Personally I believe that the problems faced by avant-garde film began a while ago, and I've come to suspect that these problems began during the 1980s. This quote is from a book called Privatizing Culture by Chin-tao Wu. It seems to sum up the problem, and explains how Hollywood films have managed to annex terms like "independent."
"commercial films are as much art as non-commercial ones.... We've got to bring the two together." (1983) said Frank Hodsoll, NEA chairman during the 1980s.
Interesting to consider since all too often the "experimental category" in festivals is just a euphemism for inept attempts at narrative cinema.
The screening was well-attended, with an audience of 26, and the response to the films was generally positive, with only two people (both commercial film people) feeling the need to be rude and make comments during the show. Everyone else enjoyed the movies and stayed after to talk at length with two of the makers who came for the screening.
Shari Anne Brill, director of programming at media buyer Carat USA describes it this way: "There will be stricter self-regulatory guidelines because it seems that in this climate, everyone is afraid to cross the line." In other words, there is a definite chilling effect happening. It would be trite to say this is Janet Jackson's fault, since it was underway before she made herself an easy example for the would-be restrictors.
This suggests there is a developing culture war much like we had in the early 1990s. I guess we should all be ready for all sorts of new, unsubstantianted claims of "harm" and the consequent witch-hunts. Anyone making media with unpopoular ideas, or taboo content, caveat lector.