How ‘Thelma’ Became a Rare Sundance Breakout Success

“Thelma” (Magnolia) , an unlikely action-comedy starring June Squibb as a nonagenarian grandmother who becomes a phone scam victim, has grossed about $7.3 million through its third week. Though not a blockbuster by summer standards, in the specialized world, and particularly outside awards season, “Thelma” is a blockbuster, headed for between $9-10 million domestic, theatrically. And at a time of challenge for this sector. How it got there suggests some lessons for distributors.

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Something clicked here. “Thelma” debuted last January at Sundance with immediate acquisition interest, selling to Magnolia, which isn’t normally known for mid-wide-level releases.

By all indications, the plan has worked. “Thelma” is already Magnolia’s highest-grossing narrative feature in the company’s 23-year history. Adjusted, “Woman Thou Art Loosed” and “The World’s Fastest Indian” ended up slightly bigger, but both were around 20 years ago.

What happened was by design. Magnolia releases a lot of films, usually of a smaller scale financially and usually limited theatrically to propel home viewing platforms (particularly its Magnet genre division). Magnolia’s biggest films have mostly been documentaries (“RBG”/$14 million, “I Am Not Your Negro”/$7 million).

Those were pre-Covid, with the theatrical market for documentaries since collapsing. Other than Magnolia’s annual partnership with ShortsTV to release Oscar-nominated shorts, Magnolia’s had no film gross more than $1 million since “Shoplifters” (2018/$3.3 million).

Over a year ago, owners Mark Cuban and Todd Wagner reversed course amid speculation that they would sell the company. Longtime acquisitions executive Dori Begley was promoted to co-CEO alongside longtime veteran Eamonn Bowles, with the company looking to reinvent itself .

Talk is cheap, and it took nearly a year. But per Begley, though the decision had been made to go bigger with larger-scale releases (before “Thelma,” no Magnolia feature ever played more than 600 theaters at one time), Magnolia preferred to wait for the right opportunity.

That such an opportunity became “Thelma” is a case of thinking outside a company’s box in terms of content, scale, and risk-taking. It was clear from its initial Park City screening that “Thelma” was exactly what Magnolia was looking for.

Sundance sales are riddled with similar films sold for more than the likely “Thelma” cost, and despite seeming surefire, often wither after opening. Last year, Searchlight bought “Theater Camp” for $8 million (before marketing expense), only to see it gross under $5 million. And that was one of the better results from 2023’s deals, and more the norm than the exception in recent years.

“Thelma’s” sales price is unknown, though competitors suggest it was likely between $2 million and $3 million — lower than most acquisitions that reach this level of theatrical success. Though its eventual home at Magnolia was a surprise for some, and a hint of less interest than expected, speculations were wrong. “Thelma” had multiple offers, with producers holding out for the best possible theatrical release plan.

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Though it makes sense for specialized distributors to develop elevated interests in some areas, the present model is for most companies to seek out specific kinds of films in a narrow range (with some top companies mostly avoiding non-English films). That Magnolia changed pace, and succeeded, is great news.

“Thelma” writer/director Josh Margolin is a first-time filmmaker, but awareness around Oscar-nominated “Nebraska” star June Squibb has been key to the film’s potential — at Sundance and beyond.

A high concept also helped. Often, films “Thelma” sound better on paper than on screen (and sometimes struggle to even sound good in writing), but this one struck a chord. Producer Zoë Worth told IndieWire in a recent interview that she thought of “Thelma” as a “baby summer blockbuster.” In other words, something a bit different from a typical specialized release.

It indeed got a summer (June 21) release, and after a post-awards period without much action beyond genre entries like “Late Night with the Devil” (IFC) or wider, more mainstream releases like “Civil War” (A24) and “The Bikeriders” (Focus). Older audiences had “Wicked Little Letters” (Sony Pictures Classics) with Olivia Colman earlier ($5 million total, opening in slightly fewer theaters). But in terms of core specialized audience releases, “Thelma” has been a standout in an off-season. Last year, “Past Lives”/A24 was the sole Sundance specialized breakout, ultimately grossing $11 million and finding awards success. More recently, the much higher-profile Yorgos Lanthimos Cannes premiere “Kinds of Kindness” (Searchlight), also released June 21 like “Thelma,” looks headed to a gross not much more than half of “Thelma” domestically.

Per Magnolia and other sources, the film’s appeal extends beyond seniors. “Thelma” has enjoyed a wider, more female audience, including many younger women. It was a tricky film to open nationally without a big star or large marketing campaign, but getting a wider crowd came in part with word of mouth, not only at several festivals, but more significantly as a pre-opening AMC Monday Screen Unseen program at 300 theaters , included amid selections usually are expected to reach beyond specialized viewers.

Another switch for Magnolia, and again not always standard for smaller titles, is a longer theatrical window. Though the VOD date hasn’t been announced, that date looks likely to be after five weeks in theaters rather than the not-uncommon three weeks or soon after. Sources indicate “Thelma” will be priced for rent at $9.99 (digital download for $16.99, already available for preorder), below normal but a potentially smart move for a smaller film (distributors get 80 percent of the rental after a carrier discount). That could add several million dollars to its total revenue, already impressive regardless of the limited investment. (“Thelma” will stream on Hulu this fall).

Theatrical exposure was critical here. Yes, people understand this. But seeing it in practice is a big deal.

Each hit has unique qualities. But “Thelma” has more abundance than most, with lessons that can benefit other distributors who never expected the film to reach this level.