Film Funding - New Cards Flashcards
Who assembles a package?
the producer
Give 4 examples of units in a package.
director, script, actor, piece of intellectual property
What is the ultimate goal of the package unit system?
to obtain funding to actually make the movie
What one thing does the package need to make clear?
why the movie is a good investment for financiers
What does it mean when a producer gets the options for the rights of a script?
they have the exclusive ability to purchase the script within a few years
If an optioned script isn’t produced by the end of the contract, what happens?
the project is released back to the writer or the option is renewed
Why do producers option the rights of scripts?
optioning costs much less money than buying it outright
What are 5 ways a spec script can get noticed for a package by a producer?
agent, manager, film festival, fellowship, blacklist
Is the spec script packaging process common?
No. It’s actually rare.
What is the actual purpose of spec scripts most of the time?
to help producers and executives get ideas and scout talent for other projects
What is intellectual property (IP)?
a creative work like a book or an article which you can legally protect with copyrights
What must a producer do if they want to make content out of IP?
obtain the rights and seek out the necessary creatives to turn the pre-existing IP into a movie
What does it mean to have exclusive rights to an IP?
no one else can own the rights to the property
What does it mean to have non-exclusive rights to an IP?
you aren’t the only ones that own the rights to the property
Which type of rights cost more to obtain for IP: exclusive or non-exclusive?
exclusive
What are the two ways in which producers can obtain IP for a certain amount of time?
getting the rights in perpetuity or optioning the rights
How do you know who owns what rights to a property?
chain of title
What is the chain of title?
who owns what rights to a property
Why do producers have an easier time finding funding for movies based on IP?
because the material has already proven to be popular
How does a producer go about obtaining IP?
going to the representative and starting a negotiation
Does the original creative have any say in what is made of the IP?
yes, the package must be approved by them
What can a producer do if he needs a completed screenplay in a package?
get initial seed money to pay a screenwriter
If a financier finances one part of the package, does that mean that funding will be obtained to complete production?
no
When does a writer require additional compensation?
after one draft, so after one revision or even polish
Why should a producer provide insightful and effective notes to the screenwriter from the get-go and not after production has started?
because you have to pay them after one draft-revision or polish-to the final screenplay
Does a writer strictly just work on spec?
No. They can also be used in the marketing and studio process.
A) What is a logline B) who does the producer create it with?
A) one sentence which summarizes the general tone and plot of the film that helps a producer sell a project B) writer
What is a proposal?
a few pages which include a brief overview of the film that helps a producer sell a project
What are three things that are often part of a proposal?
some previous movies it could be compared to, the finances involved, market research
Is it likely that your movie will get made if the package isn’t commercial?
No. You must find a way to make it commercial.
What is a pitch?
it’s the same principles as a proposal, except it’s delivered verbally to get the financiers engaged
What do producers translate movie ideas to in their minds?
a pitch!
What does it mean to receive a greenlight on a project?
a studio or production company have agreed to make the package into a movie
Does a greenlight guarantee a film’s production?
Hell no.
What does it mean when a greenlit film is put in turnaround?
when a studio halts the production of a film, and usually tries to sell it to another studio
What is called when a package fails to produce a greenlight and languishes in various iterations for years?
development hell
How does a package reach development hell? Give two ways.
studio owns the rights and doesn’t want to sell them, attachments dropout
What happens directly after a greenlight?
a script will go through additional changes as budgeting, logistics, and additional crew enter the picture
When is the official estimated budget created?
once the script is nearing its final iteration
How is the official estimated budget worked out? (Hint: broken down into three sections)
broken down into production, post-production, and distribution costs
What two camps is film funding divided into?
studio and independent financing
Why do studio films usually secure more funding than independent films?
studios typically have more established routes towards financing since their projects usually earn more money
What are pre-sales? S
when a film is licensed to a third party distributor to distribute a film in a given territory
Give an example of pre-sales. S
a distribution company in Japan will prepay for the right to distribute the film in Japan
How do pre-sales work with streaming? S
a production company may choose to pre-sell with streaming platforms, licensing the rights to stream a film in different territories
When are pre-sales usually more lucrative? S
when big-name attachments are involved
What is gap-financing? S
A one-time loan for filmmakers that funds the “gap” between any pre-sale funding that you have raised and the “actual” estimated film production budget. The amount given is based off of pre-sale revenue and things like that.
What is a negative pickup? S
a producer sells their movie to a studio, and the studio gains distribution rights so that the profits are split between the producer and the studio
A) Explain how a negative pickup is formed. B) Therefore ____ S
A) The producer or production company is responsible for the initial funding of their film, with a contract from the studio that they will buy the project upon completion. B) Therefore, if a film goes over budget in production, the producer has to make up the difference themselves.
What is slate financing? How is this typically accomplished? S
an investment in a specified number of studio films (a slate), typically by private equity firms and hedge fund
Why is slate financing a lower risk investment? S
there is usually a high probability one of the films will be a success
A) What is the reverse of slate financing? B) What is ____? S
A) Co-production. B) Co-production is when multiple studios will finance a film and divvy up its rights.
How does slate financing contrast co-production? S
instead of multiple films and one studio, co-production is one film and multiple studios
A) What is product placement? B) How popular is this method? S
A) when a brand will pay to have their product in a movie B) getting vastly more popular right now
What is a producer’s number one goal in financing an independent film? I
“Look, the goal is always to get one equity financier, which means it’s someone who’s just literally writing you a cash check. That is the goal of indie financing.”
Is crowd-funding a popular way to finance an independent film? I
Yes. Crowd-funding is a huge part of indie financing.
What is a film grant? Who are film grants oftenly given out by? I
a fund given by a single person or organization, often a government or nonprofit, that is not intended to be paid back
Why do filmmakers enter films into festivals? I
at festivals they can network with potential financiers with the extra leverage that their project is already critically celebrated
What is the American Film Market? Name 4 of its purposes. I
an annual eight-day film industry event that filmmakers attend to network and to sell, finance and acquire films
What is a private equity firm? I
a company that manages private equity funds, which are pooled investments of large amounts of money
What does a private equity firm do? (hint: they only fund proven production companies with track records) I
these firms bet their money in the hopes of a big payout on the back end
What is a bond company? I
a company that guarantees that the film will be completed on time and on budget
How do bond companies act as guarantors? I
they are a third party that’s purpose is to lower the risks for investors
What happens to a film with a completion bond that doesn’t get completed on time/budget? I
the bond company can assume the rights to the project
What is bridge financing? I
When a short term lender provides a bridge loan to secure an attachment with an investor’s promissory note as collateral.
Why is bridge financing very expensive? I
it’s money that they know you’re desperate for, that you need for a very short amount of time
Why is self-financing so risky? I
in all likelihood the filmmaker will not make their money back, it’s just nearly impossible
What are two ways a filmmaker can self finance their project? I
credit cards and bankrolling
What is deferred compensation? I
to forgo some of your salary to make room for more budget
How can tax incentives keep a budget of a film down? S/I
many countries and states in the U.S. have tax breaks for film productions
What’s the mark of a great producer?
constantly finds creative ways to secure the money they need
