DF Indie Studios, headed by two New York corporate restructuring experts, is starting with about US$300 million (S$437 million) in loans and distribution deals, and is about halfway to raising US$100 million in equity, its founders say.

The founders, Ms Mary Dickinson and Ms Charlene Fisher, plan to make and distribute 10 to 12 films a year that cost US$10 million or less to produce. They expect to guarantee those movies theatrical release in the US, but only after putting them through the profit-focused 'greenlighting' approval process generally seen in major studios.

Other studios have a similar strategy, but generally not for movies with budgets this small.

The market for low-budget, independent movies at film festivals has crumbled in the past two years, and indie labels at the major studios have been shuttered or merged. Larger studios that distribute movies had bid up the price for independent films even though many did not pay off, and the studios pulled back from the market when the economy turned bad and financing became harder to come by.

Ms Dickinson, 51, and Ms Fisher, 42, say they did not know the indie environment would look like this when they began working on the project two years ago.

'This was not nearly as brilliant as the market has made us,' said Ms Dickinson, the chief executive. 'It's created a huge vacuum in the marketplace.' DF Indie has a US$150 million revolving credit line with a major bank to pay for film printing and advertising, and US$150 million in deals with domestic and foreign distributors who have seen a proposed slate of films.

In addition, wealthy individuals have invested between US$5 million and US$20 million each for part ownership of the company and a share in the films' proceeds.

DF Indie's healthy budget for printing and advertising, known as P&A, is designed to ensure that runaway hits can expand distribution quickly, much like last year's 'Slumdog Millionaire,' which began at 10 US locations but ballooned to nearly 3,000 after it dominated the Oscars in February.

'That's why we need a P&A the size we do,' Ms Fisher said. 'You can't go and raise the money. You have to have it readily available.' -- AP