Canyon Cinema, Inc.



To: Shareholders of Canyon Cinema

CC: Canyon Cinema Board of Directors

From: Larry Kless, President, Canyon Cinema Board of Directors

Date: April 21, 1998

Subject: The State of Canyon Cinema, Inc.

For the past three years I have served as a member of the Canyon's Board and I am currently President of the Board. I have worked with a number of previous Board members including Irina Leimbacher, Alfonso Alvarez, Jeremy Coleman and Timoleon Wilkins. Through the 1997-98 year the board consisted of Sandra Davis, Steven Dye, Anna Geyer, David Sherman supported by the guidance of Dominic Angerame. I would like to thank and recognize each of these individuals as well as our previous Board members and other shareholders including Bruce Conner, Chair of the Articles Bylaws committee, who accepted the task to help guide Canyon's future. The combined effort of these members over time has strengthened Canyon as a viable business and creative force in the film market worldwide.

One who receives my highest praise is Dominic Angerame, our Executive Director has managed Canyon's affairs for the last 18 years. His dedication and fighting spirit goes above and beyond the call of duty. He and David Sherman, our Administrative Director, have been more than running the business, they have been Canyon's guardian angels.

Yet we have all contributed to Canyon Cinema, Inc.'s continued success and solvency. We changed a 30 year tradition, and as a membership corporation, we can continue to build and preserve the most eclectic collection of experimental films in the world.

Canyon had an intense year in 1997 both politically and financially. The year in review was highlighted in Dominic's message earlier this year. We made headline news in our battle with the NEA when we lost our funding. We took a $5,000 hit in our operating finances which have yet to come out of the red. Although the NEA ordeal has left us stronger and more determined to survive. Finances are actually good, rentals are up.

The Board has had numerous strategy sessions discussing various funding issues. We have gotten through our identity crisis and now we're the process of redefining ourselves. Our organization supports the community in many ways and are intent on promoting it. In a corporate way of saying, we are developing a "brand strategy".

This new repositioning approach was instrumental in our very most recent award of $11,000 from the SF Arts Commission. We could progress greatly in this area with the aid a professional fundraiser. The current Board has been working to fund this project, and the effort will carry over to the next Board.

We will in fact be publishing a new catalog and not a supplement. Canyon 2000 has been my favorite theme so far. An image that we carry on a legacy of the cosmic celluloid survivors in a sea of mundane digital obliqueness. A superhero of sorts protecting the creative mind and individual spirit. An idealistic view of course, but we're allowed to dream. We speak to unco-opted minds who dare to appreciate personal vision.

The past year has been a very busy year and Canyon has grown considerably. The discussions of the Board and Staff have identified many projects and issues on the long and short term. Fundraising, Catalog vs. Supplement, Film packages, Film Categories, Marketing materials Web page, etc. Every discussion leads to the same conclusion, we need to continue to increase our revenue.

My overall feeling is that things are looking up for Canyon Cinema. We have made much progress in terms of setting long and short term organization goals and objectives. I'm happy to be a part of the most enduring and sucessful artists' collective, distributor and access facility of avant garde and experimental films since 1969.

I look forward to work with the next Board as we continue refine and focus on Canyon's business plan

Statement for open meeting to the Shareholders and Board of Directors of Canyon Cinema, Inc.

Previous campaign promises revisited:

· promote the coop through additional advertisement

For several years we've discussed a web site. . Scott Stark hosted us on Flicker" WWW pages. Most recently I

posted "a new improved" Canyon web site ( But we need much more, we need our own web page and it needs to be whole catalog in a searchable index. This will be one of my primary focuses over the next year.

· assist in expanding the coop's communications

Membership communications has grown since Canyon got email. We have recently compiled a shareholder email dist list and sent out a year of minutes electronically to about 100 Canyon filmmakers.

· expand the coop's distribution to include the media art of all moving image makers

- film - video, Quicktime movies, CD-ROM, installation

Canyon in the 21st century will need to adapt to the needs of our customers. Over time digital media

production and film will become a closer process and product.
We will be there.


· create a long term archival plan for Canyon Cinema collection

We need to develop an overall legal policy for Canyon on how to deal with deceased makers/members works.

A Canyon of the Dead sub-committee needs to be developed.


· seek additional funding sources and donations for Canyon

We have been successful at this for years. recently Canyon received funds from to improve our screening space. Our best news yet is that we were awarded $11,000 of the requested $15,000 from the SF Arts Commission. Currently we submitted a grant to SF Foundation for $15,000 to hire a professional fundraiser.



I wrote this as one of my first goals in 1995

- to preserve the integrity of the art of film.

This is done as we continue to produce our independent works and publish our Canyon Cinema catalogs.

Canyon 2000 offers possibilities of a brave new world for Canyon Cinema.


The next Board will look at these investments for the future:

- Another computer which can be networked to Canyon media tracking software database.

- Professional fundraiser.

- Part time staff.


;- ) LK


Larry Kless The State of Canyon Cinema - Open Meeting 1998 4/21/98


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