information Hothouse FAQs

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1 Hothouse Briefing Session and Business Plan Master Class If you are intending to apply to the Hothouse Program you are encouraged to attend the briefing session and introduction to business planning master class at Film Australia on Friday 7 December. Program: Part 1 2pm-2.30pm - Introduction to Hothouse Speakers Daryl Karp CEO Film Australia and Linda Tizard, Head of Development and Investment, New South Wales Film and Television Office. Part pm-4.00pm Introduction to business planning Speaker David Court Director, AFTRS Centre for Screen Business Venue: Film Australia Roxy Theatre, 101 Eton Road, Lindfield To book your place please rsvp to hothouse@filmaustralia.com.au by Friday 30 November There is no cost for this event. Q. What is on offer from Film Australia and FTO? Film Australia and FTO will provide one successful company or partnership with $100,000 development investment ($50,000 from each agency) to support the company or partnership to establish a viable business structure. In addition, Film Australia (with support from AFTRS Centre for Screen Business and law firm Holding Redlich) will supply approximately $75,000 in kind support over two years including furnished and serviced offices at Lindfield, production services and advice, business skills training, assistance in development of business plan and legal support. Q. Who is eligible to apply? Applications are open to independent filmmakers, but each application must consist of a team of at least two industry professionals committed to working closely together for at least two years. Between them, the team must have had key creative roles in at least two professionally produced and broadcast documentary projects, and preference will be given to those who have either worked together before or individually have more experience. Established companies or partnerships can apply. Q. Will any of the that we are asked to provide in our applications be binding, particularly about specific projects? No, we recognise that your business plan may differ substantially from your original vision.

2 What we want from the expression of interest is an indication that you have strong ideas, a realistic vision for your business, including a good understanding of the market, and that your team have the appropriate complementary skills to succeed. Q. What sort of complementary skills are you looking for? Each team should bring together a group of individuals with a range of expertise and experience. A mix of research, development, producing, directing and marketing skills is encouraged. Q. Can an existing production company apply for the Hothouse Program? Existing production companies are encouraged to apply. The application should include a statement on how the company will use the Hothouse Program resources to develop the company, with an emphasis on its commercial growth. Q. Can filmmakers from states other than NSW apply? Film Australia requires the Hothouse Program principals be based at its Lindfield site. The FTO terms of the deal requires at least one member of the application team be based in NSW. Q. How formal does the relationship between the application team members have to be? If successful, the application team members will need the protection of a formal company or partnership structure. If not already in a company or partnership structure, Film Australia, in association with Holding Redlich, can provide the legal contract to form the partnership or company. However it will not broker the deal between participants. Q. What will be the legal relationship between the successful applicants, Film Australia and the FTO? After the applicants have been selected for the Hothouse Program, and (if necessary) set up a company or partnership, there will be a three-way agreement between Film Australia, FTO and that entity. Q. What do we mean by development investment? How is this different from existing development funding available from state film offices and the AFC? The $100,000 cash is an investment by Film Australia and the FTO to provide early support to grow a viable independent production business, with a focus on documentary and factual production. Unlike other development funding, it is not a loan or a grant, and is not tied to specific projects.

3 Q. How much of the $100,000 do you expect to be attached to specific projects, and how much can be written off as survival money/ wages/ infrastructure support? The expenditure and cash flow of the $100,000 will be determined by the business plan. This fully-costed business plan (which is not the application document) will be developed by the successful applicant during the first three months of the Hothouse Program, with the assistance of Film Australia, FTO and AFTRS Centre for Screen Business. Q. Can we invest the $100,000 cash in one single project? The success of the business is likely to depend on the diversity of the proposed development slate. Therefore applicants would not be encouraged to invest in one project. However, the proportion of investment per project will be determined in the business plan. Q. How is the Hothouse Program progress to be measured and assessed? If business progress does not fit neatly into three monthly intervals, will that affect the cashflow? We recognize that business development is subject to unpredictable factors. However, your progress will be monitored against your business plan by the Hothouse advisory panel, which will include representatives from Film Australia and FTO. It is possible that the business plan may be revised to accommodate issues arising from the review process and the cashflow to be adjusted accordingly. Q. What if there is broadcaster interest in one or two projects but no done deals at the end of the twelve-month period? The advisory panel will review this as part of the overall review at the end of 12 months. However, it is not in our interests to cease support if production is imminent. Q. What return will Film Australia and FTO expect on their investment? The primary aim of the Hothouse Program is to support business development and growth, not provide profit or returns to Film Australia and FTO. If successful, Film Australia and FTO would like to reinvest any returns to develop the Hothouse Program in further development of documentary and factual screen businesses. Therefore, while Film Australia and FTO will expect the investment ($100,000 cash) to be returned progressively, if and when productions are financed (see notes on recoupment), neither will require a premium to be paid.

