5 |
The Markets
But the Devil whoops, as he whooped of old: It's clever but is it art?
You can view the 6.8 billion people in the world as potential moviegoers, but very few filmmakers have expected to sell tickets to all of them—that is, until Jurassic Park pushed the box office frontier farther than ever before in 1993. It earned more than $750 million worldwide. You didn't need to speak English or know anything about biology to enjoy this film. It had something for everyone who was old enough to watch it. Then, in 1998, Titanic racked up $1.7 billion worldwide. The three films of The Lord of the Rings trilogy, released between 2001 and 2003, all of which were financed independently, earned more than $3 billion worldwide.
What does this mean to you, the smaller independent? While studios are concentrating on very high budgets, there is no longer a ceiling for independents. This emphasis leaves a much larger part of the theatrical ballpark for the independent filmmaker making low- to medium-budget movies. And the home runs being hit in the past ten years have opened the game to many more players. In the mid-1990s, Steven Spielberg told Premiere magazine, “It's getting to the point where only two kinds of movies are being made—the tent-pole summer or Christmas movies or the sequels, and the audacious little . . . films. It's like there's an upper class, a poverty class, and no middle class.” More of the film middle class has now arrived.
In previous editions of this book, I wrote about the financing of independent films by foreign companies and consortiums of investors and the growth in their numbers. With the change in the economic climate, many U.S. hedge and foreign country funds have failed; they will return, but we don't know when. In the short term, money is moving out of real estate and stocks into films. Many of these money sources may look for stars with a capital “A” as in “A-list.” Realistically, though, your potential of having Tom Hanks star in your film is low. In fact, if you are a neophyte, it is probably a suicidal thought.
Whether your film's budget is $400,000 or $40 million and whether it has newbie actors or stars, you need to research the market for your film. The market comprises all those people who are going to buy tickets. In this chapter, we will be looking at the potential popularity of the themes and styles your films represent. To some extent, we also will look at marketing, but do not confuse these two concepts. Marketing involves selling your idea not only to the investor, but also to the distributor and audience. In this chapter, we will focus on selling to the investor through the business plan, but we will also touch on current forms of self-marketing; the distributor is dealt with in Chapter 7. To make terms somewhat more confusing, this book also refers to “the markets,” such as the American Film Market and Cannes, the two largest international marketplaces where production and distribution deals are closed.
In the previous section of your business plan, the Industry section, you defined the industry as a whole and independent film as a segment of it. Now, in the Market section, you will build on that definition by further dividing your industry segment. Your segment may not be as global in size as “everyone,” but it has its own value. You will also take the projects that you described in the earlier Film(s) section and use their components to pinpoint your market. This analysis gives you a base for later estimating those very important gross revenues.
MARKET SEGMENT
Your market segment, or niche, consists of the type of person out of the total movie going population who is likely to rush out to see your film the first weekend, as well as secondary target groups that will be interested. You need to identify, for yourself and those reading your proposal, the size and population characteristics of this segment. By devising a snapshot of your film's likely audience, you will be able to determine the film's ability, first, to survive and, second, to succeed. Who are the end users of your film—that is, the ticket buyers—and how many of them are there likely to be? Before you worry about marketing strategies and distribution channels, create a picture of the potential size of your market's population. How can you do this? Very carefully. But do not worry. It is easier than you think; it just takes work. You do not need to have inside information or to live in Los Angeles to do this. Research is your tool.
Having divided the industry into studio and independent, you now need to divide your segment into smaller pieces. In looking at this piece of the market, ask yourself these questions:
• How large a population segment is likely to see my film?
• What size budget is reasonable vis-à-vis the size of this segment?
Defining Your Segment
Filmmakers would like to appeal to everyone, and some mainstream films reach that goal. It is said that it is the big-budget tentpole films (a big-budget film that can “prop up” a studio's finances) that create the highest box office grosses. This is true to a certain extent; the more money you spend, the bigger the audience you will attract— and the bigger the audience you will need to attract. An independent film, for the most part, will attract moviegoers from one or two identifiable segments of the audience. To understand how to focus your investor 's expectations (and your own), you will have to do a little research. You do not have to be a research expert, but investigation will help make you and your investor wiser and wealthier.
The profile of your target market in terms of audience might include the following:
• Popular film genres into which your film would fit— comedy, action, thriller, horror, drama, romance, etc.
• Underlying themes
• Affinity groups—ethnic, urban, religious, sports
• Age and sex groups
• Similar budget parameters
To Pigeonhole or Not to Pigeonhole
Your identification of the target audience for your film begins when you select the genre of the film. The term genre can be very confusing. Some people appear to use the term to refer to cheap and formulaic, as in “it is a genre film.” One client of mine was upset that I was cheapening her films by using the term genre. For the business plans I write, it is used to refer to films that can be grouped together by plot, settings, and/or themes. Genre doesn't refer to how well you made the film or the amount of the budget. You could probably use the word category, but it doesn't have the same feel.
As a genre, horror films, for example, are generally movies that scare you for some reason and have lots of blood and gore. In the Internet Movie Database (www.imdb.com), there are almost 6,000 theatrical horror films listed in this decade alone, ranging from the no-budget Open Water to the higher-budgeted One Missed Call. These films have different premises (sci-fi creatures, blood and gore, childhood nightmares) and appeal to different audience segments. The over-40 group was more likely to be drawn to The Sixth Sense than anything with the word “bloodsucking” in the title, and therefore was the initial target audience for that film. Saw was definitely a grabber for the 12to 24-year-olds, with the repeat attendance that is a hallmark of this audience segment resulting in the film's high box office. In the end, though, all of them are still horror films.
Genres can be big or small. Drama is considered the most pervasive genre but is inclusive of many films. The next most popular genre by number of films produced is usually comedy. Both of these genres include films that often carry descriptive adjectives, such as family, romantic , or dark, to further narrow the category. Then we have thriller and action/adventure, which are unique genres. Defining the genre of a particular film doesn't have to be difficult. In trying to be precise when describing a movie, the filmmaker may call it a drama/comedy/romance. This description covers all the bases. It fits Rachel Getting Married, which skewed to an older audience, and The Sisterhood of the Traveling Pants 2, which skewed younger.
