Exodus Film Group is developing itself as a mini-animation powerhouse with upcoming projects like Igor, which will be released by The Weinstein Co. © Exodus Film Group.

As the cost of animation has come down over the last several years, and as animated features from independent studios have started to see success at the box office and on DVD, more indie animation houses are developing movie properties. Some companies are taking a traditional distribution route, partnering early in the process with a studio that finances all or part of the film, in addition to distributing it. Meanwhile, others -- whether through choice or necessity -- are self-financing their productions before partnering with a distributor.

One studio that has opted for independent financing is Exodus Film Group. In 2004, it launched a $50 million private equity film fund, believed to be one of the first focusing on animated films, to raise capital from private investors. The three CG-animated films covered by the fund are Igor, being distributed in North America by The Weinstein Co.; The Hero of Color City, distributed domestically by Magnolia Pictures; and Amarillo Armadillo.

Exodus is also in preproduction on Paul Bunyan and Babe, a live-action film featuring a CG-animated Babe the Blue Ox.

While the distributors came on board early in the production process, they are not contributing to production expenses. "[Private financing] helps us retain more of not just the revenues, but also a piece of the underlying copyrights," says Exodus president John D. Eraklis. "We wanted to keep a majority of the upside for our investors."

Another studio that chose to self-finance is Atlanta-based Fathom Studios. Its CG fantasy action-adventure film Delgo is in the final stages of post-production and should be finished in the spring. Fathom's agent, Ken Kamins, will then screen it for distributors, for an anticipated 2008 release. (Fathom is also developing a second CG theatrical release, this one a comedy. A short based on the property is expected to appear on the Delgo DVD.)

"Delgo didn't fit the Hollywood CG formula: known story, comedy, talking animals, pop music, pop culture references, etc.," says writer/producer/director Marc F. Adler of Fathom. "Rather than adapt our story to the Hollywood mold, we looked outside of the studio system for financing."

Phil Nibbelink Prods.' founder Phil Nibbelink, who worked with Steven Speilberg and at Disney prior to going out on his own five years ago, recently completed a truly independent production. His 78-minute film, the 2D-animated underwater adventure Romeo & Juliet: Sealed With a Kiss, is being distributed domestically by Indican Pictures and internationally by MarVista. It has debuted in L.A., with Dallas/Ft. Worth its next stop.

"I got tired of the big industry merry-go-round and just wanted to make my own films," says Nibbelink, who had already completed two direct-to-video movies before starting on Romeo & Juliet. He financed the entire film and did all the production himself, using a Wacom tablet, Flash, Painter, Anime Studio Pro (formerly Moho) and Vegas Audio. He completed 112,000 drawings for the film (each in under two minutes), enlisted friends and his children as the voice talent, and recorded in a studio he built in his basement. Once the film was finished, Nibbelink rented out screening rooms to show the film to acquisitions execs.

Vanguard Animation has landed deals all around Hollywood for its upcoming films, such as Happily Never After, Space Chimps and Ribbit. © Vanguard Animation.

Studio Financing
Other independents operate more traditionally, signing a distributor who contributes financing to the production in addition to distributing and marketing the finished film. Vanguard Animation, formed in 2002, is one example. Its current slate of CG-animated family films includes Happily Never After for Lionsgate, Space Chimps for 20th Century Fox (scheduled for a 2008 release) and Ribbit (plus two other films) for MGM.