By Miranda Murray
CANNES, France, May 13 (Reuters) - The world's largest film market opened in Cannes this week and attracted a record number of attendees vying to buy the mostly smaller productions on offer as studios have become risk averse.
Around 16,000 participants from across the film industry registered for the market, which takes place from May 12 to 20 in parallel with Cannes Film Festival.
While the actors and filmmakers dazzle on the red carpet, their sales agents and potential buyers are haggling over distribution rights only yards away.
Those who spoke to Reuters said improved box office results had boosted the confidence of buyers and sellers heading into the market that last year achieved more than 15,000 registrations.
The increase was driven mainly by increasing numbers of Asian participants, particularly from Japan, who can choose from the roughly 4,000 films and projects on offer.
RISE OF YOUNGER VIEWERS?
While the global box office remains below pre-pandemic levels, younger audiences, particularly Gen Z, have driven growth in recent months.
"The trend in the past months has been very good and much better than last year," Elisha Karmitz, CEO of French sales agent, production and distribution firm MK2 Films, said.
Big Hollywood films have been largely absent at this year's festival as a shift in viewing habits has made studios focus on fewer films with wider appeal. Some filmmakers are particularly seeking to appeal to younger audiences.
Head of U.S. independent film company IFC Entertainment Group Scott Shooman said the absence of the big blockbusters was an opportunity.
IFC, which typically handles slightly fewer than 50 titles a year, has achieved the strongest results from films aimed towards slightly younger audiences and that have some overlap with categories like horror, comedy or thrillers, he said.
Successful independent titles such as last year's second-place winner at Cannes, "Sentimental Value" - a film about family relationships and emotional trauma - have shown that artistically ambitious films can break through commercially at lower budget levels, said Scott Roxborough, European correspondent at The Hollywood Reporter.
SMALLER FILMS DOMINATE
The volume of projects at the market this year remains strong, Roxborough said, but the mix has shifted. The smaller films that are dominant are often financed through European models and have budgets in the $10 million to 15 million range.
IFC's Shooman said a significant number of films arrive in Cannes with domestic distribution already in place, meaning fewer films are available for acquisition.
"Over the past year, it swung to a seller's market. I think it will possibly swing back to a buyer's market," he said.
"But I've never been to a festival where there were too many movies," he said.
"We always want there to be more. There's a few available films and hopefully they're really good and they make sense for us."
(Reporting by Miranda Murray and Hanna Rantala; editing by Barbara Lewis)
