Index

A

Acquisitions/mergers, 121–123

Actors, 49–50

Administrative expenses, 192–193

Advances, 155–156

Advertainment and advertorials, 230

Advertising costs, 127–128

Age groups, targeted, 88–89

Allen, Paul, 148

Altered, 161

Altman, Robert, 84

Amores Perros, 92

Ancillaries, international, 205–206

Anshutz, Philip, 77, 149

Apollo Cinema, 228

Art and investors, 149–150

Art films, 85–86

Artisan Entertainment, 121–122

Assumptions, financial plan, 189

Attachments, film, 47–50

Audax Group, 121–122

Audiences. See Markets

B

Baehr, Ted, 91

Bank financing, 162–163

Banking, European, 174–175

Batman Begins, 65

Baujard, Thierry, 166

Beauty and the Beast, 111

Below-the-line deals, 156–157

Below-the-line-expenses (soft currency), 157

Benchley, Robert, 224

Big Film Shorts, 234

Bilateral treaties, European, 166–167

Biographies, production team, 36–39

Blair Witch Project, The, 4, 70, 74, 85, 87, 122, 161, 185, 186

Block booking, 74

Bloodsucking Killer Clowns from Outer Space, 84

Bob Roberts!, 74

Bone Collector, The, 88

Boogeyman, 84

Books, published, 48–49

Borgnine, Ernest, 8

Bottle Rocket, 225

Bottom line, projected, 154

Bowling for Columbine, 105

Boxoffice grosses, 181

Box Office Mojo, 98

Brokeback Mountain, 90, 189

Brothers McMullen, The, 148

Budget, film, 16, 50–53, 92–94

Buena Vista Social Club, 104

Burns, Ed, 148

Business goals, 24–27

Business plans, 1–13. See also Sample business plan

and changes in medium, 2–4

filmmaking as business, 4–5

importance of, 9–11

outline of, 12

overview, 1–2

and personal business sense, 5–9

Business Strategies, 55, 68

C

Canal Plus International, 231

Cannes Film Festival Awards, 182

Cape Fear, 88

Capote, 90

Carlito’s Rise to Power, 111

Carolco, 69

Carroll, Lewis, 15

Case studies, European film financing, 175–177

Cash flow statements, 190–192

Castle Rock, 67

Cats and Dogs, 208

Cell, The, 87

Cell phone films, 112–114

Chariots of Fire, 9

Charlie Rose, 182

CinemaNow, 113, 124

Cinematographers, 199

Cinepix Film Properties, 122

Clearance & Copyright, 45, 235

Clerks, 148

CNC (National Center for Cinematography), 170

CNN, E! Entertainment Channel, 182

COE (Council of Europe), 166, 168

Coen brothers, 5

Columbia Pictures, 61

Comcast Corporation, 61

Company, 23–40

business goals, 24–27

description of, 27–36

history of company, 33

how business functions, 35–36

introduction of company, 30–31

objectives of business, 35

opening pitch or mission statement, 28–30

setting up business, 33–35

summary of intentions, 31–32

financial history, 192–193

management and organization, 36–40

overview, 23–24

sample business plan, 198–200

Completion bond, 164

Completion guarantors, 163–164

Concise business plan, 11, 52–53

Consultants, 200

Contracts, short film, 234–238

Control of distribution, 137–138

Co-production, 156–157, 166–167

Copyright, 43–45

Corporation, 33–34

Corporation, The, 105

Costs

administrative, 192–193

cost of production, 92–94

documentary, 115

print and ad, 127–128

statement of, 190

Council of Europe (COE), 166, 167, 168

Crash, 90

Crossover films, 89–92

Crowe, Carol, 228

Crumb, 104

Crying Game, The, 69, 87, 130

Cuban, Mark, 149

Cycles, film genre, 86–88

D

Daily Variety, 95, 181

Deliverables, 139, 236