4 Q. What are the terms of recoupment? Film Australia and FTO will expect to recoup up to $10,000 each from the production budget of each project that goes into production and that was developed (or partly developed) during the Hothouse Program. At nine months there will be a review of the developed slate of projects. At this stage the amount of recoupment per project will be determined by agreement between all parties (the production team, Film Australia and FTO). However, recoupment will never be more than five per cent of the budget on any one production, and will be capped at $20,000 ($10,000 each Film Australia and FTO with no additional premium) for each project. This amount will be included as a line item in the development section of any production budget. Neither Film Australia nor FTO will expect to be reimbursed where projects do not ever go into production. Recoupment by Film Australia and FTO may be waived on some projects if it is considered essential to support the growth of the business. Q. What if a project, developed or further developed under the Hothouse Program, gets optioned at a later date by third parties? The same conditions apply as to projects that go into production during the Hothouse Program. Film Australia and FTO would expect to recoup their development component as a production cost, which would be capped as above. Q. How will we determine what is developed or partially developed under the Hothouse Program? What if one of the team is working on something else separately? The business plan will determine what is developed under this program. Existing projects that remain dormant during the 24 months would be considered to be outside the program. However any project that moves into production at some stage due to the support of the investment and infrastructure of the Hothouse Program would be subject to the recoupment conditions. For example if $100,000 was spent exclusively on marketing a slate of developed programs, the same recoupment conditions apply. Q. Are we restricted to developing programs of interest to Film Australia? No - in fact you are encouraged not to develop projects solely for Film Australia or the National Interest Program. Film Australia and the FTO are committed to supporting the documentary sector, and we are looking for diversity within documentary and specialist

5 factual genres. However while documentary and factual production will be the main focus, other genres, including drama, are acceptable in your slate. Q. If Film Australia is to have first option to commission or distribute any project developed under Hothouse, how long will it take to make a decision? Recognising that a quick response on proposals is often required by producers, Film Australia undertakes to make its decision on any Hothouse Program project within four weeks (normal turnaround is eight weeks). Q. Will Film Australia require first look for distribution of Hothouse Program Projects even if they have turned down the option for production? Yes however it will be negotiable to support the business getting the deal which makes best commercial sense. Q. What kind of on site/ in kind services and facilities are on offer by Film Australia? Film Australia will provide a furnished and serviced office - access to despatch, security, catering and some IT services, discounted production facilities (including studio, editing and viewing facilities), and access to production services and advice including financial, legal, policy, strategic planning, marketing and distribution, film library, editorial and production expertise. Q. What sort of business skills training and support is on offer from AFTRS? The AFTRS Centre for Screen Business will provide a two-day business skill training program to successful short-listed applicants in February How to apply: Please refer to the initial hothouse sheet for details of what is required in the application and expression of interest. Applications should be sent to: Megan Hipwell Executive Assistant Film Australia PO Box 46 Lindfield NSW 2070 Applications close COB Friday 14 December 2007 Enquiries : Megan Hipwell, Or hothouse@filmaustralia.com.au

6 Hothouse Timetable Monday 12 November Friday 7 December Friday 14 December Friday 21 December Monday 24 December to Friday 4 January 2008 Tuesday 5 February 2008 Week beg 11 February 2008 Mid to late February 2008 March 2008 NATIONAL INTEREST PROGRAM Applications open 2pm, Hothouse Briefing and Introduction to Business Planning Applications close (please note there will be no exceptions) Applicants informed whether shortlisted Film Australia holiday shutdown Shortlisted applicants meet with selection panel Selected applicants to participate in two-day business plan and financial seminar - Final presentations to panel and selection made Hothouse Program begins.