INDEPENDENT FILM DISTRIBUTION: A PRIMER FOR LOW-BUDGET FILMMAKERS. Film Distribution & Marketing; Self-Distribution on a Micro-Budget: Releasing Your Film Worldwide Without Spending a Dime by Josh Folan. For example, if the budget is really $10 million, the producer will charge and retain an additional $1.5 million to purportedly cover its overhead. Above the Line, Below the Line, and Other. Advertisement Marketing makes up a huge chunk of modern movie budgets -- $35.9 million on … The Los Angeles Times presented an extensive special report, dissecting the budget of the 2005 film Sahara. Only in the rarest of situations or with the lowest of budgets will a filmmaker will be able to fund the production with a cash advance on a guaranteed distribution. The better your film… Address. Go figure. Filmmaking is a business, and with any business, planning how to spend available funds is vital. The budget of (nearly) every movie ever made. In the leasing model, the distributor agrees to pay a fixed amount for the rights to distribute the film. LOW-BUDGET FILM DISTRIBUTION: A PRIMER FOR INDEPENDENT FILMMAKERS. We are accepting for consideration indie films in post production or in the film festival circuit. I graduated from UCLA (Phi Beta Kappa, Summa Cum Laude) and UCLA Law School (first in class). This document, which could be over 130 pages long, is used to secure financing for and lead to pre-production and production of the film. The reason that these categories are relevant is that several items (such as insurance premiums and completion bond fees) are often calculated as a percentage of the budget, but excluding all or a portion of the above-the-line costs or other costs. A film production budget identifies the costs for each phase of making the film, from development, pre-production, production, post-production through to marketing and distribution. Multiple Media Entertainment Size. Short films have a life in the festival circuit and are a great way to create a “calling card.” Use a short film … info@multiplemedia.ca. The remaining $700,000 is the filmmaker's share of revenue. Market Share for Each Distributor 1995-2020 Smaller Budget and Different Films. Types Of Films They Distribute. If it was successful selling enough territories based on the poster, Cannon would contact the named talent and begin the process of producing the film. There may be slight variations, but not much. CASTING ROLES! However, if you are an independent filmmaker you don’t want to get caught out … Which distribution model is best for low budget films? [12], Movie production incentives in the United States, "Inside the WGA: Even at $400K a Week, a Million Insecurities", "DGA Rate Cards 2012 - 2013; Minimum Salary Schedule", "Forbes: DiCaprio Beats Depp for Title of Hollywood's Highest Paid Actor", "The Smoking Gun: Archive: The Sixth Sense", "Budget for Tomb Raider-2 With Angelina Jolie", https://en.wikipedia.org/w/index.php?title=Film_budgeting&oldid=992609273, Articles with unsourced statements from June 2014, Articles with unsourced statements from January 2016, Articles with unsourced statements from August 2018, Creative Commons Attribution-ShareAlike License, This page was last edited on 6 December 2020, at 05:09. (Witness anything done by James Cameron and Martin Scorsese.) Don’t let your low-budget … Similarly, premiums paid to completion guarantors and insurance companies are calculated as a percentage of the budget, not flat amounts, and every film budget includes a contingency for possible excess costs, always expressed as a percentage of the budget—usually 10%. It is not ideal, but few things are in the micro-to-low budget filmmaking process and the film … Contact Email. For low budget film with distribution. Film budgeting usually occurs in two different phases. I have been named (a) one of the top 100 entertainment lawyers by the Hollywood Reporter, (b) one of the top 25 entertainment lawyers by Variety, (c) one of the top 100 lawyers in California by the Daily Journal and (d) one of top 3 "Most Influential Lawyers" in media by the National Law Journal. A Film Budget Breakdown (also called a Detailed Budget) is the financial blueprint for your project. Distribution Costs Typically, the distribution costs of a film are not included in the budget breakdown. Once the upfront costs are paid and the film is released, … (Photographer: Dimas Ardian/Bloomberg), EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation With Forbes Insights. And The Hollywood Reporter notes that the average cost of a feature film is even lower, spanning between$70 and $90 million. The average production budget of a major studio film in 2007 was $106 million [source: MPAA]. Distribution companies take care of this work, and they usually have a contract that charges a specific fee and a percentage of box office receipts. For example, talent will charge far more on a big-budget film than they will for their identical services on a low-budget film. ), and other (insurance, completion bond, etc.) A sales agent will be able to provide you with some sense of the estimated value of the film before he or she brings it to the film market and festival circuit. Note: Figures for 2020 are at an annualized rate. However, the cost of delivery of the film print to distributors is typically treated as a distribution cost, and is generally not included in the budget. 