Film Finance

1
Film Finance

• Aims to gain an understanding of how Hollywood
  studio and independent film gets made.
• To research the production process of a film.

2
Film Finance

• Film is a medium where creativity and business
  are forced to
• meet.
• There is no such thing as a safe bet because each
  film is to
• some extent a one-off prototype.
• However, Hollywood studios try to reduce the high
  risks of film
• production by recombining / repackaging
  successful elements.
• This is another way of saying that Hollywood
  works to a set of
• generic conventions. Successful formulas make
  money.
• Task in 2 minutes brainstorm all the sequels,
  remakes and
• TV/comic book adaptations that you have seen in
  the last year.

3
The Package

• The film package is put together by the producer.
  
• It is presented to potential investors, financers
  and distributors.
• It must include the following key elements and
  selling points
• Script Treatment
• Generic Characteristics.
• A Proposed Budget.
• Storyboard of Key Scenes.
• Established director / writer with proven track
  record to attract target audience and reassure
  investors.

4
The Pitch

• Term used for the presentation of the
• package by the producer to potential
• financial backers.
• The producer may say their film is a hybrid of
  two successful movies.
• Its Terminator meets Dirty Harry.
• - Hollywood Producer

5
High Concept Films

• Made famous by Don Simpson and Jerry Bruckheimer
  as a response to high risk film production.
• The repackaging of previously successful
  elements, such as big name stars and directors.
• Remaking past hits or extending franchises
  (sequels).
• Often high octane action/disaster movies.
• Made for a PG or 12 rating so appealing to a mass
  audience.

6
The summer blockbuster

• For many years Hollywood has made mass market
  films for the summer.
• Many of these films will be released with
  merchandise tie ins and big marketing budgets.
• The first merchandise led summer blockbuster was
  Steven Spielbergs Jaws (1975).

7
Commitment to Invest

• Investors will only commit to a package when
  they have a clear presentation of the target
  audience for the film. This is done through
  extensive market research. Which includes?
• If a return on the investment is possible then
  the project will be give the green light,
  meaning that the studio will fund the next stage,
  which would consist of the writing / finishing
  off of the screenplay.

8
Funding for Independent Films

• Independent film production is developed and
  realised outside major studio settings.
• Sources of finance
• - Banks
• - Investment Companies
• - Rich Private Investors
• - The Government
• the national lottery.

9
Independent filmmakers finance

• Example Robert Rodriguez
• Robert Rodriguez the subsequent director of Sin
  City and Spy Kids financed his first film El
  Mariachi by borrowing several family members
  credit cards.
• He financed the whole thing for 50,000 with most
  of the actors working for free.
• He also made some of his own camera equipment to
  avoid expensive hiring.

10
Financing a film

• What do producers have to consider when working
  out the costing of a film?
• Stars fees
• Other supporting cast
• Crew
• Post production
• Film stock
• Travel/shipping and catering
• Mise-en-scene (set building, hiring props,
  vehicles etc)
• Film taxes
• Hiring/compensating

11
Bankability

• A Select group of stars who can guarantee a
  films international success on the strength of
  their name alone.
• Bankability is the ability of a stars name to
  raise money for a film
• attract support from major studios
• pull in cinemas-goers at the box office
• Task brainstorm a list of the worlds most
  bankable actors.
• How many are women?
• How many are black/Asian?
• Select two and list 5 of their films? Were they
  all successful?

12
Stars Involvement in Films Production

• Gives them greater control over their career.
• Sometimes it is they who get the script first and
  get to choose who will direct the film.
• Example Tom Cruise
• As well as being a huge bankable star, Cruise
  is also a producer with the influence to get film
  made.
• He co-produced Mission Impossible 2 and
  Minority Report
• Cruise chose John Woo as Mi2s director and JJ
  Abram for Mi3.
• Stars are now a franchise or a brand rather than
  actors.

13
Film Production

• Average cost for Hollywood blockbuster, including
  its marketing, is 100million, so studios are not
  inclined to take risks.
• Any studio project made by untried talent or
  without a big name actor on whom to focus an
  advertising campaign will face an up hill
  struggle to be green-lighted.
• Can you think of any popular, high grossing films
  without any star names.

14
Independent Productions

• With the advancement of new digital technologies
  it is easier to make films on a much smaller
  budget.
• Such example include The Blair Witch Project.
• Watch extract.
• However, it is the major studios that have all
  the power when it comes to distribution, and
  without the help of their independent
  distribution wings (Warner Independent, Miramax,
  Fox Search Light) many low budget films would
  never be seen.

15
Currently Fashionable Genres

• What are the currently fashionable genres in
  Hollywood production
• Torture horror the Saw films.
• Comic book heroes- Iron Man, X- Men etc
• Broad parody comedies- Epic Movie, Teen
  Movie.
• Fantasy Narnia and Ring films, Stardust
  etc
• Animation- too many to mention!
• Task Why are these genres popular at the moment?
  Discuss and make notes.

16
The Crossover film

• The crossover film is a relatively low budget
  independent film without big name actors that
  does well commercially (makes lots of money).
• Generally these films begin in fewer cinemas but
  as word of mouth spreads (and it wins awards) the
  film becomes a surprise sleeper hit.
• Read page 99 Titanic vs The Full Monty.
• The crossover film is a dream come true to
  Hollywood or any film industry. Why?
• Because it makes the biggest profit margin!
• Task read the article about Slumdog Millionaire
  at the box office and answer questions.