Development, 62

Development money, 46–47

Devil in a Blue Dress, 88

Diary of a Mad Housewife, 90

Die Hard, 85

Digital film, 76–78

Diller, Barry, 67

Dinosaur, 77

Directors, 49–50

Directors’ Guild of America (DGA), 237

Direct to DVD (DVD premieres), 111–112

Dirty Dancing, 69

Disney. See Walt Disney Company, The

Distribution, 20, 117–140

distributors, 128–135

attracting, 129–131

methods for releasing films, 131–134

overview, 118–119, 128–129

self distribution, 134–135

European, 173–174

in Executive Summary, 20

fees, 120

filmmaker strategies, 135–139

independent, 121–128

deals, 125–127

domestic versus foreign, 123–125

and financing, 128

overview, 121–123

print and ad costs, 127–128

informing investors about, 139–140

overview, 117

in sample business plan, 208–211

in sample Executive Summary, 197

short film distribution, 223–239

contracts, 234–238

future of, 238–239

markets, 228–232

overview, 223–225

potential revenue, 232–234

reasons for making, 225–226

short documentaries, 232

sources of financing, 227–228

by studios, 119–121

DLJ Merchant Banking Partners, 61

Documentaries, 103–108

audiences, 104

budgets for, 104–107

forecasting for, 104–107

grants, 108

overview, 103–104

revenues and costs, 115

short, 232

target market, 104

for television, 107

Dogtown and the Z-Boys, 105

Domestic distribution, 123–125

Donaldson, Michael, 45, 235

Dr. Dolittle, 208

Dr. Dolittle 2, 208

DreamWorks, 61, 68

DVDs, 111–112

E

Eberts, Jake, 9

Edison, Thomas Alva, 57

El Mariachi, 96

EM Medie, 170

End of the Spear, 90

Enron: The Smartest Guys in Town, 105

Entertainment Data, Inc. (EDI), 181

Entertainment snippets, 230

Entrepreneurs, 7–8, 148–149

Estimated Income Statement, 190

Estimates, 21

EURIMAGES, 167, 168

European Convention on Cinematographic Production, 166

European distribution, 173–174

European film financing, 166–177

case study, 175–177

co-productions, 166–167

state-funded subsidies, 167–175

banking, 174–175

distribution, 173–174

European level, 167–168

national level, 168–170

overview, 167

regional level, 170–172

tax incentives, 172–173

European film-supporting agencies, 170–172

European tax incentives, 172–173

European Union (EU), 167

European Union, MEDIA PLUS program, 167–168

Everest, 109

Executive producers, 199

Executive Summary, 15–22

layout of, 18–21

negotiation stances, 21–22

overview, 15–18

for sample business plan, 196–198

style of, 18

Exhibition, film. See Production and exhibition

Exotica, 88

Expenses. See Costs

Experience, production team, 36–39

Experimental Film Agreement, 236

F

Fahrenheit 911, 105

Family, investments by, 148, 227

Family films, 207

Far from Heaven, 49

Fargo, 88

Fast film releases, 131–132

Festivals, film, 131, 228–229

Feuer, Frauke, 166

FFA (German Federal Film Board), 169–170

Film, digital, 76–78

Filmboard Berlin-Brandenburg, 171

Film Entrepreneur, The, 109

Film experience, 37–38

FilmFernsehFonds Bavaria, 171

Film festivals, 131, 228–229

Film genres, 84–88

Film investors, 3–5

Filmmaker distribution strategies, 135–139

Filmmaking as business, 4–5. See also Company

Film revenues, 73–74

Films, 41–56. See also European film financing; Financial plans; Nontraditional films;Short films