5600PRODUCTION FILM & LAB 1,150 5610Field Drives - LaCie Rugged Drives 42 TB Drives 250 1,000 (Assume max 4 hrs/~64 GB per day, 140 hrs total, need 2.5 TB total, x2 for mirror) 5620Tape Stock 0 … Other costs include financing costs, the completion guarantee fee, and the contingency. Even the contingency itself may exclude certain above-the-line costs. Film budgeting refers to the process by which a line producer, unit production manager, or production accountant prepares a budget for a film production. The net result is that any proposed increase to a film’s budget has a ripple effect that can more than double the proposed increase. A film’s budget plays a dominant role throughout the film’s life cycle—with implications going far beyond the mere cost of the film. Filmmakers with a movie “in the can”, or close, looking for a distributor are encouraged to contact us via the filmbudget.com website Contact Page. Image via Flix.org.uk A booking agent, film buyer, or film booker negotiates the lease terms for films from the Big Six and beyond. This document, which could be over 130 pages long, is used to secure financing for and lead to pre-production and production of the film. I am a partner in the corporate entertainment department of Greenberg Glusker, practicing entertainment, corporate, and tax law. We will increase the budget by this amount, which should increase sales necessary to repay you because of the budget/sales corollary.” Most financiers go along with this. Once I got my brain around this, the rest was easy. It is critical that … Many film budgets come in a bit lower, ranging from $100 – $150 million. Securing traditional film distribution for your film is doable. Every budget includes a contingency for potential excess costs, always expressed as a percentage of the budget—usually 10%. The bigger the company, the bigger … As with producer fees, this is just a disguised way of making a profit on the film. For example, above-the-line costs include the costs of acquiring the underlying rights, script costs, producer fees, and payments to key talent (director and main actors). Contact Phone (416) 515-2222. © 2020 Forbes Media LLC. There are no guarantees, but you should always give it your best shot. The distributor sells your film to retailers, but YOU have to sell it to the fans. THE FILMMAKER’S ULTIMATE GUIDE TO VIDEO & FILM DISTRIBUTION Short film distribution. Sooner or later, the budget will be handed to the lender with a request to fund the budget. The lender will, in turn, hand it to the completion guarantor with a request to guarantee that the film can be made for that budget. On the other hand, if talent foregoes the upfront payment of $20 million in exchange for a much larger, albeit contingent, deferment or participation, the budget will be reduced by $20 million. Small. Opinions expressed by Forbes Contributors are their own. Theatrical, DVD, VOD. To illustrate this, I have calculated how much larger a film’s box office gross was as a multiple of the marketing spend. The preliminary film budget is created to raise financing and it isn’t generally detailed or extended. As a result, the market for low budget films (with budget of $10 million or less) is relatively healthy because they can be potentially picked up for digital distribution with funding up … Director James Cameron ran over budget and offered his fee back to the studio. Remember: 1. If the distributor and the studio have a profit-sharing relationship, on the other … The budget almost always includes an artificial mark-up referred to as “overhead,” usually approximately 10%-15% of the budget. All Rights Reserved. The first question asked by all distributors is: “What is the budget?” The higher the budget, the more the film sells for, so there is a perverse tendency to inflate the cost of films. But there are also some memo… A budget is typically divided into four sections: above the line (creative talent), below the line (direct production costs), post-production(editing, visual effects, etc. Negotiating With a Film Booker. Method Of Distribution. United States December 2020 Genuine movie/Tv serial/advertisement TVC shoot/Event/Print shoot/Script writer/Reference shoot and pilot … Though movie studios are reluctant to release the precise details of their movies' budgets, it has occasionally been possible to obtain (clandestinely) details of the cost of films' breakdowns. It often only provides the top … Again, the tentacles of the budget/sales corollary at work. But suppose that in the domestic territory, … The actual cost to produce Pixels, or the "grand total", was $129.6 million and the net budget for Sony came to $111 million after they received a government rebate in Canada that covered a portion of their gross spend (cost) in the amount of just over $18 million. The budget excludes film promotion and marketing, which is the responsibility of the film distributor. Note: … Almost without exception, the completion guarantor demands an increase in the budget to give the completion guarantor more breathing room. For example, if a film that really cost $10 million were sold for $12 million, to me, the budget was $10 million, and the producer had made a $2 million profit. A more honest approach would be to say that the budget is $10 million, but the producer wants to make at least $1.5 million of profit. Another impact of the budget is that many related costs rise and fall with the amount of the budget. No kidding. The documents had become public domain after a lawsuit involving the film. There are several miscellaneous items that arguably should not be included as part of the budget, but are. Thus, as a film’s budget increases, so do the prices distributors will pay for the film. When all else fails, one irresistible tendency is to greatly exaggerate the true budget in order to jack up prices. Dah. [2] Even though Sony's out of pocket for the film was reduced because of the incentive, it does not negate the fact that the actual cost (amount spent during production to make the film) was still $129.6 million. A Business Plan, used for the purpose of raising funds from film … For example, the completion guarantor may request a reduction or deferment of fees to the producer or an increase to the contingency. This was a presentation done for the Fairfax Filmmakers Club. Presented by Tim Morell of Morell Media. Director of photography Edi Santoso, right, during, the production of the film “Sin” in Jakarta, Indonesia, in February. For example, if two identical films with the same script and stars were made, and one was made for $50 million and one was made for $10 million, the one made for $50 million would typically sell for five times more than the film made for $10 million. 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