TORONTO, Sept 4 (Reuters) - The film industry, including

actors, must embrace and adapt to changes that have resulted

from the blurring line between streaming services and the big

screen, the head of the Toronto International Film Festival said

ahead of the event's opening.

The COVID-19 pandemic transformed the way audiences consume

entertainment, and the film industry has had little choice but

to go with the flow, TIFF Chief Executive Cameron Bailey said in

an interview this week.

"The consequent rise of the streaming services has really

changed how films get made and how they reach audiences," he

said. "It means that artists have to adapt as well. The industry

has to adapt."

TIFF, now in its 49th year, returns to Toronto on Thursday,

showcasing dozens of movies and their stars. Celebrities

including Angelina Jolie, Salma Hayek, Bruce Springsteen, Sydney

Sweeney, Selena Gomez and Robbie Williams are expected on the

red carpet.

This year's festival opens with the world premiere of

"Nutcrackers," directed by David Gordon Green and starring Ben

Stiller as a Chicago real estate developer forced to take in his

orphaned nephews.

The 11-day festival pulls in at least 400,000 people every

year. Bailey said the large, enthusiastic audience remains one

of the festival's greatest strengths.

"We're a big street party celebrating film, celebrating the

artists, and welcoming the whole world to Toronto," Bailey said.

In the evolving film economy, festivals such as TIFF are no

longer just a showcase for movies but also for television

series, Bailey said.

In a typical year, 100 to 130 movies and television series

are available for sale at TIFF. While this year's total is in

line with past festivals, streaming platforms will likely buy

the majority of these releases, Bailey said.

In a trend that gained traction during the pandemic, when

cinemas were shut, some film makers are choosing to release

their movies straight to streaming services, skipping theatrical

release altogether.

Bailey highlighted the mini-series "Disclaimer," starring

Cate Blanchett and directed by Alfonso Cuaron, as a prime

example of this shift. The series premiered at the Venice Film

Festival.

The trend led the Academy of Motion Picture Arts and

Sciences to change its rules and allow films released in

streaming platforms to be considered for Oscar nominations.

Last year, Bell, a key sponsor for 28 years, ended

its partnership with the festival as it decided to shift

investments to its core telecom business. TIFF's lead sponsor is

now Rogers, Canada's other major telecom company, but

it signed on for only a single year.

TIFF said its total partnerships have increased by 25%

compared to last year, but did not disclose their value.

Additionally, the festival received C$23 million ($17

million) from the Canadian government to establish a marketplace

comparable to those at Cannes and Venice.

Bailey describes the marketplace as the first of its kind in

North America. It will serve as a North American hub for buying

and selling screen-based projects, intellectual property, and

immersive and innovative content across all platforms, TIFF

said.

($1 = 1.3522 Canadian dollars)