There are also filmmakers who are linked with specific genres, and who have become their own genre. Saying a movie will be a Quentin Tarantino film, a Judd Aaptow film, a John Waters film, or a Michael Moore film creates a frame of reference for the particular experience moviegoers will have. You can even have a producer genre. For example, a Joel Silver film would immediately be envisioned as another Die Hard, Matrix, or Lethal Weapon. This does not mean that his films will not fit into other genres, such as comedy. However, if a filmmaker is so identified with a particular type of experience, the audience will pick the film based on that track record rather than anything else. If you feel that your style is akin to a particular director 's niche, you can draw from that audience.
Why bother identifying the genre for your film? Many writers and directors believe that categorizing their films is not only meaningless, but also, in some cases, demeaning. There are always filmmakers who say, “My picture is different and can't be compared to any other films.” This entrepreneurial attitude is the same in all industries. Nonetheless, all films can be compared, and you do have competition. By giving your investors these frames of reference, you are able to identify the groups of moviegoers to whom the film might appeal and explain the genesis of your projections. One of the challenges you face with your business plan is being understood. You must be certain that you convey your meaning correctly to investors. It is important, therefore, that you define your terms so that everyone is on the same page.
Art versus Specialty
For 22 years, I have participated in discussions on whether independent films are by definition art films, and, if they are, what an art film is. In one such discussion, one person claimed that Federico Fellini and art films were one and the same. Someone else said that they “explain human foibles in an intellectual way.” Another suggested that the term had nothing to do with a film's subject. Various people still insist to me that The Blair Witch Project was a commercial film and, therefore, by definition, not art or specialty. The terms are not mutually exclusive.
In recent years, production and distribution companies have preferred the term specialty for their films rather than art-house, and with good reason. Art may bring to mind a very narrow image of a type of film. Many would assume the film to be an inaccessible film only for the intellectually intense. Specialty, on the other hand, is a broader term without these negative connotations. Until you define it, there may be no frame of reference for the investor. Creating a definitive description that everyone agrees with would be impossible. In writing your business plan, you have to find whatever phrases and film references best convey your meaning.
I have been involved with proposals for companies that the client intended to be like the Weinstein Company (a lot of people seem to think they are the Weinstein brothers), Lionsgate, or Sony Classics. What did we start with? We used those companies to define the genre. For example, you could write the following as your introduction:
We define the specialty market by the types of films acquired by Lionsgate Releasing and Sony Pictures Classics. Our films have a sensitivity of story and a delicate balance of characters that require unique handling. Therefore, our audience will be the same people who saw Gods and Monsters, Monster 's Ball, and Real Women Have Curves.
These pictures may have nothing in common in story or overall theme, but they are used to present a backdrop for the discussion; they give readers something to relate to. Of course, Lionsgate and Sony Classics do not have a lock on specialty films. Which companies you use for comparison depends on your feeling about their products and your reasons for making it.
An important aspect of specialty films is their distribution (and, consequently, revenue) potential. In recent years, the scope of specialty films has widened tremendously. Typically, a specialty film may open on 1 to 15 screens and expand to more screens as revenues become available. On the other hand, if the distributor has enough money and faith, a small independent film can play on many screens. Little Miss Sunshine opened on 7 screens domestically and played on 1,602 at its widest distribution. Juno opened on 7 screens, and due to its extraordinary success, was on 2,534 screens at its widest point of distribution.
Genre History
When describing the history of the Western genre, for example, you do not need to go back to Hopalong Cassidy or Gene Autry (ask your grandmother). For the most part, your primary reference period should be the past five to six years. Some genres, such as action/adventure or comedy, are always going strong. They are always popular in one form or another. This is not the case with other genres, however.
Take horror again, for example. This genre, once popular, languished in the ultra-low-budget, direct-to-video, and direct-to-foreign world until the release of Scream in 1996. (Note: The first DVD wasn't released until 1997, and the format didn't outstrip VHS releases until 2003.) Until Scream, the general wisdom was that horror films were not worth putting any money into; therefore, it was hard to get the investment community interested in the genre.
Timing is everything. Now production money is available everywhere, not only for the traditional scary film (Hostel 1 and 2, Saw 1 through5, Halloween), but also for variations on the theme, such as the Scary Movie franchise (comedy/horror) and The Blair Witch Project(mockumentary). Suppose you wanted to make a horror film before any of the above films were released. How would you convince someone that your film would be successful? There are several techniques you could use:
1. Emphasize other elements: The Haunting in Connecticut is a paranormal/thriller/horror about a family who relocates for their son's health and begins to experience supernatural behavior in their new home, which turns out to be a former mortuary.
2. Redefine the genre: Twilight is a teenage Romeo and Juliet vampire story. Moving to a small town to live with her father, Bella meets the mysterious and beautiful Edward. The two fall unconditionally in love with each other. Even learning that he is a vampire does not deter her passion. How will they resolve this unnatural relationship?
3. Override the horror genre altogether: The Sixth Sense is a chilling mystery in which a child psychologist treats a disturbed young boy who thinks he sees ghosts. The film has a twist at the end that will bring interest from the potential audience in the same way as the “secret” in The Crying Game.
4. Use the cycle theory: The Blair Witch Project is a mockumentary/horror film. While neither of these genres has been financially successful in recent years, we believe that the filmmakers’ fresh and original touches, such as the audience's uncertainty about whether the story is true or not, will create favorable word-of-mouth for the film and bring back these genres.
More about Cycles
The argument used in the last technique is not a spurious one. The popularity of a particular genre often rises and falls in cycles. For example, continuing our examination of horror films, this genre made up 24 percent of the product at the 1989 American Film Market, fell to less than 3 percent of the total in 1993 (interestingly, the genre fell out of favor in the book industry at the same time), and rose back to 6.3 percent by 2003. Statistics like these, by the way, can be part of your extended discussion.
