Parrot Analytics has contributed to the wide-ranging study “US Independent Film Audience & Landscape,” spearheaded by Keri Putnam at the Shorenstein Center on Media, Politics, and Public Policy, a Harvard Kennedy School research center. The report provides an overview of the state of the independent film industry in the United States, addressing untapped opportunities, systemic challenges, and the growing audience demand for alternatives to mass-market entertainment.
“The independent film sector is at a crossroads, with tremendous untapped potential to engage new audiences while navigating significant structural challenges,” said Brandon Katz, Senior Entertainment Industry Strategist at Parrot Analytics. “This report shines a light on the opportunities and innovations that can empower filmmakers and distributors to thrive in an increasingly competitive market.”
“Independent films have always been a vital part of the cultural ecosystem, but they now face unprecedented challenges from technological and market consolidation,” added Keri Putnam, former Sundance CEO. “This report underscores the importance of innovation, collaboration, and public policy in ensuring that independent creators and audiences have the tools and access they need to thrive.”
The study reveals a substantial gap between the potential and current audience for independent films in the U.S. While an estimated 76.3 million Americans express interest in independent films, only 36.7 million actively engage with the medium. Specifically, 23.5 million people watch independent documentaries, and 16.2 million view scripted independent films annually. This leaves an untapped audience of approximately 40 million individuals.
Notably, 27% of surveyed Americans (equivalent to 77 million people) indicated they would be willing to pay for a channel dedicated to independent films and documentaries. This finding underscores the potential for expanding the reach of independent films through targeted distribution platforms.
Independent films appeal to a younger and more diverse demographic than the general movie audience. Scripted independent films, in particular, attract viewers aged 18-34, who are more likely to identify as definite fans. Meanwhile, documentaries tend to resonate with slightly older audiences, with 63% of documentary viewers earning over $100,000 annually and 60% holding college or graduate degrees.
Despite the interest, accessibility remains a hurdle. The fragmentation of streaming platforms, lack of marketing resources, and the dominance of algorithms favoring mass-market content significantly limit discoverability.
The transition to at-home viewing is evident, with subscription streaming platforms accounting for the largest share of independent film consumption. However, viewership on mass-market subscription services has declined by nearly 50% since its 2020 peak, reflecting a shift toward free streaming platforms such as Tubi and Roku, which prioritize niche content.
Theatrical attendance has plummeted, comprising only 22% of scripted independent film viewership and less than 1% for documentaries. Per-film theatrical attendance has dropped by 90% over the past two decades, a decline exacerbated by the COVID-19 pandemic.
The study identifies several pathways to rejuvenate the independent film sector. Diversifying content to appeal to underrepresented audiences, such as Hispanic viewers, who make up 19% of the U.S. population but are underrepresented in viewership, offers significant potential. Additionally, leveraging public media platforms like PBS, which already draw substantial audiences for independent documentaries, could increase exposure for scripted independent films.
Social media also emerged as a critical tool for engaging younger audiences. Platforms like Letterboxd and Instagram drive significant interest in independent films, underscoring the need for strategic marketing efforts in digital spaces.
By contributing its data, analytics, and expertise to Putnam’s study, Parrot Analytics continues to support critical research that shapes the future of entertainment. The full report serves as a vital resource for all stakeholders in the independent film industry and is available through the Shorenstein Center on Media, Politics, and Public Policy.