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. 79 Wellington Street West Suite 1630, P.O. © 2020 Forbes Media LLC. Since … As you create a distribution strategy for your horror film, remember that the key to success is good marketing. Advertisement Marketing makes up a huge chunk of modern movie budgets -- $35.9 million on … Presented by Tim Morell of Morell Media. The completion guarantor will then make everyone sign in blood that they can live with the budget. Make your film the best it can be. However, if you are an independent filmmaker you don’t want to get caught out … Once I got my brain around this, the rest was easy. A Business Plan, used for the purpose of raising funds from film … 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 … These include all financing costs, including interest and fees, all legal fees relating to the film through completion, and the cost of the completion guarantee. The budget of (nearly) every movie ever made. Exceptions have of course been made, one of the most notable examples being Titanic (1997). Film budgeting refers to the process by which a line producer, unit production manager, or production accountant prepares a budget for a film production. We are accepting for consideration indie films in post production or in the film festival circuit. Finally, all the guilds have fee structures that are higher for high-budget films. Another impact of the budget is that many related costs rise and fall with the amount of the budget. Small. For low budget film with distribution. (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. In this range, we see a lot of movies many would consider… well, pretty average. Movie Budgets. Good luck. Of course. Using real word examples this 2 hour course explores the distribution process from the perspective of the Independent or Low Budget filmmaker with an emphasis on common errors and assumptions that can prevent a film … A lot of comedies fall in this range (most of Adam Sandler’s latest), as well as your average action movies (around half of the Fast & the Furious franchise), and some animation (lots of DreamWorks films). I graduated from UCLA (Phi Beta Kappa. Don’t let your low-budget … As one stark example I worked on, a $20-million star was added to a $6-million film. 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. 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. As you can guess, the buck stops with the completion guarantor, who is usually the first to seriously question the budget. 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. THE FILMMAKER’S ULTIMATE GUIDE TO VIDEO & FILM DISTRIBUTION Short film distribution. Short films have a life in the festival circuit and are a great way to create a “calling card.” Use a short film … For example, talent will charge far more on a big-budget film than they will for their identical services on a low-budget film. Without a properly prepared budget… Thus, the budget includes, for example, costs of acquiring the script, payments to talent, and production costs. The distributor is entitled to retain 20% of gross revenues, or $200,000, as a distribution fee. Contact Phone (416) 515-2222. 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. The amount of the budget can vary widely depending on the neurosis of the director. Unless the person preparing the initial budget has a firm grip on the director’s psychological predilections, the budget will be no more than a wild guess. And The Hollywood Reporter notes that the average cost of a feature film is even lower, spanning between$70 and $90 million. Securing traditional film distribution for your film is doable. Contact Email. If the budget calls for Godzilla to be played by a ten-dollar hand puppet, the director better not come whining later to the completion guarantor requesting funding for a life-size model. Director James Cameron ran over budget and offered his fee back to the studio. The remaining $700,000 is the filmmaker's share of revenue. 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. Address. It is not ideal, but few things are in the micro-to-low budget filmmaking process and the film … The film budget template takes you only to this level of funds, and so it is up to the filmmaker to use another form, such as the Film Financial Projections Template, to determine marketing, publicity, film festival and other post production costs. 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. ), and other (insurance, completion bond, etc.) Multiple drafts of the budget may be required to whittle down costs. 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. info@multiplemedia.ca. The distributor sells your film to retailers, but YOU have to sell it to the fans. 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. Film budgeting refers to the process by which a line producer, unit production manager, or production accountant prepares a budget for a film production. But suppose that in the domestic territory, … 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. All Rights Reserved. The Los Angeles Times presented an extensive special report, dissecting the budget of the 2005 film Sahara. 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. Remember: 1. I soon learned that the budget was really $12 million, and the producer had received a “producer fee” of $2 million, which was included in the budget. There may be slight variations, but not much. if a film spent £1 million on marketing and went on to gross £3 … The bigger the company, the bigger … Film Distribution & Marketing; Self-Distribution on a Micro-Budget: Releasing Your Film Worldwide Without Spending a Dime by Josh Folan. Prepare Your Independent Film for Distribution. [1] One of the consequences of the Sony hack was the release of budget information of many films or TV shows, including the 2015 Adam Sandler film Pixels. In the leasing model, the distributor agrees to pay a fixed amount for the rights to distribute the film. Dah. No kidding. This, in turn, will have the completely crazy impact of reducing the amount that the film can be sold for because of the budget/sales corollary. Go figure. Types Of Films They Distribute. Using real world examples, this 2 1/2 hour workshop explores the distribution process from the perspective of the Independent or Low-Budget filmmaker with an emphasis on common errors and assumptions that can prevent a film … I graduated from UCLA (Phi Beta Kappa, Summa Cum Laude) and UCLA Law School (first in class). Note: Figures for 2020 are at an annualized rate. The better your film… Step 3. A Film Budget Breakdown (also called a Detailed Budget) is the financial blueprint for your project. Smaller Budget and Different Films. I was an adjunct professor at both the UCLA Law School and the UCLA Anderson School of Management, teaching Entertainment Law and Finance for many years. 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. 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 … You have to do the research and hard work, even when you have a deal with a great distribution company. When I first heard this, it really threw me. 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. Almost without exception, the completion guarantor demands an increase in the budget to give the completion guarantor more breathing room. But there are also some memo… INDEPENDENT FILM DISTRIBUTION: A PRIMER FOR LOW-BUDGET FILMMAKERS. Deferments and participations paid to talent are not included in the budget. Film financing can be acquired from a private investor, sponsor, product placement, film studio, entertainment company, and out-of-pocket funds. (Witness anything done by James Cameron and Martin Scorsese.) Even the contingency itself may exclude certain above-the-line costs. 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. [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. These film … For an example of a budget for a $2 million independent feature, see Planning the Low-Budget Film by Robert Latham Brown. 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. In the US film production system, producers are typically not allowed to exceed the initial budget. 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. The budget almost always includes an artificial mark-up referred to as “overhead,” usually approximately 10%-15% of the budget. 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. The budget of the film did not go to $26 million—it went to over $40 million. 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. 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. Creating a film budget is an important beginning step in transferring the written words on a script to visually arresting images on the big screen. Each studio (and each movie really) has a slightly different allocation of budgeted funds, but they all generally share common line items or categories: Trailers: theatrical and internet for both Domestic … [citation needed]. CASTING ROLES! 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. 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. Director of photography Edi Santoso, right, during, the production of the film “Sin” in Jakarta, Indonesia, in February. As with producer fees, this is just a disguised way of making a profit on the film. Presented by Tim Morell of Morell Media. 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 preliminary film budget is created to raise financing and it isn’t generally detailed or extended. This was a presentation done for the Fairfax Filmmakers Club. Negotiating With a Film Booker. Filmmaking is a business, and with any business, planning how to spend available funds is vital. Producers often increase the budget for a picture by tagging on additional inflated “producer fees” or “overhead charges” for themselves, which are nothing more than a mark-up to the true cost of the film. Thus, as a film’s budget increases, so do the prices distributors will pay for the film. Multiple Media Entertainment Size. 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