assessing strengths and weaknesses, 53–55

attachments, 47–50

budget, 50–53

descriptions of, 43–47

distributor methods for releasing, 131–134

in Executive Summary, 19

family, 207

project scope, 41–43

in sample business plan, 200–201

in sample Executive Summary, 196

single, importance of business plan for, 10–11

starting up business, 55–56

Filmstiftung North-Rhine-Westphalia, 171

Filmtracker’s Baseline, 98

Financial assumptions, financing plan, 213–221

Financial forecasts, 179–180

Financial highlights, Executive Summary, 20–21, 197–198

Financial instruments, specialized, 22

Financial plans, 179–193

financial history of company, 192–193

forecasting, 179–180

overview, 179

projecting revenues, 189–192

research for, 180–188

analysis of data, 185–188

foreign revenues, 183–185

overview, 180–182

sample business plan, 213–222

financial assumptions, 213–221

strategy, 213

for single films, 193

Financing, 143–177. See also European film financing

bank loans, 162–163

case study, 175–177

completion guarantors, 163–164

co-production and below-the-line deals, 156–157

by distributor, 128

and film description, 50

guidelines, 145–147

investors, 147–157

and art, 149–150

entrepreneurs, 148–149

finding, 151–152

foreign, 151

informing, 164–165

overview, 147–148

paying and splitting profits with, 152–153

and projected bottom line, 154

and risk, 153–154

special interests, 150

for large-format films, 109–110

limited partnerships, 159–162

negative pickup, 158

overview, 143–145

presales, 154–156

and production, 202–206

sample business plan, 212

for short films, 227–228

Fine Line Pictures, 67

First impressions, 18

First of May, The, 150

Focus Features, 67

Focus of business plan, 55–56

Fog of War, The, 105

Foley, Jack, 92

Forecasted revenues, 75–76

Forecasting, 21, 104–107, 179–180

Foreign distribution, 123–125

Foreign investors, 151

Foreign revenues, 183–185

Formats, film, 109

Four-walling, 133

Four Weddings and a Funeral, 69

Fox Searchlight, 67

France, film financing and distribution in, 170–174

Freaky Friday, 89

Freeman, Jim, 109

Frida, 92

Friends, investments by, 148, 227

Funding for large-format films, 109–110. See also Financing

Fundraising Houseparty, The, 152

Fundraising party, 152

G

Garden State, 149

Garfield, 197, 208

Geffen, David, 68

General Electric., 60

General’s Daughter, The, 88

Genres, film, 84–88

George Lucas in Love, 225

German Federal Film Board (FFA), 169–170

German film financing and distribution, 171, 174

Gilbert, Gary, 149

Glickman, Dan, 202

Goals, business, 24–27

Goldwyn, Samuel, 41

Good Machine, 67

Goodman, John, 150

Goodman Group, The, 150

Gramercy Pictures, 67

Grants, 108, 227–228

Graphs, industry, 79

Great Train Robbery, The, 57

Green, Harry, 9

Grizzly Bears, 219

Guarantors, completion, 163–164

Guidelines, financing, 145–147

Guilds, 236–238

H

Handheld screens, 112–114

HBO Mobile, 114

Hey, Arnold!, 90

History, company, 33

History of film genres, 86–88

Hollywood, 7

Hollywood Distributors Directory, The, 125

Hollywood Reporter, The, 95, 181

Home video, 205

Honesty, 7, 29–30, 34–35

Hoodwinked, 90

Hoop Dreams, 104

Hoover, 8

Hours, The, 49

Hungarian tax incentives, 173

Hustle & Flow, 127, 146

Hyder, James, 109

I

IFC Films, 70

IFTA (Independent Film and Television Alliance), 66

Ile-de-France, 171

IMAX, 108–110

IMDB (Internet Movie Database), 84, 98

I’m Trying to Break Your Heart, 105

Income statements, 190

Independent distribution, 121–128

deals, 125–127

domestic versus foreign, 123–125

financing, 128

overview, 121–123

print and ad costs, 127–128

Independent Film and Television Alliance (IFTA), 66

Independent Film Channel, 182

Independent filmmakers, 66–73

overview, 66–69

production process with, 69–70

pros and cons, 72–73

revenues, 70–72

Independent films

motivation, 2–3

pros and cons, 72–73

Independent Moving Pictures Company of America, 57

Independent producers, 69–70

