• The Wall Street Journal, Thursday, June 5, 2008 11:15 AM

In another sign that Hollywood is reevaluating the independent movie market, Paramount Pictures' main studio will absorb the marketing, distribution and production of its specialty label, Paramount Vantage. The move will save millions each year in overhead, say studio execs.

Previously, Hollywood studios created specialty labels to tap into the market for small, inexpensive films, such as "Juno," that can be highly profitable if they achieve commercial success. But the indie field has become more crowded and expensive, thanks to nontraditional financing sources, from hedge funds to independent investors.

Consolidation is seen as the best way for studios to stay in the game and still keep margins healthy.

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