HOW DO FEATURE FILMS GET FINANCED? (In the Entertainment industry.)

Financing Your Feature Film / Photo Credit: HDVideoPro

HOW DO FEATURE FILMS GET FINANCED? (In the Entertainment industry.)

 

Bruce Bisbey…please follow me at: https://dumbdogproductionsllc.blogspot.com or https://www.facebook.com/DumbDogProductionsLLC/ thank you.

HOW DO FEATURE FILMS GET FINANCED?

The majority of independent films rely on a mixture of finance to get a film made. No two scenarios for financing will ever be the same, and there is no definitive way of getting a film funded. In short, it’s complicated. The struggle to find funding in today's financial marketplace is ever more competitive, and the odds of reaching the required sum to move into production can be slim. The process requires cool, logical people with good business acumen to help producers navigate a startling array of options; this is where a film finance company can help.

Film finance companies work with producers, investors and financial institutions (such as banks) to pull together the right sum and correct structure of money to move the film out of development and into pre-production. The mixture or breakdown of money with which a film is financed is often referred to as the films finance plan.

Some film finance companies have access to their own capital and can lend or invest directly into a project, while others may approach a bank with a package in hand in the hope of accessing that particular institution's funds. However, regardless of where the capital is sourced, finance companies will often demand to be the first, or one of the first, to recoup money from the film’s success.

There are various sources and types of capital available when piecing together a films finance plan. Some such options are: 

• Pre-sales with foreign and domestic distributors…
• Tax credits from both home and abroad…
• Loans…
• Grants…
• Minimum Guarantees for distribution deals (theatrical and home entertainment)…
• Equity from private investors (or private institutions)…
• National TV broadcast deals…
• Crowdfunding (less the financiers more the filmmakers)…
• Post-Equity deals… 

Producers need to make sure they have the best script, director and talent in place before they enter the funding marketplace. They create a pitch package which is fundamental as it collates key information for investors. The better the ‘pitch’ and preparation, the more likely a project is to attract interest; especially if you have unique above the line selling points. The process can be lengthy, with many projects unable to find funding. Putting together the package is the responsibility of the producer and production company and should include: 

• The films proposed finance plan…
• An investment proposal, clearly laying out the terms and conditions of the investment or financing required…
• A treatment of the script, which can be anywhere between a page to a more detailed ten-page document…
• A copy of the rights to the story, all options and acquisitions agreements… 
• An investment proposal, clearly laying out the terms and conditions of the investment…
• Comparable box office returns on films of a similar genre or tone… 
• Market research on current trends, with emphasis on work that has just gone into production… 
• Talent attached to the project. The director and cast are the primary selling points, as would be the screenwriter if they are well known in the industry. A letter of interest from all parties is a good indicator to investors that securing the talent is possible. Any crew agreements that are set… 
• Revenue projections… 
• Any examples of press coverage the company have managed to generate, which would include any marketing materials they have commissioned such as posters... 

Sources, References & Credits: Google, Wikipedia, Wikihow, WikiBooks, Pinterest, IMDB, Linked In, Indie Wire, Film Making Stuff, Hiive, Film Daily, New York Film Academy, The Balance, Careers Hub, The Numbers, Film Maker, TV Guide Magazine, Blurb, Media Match, Quora, Creative Skill Set, Chron, Investopedia, Variety, No Film School, How Stuff Works, WGA, BBC, Daily Variety, The Film Agency, Best Sample Resume, How Stuff Works, Bright Hub, Career Trend, Producer's Code of Credits, Truity, Production Hub, Producers Guild of America, Film Connection, Variety, Wolf Crow, Get In Media, Production Beast, Sony Pictures, Warner Bros, UCAS, Frankenbite, Realty 101, Liberty Me, Careers Hub, Sokanu, Raindance, Film Connection, My Job Search, Prospects, David Mullich, Video University,

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Financing Your Feature Film / Photo Credit: HDVideoPro