Transcript Film Finance

Film Finance
• Aims: to gain an understanding of how
Hollywood studio and independent film
gets made.
• To research the production process of a
film.
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.
‘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:
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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.
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.
“It’s Terminator meets Dirty Harry.”
- Hollywood Producer
‘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.
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 Spielberg’s ‘Jaws’
(1975).
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.
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.
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 member’s 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.
Financing a film
• What do producers have to consider when working out
the costing of a film?
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Star’s 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
Bankability
• A Select group of stars who can guarantee a film’s
international success on the strength of their name
alone.
• Bankability is the ability of a star’s 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 world’s most
‘bankable’ actors.
- How many are women?
- How many are black/Asian?
- Select two and list 5 of their films? Were they
all successful?
Stars Involvement in Film’s
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 Mi2’s director and JJ
Abram for Mi3.
• Stars are now a franchise or a brand rather than
actors.
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.
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.
Currently Fashionable Genres
• What are the currently fashionable genres in Hollywood
production:
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‘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.
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.