A successful film often inspires a number of similar films that try to capitalize on the popularity of the original. Film noir is a term coined by French movie critics to describe American crime dramas in the 1940s. After a brief reappearance of the genre in 1962 with the original Cape Fear, the genre's real resurgence began in the 1990s with Martin Scorsese's Cape Fear remake in 1991 followed by, among others, The Usual Suspects in 1994. It encouraged a proliferation of updated film noirs (the darkly lit look of the 1940s films contributed to the term), such as Fargo, Lost Highway, Devil in a Blue Dress, The Underneath, Exotica, L.A. Confidential (which won two 1997 Oscars, for Best Supporting Actress and Adapted Screenplay, and was nominated for six more, including Best Picture), The General's Daughter, The Bone Collector, Sin City, Street Kings, and The Dark Knight. These films broadened the boundaries of the genre beyond the detective thriller to represent a way of looking at the world through a dark mirror reflecting the shadowy underside of life. (Note that, being purists about the term film noir, the Internet Movie Database lists all the post-1950 films in this category as “neo-noir.”)
Considering the length of time from development to release, the market may be glutted with a particular type of film for two or three years. When this happens, the audience may reach a saturation point and simply stop going to see films of that genre for a while. Then someone comes along with a well-crafted film that makes money, and the cycle begins again.
Who Is Going to See This Film?
Do you know the age and sex of the person most likely to see your film? Market research properly belongs in the hands of the person doing the actual marketing (probably the distributor), but you can estimate the appeal of your potential market based on its age groups. For example, one animated film may be aimed primarily at children aged 12 and under. Another animated film, with a slightly more hip theme and a pop music soundtrack, may entertain children but also draw in teenagers and young adults. DreamWork's hits Shrek and Shrek 2 were geared for the very young to the very old, while Tokuma's Princess Mononoke skewed to a teenage and older audience due to its content.
Teen films are targeted toward an affluent and sizable group. Think Superbad, High School Musical 1 through 3, and How She Move. Teenage movies are traditionally released at the beginning of the summer, when schools are out and kids have a lot of time to go to the theater. And they often go to the same movie more than once.
Studios are particularly eager to make films for the teen and young adult market—usually defined as people between the ages of 12 and 24. No longer the single largest audience block, they made up 28 percent of moviegoers in 2007, according to the MPAA's “U.S. Economic Review 2007,” while filmgoers 40 and over made up 45 percent of the audience. The crossover group of the audiences (ages 25–29) made up 27 percent. These admissions measurements change from year to year; therefore, you will want to check the MPAA's web site (www.mpaa.org) for current information. Unfortunately, the National Association of Theater Owners (NATO), which collects these data for the MPAA, does not count anyone under 12; therefore, the previous percentages add to 100. Since family films, and especially animation, often have the largest audiences, such data would be very helpful in explaining that segment to investors. In its place, I use the revenues from comparative films.
Special Niche Groups
Certain groups of films initially appeal to a small segment of the population and then grow, often to the surprise of the filmmakers, to become crossover films. Y tu mamá también is an example of a film in Spanish that initially was targeted to an older, Hispanic/Latino audience and attracted a significant number of teenage Anglo filmgoers. The high cost structures of the studios inhibit their ability to exploit smaller, underdeveloped markets, but independent filmmakers have the ability to take chances. They can make a low-budget or even a “no-budget” film to play to a tiny initial market. If the film and its theme catch on, the audience grows, and the film crosses over to a larger portion of the public, introducing that genre to a new group. Subsequent films of that type then draw on the larger audience. When the first edition of this book was published, it appeared to be big news that African-American filmmakers could draw a wide audience. Throughout the rest of the 1990s, gay and lesbian films came to the fore, capped by the Oscar wins of 2005's Brokeback Mountain and Capote. At this vantage point in 2009, let's look at how some of the other target markets have developed.
Until 2000, the Walt Disney Company seemed to have a lock on family films. It was almost impossible for independents to break into that category. Now Hollywood seems to have discovered that not R-rated films but G- and PG-rated films are its next best thing. The industry makes its biggest profits from G- and PG-rated movies, according to many analysts’ reports, and plans to fill the nation's screens in the next few years with even more princesses, monsters, talking animals, bright school kids, and scrappy ballplayers. The independent film My Dog Skip was part of the family film renaissance in 2000. This was followed by Dimension's Spy Kids, a breakout hit with a U.S. box office of $113 million that inspired a sequel and a flock of imitators. Feeding the burgeoning family film market through 2009 were such films as Spy Kids 3, Akeelah and the Bee, Are We Done Yet?, and Monsters vs. Aliens. John Fithian, President of NATO, said, “Family values are OK. Family values sell tickets.”
What originally I categorized as “faith-based” films, I now identify as “inspirational” films. One of the popular film genres of the 21st century, inspirational films cover elements of good versus evil, redemption, and the eternal questions of who we are and why we are here. In the past few years, films such as The Passion of the Christ, The Pianist, the Tyler Perry films, What the Bleep Do We Know?, and evenMarch of the Penguins have alerted production companies and distributors that there is a major market for inspirational films.
Now that this larger genre has been defined, faith-based films fit into it nicely as a subset, including the many films that are likely to appeal to the large Christian audience. For example, Facing the Giants, End of the Spear, Fireproof, and Woman Thou Art Loosed specifically espouse Christian values, even though they may contain some questionable elements. The tagline for Facing the Giants—“Never give up. Never back down. Never lose faith.”—is a good example. With 150 million people of all ages going to church every week, the popularity of Christian-themed films is an important shift in movie entertainment. The extraordinary success of The Passion of the Christ and the more moderate successes of the other films identified above demonstrate the box office and retail clout of an audience previously ignored by mainstream filmmakers and marketers. What once was a video business supplied mostly by Christian booksellers has now become a part of the theatrical film experience. However, as Ted Baehr points out in his book The Media-Wise Family, in making a “good news” film, you still have to make a film with good entertainment value. Research indicates that the same percentage of Christian teenagers as non-Christian teenagers watch R-rated films, with the same frequency. There is no reason why you can't make a film that reaches a large segment of this audience. My admonition to my faith-inspired filmmaker clients is to make a film that has a subtle message and doesn't announce an agenda. Samuel Goldwyn has often been quoted as saying, “If you want to send a message, call Western Union” (ask your mother).
