Inside the Economics of the Modern Indie Studio: Forget Home Runs, Aim for Singles and Doubles

”They’re operating in a completely different universe from their major blockbuster studio counterparts,“ Comscore’s Paul Dergarabedian says

The economics of running a successful independent film studio can be wearing. As former Relativity Studios head Ryan Kavanaugh said recently, “You’re on the edge at all times. You need $1 billion in cash a year just to keep it going, between releasing movies and making movies… it’s very hard.”

And he would know. Kavanaugh last year saw his company essentially fold, for a second time, joining the likes of Open Road and The Weinstein Company as independent studios to fade from view in 2018.

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Trey Williams

Film Reporter covering the biz • trey.williams@thewrap.com • Twitter: @trey3williams