Cannes 2025: The State of the Film Industry
- Michael Hayes
- May 23
- 4 min read
Updated: May 27
The red carpet rolled out once again for the Cannes Film Festival and Marché du Film in 2025.
The industry arrived not just with films to showcase, but with questions to answer: What is the current state of global film? How is artificial intelligence reshaping the business? What are buyers really paying for? And where is the smart money going in a fragmented, post-pandemic, hybridized entertainment economy?
Film Valuation
Valuation of films in 2025 remains as challenging as ever. While horror, action-thrillers, and animated family content drew significant interest at the Marché, pre-sales were scarce and many titles were over-priced. Ironically, as Pay-1, SVOD and downstream valuation has become unreliable and difficult to predict, the theatrical window remains as a significant determiner of value.
Which is not to say theatrical does not have its own challenges. Post-pandemic consumer behavior has created a winner-takes-all trend: a film either hits big or disappears. This, in part, has made middle ground (read: indie) fare less likely to find success.
AI and the Creative Economy
AI was omnipresent at Cannes, not only in panels and pitch decks, but as a looming force reshaping production pipelines, marketing strategies, and even script development. Companies offering AI-assisted storyboarding, dialogue generation, and localization services were actively pitching to producers, often with aggressive cost-cutting promises.
But the mood was not uniformly celebratory. Creators and unions voiced concern about job displacement, creative integrity, and ownership rights. The Writers Guild and SAG-AFTRA have both proposed international coordination on AI usage, seeking to establish baseline protections for human creators across jurisdictions.
On the sales floor, AI was already influencing packaging. Films with built-in AI localization or dubbing options were more attractive to foreign buyers, particularly in emerging markets where dubbing costs can be prohibitive.
Box Office and Streaming: A Delicate Balance
Global box office is on the rebound, but the growth is uneven. Europe and Asia have seen modest gains, driven by event films and regional hits, while North America is still navigating consumer reluctance around theatrical exclusivity.
A key talking point this year was the emerging “premium hybrid” model: strategic limited theatrical runs followed by targeted streaming drops. Buyers and distributors alike see this as a way to extract maximum value while hedging against underperformance.
Meanwhile, streamers are pivoting to profitability. Content budgets have shrunk, and many platforms are more focused on retaining subscribers than acquiring splashy new titles. This is leading to a more conservative acquisition strategy, favoring titles with built-in audiences or franchise potential.
Film Sales Trends: Smart IP, Flexible Rights
At Marché du Film, there was a clear appetite for smart IP packaging. Buyers favored projects that came with not just a script, but a rights roadmap: international sales projections, domestic release plans, potential series extensions, and even podcast/audio spin-off viability.
Flexible rights deals are also on the rise. Producers are increasingly willing to offer carve-outs, such as holding onto podcast or gaming rights while licensing theatrical and streaming. This modular approach allows content owners to hedge, diversify revenue, and retain leverage in future negotiations.
Also notable: catalog sales are heating up again. With M&A reshaping studio libraries and streamers looking to shore up their archives, well-positioned indie catalogs with clear rights documentation are being quietly but aggressively acquired.
One quiet variation few are talking about in catalog sales is the trend of licensing titles for AI training. Though this trend won't last longer than 12-18 months before most available catalogs, expect this to be a robust practice, while conversations continue around AI and its uses, impact and efficacy.
Consolidation and M&A: Still Shaking the Industry
Industry consolidation remains a major theme. With Amazon's full integration of MGM complete, and Disney reportedly exploring strategic asset sales, the studio landscape continues to shift. The long-rumored merger between Paramount and another major player was again a topic of cocktail-hour speculation.
These moves have downstream effects: fewer buyers with bigger checkbooks, but also more cautious and strategic deployment of capital. For independent producers, this means fewer chances to sell broadly, but bigger upside if aligned with a consolidating brand.
Private equity and venture capital are increasingly targeting IP-rich mini-studios and boutique production houses, betting on their ability to scale or license into larger ecosystems.
Looking Ahead: What Cannes 2025 Tells Us
Cannes 2025 affirmed that the entertainment industry is at an inflection point. Creativity is still king, but packaging, positioning, and tech-savvy execution are more important than ever. AI is not just coming, it's here. Box office is not dead, but it is no longer the only metric of success. Streaming is not limitless, but it remains a vital, if unpredictable, distribution channel.
The smartest players in the room are those who see these shifts not as threats, but as opportunities to diversify, innovate, and evolve.
For creators, the lesson is clear: know your rights, understand your value, and think across platforms. For buyers and investors, it's about backing content that travels, adapts, and lasts.
In a marketplace that does not stand still, Cannes 2025 reminded us that those who move, not just quickly, but strategically, will define the next era of entertainment.
Spiller Law is an advisor to startup businesses, entertainment and media companies, and artists. Feel free to schedule a free consultation.
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The information provided in this article is for general informational purposes only and should not be construed as legal advice or opinion. Readers are advised to consult with their legal counsel for specific advice.
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