Finance Terms Flashcards
What is the meaning of pre-sales?
Selling a film before post-production is done
What are the pros and cons of pre-sales?
Pro: Guarantees you sold it and have some distribution secured
Con: It’s a gamble, maybe your film will do better than you thought
What does MG mean?
Minimum Guarantee: a sum that a distributor can give you based on the average you’ve earned before, BEFORE your film hits the market
*a form of interim financing
What’s a completion guarantee?
Investors / distributors will ask for a form of insurance for mid-high budget features - typically 1% of the budget
Whats the DPR and who makes it?
Daily progress report: A doc that analyses on a daily basis how shooting is going (on schedule, budget, run time)
Made by PM, PC, AD dept, Assistant editor
What do studios have that independent films don’t?
financing, distribution, insurance
*Canada doesn’t have studios, we have production houses
What might you need while waiting for your tax credit?
What would you need to include in the budget?
An interim loan / gap financing
*A loan, so have to include the loan’s bank setup fees and insurance rates in the budget
What does the T4A prove
*your income slip
Proof the grant isn’t your income
What key 3 things should be included in the film’s finance plan?
Source / confirmation / % of total budget it covers
What’s the usual formula for ROI
Box office $ / production budget $ x 100
*Cad box office usually low
When does ‘pre-production’ officially start?
Once you have a final script
What’s included in the development stage?
Everything up until the point that a final script draft is made
What’s the similarity and difference between a shopping agreement vs Option?
Both allow you to represent / pitch the script for financing / distribution exclusively for a period of time
Shopping: No IP rights (sequels, etc) and shorter period of time
What’s a chain of title?
Doc tracing the rights of the materials
What’s another term for MG?
Distribution Advance
What did 1000% ROI make?
10X it’s budget
