Small is beautiful, they say. Also, small might not be that small at all. Kicking off Friday, European Distributors: Up Next!, one of San Sebastian’s main industry events, will focus on film acquisition companies from Europe’s “smaller” territories.

Istleifur Thorhallsson, for example, works at Green Light Films in Iceland, which has 320,000 inhabitants. Macedonia, repped by distributor Manakifilms’ Tatjana Curcinska Pepeljugoska, weighs in at 2.1 million.

But, lumped together, the populations of Up Next!’s eight territories near equal Spain’s: 46.9 million.

People catch movies at hardtops far more often, 4.3 times in Ireland, where Siobahn Farrell works for Eclipse Pics.

They can pay more too: Kjetil Omberg at Norway’s Euforia,another Up Next! distributor, rolls off average cinema ticket prices of Euros9 ($13) in 2008.

Running through Monday, the Up Next! forum is organized by European Film Promotion and the San Sebastian Sales Office.

Its panels begin Saturday with an introduction to distributors and their markets, 11.00-12.30.

The later, typically for Europe, cut multiple ways. Their commonest denominators, perhaps, are their challenges.

Finland lacks good, dedicated cross-over/art-house cinemas, says Peter Tovainen,at Finland’s Sandrew Metronome. There’s piracy, a release glut, big Hollywood films’ ever-bigger print runs, shortening film runs, the recession.

Distributors are, however, reacting. They’re using festivals all the more. Fest play is crucial, says Zoran Stankovic at Belgrade -based MCF MegaCom- Film, which not only picks up hits but supports Serbia’s Kids Film Fest.

Film fests’ key role for distribution will be analyzed Saturday 14.30-16.00 at a panel discussion, moderated by Jonathan Davis, U.K. Film Council strategy advisor, 14.30-16.00.

Some distributors -Gil Santos at Portugal’s Ecofilmes, which is already in the vidgame biz- are diversifying into film production.

Omberg co-owns production shingle Tappeluft Pictures, whose Nazi zombie movie “Dead Snow”was a Sundance sleeper; Manakifilms’ recent releases include Serbian director Srdjan Golubovic’s “The Trap” and Teona Strugar Mitevska’s “I Am From Titov Veles.”

They’re exploring new-ish media.

On Sunday, EDUN! will team with Europa Distribution to chew over day-and-date releases and whether there’s a real demand for video on demand, in a panel led by journalist and filmmaker Martin Dale. ED’s Isabelle Obadia will present Cidinet, a new distribution database.

And distributors pull down an array of distribution support moneys. Ever more - Ireland’s digital cinema support, for instance - is coming online. Major schemes will be outlined during ED:UN!

Some things won’t change, however.

In the end, distribution remains a question of good or right taste, and getting in early, picking up films at script stage, says Annamarie Degrys,at Belgium’s Lumiere.

Most other distributors would drink to that. Which they’ll be doing at the Valencian Audiovisual Cluster Happy Hour Saturday night.

John Hopewell