Producing in an Entrepreneurial Age. Presentation by Paul Miller

Transcription

1 Producing in an Entrepreneurial Age Presentation by Paul Miller

2 1. Movie Market Share and Number of Releases in European Union

3 2. Identification of Structural Weaknesses in EU Film Industry Identification of structural weaknesses that prevent the EU film industry from reaching potential audiences, both in the EU and globally. (from recent 2014 European Audiovisual Observatory) Greater focus on production, resulting in limited attention and funding to distribution and promotion Insufficient opportunities for international European projects Cultural Basis of European Cinema Fragmentation of production and financing

4 3. Top 50 Releases in Germany in 2015

5 4. Dinosaurs and Mammals

6 5. The Filmmaking Triad Producer Writer Director

7 6. Where the Producer Sits Finance Creative

8 7. The Key Roles of a Producer Sourcing ideas and building a team Raising money Managing the Money/Controlling Production Selling Distribution and marketing

9 8. Pitching Guidelines 1. Personal Connection 2. Genre, Rating, and Tone 3. Title 4. Logline 5. The Unique World Or Rules 6. Introduce Your Main Characters 7. The Story Or Set Up (in Shorter Pitches) 8. Write it Down 9. Rehearse 10. Research 11. Rapport 12. Request

10 9. Sources of Film Financing Equity Foreign pre-sales Soft Money (National and pan-european Funds) Grants Tax and Production Incentives In-kind Services Product Placement Sponsorship Crowd Sourcing (many of these can be cash flowed by a bank)

11 10. Know Your Investors ROI - film is a business investment ART - for the love of cinema DISCOVER - to bring emerging talents to the world CAUSE - to activate audience engagement and cause positive change REACH - to raise awareness on an issue or cause PEOPLE - to meet filmmakers, connect with and learn about the industry MOVIE - to bring a project to it s selected audience GOOD - to entertain and inspire audiences to make the world a better place

12 11. Goals for a Business Venture A business plan is a written statement of goals for a business venture: why such goals are appropriate how they may be achieved how the business is organized who is involved in the business how the business relates to the existing marketplace prospects for financial success

13 13. Table of Contents for Business Plan 1. Executive Summary/Plan of Business: a) Market Overview/State of the Industry b) Enter Escape Pictures c) Project Management 2. The Film Project a) Synopsis b) Screenplay Rights c) Production Information (Schedule, Budget,..) d) Public Relations and Promotion e) Distribution Approach f) Estimated Use of Proceeds (how fit in with other money?) g) Box Office Comparables h) Financial projections 3. Investment Considerations (Risks) 4. Motion Picture Industry Overview 5. Can also include back up of all this material: copy of chain of title, copy right assignment but I don t do that, also industry articles, etc. to support your idea and press releases on film and/or filmmakers 6. Exhibits

14 14. Sub-Heading for Executive Summary Overview The Opportunity Objectives Mission Statement Purpose of Business The Company and Organization People involved The Product Marketing and Distribution Financial matters

15 The Main Underwriting Criteria for the Greenlight Committee Budget: Budget Floor: 3 million, Budget Cap: 15 million. Production Incentive: Productions must take advantage of a Production Incentive that requires some portion of the production and/or post-production take place in Europe. Production schedule: Film scheduled to commence Principal Photography during the Production Period If not enough films have been financed within the first three years, the Fund reserves the right to extend this period to a maximum of five years. Release: Release: Film is intended for theatrical release in at least 3 major European countries and/or the US. Release must have a minimum of 50 screens per major European territory outside US and 25 screens in the US; Distributor must be pre-approved (Studio Canal, Pathe, and similar sized reputable distribution companies are hereby approved); Sales agent must be pre-approved (Film Nation, IM Global, Sierra Affinity and similar sized reputable sales agents are hereby approved). Finance plan: Fund may not contribute more than 25% of the total Direct Negative Cost less any anticipated Soft Money Benefits and Pre-Sale Minimum Guaranties (MG). Financed films must have pre-sale MG s covering at least 25% of Budget. Estimates from an acceptable foreign sales agent validated by the Fund s management are required; At least 50% of the financing plan must be secured prior to the Fund s engagement; Financing structure must fall under the European Co-Production Agreement, be financed by major or mini-studio, or financed by an established privately held film financing entity.

16 Quality standard: Film will be primarily live action; Film is not a stage play or concert Film; Film is expected to receive an MPAA rating no more restrictive than R ; Film is expected run time of at least ninety (90) minutes (inclusive of main and end titles); Film must be in the English language; Security: Film must be bonded by an approved Completion Bond provider (Film Finances is hereby approved) or be co-financed or co-produced with a Major Studio; Film must use an approved Collection Fund (Fintage House, Compact Media Group and Freeway are hereby approved); Film must be insured; Production Fund and/or Producer must evidence that they are bona fide professionals and must have produced and distributed a movie in the last 2 years; IRR: The Fund s Management Team will negotiate the best possible deal and recoupment structure available for equity financiers; Minimum Fund IRR of 17% in medium performance scenario, based on the Fund s revenue estimate. Risk reduction: The Fund s investments are spread across minimum of 10 projects.

17 15. Example of Distribution Windows

18 16. Example of Financial Plan (US)

19 17. Example of Financial Plan (EU)

20 18. Revenue Projections for Birders Guide

21 19. Recoupment Plan Tupperware

22 20. Vertical Revenue Flows Theatrical: 1 st Ancillary Window digital home entertainment: DVD/Blu-ray/VOD 2 nd Ancillary Window premium cable HBO/Starz/Showtime 3 rd Ancillary Window Network or Cable: NBC, CBS, USA 4 th Ancillary Window- Free TV 5 th Inflight, Schools, Museums, Hotels, Prisons, Ships 6 th Internet download or stream

23 21. Domestic Waterfall for Co-Financing EU Deal

24 22. ROW Waterfall for EU Co-Financing Deal

25 23. Calculating Your Profits

26 24. IRR vs. ROI Or Ways to Make Your Investment Look Solid

27 25. Note by Note Audience

28 28. Rights to Try to Holdback Direct digital Direct DVD Educational Semi-theatrical Focus on the ultimate revenue split rather than the advance

29 30. Final Thoughts 1. Find and/or Develop a really great script. 2. Create, practice, and refine your pitch. 3. Build a good team around you that support any skills you may not have. 4. Start your marketing strategy from day one. 5. Constantly keep up on industry information. 6. Have a solid business plan for your film. Good Luck

30 31. Reference List 1. The Independent Film Producer s Survival Guide/Third Edition 2010, By Gunnar Erickson, Harris Tulchin, Mark Halloran 2. Business Plans for Filmmakers/2010, By John W. Cones 3. The Producer s Business Handbook Third Edition/2010, By John Lee and Anne Marie Gillen 1. Peter Broderick (online) and as a consultant