Finance
Financing and Investing In Film

Financing and Investing In Film

The most compelling reasons to separate company structures involve financing each picture and offering attractive opportunities for investing. The parent production company, without any subsidiaries, takes a very large risk on a single picture – the production and distribution costs are included along with development, raising the total investment amount greatly and slowing the investment...
Incentives For Film Production

Incentives For Film Production

With the costs of film production continuing to rise, studios are always on the hunt for ways to reduce or offset their budgets.  State film commissions are responsible for attracting new productions, and will often contact a filmmaker during pre-production to offer shooting locations.  In the old days, most if not all films were shot...
How Are Films Funded?

How Are Films Funded?

Films make vast sums of money, so they should be self-funding, shouldn’t they? Some films make vast sums of money, but they also cost vast sums of money, and they are also capable of losing vast sums of money, or just breaking even, leaving nothing in the pot for the next one. Plus, when we talk about...
Green light Service: Outsourced

Green light Service: Outsourced

There some parts of green light that are sometimes outsourced. For example, OXT is an online screening service that has also launched a script evaluation service. They can compare scripts to other genres and identify target demographic and potential box office, as well as marketing pathways. They then give recommendations to the negative feedback. The...
Story Selection & the Green Light

Story Selection & the Green Light

Story Selection Initially the story development manager reviews all the submitted stories  before they recommend ideas to a producer. If an idea is chosen, it is passed onto the production company’s executive committee for approval before an investment or budget is allotted. We have green light. International Green Light The green light process is the...
How A Producer Is Paid: Share Analysis Review

How A Producer Is Paid: Share Analysis Review

Below are terms referring to how a producer is paid; important information that every producer should understand. Total Distributor’s Net: This is the sum of all income, after expenses, from the all the major earnings categories. Production Financing Expenses: This is the producer’s cost of interest and fees for production funding. The financing is 3...
Production Incentives

Production Incentives

Production incentives are a central component of the finance plan of nearly all new film projects. This chapter explores the entire U.S and many principal international production incentive programs made available since May 2010. There are several governmental forms e.g., tax incentives, subsidies, and other forms are available supporting both domestic and foreign film production....

Film Financing – The Facts

In today’s market, financing your independent film is all about striking the right balance: Don’t scrimp too much for the sake of saving cash. You’ll have a better film if you raise enough money to use high-quality actors, for example, or to shoot on high-definition video instead of standard video. At the same time, be...

Sample Deliverables Film Budget

Distributing your film is not just about finding your perfect sales agent and distributor. You’ll also need to understand the various agreements involved in the process. One of the most important kinds of contractual agreements is the theatrical feature-film delivery schedule. This deals with the postproduction materials that your distributor will need to release your...

Understand Rights Splitting

The film-making industry has seen a major shift in how rights are being sold. In the past, a distribution deal meant selling all of your rights. Now the trend is shifting towards splitting rights between a number of specialized distribution partners. Both approaches have advantages and disadvantages. Selling all the rights to one distributor, such...

Outstanding Profits of Fahrenheit 9/11

After finishing Fahrenheit 9/11 in 2004, Michael Moore still had no US distributor. He sought out Harry Weinstein at Miramax, which is owned by Disney. Weinstein agreed to back the movie, but he needed the approval of his superiors at Disney. The CEO of Disney, Michael Eisner, vetoed distribution of the film. Miramax still held...

The Cash Breakeven Game

In the obscure world of Hollywood contracts, two kinds of money are paid to actors, directors and other movie participants. First there is what is called “fixed compensation” and it is money that is paid out, just like any other wage, when the person completes his or her job. The second kind of money is...

Film Distribution and Budget

Make a Vow to Budget Budgeting for the distribution of a film is critical. It is perfectly reasonable to assume in today’s market that production for a film can happen for under $1 million. If there are no known actors or directors, under $500,000 is acceptable. Two important things to remember when planning a budget...

Movie Theater Decline

The number of adults who go out to movie theaters is rapidly declining. The percentage of people who would go to a movie theater in an average week in 1948 was 65%. In 2008, this number dropped to 6%. The sale of home television sets is to blame for this significant drop in movie ticket...

The Evolution of Sound Post Production

Soundfirm, Deluxe and Adelaide Studios are among the top of the remaining sound post production facilities still standing. These established sound post houses are slowly fading away due to falling production budgets, other low cost technology and the incline of small start-ups. Soundfirm has been able to stick around by widening its operations in Sydney...

True Art of Hollywood

Hollywood studios have two different types of budgets. The official budget is available to trade papers such as The Hollywood Reporter and Variety. This budget shows an unrealistic amount of how much the production will supposedly cost. The closely-held production cost budget contains the actual cost of production. This budget is hardly ever seen by...

Analog Dollars vs. Digital Pennies

When talking about 2007′s revenue, a top executive in 2008 was quoted as saying, “Who in their right mind would swap these analog dollars for digital pennies?” The analog dollars came from cable and network television, pay television, DVDs, licensing products and local stations. The digital pennies came from the Apple iTunes Store, downloads from...

Film Production Incentives: Friuli Venezia Giulia

Incentive: grant/cash Annual Comps & Caps: from $5,000-140,000 depending on filming length Criteria: regional filming to be 70% of entire filming, grant for region must be spent in region Eligibility: EU established companies