Substantially fewer films will be produced over the next year or two. And a significant portion of the production costs of the reduced slate will be borne by hedge funds and other investment groups.

Historically, filmmakers always fall in love with every frame, but now that even neophytes are given final cut, this love affair carries with it serious economic implications.

Substantially fewer films will be produced over the next year or two. And a significant portion of the production costs of the reduced slate will be borne by hedge funds and other investment groups.

The model today is that as much as 70 percent of the financing of the picture would come from overseas. Now we're beginning to run out of suckers, because there are not that many people overseas who are willing to put up more than half the money for a movie.

Analyses of the movie marketplace points to an interesting phenomenon: High-profile movies are continuing to do well year-to-year in the U.S. and overseas - this past summer, for example, the top 10 movies registered at the same level as in '04.

Though gay lifestyles have certainly moved into the open, there's little evidence that society has become more open in its basic attitudes or that entertainers should feel cozy in emerging from the velvet underground.

The major media companies are significantly reducing their financial commitment to the motion picture sector.