The year was 2012 when a small film production company called A24 made his modest arrival into the entertainment industry. In just a few years, this producer and distributor has left an indelible mark on the Seventh Art, standing out for its innovative approach and commitment to creativity.
The business model, as a quote Whitepaperit is very similar to that of a startup: betting on low-budget films and little-known directors who have given many of the best films of recent years.
Currently, A24 has a valuation of 2.5 billion dollars and has branched out into independent films, scripted television, music and even cosmetics.
The founding of A24
The Highway 24 (A24) is a highway in Rome that connects the Eternal City with Teramo. In 2012, Daniel Katza professional investor, was traveling along this highway when he came up with the idea of a new type of company in the entertainment industry.
He had always wanted to start a career in cinema, as he specialized in financing films. However, fear had held him back as only 3.4% of independent films in the United States make a profit.
But, according to Generalistwhile Katz was driving on the highway, he experienced a business epiphany:
I was with a group of friends, we were in southern Italy, we were driving towards Rome and I had this moment of clarity. And it was in the [autopista] A24. And at that moment I thought: now is the time to do this.
The independent film laboratory
Eventually, A24 was founded by Katz, David Fenkel and John Hodges, three film investors who previously worked at the firms Guggenheim Partners and Oscilloscope Laboratories. Each of them brought their finance and film expertise to the company, and shared a clear vision of empowering filmmakers and providing a platform for ambitious and unique projects. A24’s headquarters are located in New York, a strategic location that has allowed it to be in the heart of the independent film scene. However, they also have a presence in The Mecca of Cinema, Los Angeles.
In its early days, A24 released several films that garnered critical acclaim and attracted public attention. Among his early successes were films such as “Spring Breakers” (2013), “The Spectacular Now” (2013), “Under the Skin” (2014) and “Obvious Child” (2014).
In these first years, the model that would make A24 a profitable company began to be established: produce or acquire a low-cost but high-quality independent film. Subsequently, these films would receive great “word of mouth” publicity on social networks, which would boost box office profits.
This strategy has worked for him financially. For example, according to The Numbersfor “The VVitch” (2015) A24 made an investment of 3.5 million dollars and obtained a box office profit of 46.2 million. Your jewel “Moonlight” It cost him “just” 1.5 million dollars and raised 67.5 million, a profit of 4,400.6 percent.
Ex MachinaThe inflection point
A24’s big breakout as a production company came with the launch of the science fiction film “Ex Machina” in 2014. The film, directed by Alex Garland and starring Alicia Vikander, received widespread acclaim and won the Academy Award for Best Visual Effects. This established A24 as a major player in the film industry.
Another important milestone for A24 was the premiere of “Moonlight” in 2016. The film, directed by Barry Jenkins, won the Academy Award for Best Picture, among other awards. It was a huge achievement for the company and cemented its reputation for backing bold and relevant films.
While many major production companies bank on franchises and adaptations, A24 has established its reputation by backing bold and provocative films that often address deep and emotional themes. From his first hits to more recent films like “Lady Bird” (2017), -written and directed by Greta Gerwig-, “Hereditary” (2018) and “Midsommar” (2019), A24 has demonstrated an unwavering commitment to originality and story diversity.
Deliciously online
While Hollywood is going through a moment of crisis between the SAG-AFRA actors’ strike and the lack of original ideas beyond the big franchises. How has A24 thrived in such a challenging industry? Always be online.
A24 has stood out for its presence and promotion on social networks, understanding how fandom and internet culture works. For example, recently his film Everything Everywhere All At Once (2022) won seven Oscars, grossed $140 million worldwide, and generated waves of memes and videos on TikTok.
@andrea_loperena Rehearsing the chorus for the Halloween party #pearl #pleaseimastar #coquette #aesthetic ♬ original sound – A24
Unlike other studios, it has been able to capture the participation of fans and take advantage of it to provide viral publicity with horror films that have become cult films due to their memes such as “The VVitch” either “Pearl” (2022).
Diverse narratives
Another reason A24 has stood out from other Hollywood production companies is its promotion of diverse and unique narratives. From “Moonlight“, which explored the life of a young gay black man in Miami, until “Lady Bird”, a story about the relationship between a mother and daughter, the company has demonstrated its willingness to give voice to stories that are often overlooked in the mainstream film industry. This diversity of voices and perspectives has been a critical pillar of its success and has resonated with audiences around the world.
A business beyond cinema
Although the aesthetics and narrative of A24 are already very well defined in the cinema, the production company does not want to focus only on the Silver Goddess.
Although it is primarily a film studioA24 is doing experiments in television with programs like “Euphoria“, sports documentaries, podcasts, merchandisingmusic and even Half Magic vegan cosmetics.
A24 has proven that a business model based on originality, diversity and creativity can be successful in an industry dominated by large studios and franchises. Its focus on empowering filmmakers and giving them the necessary creative freedom has led to an impressive list of films and series that resonate with audiences around the world. As A24 continues to challenge conventions and break barriers, its influence in the film industry continues to grow, cementing its position as a disruptive and essential force in independent cinema.
March Violante Martha Elena Violante (March Violante) is editor-in-chief and co-founder of Emprendedor.com and has more than 10 years of career in digital journalism. She has interviewed figures such as Randi Zuckerberg, Daniele Lamarre, Zoe Saldana, among others. She has worked in media such as Entrepreneur in Spanish and English, Alto Nivel, Cine PREMIERE, México Desconocido, among others. “We are entrepreneur.com”