Midterm 1 Flashcards
PGA Development/Pre-Production Functions
- Securing necessary rights for development and production of the material
- Selecting the screenwriter
- Securing the initial financing (e.g. studio or independent financing)
- selectign the unit production manager
- preparing the preliminary budget
Key Elements of an Option
- Length of Option and Terms of Renewal
- Compensation
- Credit
First Step in Development
Find Talent that wants to make the movie so you can get more money/attention
[the job of agents, managers, lawyers, connections]
Finding the Money
- Studio Financing with or w/o distribution deal)
- Negative Pick Up Deal
- International Pre-sales
- Independent Financing Entities
- Angel Investors (LLC)
- Crowd sourcing
- DIY (Do it Yourself)
One Studio (financing)
One studio buys from outset through distribution, less creative control, but more financial support (and guaranteed output, usually)
Two or more Studios (financing)
When two or more studios bind together, split distribution over territories, and mitigate risk
Negative Pickup (studio financing)
When a studio/financier agrees to guarantee payment of part or all of the “negative” cost of the film upon deliver of the negative provided certain pre-determined criteria is met.
No money is exchanged before the filming begins, although the producers can use the deal memo as collateral when they approach other financiers, including banks in order to finance the production.
International Pre-Sales (producer generated financing)
Selling the international rights to a movie to a particular countries can secure funding ahead of time
Independent Financing Entities
Hedge funds and Banks
Angel Investors
Anyone willing to give money (for some share of revenue or ownership of film)
Crowd-sourcing
Like kickstarter
Unit Production Manager
- Reports to the film’s producer
- Supervises budget
- Hires the crew
- Approves purchase orders, and generally makes sure all departments are doing their respective jobs w/i the budget
Above-the-line (40%)
- Story
- Writer
- Producer
- Director
- Cast (usually just stars)
- ATL unions
- Travel & Living, including fringes (union negotiated health and benefits
Below-The Line (60%)
Everything not covered above the line
- Production Costs
- Post production
- Insurance/Medical
- Publicity (doesn’t include marketing of film)
- Misc.
Gross vs Net Points
- The collective sum of the ticket value sold at the box office
- The gross box office earnings minus entertainment tax and expenses
Intellectual Property
- Novels, biographies, plays, musical, essays
- A work or invention that is the result of creativity, to which one has rights and for which one may apply for a patent, copyright, trademark, etc.
Ways to Protect Ownership
-Copyright (register script with WGA)
Purchase Price
The purchase price for the rights
Option
A contract over intellectual property that gives the holder of an option an exclusive right to develop the material into a motion picture over a set period of time and for a set amount of compensation
-Includes option price (paid to owner of IP) and a pre-negotiated purchase price
Difference Between Option & Purchase
Option -less upfront money -renewable according to set terms -set time limit -rights typically revert back to owner Purchase -Price negotiated either at time of option, or in "good faith" upon purchase by studio/financier -Higher Amount -Ownership shifts to studio/financier/producer until public domain
Public Domain
Public domain works are not restricted by copyright and do not require a liscence or fee to use
-Default term is life of the author +70 years
Agents vs Managers
Agents
-Regulated by the State overview of agency
-Set fee based on percentage of talent’s fee (10%)
-Can’t be producer
-Larger client list
-Agents & lawyers are the only people allowed to negotiate
Manager
-No gov’t oversight of management companies
-Fees can be anything (i.e. 15% + profit participation)
-Producer possibility
-Generally a smaller client list–looking at career
-Looking long-term at the entirety of a person’s career
Lawyer’s Roles
Negotiates Details of deals
- Compensation
- Credit
- Profit Participation
- Perks
- Right and refusal
Typical Perks
- Hiring of specific crew members
- On set/location expenses
- Rights to approve all publicity
- Creative decisions (ultimate is final cut for director)
