What made indie filmmaking different was the so-called "digital revolution?" Cameras became more affordable, people were able to shoot more and risk less. What happened wasn't better content, just more of it.
So how do we change it? Anyone who follows me on Twitter and has read my bio knows that I don't describe myself as an "independent filmmaker," but instead a "revolutionary." This is my reasoning: Indie films have a reputation of being either "small personal films" or "cheap B movies." I hate to be so honestly blunt about it, but I will be. My concern is the audience's expectations. Most expect all independently produced films to look alike. With all the new technology available, "the sky is the limit" and yet we still see the same material.
If you have a great "small personal film" that you believe needs to be made, than please go ahead a make it. Just don't do what many filmmakers I've met via Twitter and elsewhere have done. If you want to make something that looks more like a blockbuster film, don't settle for making a "small personal film" just because you don't think an indie filmmaker can accomplish a blockbuster. --Just do it!
Back to what is killing indies: we can't compete with high concept film ideas with our small concept ideas. It's plain and simple. If an average audience member has only one movie that they can watch, the majority will choose the high concept film over the small personal film. Simple statistics.
It used to be that if you had a celeb in your film, you would attract a larger audience. Both Variety and LA Times have reported that it isn't that way any longer. The only thing drawing people is a really great idea... and I would add also something that looks "hard to make." Since anyone can pick up a DV or HD camera for a few thousand... why should they pay to watch something they "think" they can make?
When I was a kid we were told that books were like visiting another world. I will watch a TV show that looks like my regular life, but I won't pay top dollar at a theater for a film about a regular life. I want LARGER than life.
My point is that you need to make your film feel larger than life. You don't have to change the premis, just give it a grander feel. But that would be too difficult, right? I thought so too... than I decided to "push the envelope" with AMNESIA and realized that when I was done production I could have "pushed it" even more. Trying the impossible, isn't as impossible as you might think. The truth is, my greatest lesson from my project was that "we are only restricted by the limits of our imagination."