Why has Portugal's vibrant and creative cinema industry not been more commercially successful? This book traces the evolution of Portuguese cinema between the beginning of the New Cinema movement in 1960 and the height of the economic crisis in 2010 from a socio-cultural and economic perspective. It aims to explain why this vibrant and creative industry has not been more commercially successful and pays especial attention to questions of financial viability, domestic consumption, international distribution, and the effects of legislation. It shows how film-makers have responded to historical difficulties and material obstacles and how market conditions have influenced aesthetics. Drawing on quantitative and qualitative data, film theory, and history, the book assesses the place of Portuguese cinema within Portuguese culture as well as the wider film world. While focussed on the case of Portugal, it also sheds light on problems faced by other peripheral film cultures in the international marketplace and on the festival circuit.