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How to Finance Your Independent Film 1 JulShare Over the years, film financing has become one the most complex and risky investments.
Yet, here are viable avenues for independent filmmakers to secure financing. Since the first audience watched a motion picture flicker on a screen inthe art of filmmaking has exploded into a megaplex of ideas and images that have entertained audiences for the past years.
Over the years, film financing has become one the most complex and risky investments. Though it is easier for the DeMilles, Hitchcocks, and Spielbergs of the world to land financing deals, there are viable avenues for independent filmmakers to secure financing.
The Game Plan Once you decide on a project, it is imperative that you immediately choose your distribution platform i. This decision not only effects your budget, but it effects your equipment list and shooting plans.
The next step is to memorize your distribution plan, which will become part of the pitch to your investors. This means that you will have to do research. You will need to find out the requirements for gaining distribution whether it be through business plan film financing company major, mini-major, independent studio, television or cable station.
It is also a good idea to find out what type of films are regularly acquired by your potential distributor. By showing an investor a concise and detailed game plan along with enthusiasm, you will make them feel more comfortable in investing in your project. Advantages and Disadvantages of Industry Financing The most obvious choice for film funding is industry financing.
Obtaining end-user financing through video and cable companies is called ancillary end-user financing. Because video and cable companies rely on film product outside of the theatrical market, they are considered ancillary markets. The practical and legal aspects of writing a business plan for a film venture can be daunting to navigate without a firm grasp of know-how. The practical and legal aspects of writing a business plan for a film venture can be daunting to navigate without a firm grasp of know-how.
For example, there are studio development production deals, independent distributor financing, talent agency financing, end-user financing, and completion funds. Studio Development Production Deals An in-house studio production will usually start as a development deal.
As a filmmaker, you will first have to pitch the concept to a studio creative executive and then submit a synopsis of the project to the creative department. If the studio decides to finance the development, production, and the distribution of your project, then the studio will ultimately own most of the rights associated with your film.
When a studio gets involved in your project, you can expect a tough road ahead of you. The first phase will be a "Development Deal Memo," which is a short form written contract between you and the studio.
The Development Deal Memo will simply outline the agreement, salary, time schedules, screen credit, and percentage points. Most studios will give points of the net profit to unknown talent.
By doing so, this gives you a false sense of security while ensuring the studio to make as much money as possible.
Typically, net profit deals do not pay-off. Studios tend to juggle financing for different projects and use creative financing so most films do not "make money" at least, on paper.
For example, a studio will put the advertising budget of your film and that of another film in your budget creating an inflated advertising cost for your film. This means that the studio not only recoups their 30 percent distribution fee, but also recoups the extra money spent on the advertising that was not associated with your film.
At the same time, their bookkeeping reveals a deficit to eliminate virtually any chance of the studio having to pay net profit participants their due. In addition, the development work is reviewed and evaluated at each stage. This may sound great on the surface, but the real deal is that the studio has the right to stop development of your project at any given point.
However, a Step Deal offers you a few key advantages. Because you are using these resources along with their professional script developer, you can ultimately make a bigger picture.
On the other hand, Step Deals offer many disadvantages. Second, there is the "Hollywood System," which is a relationship driven business. Third, there is theft! It is not uncommon for the studio steal your concept and have their development team work your idea in a new way.
Therefore, you have to be careful with whom you share your ideas and to remember that scripts and treatments are copyrightable, but ideas are not copyrightable. Fourth, there is also the potential to lose your material to the studio if your project is delayed by the studio.
Once you are fired, you lose the rights to your project unless you negotiated properly before-hand.You can get financing from film grants, private investors, sponsors, product placement, a film studio, entertainment company or even out-of-pocket funds, but first you need to prove the value of your film..
It's easy, once you know the solid structure of a business plan, your film . INDIE FILM BUSINESS PLANS.
By John W. Cones. Technically speaking, the business plan is not a financing vehicle or entity but can be used in conjunction with several other investor-financing techniques to raise money for independent feature film projects. The practical and legal aspects of writing a business plan for a film venture can be daunting to navigate without a firm grasp of know-how.
Film Business Plan FREE Course 10 short weeks to a complete film business plan and totally ready to approach the film investors we teach you to find. Read More Film Gear and Gadgets Lenses, Booms, Mics, Gimbals, Audio and more. A Sample Film and Video Production Business Plan Template Film and Video Production Industry Overview We can hardly talk about the film and video production industry without mentioning big players in the industry such as 21 st Century Fox, Time Warner, NBC Universal, The Walt Disney Company and Viacom Inc.
et al. INDIE FILM BUSINESS PLANS. By John W. Cones. Technically speaking, the business plan is not a financing vehicle or entity but can be used in conjunction with several other investor-financing techniques to raise money for independent feature film projects.