette, during the film’s afterparty. As guests such as Joaquin Phoenix, Charli XCX, and Dakota Johnson arrived, one partygoer stood casually by the bar, almost entirely focused on his phone: Mubi’s head of content, Jason Ropell.
For Mubi, just as numerous other niche businesses preparing for the film festival, securing the film Die My Love, boasting an A-list cast, award prospects, and being the first feature by director Ramsay since 2017’s You Were Never Really Here, was a top priority. Following their recent $1 billion valuation and $100 million funding round led by private equity firm Sequoia, Mubi acquired the film in a multi-territory deal worth $24 million.
At Cannes this year, Mubi solidified its status as a significant player on the global stage. In addition to “Die My Love,” Kelly Reichardt’s “The Mastermind” – a 1970s-set heist movie featuring Josh O’Connor and produced by Mubi for the first time – premiered in Cannes competition. Previously, it was only last year that this London-based streaming service acquired global rights to Coralie Fargeat’s horror film “The Substance” for $12 million after its original distributor, Universal, relinquished the project. This acquisition was intended to boost Mubi’s presence in North America, and it exceeded expectations: “The Substance” grossed $17 million domestically and garnered five Oscar nominations, including for best picture.
A U.S. representative, whose talent is active in the independent film industry, remarks, ‘All of a sudden, I have just one resource, yet I’m receiving calls for every film project,’ he says, using colorful language.
Currently, the company is narrowing the distance between itself, A24, and Neon. These three entities are frequently competing at various film festivals. Although they may sometimes vie for the same films during Park City and Cannes, as demonstrated by Eva Victor’s Sundance hit “Sorry, Baby“, Neon, Mubi, and A24 each represent unique paths for independent cinema. Despite being often grouped together by both the industry and consumers, their business models are significantly distinct, according to a dozen experts in the global independent film market who spoke with The Hollywood Reporter.
Tom Quinn’s Neon is renowned for its curatorial strength, being known as a “Palme d’Or tipster” and provider of top-tier horror. This year at Cannes, Neon continued its winning streak – now in its sixth consecutive year – by acquiring Jafar Panahi’s Best Picture winner, “It Was Just an Accident“, along with several other potential Oscar contenders such as Oliver Laxe’s “Sirât” and Kleber Mendonça Filho’s “The Secret Agent“.
Neon has demonstrated its ability to move films from Cannes to Oscar contention, converting festival buzz into successful box office performances, as seen with Bong Joon Ho’s “Parasite” and Sean Baker’s “Anora.” The latter film grossed over $20 million domestically and even won the Best Picture award. However, it wasn’t too long before Neon experienced a challenging period, marked by the flops of “Ferrari” and “Origin,” extravagant productions that amassed a combined $23 million at the North American box office but failed to secure any major award nominations.
Over this period, the distributor has experienced a series of successes. Apart from its films competing for awards, it also boasts homegrown horror thrillers such as “Longlegs” and “The Monkey,” which collectively earned $93 million in domestic box office sales. Neon, having secured the Sundance genre hit “Together,” has expressed its intent to take the lead in the specialized horror genre.
Among them stands the once-young, now seasoned leader, A24. One independent film producer describes this by saying, “Neon and Mubi can thrive because A24 paved the way.
Recently, A24 has been purchasing fewer completed films to focus more on its internal production, which is growing rapidly. This rapid growth was reinforced by its latest valuation of $3.5 billion in June 2024, after receiving a $250 million investment, with Josh Kushner’s Thrive Capital contributing $75 million. These investments have bolstered their ongoing endeavors.
However, some have expressed concerns about A24’s box office performance during the first half of the year. Titles such as Opus, starring Ayo Edebiri, and Death of a Unicorn, featuring Jenna Ortega, didn’t perform as well as expected, with earnings of $2 million and $12.8 million domestically respectively. The studio’s children’s movie, Legend of Ochi, also fell short, earning just $2.4 million. Even the horror film Bring Her Back, which initially made $14 million in its first two domestic weekends, is unlikely to surpass the earnings of the duo’s first A24 title, Talk to Me, which garnered a staggering $48 million in North America. Despite this, A24 can offset financial losses with its lucrative output deals, such as the pay-one agreement with WBD, which allows their films to stream on HBO Max.
Additionally, the commercial tilt of mini-major studios intensifies the unease in the niche specialized market. They are pouring resources into larger intellectual properties, such as an upcoming movie adaptation of the video game Elden Ring by Alex Garland, and exploring potential franchises. Unfortunately, they failed to acquire Halloween and 28 Days Later, but they have a second Talk to Me and Onslaught, a horror film directed by Adam Wingard who previously worked on Godzilla vs. Kong.
Regardless, various sources claim that directors continue to aim for A24 to open their films. The remainder of the year looks promising, with titles such as Dwayne Johnson’s “The Smashing Machine” and Timothée Chalamet’s “Marty Supreme,” both produced by the Safdie brothers, set to release.
According to an experienced independent film executive, A24 initially paved the way for our current environment. Although they’ve since expanded their focus to include more mainstream films.
If you’re curious about where a company might be planning to grow next, take a closer look at their recent staff additions.
Neon, a company owned by Dan Friedkin and Micah Green’s 30West, has chosen to grow at a slower yet deliberate speed. Towards the end of last year, it secured a fresh $200 million credit line from Comerica Bank and other lenders, which will help finance its strategic acquisitions. In Cannes, Neon appointed Ryan Werner, a renowned marketing expert from Cinetic Marketing, as its new global cinema president. The specifics of his role are not yet clear, but this appointment could signal a move towards more international distribution.
Prior to Sundance, Mubi brought on Arianna Bocco, a long-standing IFC Films president, as their new senior vice president of global distribution. Bocco has earned significant goodwill in the domestic market and is perceived as an added strength to their ongoing plans to expand into North America. In May, Mubi announced they were launching a theatrical operation in Italy, with Gabriele D’Andrea, a former Lucky Red executive, taking charge of this new venture.
Although Neon and A24 primarily concentrate on domestic exhibition, Mubi operates on a global scale. The main focus of their business remains their international streaming service, often referred to as the “Netflix for art house,” which they acquire titles for worldwide or as many territories as possible. A European film producer with several films on the platform notes that Mubi’s approach differs from traditional methods; it could be due to being a European company or primarily tech-based. They are less concerned about catering to one region and more dedicated to cultivating a global audience for such movies.
It’s likely that audience accounts for the true land grab.
Each slate appeals to individuals who proudly label themselves as film lovers.
Each caters to its audience uniquely, often employing unconventional strategies like guerrilla tactics and internet marketing. A24 strengthens its brand identity through a membership program offering exclusive merchandise. Neon made headlines with screenings of Anora for sex workers and selling Neon-branded underwear. Mubi supports a 35-seat “microcinema” at East L.A.’s beloved Vidiots revival house as a sponsor.
Although facing competition, experts within the industry believe there’s enough opportunity for everyone to prosper. A European sales agent who works with all three companies notes, “Our aspiration is for them all to succeed. The independent market benefits from having multiple robust buyers and models for the future.
You can find this story in the June 11 edition of The Hollywood Reporter magazine. To get future issues, consider subscribing.
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2025-06-12 17:25