Industry, 57–79

educating investors, 59–60, 78–79

in Executive Summary, 19

identifying applicable industry segment, 58–59

independents, 66–73

overview, 66–69

production process with, 69–70

pros and cons, 72–73

revenues, 70–72

overview, 57–58

production and exhibition, 73–78

digital film, 76–78

future trends, 75–76

overview, 73

theatrical exhibition, 73–74

sample business plan, 201–206

future trends, 206

home video, 205

international theatrical exhibition and ancillaries, 205–206

motion picture production and financing, 202–204

overview, 201–202

television, 204–205

theatrical exhibition, 204

in sample Executive Summary, 197

studios, 60–66

overview, 60–61

production process with, 61–63

pros and cons, 65–66

revenues, 63–65

Institute for the Financing of the Cinema and Cultural Industries (IFCIC), 174

Intermedia, UK firm, 151

International co-production agreements, 156–157

International distributors, 124–125

International theatrical exhibition and ancillaries, 205–206

Internet, 97–98, 230–232

Internet Movie Database (IMDB), 84, 98

Introduction of company, 30–31

Investment opportunities, Executive Summary, 20–21, 197–198

Investments, partial, 50

Investors, 17

educating about industry, 59–60, 78–79

financing, 147–157

and art, 149–150

entrepreneurs, 148–149

finding, 151–152

foreign investors, 151

overview, 147–148

paying and splitting profits with, 152–153

and projected bottom line, 154

and risk, 153–154

special interests, 150

and information about films, 43

informing about distribution, 139–140

informing about financing, 164–165

Iris, 151

J

Jaglom, Henry, 5

Jarmusch, Jim, 5

Jurassic Park, 81

K

K-19: The Widowmaker, 151

Kagan Research, LLC, 75

Katzenberg, Jeffrey, 68

Kidd, Bronwyn, 229

Kid Stays in the Picture, The, 105

Kimmel, Sidney, 149

Kissinger, Henry, 141

L

L. A. Confidential, 88

Laemmle, Carl, 57, 117

Large format films, 108–110

Last Action Hero, The, 65

Layout, Executive Summary, 18–21

Lee, Ang, 230

Legal negotiations, 125–126

Lethal Weapon, 85

Letter of Intent, 19

Libraries and Internet, 97–98

Limited liability companies (LLC), 34, 160–161

Limited partnerships, 159–162

Linde, David, 117

Lion King, The, 111

Lions Gate Films, 86, 122

Lipsky, Mark, 223

Little Mermaid, The, 111

LLC (limited liability companies), 34, 160–161

Loans, bank, 162–163

Loire Valley, 171

Look Who’s Talking, 69

Lord of the Rings, 54, 58, 186

Lost Highway, 88

Lucas, George, 77

Lumiere, Louis, 57

M

MacGillivray, Greg, 109

Mad Hot Ballroom, 105

Magazines for market research, 95–96

Magic 4 Morons, 8

Management, company, in sample business plan, 198–200

Management teams, 19, 36–37, 196

March of the Penguins, 90, 92, 101, 197, 201

Marketing, 88–89

Marketing strategies, 94–101

Internet and libraries, 97–98

market research, 94–98

overview, 94

self-promotion, 98–101

Market research data, 94–95

Markets, 81–101. See also Documentaries

in Executive Summary, 20

marketing strategy, 94–101

Internet and libraries, 97–98

market research, 94–98

overview, 94

self-promotion, 98–101

nontraditional films, 103–115

direct-to-DVD, 111–112

large format films, 108–110

overview, 103

small screens, 112–115

overview, 81–82

in sample business plan, 206–208

in sample Executive Summary, 197

for short films, 228–232

targeted segment of, 82–94

art versus specialty films, 85–86

film genres, 84–85

genre history and cycles, 86–88

identifying targeted age group, 88–89

overview, 82–83

production cost, 92–94

special niche groups, 89–92

Matrix, 85

Matsushita Electric Industrial Co., 60

MCA Inc., 60

MEDIA PLUS program, European Union, 167–168

Media-Wise Family, The, 91

Metro-Goldwyn-Mayer (MGM), 61, 67

Metromedia, 67

MGM (Metro-Goldwyn-Mayer), 61, 67

Michael Winslow Live, 8

Mille, Jean Charles, 230

Miramax, 56, 67

Mission Impossible III, 65

Mission statements, 28–30

Moderate film releases, 132–133

Moderate speed distribution, 132–133

