The indie film industry is cannibalizing itself. Manohla Dargis is right – there are too many films in the ecosystem. And this oversupply didn’t just happen. John Sloss warned back in 2007 that the industry’s problem was not a shortage of films, but a shortage of eyeballs (Mark Gill issued a related warning in 2008). But the industry’s response to this warning has been to make more films. This is creating an economically valueless cycle where unprecedented “cheap” money is flowing into the industry and films are being made at their highest rate ever. Meanwhile the percentage of indie films (let’s say films made for less than $5 million outside of the studio system) that are financially successful has not increased, and the amount of money people make from these films has actually decreased.