Inspirational films appeal both to people who are philosophically curious or generally spiritual in addition to people who adhere to specific religious and spiritual groups. As the filmmakers of the popular film What the Bleep Do We Know? stated on their web site, “There are a great number of mystical traditions and spiritual practices, many paths that lead people to wholeness and peace of mind.” With this type of film, you may be describing different groupings of target audiences. For example, for one such film, I included yoga groups and “cultural creatives” in the target market. Or you may have a film that shows someone overcoming great odds that will inspire a few filmgoers to change their lives. Interestingly, March of the Penguins has been declared an inspirational documentary due to the great odds that the Emperor penguin has to overcome just to survive.
While some people prefer the term Latino and some prefer Hispanic (for example, a Latino client has suggested that I use the wordHispanic to describe the Hispanic/Latino market), films that appeal to this audience have been considered a “new market” for the past six years. Estimates are that there are 41 million U.S. Hispanics who are more frequent moviegoers than either Anglos or African Americans, going to movies an average of 12 times a year. Despite buying about 15 percent of all movie tickets, Hispanics are a relatively untapped group in terms of film marketing. A study by Global Insight predicts that, by 2012, Hispanics will account for about 18 percent of ticket purchases (equivalent to about $2.9 billion in sales) due to fast population growth. These moviegoers are concentrated in the trend-setting major markets that make or break Hollywood releases.
The success of Latin American imports is bringing more attention and investment to U.S. filmmakers who want to make films with Hispanic/Latino themes, but, at this point, it is still hard for these films to go beyond very limited distribution. Jack Foley, President of Distribution at Focus Features, told The New York Times, “The Latino market in the U.S. is not changing. Latinos most enjoy English-language Hollywood entertainment. They want escapism and entertainment, exactly as the majority of American moviegoers demand.” Films like his company's Spanish-language feature The Motorcycle Diaries and Fox Searchlight's La misma luna (released in the United States as Under the Same Moon), as well as Lionsgate's Amores Perros and IFC's Y tu mamá también, worked in the limited independent specialty market and did well overall financially. Films from U.S. filmmakers, such as Frida, Real Women Have Curves, and Tortilla Soup, also have helped awaken what has been termed the “sleeping giant” of the Hispanic market. However, both the imports and the U.S.-made films have failed to attract the broad, multi-ethnic, Spanish-speaking population in the United States. Still, they have the attention of the power brokers—investors and distributors. That is what counts.
Production Cost
When writing a business plan, you need to find as many ways to support your argument as possible. A valid comparison for films concerns the amount of the production (negative) cost. In some cases, the cost is additional confirmation for your assertions; in other instances, it may be your only argument. There are as many configurations of a film's budget as there are producers. No two situations are ever alike. So we will review the most common cases and let you extrapolate from there.
Case 1: Similar films, similar budgets
Your films should be able to make equivalent or better revenues as films that share a genre or theme with yours and cost about what you're budgeting for your film. When preparing your proposal, the first step is to read every interview with the filmmakers that you can find. You will usually be able to find information on how they made their pictures work—creating a production budget, finding a distributor, and getting by on a low budget. The market is more open for a small film to be successful than it has ever been. The potential for having a breakout film increases with the release of each successful film.
Case 2: Similar films, higher budgets
If your film has a story or theme similar to that of others but will be made with a significantly higher budget, you can point out that better attachments are likely to help bring in more revenue. If you have a well-known director who will draw some attention, be sure to mention that it is another Arthur Artiste picture. For a film with a budget of up to $1 or $2 million, both the director and the stars can be unknown; the film will rely totally on its story and quality. For a larger film, story and quality will still matter, but name value will mean even more.
Case 3: Different films, moderate budgets
There may be a ceiling on the ability of niche films to grab the market. One strategy in this case is to start with moderate budgets that have mainstream potential. For this example, we will assume that you will start with a $5-million movie and move up to a much broader market. Always keep your genre in mind in addition to all the factors mentioned in Case 2.
There are many variations to putting together your comparative films and your explanations of the markets for your film. The point is that you should build on what exists. No matter what your niche market—and it may be a specialized one that has not really been explored yet—the same principles apply. Take the experience of similar films and use it to your advantage.
Even with these three cases, a discussion of the success of similarly budgeted films is in order. For example, I created a business plan for producers of a $7-million gay/lesbian romantic comedy a few years ago. Since there were no gay/lesbian films made within the $3to $14-million budget range to use for comparison, I created tables of other romantic and comedy films.
Detailed tables showing the actual results of other films with similar budgets belong in the Financing section of your plan. Here, however, you can use the summary information to build a story. Gather comparative market information to prove the size and extent of the audience for your film.
What if you do not know the budgets of the films you are going to make? Your case will be much weaker, but you can still develop a rationale. Showing the results of films with various budgets will help. The other elements of your company, as described in Chapter 3, “The Films,” can bring more credence to your proposal. If you have well-known directors or actors committed to your projects, you can use their previous films to describe a segment of the market.
What if you have someone else's budget for a $2-million film? Don't use it. Your film will have characteristics that don't match that budget and needs a knowledgeable person, such as your friendly production manager, line producer, or unit production manager (UPM), to create its budget. Make sure you are right before going to investors. At the end of the day, you have to work within this budget.
DOCUMENTARIES
In the last edition, documentaries were included in Chapter 6 with the “nontraditional” films. There are two types of documentaries: theatrical feature films and televison/cable movies. Theatricals belong in this chapter on markets along with the other feature films as they have proven to be a lasting niche in the independent film market.
Documentary films have entered the mainstream. The Hollywood Reporter recently commented that audiences are currently obsessed with documentaries. Throughout the 1990s and into the 21st century, documentary films grew in prominence and popularity on the theatrical screen. At the same time, films centered on political and social activism topics have grown in popularity with audiences. Part of the reason is the quality and diversity of the films. Documentaries ranging from the highly political Fahrenheit 9/11 to the "artistic crime" (as www.imdb.com has characterized it) Man on Wire and the musical Shine a Light are among nonfiction films that have earned substantial sums at the box office. Audiences eager to see intellectually stimulating, well-crafted fare are being drawn to theaters showing documentaries, resulting in attendance figures that have increased the value of these films in the video/ DVD, cable, and foreign markets. In addition, a substantial portion of the television audience for documentaries—estimated by Nielsen Media Research at 85 percent of U.S. television households—appears unwilling to wait 6 to 12 months for a documentary to get to their home screens. Analysts also suggest that reality television has helped documentary films build their growing theatrical audience.