Money. See also Costs

attached to film, 50

flow of, 70–71

Moore, Michael, 84

Motion Picture Investor, 75

Motion picture production and financing, 202–206

Motivation for financing, 150

Motorcycle Diaries, The, 92

Movielink, 124

Movie stars, 49–50

Murdoch, Rupert, 61

My Architect, 105

My Big Fat Greek Wedding, 49, 70, 74, 86, 150, 186, 187, 189, 197, 201

My Date with Drew, 58

My Dog Skip, 90, 206

Myers, Peter, 131

My Indecision Is Final, 9

N

Napoleon Dynamite, 86, 100, 126, 146, 154, 186, 189, 197, 201

National Association of Theater Owners, 89

National Center for Cinematography (CNC), 170

National level subsidies, European, 168–170

NBC Universal, 61

Negative pickups, 158

Negotiating, 138–140

Negotiation and Executive Summary, 21–22

Netflix, 112

Networking, 97, 99–100

New Guy, 87

New Line, 56, 67, 68

Newman, Robert, 96

Niches. See Markets

Nightmare on Elm Street, 54, 69

Nonfictional films. See Documentaries

Nontraditional films, 103–115. See also Documentaries

direct-to-DVD, 111–112

large format films, 108–110

overview, 103

small screens, 112–114

Northern Ireland Film & Television Commission, 170

North West Vision, 170

nWave, 110

O

Objectives, business, 35

Omission, 45–46

Opening pitches, company description, 28–30

Open Water, 70, 154

Oprah, 182

Options, 47–48

Organization, company, in sample business plan, 198–200

Orion, 67

Orion Classics, 67

Overhead expenses, 192–193

P

P&A money (print and ad money), 127–128

Pamplin, Rick, 8–9

Pamplin Film Company, The, 161–162

Paramount, 61, 68

Paramount Classics, 67

Partial investments, 50

Partnerships, 33, 39–40, 159–162

Passion of the Christ, The, 90, 91, 101

Pathé, Charles, 224

Payback, investor, 152–153, 161–162

Peacefulfish company, 177

Personal business sense, 5–9

Personal goals, 26–27

Pianist, The, 90

Pierson, John, 127

Planning, lack of, 23

Platform, 132

Pollard, Rob, 112

Polygram Filmed Entertainment (PFE), 67

Presales, 130–131, 154–156

Presidents, company, 199

Princess Diaries 2, 89

Principal purpose of company, 31

Print and ad money (P&A money), 127–128

Print costs, 127–128

Producers, 49–50

Production, motion picture, 202–206

Production and exhibition, 73–78

digital film, 76–78

future trends, 75–76

overview, 73

theatrical exhibition, 73–74

Production costs, 92–94

Production team descriptions, 36–39

Professionalism, 6

Project description, 41–42

Projected bottom line, 154

Projection, 21

Project scope, 42–43

Promises, 146–147

Promotion, self, 98–101

Promotional materials, 99

Prospectus, 22

Providence Equity Partners, 61

Q

Quiet American, The, 151

R

Racing Stripes, 90

Rambo, 69

Reading, 95–96

Real Women Have Curves, 49, 92

Regal Cinemas, 77

Regional level subsidies, European, 170–172

Reiner, Rob, 67

Releases, film, 131–134

Releases/contracts, guidelines for, 234–235

Release strategies, 210–211

Rentrak report, 112

Research, market, 94–98

Revenues, 73–74

documentary, 115

foreign, 183–185

potential, for short films, 232–234

projecting for financial plan, 189–192

statement of, 190

Rhône-Alpes, 171

Rice, T.C., 226

Riding Giants, 105

Risks, 141–142, 153–154

Ritchie, Guy, 230

Rockefeller, John D., 26

Rodriguez, Robert, 96

Roger and Me, 104

Rollout, 132

Room with a View, A, 150

Roosevelt, Franklin Delano, 129

Royal Tenenbaums, The, 225

Rushmore, 225

S

Sample business plan, 195–221

company, 198–200

distribution, 208–211

executive summary, 196–198

films, 200–201

financing, 212

financing plan, 213–222

financial assumptions, 213–221

strategy, 213

industry, 201–206

future trends, 206

home video, 205

international theatrical exhibition and ancillaries, 205–206

motion picture production and financing, 202–204

overview, 201–202

television, 204–205

theatrical exhibition, 204

market, 206–208

overview, 195

risk factors, 211–212

Samuel Goldwyn Company, 67, 135

Sandlot 2, The, 111

Saturation, 88, 132

Saw, 84

Sayles, John, 5, 143

