Cannes In The Recession

Cannes is defying the recession this year. The annual film festival on the French Riviera will exude European glamour as it spotlights Hollywood heavyweights like Quentin Tarantino and Angelina Jolie, clinking champagne glasses at yacht parties and black-tie dinners. Beneath the glitz, though, will be a major test for the movie industry. At one of the world's most important markets for distributors, the Cannes du Marche, prices will be lower, thanks to a drying up of funding, falling DVD sales and competition from new distribution channels, notably the Internet. Where there was once a glut of movies in production, thanks to investment from hedge funds, there will soon be a dearth. We consider how the film industry is dealing with the downturn.