Markets
The target markets for documentaries are the same as those for fiction films, save one group. Documentary audiences themselves are the first target audience to list. There are enough films with high public awareness to give as examples. Then there is the substantial television audience for documentaries, as described above. In fact, that paragraph is my current description of the documentary audience as a target.
The rest of the market section is the same as that for fiction films. Every documentary has a subject, be it political, economic, inspirational, historic, sports related, etc. These market segments often can be quantified or at least described. Fiction films with the same genres or themes can be used as examples in the market section as well, although they can't be used as comparatives for forecasting.
Synopses
In Chapter 3, “The Films,” I made a big point of telling the investor how the story ends. With documentaries, the filmmaker often doesn't know how the story ends. Often you are recording actual events. If it is an election, you won't know the results of the election when you approach investors. On the other hand, if in 2008 you traced what happened during the Florida recount in the 2000 presidential election, you and the investors will know the results.
Another example is raising money to look at health issues through a specific study. You may know what you wish the results to be; however, you won't know until after the study is over. The synopsis will include a description of why you are making the film, what the study will include, and what you hope the results will be. An example for the last lines of the synopsis might be:
The entire process will be captured on film. This visual record of the transformations that occur as a result of these basic The results of this experiment in _______________ may directly and indirectly affect the over 100 million people living with supposedly incurable _______________.
Many documentaries are based on a large number of interviews. If you have already conducted some of the interviews, then list those people with their credentials. If you haven't already conducted the interviews, be careful how you mention people. I treat the contemplated list of interviews the same way that I treat listing stars in a film. You may want to talk to Queen Elizabeth in your film. Unless you have already gotten an affirmative response from her (or her social secretary), I wouldn't include her in the list. The interviewees give credibility to your potential film for the investor. Whether equity or grant money, it is not a good idea to get funded by making promises you can't keep.
Forecasting Has Some Differences
Until 2002, I didn't write any business plans for documentaries. The reason is simple: There weren't enough theatrical docs that had earned significant revenues worth talking about. The success of Roger and Me in 1989 began the reemergence of the nonfiction film as a credible theatrical release. After a few successful films in the intervening years, 1994's Hoop Dreams attracted a lot of attention by reaching U.S. box office receipts of $7.8 million on a budget of $800,000. The same year, Crumb reached a total of $3 million on a budget of $300,000. In 1997, a Best Documentary Oscar nominee, Buena Vista Social Club, made for $1.5 million and grossing $6.9 million, scored at the box office and with a bestselling soundtrack album.
Michael Moore's 2002 Bowling for Columbine raised the bar for documentaries by winning the Oscar for Best Feature Documentary and the Special 55th Anniversary Award at Cannes, and by earning $114.5 million worldwide. The same year, Dogtown and the Z-Boys, The Kid Stays in the Picture, I'm Trying to Break Your Heart, and Standing in the Shadows of Motown all made a splash at the box office. The success of these releases was not anything like Columbine, which had a political and social message, but was noticeable nevertheless. In 2003, Spellbound seemed to confound the forecasters by drawing a significant audience, as did Step into Liquid, The Fog of War , and My Architect. The following year, 2004, Michael Moore surprisingly—and convincingly—bettered his own record with Fahrenheit9/11, which was made for $6 million and earned more than $300 million worldwide. Distributors found more documentaries that they liked: Riding Giants, The Corporation, Touching the Void, and the little doc that could, Super Size Me (made for almost nothing and earning $35.2 million at the box office). In 2005, there was the popular Mad Hot Ballroom, Enron: The Smartest Guys in Town, and Why We Fight.
In 2006, the most successful was An Inconvenient Truth (made for a reported $1.5 million and earning $75.3 million worldwide), which won the Oscar for Best Documentary for director/cinematographer David Guggenheim and Best Original Song (Melissa Etheridge). Featuring a fledging actor, former Vice President Al Gore, undoubtedly added to the film's popularity. There also was Dave Chappelle's Block Party, which earned $11.5 million, plus a number of films that broke $1 million at the North American box office.
In 2007, the critics said that documentaries were “dead” as Michael Moore's Sicko was the most significant. Made for $9 million, it earned a respectable $53 million worldwide. For you and me (and our investors) that would be considered a success. Since his earlier films had gone so far over the top, however, the naysayers acted like Moore had failed. With all documentary filmmakers, however, the main ambition is to get the word out. Hopefully, the second one is to at least pay back their investors.
Some of these documentaries have worldwide distribution but many don't. A bigger problem is that we don't know the budgets for many. Reason number 1 given by many documentary filmmakers is that they have made the film over a long period of time and don't know the actual budget. It is true that many are made with a combination of cash from grantors and in-kind contributions, so it may be hard to know the real number. Or, reason number 2, they choose not to tell us. Therein lies the first problem of writing a business plan around a documentary film. However, it is far more doable now due to the number of films that have been released. There are other factors that make documentaries different from fiction films. First and foremost, there are fewer of them. Also significant is how widely their subject matters vary—comparing two documentaries to each other can still be a case of comparing apples and oranges. The method for forecasting differs slightly for these reasons. How it works is discussed in Chapter 10, “The Financial Plan.”
Television Documentaries
Television documentaries are features and miniseries made specifically for television or cable network stations without the intention of showing them on movie screens. In June 2009, the Internet Movie Database listed more than 23,000 television documentary features and miniseries. Generally, they are financed directly by the broadcast/cable networks, although they may be acquired from private production companies under a variety of different deals.
Documentaries are not a staple of broadcast television, which relies on larger audiences than documentaries typically attract. PBS does finance some documentaries, normally at budgets less than $500,000. For them, it is the project that is important. While it is true that in recent years PBS has sent these films to film festivals and even put some into theatrical distribution, the PBS station responsible for funding a particular documentary normally controls all the rights and revenues. In addition, it is still a modest part of their yearly budget, so the funds available are limited.
A large number of cable and premium channels also finance documentaries, and they occasionally buy completed films. In a sense, however, this is the same as getting a license fee from the broadcast networks. The budgets can range from below $100,000 to $2 million, depending on the cabler. In addition, there was a large surge in the early years of the decade in digital channels across Europe, which has made the demand for docs of all genres greater. Currently, there is a greater focus on local films in most countries, which may hamper filmmakers from one country selling their documentary to local media in another country. Selling to any television, cable, or Internet outlet may bring very little payment. Covering the cost of making the documentary is often the best case.
