The Berlinale’s European Film Market (EFM) hosted a panel discussion in February titled “Eyes on the Audience: Smart Thinking in Distribution & Exhibition,” which brought together key European industry professionals from across the region to address one of the most pressing concerns in independent cinema: how to sustain and grow audiences in a rapidly evolving media landscape. 

Moderated by Screen International journalist and festival consultant Wendy Mitchell, the panel featured Kim Foss (CEO, Camera Film, Denmark), Wiktoria Pelzer (Manager and Artistic Director, Stadtkino Filmverleih, Austria), James Brown (Head of Acquisitions, Picturehouse Entertainment, United Kingdom), and Sofia Angelidou (Co-Founder & Partner, One from the Heart, Greece). 

Regional Perspectives
Mitchell opened the discussion by asking panelists to describe the current distribution and exhibition landscape in their respective countries.

Angelidou provided insight into the Greek market, explaining that her company releases eight to nine  films per year, with a mix that includes three French titles, two non-European films, and the rest from other European countries. French films, she observed, tend to perform particularly well in Greece.

Pelzer challenged the idea of a “recovery” phase post-pandemic, stating, “I’m not thinking about that anymore.” She emphasized that while the pandemic altered the industry, Austrian arthouse cinemas have seen a strong resurgence over the past two to three years. Stadtkino and Admiralkino, the two cinemas Pelzer operates, had record-breaking years, thanks to high-performing titles like “Priscilla” via curated streaming platform and indie distributor MUBI and “Sleeping with the Tiger,” a locally focused but highly successful biopic about Maria Lassnig, which recorded over 35,000 admissions. However, larger cinema chains in Austria are reportedly struggling.

Pelzer also highlighted the introduction of nonstop, an Austria-wide subscription model inspired by Cineville, implemented in 2023. This independent-circuit-only scheme has proven to be a game-changer in bringing younger audiences back to cinemas, with major chains now expressing interest in joining.

Meanwhile, in Denmark, Kim Foss noted that his company, Camera Film, which distributes high-end art films, recently acquired a single-screen cinema “around the corner,” describing it as “a playground for films that aren’t going to make any money anyway.”

One successful initiative he mentioned was the Danish Cinema Club, which allows members to pay a low fixed fee for access to 10 curated films per year. Foss praised the model, as it fosters collaboration between distributors and exhibitors, ensuring a balanced selection that includes at least three local films and one or two arthouse titles. “It’s a way to bring the industry together,” he said. Foss also pointed to “The Worst Person in the World” as a major arthouse success, achieving the best per capita results worldwide in Denmark and setting a benchmark for the Nordic region.

Angelidou explained that Greece saw a 4% increase in admissions this year, largely driven by a biopic about a famous local singer, Yorgos Tsemberopoulos’ “Yparho.” “Not our cup of tea, but you need these films as well,” she admitted with a laugh, describing how older audiences enthusiastically sang along to the biopic during screenings. However, total admissions remain 20% below 2019 levels, a decline exacerbated by the continued closure of cinemas. Three Athens cinemas shuttered in 2024 alone, with one set to be converted into an apartment block, another into a gym and dance school, and the fate of the third still undecided. Unlike open-air cinemas, which thrive under 1980s-era protections, winter cinemas in Greece receive no governmental support.

Brown shared that Picturehouse Entertainment operates about 29 sites with 100 screens across the UK. He compared the current state of the UK market to the period following the 2008-2009 financial crisis, which severely damaged the country’s indie cinema landscape. He acknowledged the industry’s difficulties but remained optimistic: “We’ve been here before.” A recent bright spot was Steven Soderbergh’s “Presence,” which became the fourth highest-grossing film in Picturehouse’s history, demonstrating that unexpected successes are still possible.

The Role of Public Funding and Policy
The conversation turned to the role of government incentives. Foss credited the MEDIA program for sustaining distribution in small markets like Denmark. However, he noted that recouping costs in independent distribution is complicated: “We consider a film to have recouped when we cover publicity and advertising (P&A) and minimum guarantee (MG) costs, but in any other business, you wouldn’t consider yourself profitable until you’ve also covered your salary.”

Pelzer outlined Austria’s 2023 incentive model, which now incorporates distribution, offering a 30% bonus on Austrian expenditures, including a distribution fee. “For the first time, I could afford to hire someone to help us,” she said. However, Pelzer criticized the system’s imbalance, noting that only 3% of the EUR €37 million budget was allocated to distribution. “Producers have huge lobbies. They forget about us, but when their films are ready, they’re knocking on our door demanding distribution. If they need us so much, they should share some of the money.”

Angelidou lamented the lack of distribution funding in Greece, where support is limited to P&A grants for Greek films. “We’re on our own apart from MEDIA,” she said, arguing for a scheme that would encourage greater collaboration between distributors and exhibitors. “After all, audiences follow theaters, not distributors,” she added, hinting at the few examples of distributors who have built a powerful brand around them – the likes of A24 and Neon in the United States.

Brown was asked whether tax relief on P&A spending would help the UK sector. “The short answer is no,” he said, though he acknowledged that BFI funding for P&A exists under restrictive conditions, including company ownership requirements that exclude distributors owned by non-UK stakeholders. “I can appreciate the intent, but the reality is that these rules leave us out. There’s no simple answer here.”

Looking Ahead
As the discussion wrapped up, Foss emphasized the importance of risk-taking in independent distribution: “We’re forced to take risks anyway, so it’s still about passion.” He cited his recent acquisition of Gabriel Mascaro’s “The Blue Trail,” a film he doubts will recoup its investment but which he believes speaks to older audiences, “the demographic that pays my wages.”

Pelzer underlined the need for distributors to build strong branding, and like Angelidou, pointed to the global success of A24 as an example. Brown echoed this sentiment, advocating for more experimental release strategies and questioning outdated industry assumptions about seasonality, such as the three month run up to awards shows. “A post-pandemic world means the old wisdom isn’t necessarily true anymore.”

The discussion made it clear that the post-pandemic landscape for Europe’s exhibition sector remains uneven, with mixed fortunes. At the same time, successful initiatives like nonstop, Cineville, and the Danish Cinema Club demonstrate the potential of membership-based schemes to attract younger audiences and provide more stable revenue streams.

However, a recurring challenge across all territories is the imbalance in public funding, which overwhelmingly favors production over distribution and exhibition, leaving independent players to navigate financial risks with limited support.

In this context, the growing importance of branding in distribution—exemplified by the global success of A24 and Neon, and, on a smaller scale, that of MUBI in Europe and the UK—suggests that indie distributors may need to adopt a more strategic approach to audience engagement.

Ultimately, sustaining independent cinema in a rapidly changing market will require a combination of innovative release strategies, closer collaboration between exhibitors and distributors, and a willingness to take calculated risks despite an uncertain financial landscape.