Scary Movie, 87

School of Rock, 89

Scope, project, 42–43

Scream, 87, 185

Screen Actors Guild (SAG), 236

Screen International, 95

Scripts, 44–47

Seagal, Steven, 111

Seagram, 60, 67

Security Exchange Commission (SEC), 159–160

Seger, Linda, 44

Self distribution, 134–135

Self-marketing, 100–101

Self-promotion, 98–101

Sequencing, 132

Set up, business, 33–35

Shaye, Robert, 68

Short Film Agreement, 236–237

Short films, 223–239

contracts, 234–238

funding, 225–228

future of, 238–239

length of, 224–225

markets, 228–232

overview, 223–225

potential revenue, 232–234

potential revenue formula, 232–233

projected growth, 238–239

quality, 233–234

reasons for making, 225–226

short documentaries, 232

sources of financing, 227–228

Shrek, 89

Shrek 2, 89

Shrek 4-D, 111

Sideways, 84

Silver, Joel, 85

Sin City, 88, 96

Sirmons, Paul, 150, 165

Sisterhood of the Traveling Pants, The, 84

Sixth Sense, The, 84, 87

Skoll, Jeff, 149

Slow film releases, 133–134

Small screen films, 112–114

Smith, Kevin, 148

Smith, Pete, 224

Snipes, Wesley, 111

SOFICA, 172–173

Soft currency (below-the-line-expenses), 157

Soldier’s Wife, The, 130

Sole proprietorship, 34

Songcatcher, 122

Sony Classics, 67, 86

Sony Corporation of America, 61

Sony Pictures, 61, 67

Sopranos, The, 114

Special interests, investor, 150

Specialized financial instruments, 22

Special niche groups, 89–92

Specialty films, 85–86. See also Independent filmmakers

Spellbound, 105

Spielberg, Steven, 68, 81

Spirit of Christmas, The, 225

Spy Kids, 90, 197

Spy Kids 1, 96

Spy Kids 2, 90

Standing in the Shadows of Motown, 105

Star actors, 49–50

Start up, business, 55–56

Star Wars, 77

State-funded subsidies, European, 167–175

banking, 174–175

distribution, 173–174

European level, 167–168

national level, 168–170

overview, 167

regional level, 170–172

tax incentives, 172–173

Statement of Revenues and Expenses, 190

Step into Liquid, 105

Strand Releasing, 123

Strategic opportunities, 19, 196

Strengths, film, 53–55

Stuart Little, 197, 208

Stuart Little 2, 208

Studios, 60–66

accounting, 63–65

distribution by, 119–121

overview, 60–61

production process with, 61–63

pros and cons, 65–66

revenues, 63–65

Subsidies. See State-funded subsidies, European

Summary of intentions, 31–32

Sundance Channel, 146, 182

Sunset Boulevard, 113

Super Size Me, 105

Swanson, Gloria, 113

T

Tables, industry, 79

Tarantino, Quentin, 84

Target locations, 35

Target markets, 20, 82–83, 104, 207–208. See also Markets

Tarnation, 70

Tax incentives, European, 172–173

Teenage Mutant Ninja Turtles, 54

Television, 107, 204–205

Texas Pacific Group, 61

Theatrical exhibition, 73–74, 204–206

This Is Spinal Tap, 74, 185

Time Warner, 60

Titan A.E., 77

Titanic, 81

Tortilla Soup, 92

Touching the Void, 105

Trade papers, 95–96

Transamerica, 133

Trimark Pictures, 122

Turner Broadcasting, 67

Turner Pictures, 67

Twain, Mark, 179

Twentieth Century Fox, 60–61, 67, 77

U

UK Film Council, 169

Underneath, The, 88

United Kingdom, film financing and distribution in, 170–173

Universal Studios, 60, 61

USA Networks, 67

Usual Suspects, The, 88

V

Van Damme, Jean Claude, 111

Variety, 110

Viacom, 61

Vice-presidents, 199

Video on cell phones, 112–114

Viewers. See Markets

Vivendi, 60

W

Wagner, Todd, 149

Walk to Remember, A, 90

Wallace & Gromit—The Curse of the Were-Rabbit, 90

Walt Disney Company, The, 61, 67, 70, 90, 121

Walter from Wisconsin, 47

Warner Brothers, 60, 67

Warner Independent Pictures, 67

Warshawski, Morrie, 152

Waters, John, 84

Weaknesses, film, 53–55

Weinstein, Bob, 70

Weinstein, Harvey, 70

Weinstein Company, The, 56, 70, 86

What the Bleep Do We Know?, 74, 90, 92, 135

Whitacre, William L., 161

Why We Fight, 105

Wide film releases, 131–132

Wolfe Releasing, 123

Woman Thou Art Loosed, 90

Word of mouth marketing, 100–101, 133

Worldwide short film distribution, 229–230

Y

Yari, Bob, 149

Y tu mamá también, 89, 92