Both theatrical and nontheatrical documentaries are financed by not-for-profit grants and other funding. Although some of the information that you would use in this book's business plan format would be useful in a grant application, you cannot write one business plan to send to all grantors. Each of these organizations has limited resources and specific subjects that it will fund. Of course, many will not fund films. You have to do your own research to find an organization whose goals match your subject. There are numerous books about raising grant money. For filmmakers, though, I always recommend Morrie Warshawski's books (see Chapter 9).
Often documentaries, or even fiction films, are made with a combination of equity funding and grant money. In that case, you will have to both have a “standard” business plan for the equity investors and make a separate grant application. However, there is no database to use in order to forecast the results of documentaries intended for nontheatrical release only.
MARKETING STRATEGY
Marketing strategy is usually defined as the techniques used to make the end user aware of a product. In film, you have more than one potential end user, more than one person who might queue up to the box office to buy a ticket. There is also an intermediate end user: the money person. The ticket buyer will not read your business plan. Instead, your marketing is aimed at those who might provide the financing to make those ticket purchases possible. First, we'll look at your own strategies for getting the film made. Then we'll look at some of the marketing tactics that distributors and producers may use for the film.
Experts often talk about the four Ps of marketing: product, price, place, and promotion. We have already touched on the first three in this section. In the Markets section of your business plan, you don't want to forget promotion. However, do not confuse what you will do and what the distributor will do.
Market Research
As cognizant as investors or distributors might be about the emergence of a particular market, they may not know its true scope. One step in promoting your projects is to obtain as much market research data as possible to bolster your contentions. Whether you are raising money for one film or a group of them, gathering data on the feasibility of your concept is important. Part of that information is contained in your description of the market segment. However, you can go a step farther and get real facts and figures. There are many formal and informal ways to gather information. Many of them are right in your own backyard. You can gain a lot of knowledge with a minimum of time and effort if you know how. Granted, some of these tricks of the trade are easier the closer you are to Hollywood or New York, but with the proliferation of events to which “Hollywoodites” travel and the proliferation of resources on the Internet, being from another city is not a good excuse for failing to do adequate research. Your task may be a little harder, but you can still accomplish it.
Reading—A Lost Art
The most difficult idea to get across to many filmmakers is that they need to become voracious readers. Many creative folks are too busy doing their own thing to take time out to read. Even seasoned professionals say, “But I don't have time.” This is a big mistake. There is a lot of information available to you if you will take the time and trouble to find it.
The truth is that you cannot afford not to have time. The trade papers, primarily the Hollywood Reporter (www.hollywoodreporter.com), Daily Variety (www.variety.com), and the UK publication Screen International (www.screendaily.com),are the primary sources of information for people in the film business. Those who are serious about having a business or even participating in the industry will do themselves a favor by reading either the Web or print issue of at least one of the publications. The argument, “I can't afford it,” has been taken away. Variety is now free on the Web, and the other two publications have a large amount of their sites free to the reader. Even if you log on and just read the first paragraph of stories, you will have enhanced your knowledge of the industry. In addition to reading one of the U.S. publications, I highly recommend www.screendaily.com. Even though there are some articles that require a subscription, there is still a large amount of free information. The web site's home page also has a section called “The Web Today,” which has links to articles on web sites in the United Kingdom, United States, and other countries.
The trades have the news articles that tell you who is doing what with whom and how much it is going to cost. If you follow these sources carefully, you can pull out enough data to fill in the minimum financial information for any package. Nestled among the press releases and gossip are facts on the production costs of films and descriptions of how the producers found their financing. In addition, the trades also publish lists of films in production, preproduction, and development. From the production columns, you can learn what genres of films are being made and with what types of casts. Some of the preproduction material is real and some is fantasy, but it gives you a fair idea of what people want to produce. You can list your films in the development columns free of charge. Many filmmakers have gotten contacts with production companies and distributors that way. Placing announcements also gives private investors a chance to hear about you. Many people with the ability to finance films choose to remain incognito; otherwise, they would be deluged with unwanted phone calls or scripts. Some do read the trades, however, and it gives them the opportunity to contact producers whose stories interest them. Admittedly, this may be a long shot, but it does not cost you anything, and it gets your name out there. And if you see anything that looks just like your film, don't worry. You will make a better film! One interesting quirk about Hollywood, and this is probably true of other places as well, is that people have more respect for names they recognize than for those that are unfamiliar. They will not necessarily remember where they saw or heard your name, but familiarity results in returned phone calls. Therefore, any opportunity to get your name in print is helpful.
Another benefit of reading the trades is that you learn who the movers and shakers are. Take the case of Robert Rodriguez, writer/director of the reportedly $7,000 miracle film, El Mariachi. He did not know any agents or other film contacts in Los Angeles, but he saw the name of Robert Newman, an agent at ICM (one of the three largest talent agencies in the entertainment business), in the trade papers and sent him the film as a sample director 's reel. Newman took it to Columbia Pictures. Rodriguez went on to make Spy Kids 1 through 3 as well asSin City, among others. Now people have to know his name!
Besides the industry publications, you can find a lot of information in regular monthly magazines that have no direct connection to the film industry. Let's look at just a small sampling of magazines. Interviews with producers or directors of independent films and articles with business statistics were published recently in such nonentertainment publications as The New York Times, Vanity Fair, Time, Newsweek, and Forbes. Local daily newspapers and USA Today, a national daily, also carry interviews in their entertainment and business sections. The proliferation of sites on the Internet has made this information far more accessible and, in many cases, free.
Networking
My first Sundance Film Festival was also my first entertainment industry event. Until then, I had worked in “real business,” creating business plans and corporate strategies. Although I had mixed and mingled at meetings before, I had never tried to “work a town.” I knew no one and had a general feeling of nausea as I got off the plane. On the shuttle to Park City, Utah, everyone was silent. Finally, I asked a gentleman sitting behind me if it was his first trip. He and his friend turned out to be film commissioners. We chatted the rest of the way. That night I went with them to the opening night gathering and met more people. The next day, I chatted with those people and learned a lot about how they had financed their films and other salient information. Had I not spoken to the first two people, I might never have met the rest. The concept of networking this way can be very scary, but you can do it. Being friendly is a way not only to gather information, but also to make yourself known to others.
