Analysts said the economy is perking up, making this recession one of the mildest ever. But even though the economy is on the mend, Latter-day Saint filmmakers struggle to get and keep investors.

Alan Greenspan, the Federal Reserve chairman, said, in a testimony before Congress last week, the economy seems to be emerging from the recession which started last March.

However, he warned the rebound would be moderate compared to past economic cycles.

MSNBC reported steady consumer spending has provided the bedrock for the economy. The economy was badly shaken after Sept. 11, but has recovered far faster than most economists anticipated.

"Despite the disruptions engendered by the terrorist attacks of Sept. 11, the typical dynamics of the business cycle have reemerged and are prompting a firming in economic activity," Greenspan said.

However, even with economic rebound, the recession and Sept. 11 have negatively affected the film industry's investors.

Lance Williams, the producer of "Charly," said one of the film's investors pulled out three days after Sept. 11 because of concern for the stock market and the overall economy.

"It was a huge blow to the production because each investor represented a sizeable part of the budget," Williams said.

However, Williams was able to rebuild the budget with new investors.

"Production went ahead as scheduled and we established some new financial relationships," he said.

Some investors never abandoned film because they understood how well it does in a depressed economy, Williams said.

Steve Lee, a freelance unit production manager, said the film industry's economy goes where the general economy goes, based on the World War II era.

"A lot of the Hollywood companies disappeared. Companies that, at the time, were very well known we don't even hear of anymore because they couldn't handle that. Hollywood had to pull back and be very conservative in what it put out after that time," Lee said.

Film is a luxury not a necessity, Lee said.

Though people want to be entertained, investors may be looking for something more solid than film, he said. Investors are coming back slowly now, but are more apprehensive than before the recession and Sept. 11.

"Everybody is still a little nervous about where the economy is and wanting to see before they jump in too far," Lee said.

Kels Goodman, producer and director for "Handcart," said investors pulled out of his film because of a slump in their businesses.

His investors relied on the success of South Padre Island, Texas.

The only bridge to the rest of the state was destroyed when a barge crashed into the middle section of the bridge, Goodman said. After that, his investors called and said they could not help his film.

However, a benefit concert by Garth Brooks helped boost the island's economy. Investors returned to Goodman a few months later.

Goodman said investors are coming back to film, based on his own experience.

Some filmmakers reassured investors that after all the terror, the public would turn to feel-good movies.

"More than ever, people would need good, high-quality entertainment to help lift their spirits and help get them through what would surely be troubled times ahead," Williams said.

There seems to be a general trend with moviegoers now to embrace the 'feel-good' films.

"It isn't so much a trend with the Latter-day Saint demographic as it is a sensibility that tends to remain fairly consistent," Williams said.

Goodman agreed. "PG films still rule in the box office."

With most Latter-day Saint films being rated PG, it would be expected that audiences embrace the films. However, the quality of those films and the cost of production compared to profits at the box office cause some concern.

"LDS film is doing well now," Goodman said, "but I think it could be washed out through time unless LDS filmmakers start producing product that is near Hollywood levels."

Unless the product starts to match that of Hollywood's material, it will be as exciting as something produced by Deseret Book, Goodman said.

The possibility to mix good quality stories and values in a Hollywood level production is high, Goodman said.

Filmmakers can make a movie for half a million dollars and make a good return, he said. But once budgets increase to $2 million or more, the films may lose at the box office. This makes it harder for other filmmakers to raise money for future films.

Goodman said investors are concerned about investing in film, especially when filmmakers do not have sensible plans.

"As I have met with investors, one of their major complaints is that most filmmakers, especially LDS, don't think about how they are going to make their money back, only that 'it's going to be good,'" Goodman said.

Williams said film is a risky business at any level, and investing in an emerging genre does not help.

"Five years from now, if we are all still making and releasing LDS feature films, it might be more of a sure bet," he said.

Other than investors, Williams said the Latter-day Saint genre's survival is dependent on two things. First, films have to be quality works and second, they have to continue to be made.

Copyright Brigham Young University 6 Mar 2002