Film Financing: Where Do You Start?

Just like many filmmakers, there are plenty of ideas that run through my mind, plenty of stories that I would love to tell, plenty of characters I can see so vividly in playing out dramas in my head, however then comes the producer side of my brain: financing. You can have an incredibly script, however, finding funding is still quite the daunting task for any filmmaker. First, one must figure out what are the different options out there for funding my film, and how do these options work? Recently, NoFilmSchool published an article by Buffalo8’s Matthew Helderman breaking down the different kinds of film financing. In short, the independent filmmaker’s options are:

1.     Equity: These are cash investments that require the investor own a stake in the film and must be paid back before a profit can be seen by the filmmaker. 

2.     Pre-Sales: With pre-sale fudning, a contract must be made with distributors before the film is produced; these deals are based on how marketable the film is viewed to be, and how high the sales potentials are. In this, a distributor will generate a value that will allow you to take out a bank loan, using the pre-sale as collateral. 

Kathleen Kennedy & Kevin Geiger on Business Plans in Film

The business end of the film world is one that can often be viewed as complicated and difficult to grasp. However, luckily, in the age of technology, we have an ample amount of resources to utilize in order to gain insight into just how the film business works. Two experts who have been in and around the film industry for several decades are Kathleen Kennedy and Kevin Geiger. 

Kathleen Kennedy discusses Star Wars Episode V with George Lucas (Left) and J.J. Abrams (Right). Digital Spy 2014.

The better known of the two experts is by far Kathleen Kennedy, president of Lucasfilm and one of the most notable producers in Hollywood. Some of Kennedy’s best-known works are Schindler’sList, Back to the Future, The Sixth Sense, and Jurassic Park. For many years, Kennedy has been producing some of the biggest box office successes, and when it comes to building a business plan – for a film – she mentioned the importance of thinking globally in terms of how your story will connect with different cultures in an interview with USA Today. It is also important to be forward thinking when it comes to technology and where the industry is heading. Being aware of the changes in distribution, like the rise of Netflix and Hulu, and new ways to watch movies on the go is imperative for building a business plan that will be a success. Another piece of wisdom Kathleen Kennedy shared with Hollywood TV is that who you are as a person is important, because investors are not just making a decision about whether or not they see potential in your business, but they also must want to work with you. Being honest, having strong values to support your work, and be tenacity will carry you a long way.

Changing the Landscape: Technology and Story

Living in a world of constant progression, all facets of our day-to-day lives continue to evolve and change. The film world is no different; in fact, the film industry is changing just as rapidly as new technology is released. At the heart of any great film is a great story. Actually, that really is what a great film. Not convinced? Take a moment to listen to Andrew Stanton, writer of Toy Story, Finding Nemo, and WALL-E, share his take on what a great story is:

As timeless as the art of a good story is, the routes taken to achieve this are evolving along with the rest of the film industry. The Sundance Institute, always on the forefront of what is happening in the motion picture world, recently published an article, The Future Is Now: 5 ThingsPushing the Art and Form of Storytelling, which shares the five top ways the art of story is changing:

1.     The Internet

It is no secret that the Internet is changing how we do many things in our lives (be it social media, online bill pay, or even ordering a pizza online). Films, and even television shows, are creating immersive experiences online for their audiences to draw them even further into the story that they are telling.

Distribution Revolution: A New World for Filmmakers

As a filmmaker creating content in this ever-changing digital age, wrapping one’s mind around how to get your work into the mainstream is quite the task. Since the rise of what Peter Broderick calls the “New World” of filmmaking, the traditional take your film to a mainstream distributor and sign away your work model has been changing. With the rapid rise in social media use, the old way of promoting films through commercials, newspaper ads, and creating for the masses has faded away. Instead we see an influx of social media use to push people to the box office, as well as a focus on niche audiences.

What Makes a Filmmaker Great: Awards vs. Talent

With the 86^th Annual Academy Awards ceremony occurring last Sunday, March 2, Hollywood has been buzzing about those who won, the outstanding talent that was on display, and the exciting things that these filmmakers will go on to do. That said, as in all facets of the entertainment industry, awards shows like these truly are a politics game. I recently stumbled upon a post on one of my favorite sources for news in the film world (IndieWire) entitled “20 Celebrated Filmmakers Who Never Won A BestDirecting Oscar.” Being one with a great love of both film and the Oscars, this caught my attention.

Negotiation & Deal-Making: Interview with Nick Sambrato

Harvey Robbins once said, that when it comes to the art of negotiation, one must “Place a higher priority on discovering what a win looks like for the other person.” This is a lesson that all would be wise to learn. Too often people commonly see a negotiation as a bit of a forced compromise. However, in reality, this could not be further from the truth. As I have learned in my current Negotiation and Deal Making course at Full Sail, “negotiation is a problem solving opportunity,” which more often than not means learning to see a situation from another’s perspective.

This month, we were given the assignment to interview an individual from the entertainment industry who is adept in negotiating and deal making within their field. My first thoughts were: “Oh boy, who in the world am I going to interview?” Part of the beauty of living in Orlando is that this area is full of all facets of the entertainment industry. Right in the heart of Winter Park is a creative studio whose impressive portfolio of work caught my eye. What is this studio, you ask? Fiction.

In the Ring: Hollywood Mega Budget Films vs. Independent Mid Budget Films

"That's the big danger, and there's eventually going to be an implosion — or a big meltdown. There's going to be an implosion where three or four or maybe even a half-dozen mega budget movies are going to go crashing into the ground, and that's going to change the paradigm."

Steven Spielberg

It is no secret that the film industry has undergone drastic changes and advances in the last 20 years. Today, with all of the incredible technology we have available at our fingertips filmmaking is the most accessible it has ever been, yet we face two major threats: implosion, as Spielberg and Lucas predict and the death of studio produced mid-budget films. With these threats looming, there has been a particular dark horse running in the races for years with the major studios making desperate strides to be a top contender for the attention of the world’s audiences. Who is this dark horse? They are many, varied and brimming with original ideas: they are independent filmmakers.