Why do you want to network? Your best sources of information may come from attending seminars, college classes, luncheons, industry meetings, festivals, and markets. Besides listening to whatever public speaking occurs, you should go up and introduce yourself to the speakers and mix with the other people in the room. You don't have to be in Los Angeles or New York. Many states and cities have festivals and other meetings. Take advantage of whatever is in your area. Always check with your local film commissioner to learn about events in your area.
There is no better source of information for you than other independent filmmakers. Whenever you have a chance to meet filmmakers, grill them for advice and facts. People like to talk about their experiences and, especially, their successes. (If this were not the case, I would not be able to get well-known filmmakers to talk to my classes and seminars.) You will learn more from someone who has done what you are interested in doing than from all the books in the world.
The Internet and Libraries
This section was originally titled “Libraries and Computer Sources.” Times have changed. Even I do most of my research on the Internet. Like reading, however, another lost art appears to be the ability to do research in a library. Libraries still contain information that can't be found—or at least can't be found for free—on the Internet. When teaching a course, I have been stunned to find out that graduate students have never heard of the Business Periodicals Index and other common library reference tools. Rumor has it that they not only still exist but have books and database sources that would cost you money anywhere else. If you are a student, take advantage.
When writing a business plan, you must be concerned with more than just film grosses. You must be able to discuss the markets, the environment, ethnic groups, population figures, and societal trends—whatever is pertinent to your projects and to your ticket buyers. In addition, a business plan should contain specifics about other companies, industry mergers and acquisitions, new industries, and so on.
The first source for this information is all those articles and books you never read or even knew existed. Besides visiting bookstores, go to your local film school or university library. If you live near Los Angeles, or are visiting, you have the added advantage of the library at the Academy of Motion Picture Arts and Sciences.
Look up your subject in the Business Periodicals Index and other periodical guides in the library. Many libraries have systems that allow you to do a computerized search of subjects. Finally, do not forget your friendly librarians; they are there to help you. Through your computer, you can log onto the Internet and use online services to do library searches without leaving home. Good sources are the Internet Movie Database (www.imdb.com) and Box Office Mojo (www.boxofficemojo.com), both of which are free for basic information on cast and crew, synopses, and reviews. For worldwide data, however, I often recommend Filmtracker 's Baseline (www.blssi.com), which sells data about individual films and has various levels of subscriptions available. It is a credible database with budgets, P& A, domestic DVD, television revenues, and VOD revenues, as well as foreign DVD, television revenues, and VOD revenues. Many of these data are hard to find anywhere else.
Promoting Yourself and Your Projects
We make our own opportunities, as every overnight success will tell you. By doing all that market research, you have prepared yourself for two things:
1. Quantifying your market segment
2. Approaching others with your project
At the beginning of this chapter, we talked about the market segment and how it is time to focus on marketing yourself and your project. As noted before, your goal is to find the money or links to the money. There are entire books that focus on this subject, so I am providing you with just the basic information.
Arm Yourself with Ammunition
As a good promoter, there are certain materials you can prepare before seeking out contacts. Business cards, sales sheets, press kits, and director 's reels are among the promotional materials you might use. Some filmmakers have even made a 20-minute version of their film, often on videotape, for promotion. For first-time filmmakers with no other footage to show, putting a long treatment on film may be the way to go.
The materials just described serve to get you into meetings. Whether your aim is to sell a single film or to obtain financing for your company's group of films, the first step is to evoke interest. Making contacts is your objective, wherever you are. Earlier we talked about networking as a means of gathering information. Another purpose is to unearth those money sources, wherever they are.
People with like interests tend to congregate in the same places; therefore, entertainment-related gatherings are your most likely place for success.
FILM MARKETS
Knowing how to attend and network at film markets is critical. You do not want to be carrying around business plans, handing them to everyone who says, “I can get you a deal.” That is why you bother with the materials described earlier. Those are the items you hand to people initially. Common sense will stand you in good stead in attending markets. There is no trick to meeting and greeting, no secret handshakes or passwords. (Just get out there and shake hands!) When you attend a market, remember that a distributor's goal in being there is not to meet you; it is to sell product. Here are guidelines for you to follow:
• Be prepared: Bring your short-term promotional materials, and bone up on who is who before you go. Let your fingers do some walking through the trades.
• Be aware: Distribution companies usually focus on certain types of films. Look at their posters and at the items listed in their market catalogs. Try to match your films to their inventory. After all, the distributor is your shortest route to those foreign buyers and presales.
• Be inquisitive: Ask questions of everyone you meet—in an office, in the lobby, on the street. Try to discover the person's qualifications before spilling your guts about your plans and projects, however.
• Be considerate: In introducing yourself to distributors, pick slack times. Very early in the day and at the end of the day are best. Whenever you reach a distributor 's display room, notice if buyers are there. If they are, go back later.
• Be succinct: Keep the discussion short and sweet. Your objective is to get a meeting at a later time. You want your “prey” to feel relaxed and be attentive. Try for a meeting at the distributor 's office.
• Be dubious: Lots of people are milling around screenings, hotel lobbies, and expo halls pretending to be something they are not. It may be a big rush for someone to tell you that they were the “real” investor behind The Visitor (when they had nothing to do with it) and are interested in financing your film for $2 million (when they have no money). Listen carefully, take cards, and try to verify the facts afterward. Do not give your scripts or proposals to anyone unless you can validate their credentials.
Advice from a Filmmaker
Joe Majestic formed Majestic World Entertainment in 2007 as a film, multimedia development and distribution company. Previous to that, in 2003 he co-founded the Ilya Salkind Company where he served as Vice President of Production. He was a contributing architect of the company's initial slate of film and television proper- ties. In 2008, he partnered in Monterrey Pictures Entertainment. He left that company in 2009 to focus on film development and sales as President of Majestic. Having worked with Joe as a consultant since 2003, I asked him to lend his advice on both attending and being an exhibitor at the American Film Market. In addition, check the market's web site at www.ifta-online.org/afm/ for its section “How to Work the AFM.”
