How does marketing and budget-setting for independent animation work?

[GeffreyDrogon]

When it comes to animation, a thing I am curious about is how do independent animated films get financed, and why can't most independent animated films afford great marketing.

How do independent animated films have their budgets financed? I've seen information on independent animated films for their budgets, and some of them can be quite big, like the 60 million for Rock Dog, the 80 million for The Wild, and the crazily huge budget for Mars Needs Moms. Despite those big budgets, all those films failed at the box office, which makes me wonder if big budgets are too risky for success. I know that Hoodwinked!, Gnomeo and Juliet, and Sausage Party had small budgets and were successful, but those seem like exceptions to the rule.

Also, why can't independent animation studios afford marketing? It should be easy to market a film on social media, and at least make books and toys for it. If most can't, then why does Studio Ghibli have so much merchandise for its films, and why is Studio Ghibli so successful despite never having made any sequels?

[Ben]

Mostly they sell international markets separately, sometimes including a local name in the cast to make it attractive to those markets. Sometimes they’ll be well into production and show a reel at Cannes, or a film market, and get distribution (and the money to finish).

I will say, though, that Gnomeo And Juliet, The Wild and Mars Needs Moms we’re all bankrolled by Disney, so not exactly independent or bad marketing…!

[GeffreyDrogon]

I just find the term "independent animation" confusing. Are independent animated films made by companies that aren't Disney, DreamWorks, or Pixar, or those that are made outside of Hollywood?

Would Amblimation's Balto, Warner Bros's The Iron Giant, and Wes Anderson's Fantastic Mr. Fox be considered independent films, because they all weren't made by Disney?

[Ben]

An independent film is usually a script that is put together without any kind of distribution in place, privately funded by one or more entities.

None of the companies or films mentioned in your last post above would be classed as independent, natch, as they all had big studio money behind them.

[GeffreyDrogon]

I find how movies are financed and budgeted to be interesting. However, my issue with telling independent/big studio animated films apart is because many people refer to "independent animated films" being ones that aren't produced by big animation studios like WDAS, Pixar, DreamWorks Animation, Sony Pictures Animation, Illumination, Blue Sky, and Warner Animation Group. I've heard people say that any animated film not produced by those animation studios listed above is considered "independent", even if they're released by a major distributor.

It doesn't help that the Rotoscopers site listed Balto, The Iron Giant, and Fantastic Mr. Fox as independent animated films, alongside Legends of Oz: Dorothy's Return and The Triplets of Belleville as part of its "Indie-Mation Club" thing five years ago.