Groundbreaking NYU Report Makes Recommendations To Improve Position Of African-Americans In Film

February 8, 1998 --"Black" and Urban films account for over $200 million or 3 1/2 - 5% of the annual domestic box office on only 13 - 16 releases per year. This performance outdistances the highly-touted Independent film genre which typically accounts for 4 - 6% of the domestic box office on 2 - 3 times as many releases.

In addition, soundtracks for no fewer than ten of the twenty-six Black and Urban films released in 1995 and 1996 went gold or better, generating substantial ancillary benefits for record companies and film distributors. Furthermore, given that Black consumers spend almost $2 billion on entertainment and leisure annually and approximately $300 billion per year on all products and services, there is tremendous room for growth in other ancillary revenues for filmmakers and entrepreneurs who take the initiative in seeking out cross-promotional partners.

These are just two findings informing the analysis and recommendations of the 80-page NYU Black Film Report. The report, produced by the Innovation Initiative of New York University School of Law, is the first publication to critically examine the position of African-Americans in film from a business standpoint.

The group’s director, Yaphet Smith, a student at the NYU School of Law, noted that "filmmakers and professionals have shown remarkable dedication and resourcefulness in bringing films to life. In light of those efforts and continued debates about the position of African-Americans in film, we felt it was time for a methodical, intensive examination of ways in which Black people can achieve a sustained, rewarding presence in the film industry."

The Report recommends:

· Black Film Trade Association: African-American filmmakers and professionals should establish a trade organization to represent the interests of Black filmmakers, executives, and audiences. An advocacy group is increasingly important as decision making becomes more complex in the global, high-tech world of visual entertainment. Potential trade initiatives may include serving as a clearinghouse for market data, developing relationships with strategic partners such as investors, advertisers, and foreign distributors, offering seminars on financial or technological innovations, battling piracy, and facilitating community outreach.

· Long-Term Focus: Black professionals and executives must adopt a long-term mental orientation and seek to create institutions that can outlive their founders and nurture the next generation of artists.

· Investing in Empowerment: Black filmmakers and film entrepreneurs should explore the myriad of concessions (lower interests rates, relaxed repayment schedules and credit requirements, etc.) made available by the Community Reinvestment Act (CRA). The CRA can be a particularly potent bargaining chip in regions where media and entertainment are important aspects of the economy. These regions include Los Angeles, New York, Atlanta, and Nashville.

· Market Definition: Black filmmakers and executives must be more rigorous in defining the markets in which they compete as markets may be classified by the class of activity, e.g., leisure versus film versus visual entertainment, genre of film, the type of consumer, the medium of exploitation, or any combination of the above.

· Connecting with Audiences: Filmmakers and executives must take the initiative in learning about audiences. African-Americans cannot afford to copy Hollywood’s wait-and-see strategy. Taking the initiative will allow filmmakers and entrepreneurs to anticipate the market and gain first-mover privileges that can help secure a competitive advantage.

· Broadening Relationships: Industry participants should use joint ventures and trade affiliations to establish direct relationships with the many entities that support motion picture exploitation. They include: foreign sales agents, video wholesalers and retailers, consumer goods and services companies, etc.

· Brand Plans: Many Black industry players are prime candidates for establishing a brand presence: "Babyface," "Oprah," "Magic," "Quincy," "Whitney," "Def Jam," "Motown," and "Black Entertainment Television" are all faced with the challenge of converting notoriety into meaningful brand recognition. The report makes a number of suggestions to help these entities make that transition.

· Foreign Outreach: Cracking international markets requires researching both the most promising markets and the best delivery platforms for those markets (i.e., theatrical, video, satellite, etc.). A road show that introduces foreign financiers, programmers, festival organizers, consumer products companies et al. to the works of African-Americans could be of great benefit.

· Technology and African-Americans: Black life is filled with examples of the use and early-adoption of technological innovations. Pagers and cellular phones (microwave technology), athletic shoes (polymers and physics), hair care products (chemistry), and The Box video music channel (digital compression) all incorporate technological advances into products African-Americans use regularly. Consequently, filmmakers, entrepreneurs and executives must take a broader view of technology and its potential relevance for Black consumers.

· Financial Performance: The report also includes a detailed analysis of the budgets and domestic box office performances of all Black and Urban films released from 1990 to mid-1997.

The Report, according to Smith, is aimed at the following industry people:

--Studio and independent executives and professionals seeking to forge a strong track record and to identify the most effective exploitation strategies.

--Filmmakers and producers attempting to realize the full value of their projects.

--Investors and entrepreneurs seeking to identify lucrative business opportunities.

--Artists, social activists, and other filmmakers or groups seeking a stronger foothold in the industry.

FOR MORE INFORMATION, PLEASE CALL YAPHET SMITH AT 1-888-903-6484 or e-mail him at yls1660@is3.nyu.edu.

2/8/98