sex, lies and marketing: Miramax and the Development of the Quality Indie Blockbuster

in disarray. While the appearance of the video market in the 1980s had helped spur the emergence and expansion of a number of independent distributors, by the end of the decade several of these same companies—including Vestron, Island, and Cinecom—had overextended themselves by investing heavily in larger budget, in-house productions. Consequently, by 1989, many within the industry were predicting the death of the independent distributor. However, what seemed to be the decline of independent distribution was actually an “independent shakedown,” a label presciently attached to the period by Los Angeles Times writer Daniel Cerone in June 1989.2 Cerone saw that it was a transitional time within the independent world. While the vast majority of independent distributors who had thrived in the 80s were forced to declare bankruptcy by the end of the decade, a few companies were positioned to make a signiŽ cant mark on the industrial structure and aesthetics of low-budget Ž lmmaking in the 90s. At the head of the pack was Miramax. The August 1989 release of sex, lies and videotape by Miramax marked a turning point in American independent cinema. In fact, the Ž lm should be perceived as central to the development of New Hollywood aesthetics, economics, and structure.3 sex, lies and videotape ushered in the era of the “indie blockbusters”—Ž lms that, on a smaller scale, replicate the exploitation marketing and box-office performance of the major studio high-concept event pictures.4 On a cost-to-earning ratio, Steven Soderbergh’s creation —with its $1.1 million dollar budget and $24 million plus in North American box office—was a better investment than Batman, which—at an investment of $50 million—returned $250 million in domestic box office.5 These Ž gures begin to suggest how sex, lies and videotape helped to set the standard for low-budget, niche-based distribution in the 90s and to lay the groundwork for a bifurcation within the entertainment industry.6 In the ten years following the release of sex, lies and videotape, each major studio or media conglomerate created or purchased at least one specialty division. These divisions generally operated relatively autonomously from the studio in terms of production and distribution. In the wake of Disney’s April 1993 purchase of Miramax, a number of studio-based niche operations emerged, including Universal Focus, ParaTHE BUSINESS OF HOLLYWOOD