LL: How did you first start working the market?
Joe: I first attended the AFM with a visitor 's badge. I suggest that filmmakers go ahead and get a badge, go around the film market, get all the materials, and network. It took me five years of having a badge full time as an attendee, because I didn't have a mentor or work with a distribution company. I had to learn by trial and error.
LL: Who are the companies that rent offices in the Loews during the market?
Joe: Any production or distribution company that wants to sell products to the more than 1,500 accredited buyers that come from countries around the world can obtain office space at the AFM.
LL: What are some of the activities you suggest for filmmakers attending for the first time?
Joe: People don't realize what a valuable tool the market is. Make a plan. I have seen many filmmakers waste their time by not scheduling their days. Do research. Get the attendee guide that comes with your badge. It tells you which companies are in each room. Then get the special AFM edition of Variety or the Hollywood Reporter that lists what each company is selling. Individual companies often have specific genres they sell, and you want to know who would be the most likely company to be interested in your film. You also can look them up on the Internet.
LL: How do you approach the distributors?
Joe: They are unlikely to speak to you on day 1 or 2 or on the last day when they are packing up. Spend the first couple of days gathering information. The middle to near the end is best, as the market tends to be slower. They will talk to you if you have a project and are seriously packaging it. Ask their advice. They will give it, because they need product.
LL: Can you just walk into an office?
Joe: Filmmakers think they can go in all the offices just because they have a badge. Technically, you should be invited. Remember that their main goal is to sell to buyers who will have appointments. Try to contact sellers in advance. If you have an appointment, the exhibitor can give you a guest pass to the office floors. You won't be allowed onto any of those floors without either a badge or pass. If you don't have an appointment in advance, ask the office assistant for one. That person will probably say, “Contact us after the market.” Try to hold out for a meeting at the market. Be clear. Say that you are packaging your film project and give a specific genre ad budget. Don't get expansive with mixed genre descriptions. Ask them what talent they would like to see attached to the film.
If people look too busy, try for at least a brief introduction. If not, call them after the market. Say something like, “Congratulations on your great AFM. I went by your office several times, and you were too busy. I'd like to send you information on my film------ budgeted at------.I have found that it is better to call before sending an email and/or materials.”
LL: Why are you meeting them?
Joe: You probably will be looking for a distributor to either help you do presales on a film to be made or to obtain a distribution guarantee to help you raise money from other sources.
LL: What made you decide to pay for office space?
Joe: My company, Majestic World Entertainment, had several projects to rep for sales. Having learned how the market works, it was time. I already had worked with Hector Grob of Monando Film Distribution, who has 25 years in film distribution going back to working with the Salkinds on the Superman movies. I met him while working with Ilya, and whenever he was in town during AFM, I spent time at the market with him.
It is important to work with someone who has experience in selling at international markets. If you are interested in being a sales representative, try to meet other sellers and buyers when you are initially at the market. Everyone has a badge. You can talk to people in elevators, on the terrace, at the pool, or at the bar in the lobby.
LL: What should I do if I need to hire someone with market experience?
Joe: The staff at AFM is extremely helpful. They will guide you through the details of obtaining and setting up an office and recommend people to work with you. You need a good assistant to set up meetings and work the phones.
LL: How many films do you need to have for sale?
Joe: You could have one film, although more is better. We were selling three horror films for our clients. General wisdom is that you should have no more than ten films.
LL: What materials should you have to give to buyers?
Joe: 1 Similar to the list above, the three most important pieces of information are cast, budget, and genre. Male actors are most important in obtaining foreign financing. Know what your actors are worth vis-à-vis your budget. Don't get an actor that was worth $250,000 last year and is now worth $25,000. As I said before, be specific about the genre. Don't say “sci-fi action drama.” Just say, “action.” There is also “contained action,” which is a low-budget action film.
2. Promo teaser. You don't need a scene from the actual movie. Shoot a short 1½to 2-min. section from the script. You need a visual for buyers, since it isn't a radio show. We had promos for all our films. Also, quality counts. You can have unknown actors and inexpensive surroundings, but the look of your 2 minutes has to be good. We did presales as a result of the whole package. In addition, we already had talent attached. That isn't a requirement, but attached talent gives your project more value.
LL: How do presales work?
Joe: Generally, the buyer gives you 20 percent down of the price they are paying for their specific territory and the rest on delivery of the film. You should have all the legal documents available for this transaction. Have them drawn up by an entertainment attorney familiar with distribution and markets. Don't write your own. Your attorney will probably be available for meetings also. Usually, an attorney with clients at the market will be there himself.
LL: Is it important to have someone in your office who speaks multiple languages?
Joe: No. It is nice, but the buyers will always have someone who speaks English. They are buying from you and want your product.
LL: I know that you previously went to Cannes. Is there additional advice for that market?
Joe: Cannes is very expensive. The offices are twice as much, and all other expenses are three to four times more expensive than going to AFM. If a film project isn't completely packaged with a first-class promo, don't spend the money. Don't go there just to get experience.
LL: Assuming you have the project and promo, are there ways to save money?
Joe: American filmmakers can become members of the American Pavilion. You will have a headquarters and exhibition space, although you won't have an office. You will be able to go to the various Cannes offices and network. The Pavilion provides an array of business services, seminars, networking events, and parties. More networking is done at parties in Cannes than at AFM. For the parties given by major companies, you need to be invited, of course. The best parties are at the beginning of both markets. Other countries have pavilions also. They are all lined up together.
SELF-MARKETING
An important component for any film, especially the opening weekend of the film, is word-of-mouth. Without incurring additional costs, it is possible for a filmmaker to implement a marketing strategy that is complementary to that of the distributor. Or, in the absence of having a distributor, create word-of-mouth. You can get a “buzz” by contacting grassroots organizations with a process referred to as viral marketing. Many special-interest groups have email lists and will be happy to send out information on a film that attracts them. It is a strategy that encourages individuals to pass on an email or video marketing message to others, creating the potential for exponential growth in the message's exposure. The people on their lists then send the email on to other individuals and organizations, and the marketing message is spread exponentially. Don't forget to include your hometown newspapers in this activity. An important component for any film, especially the opening weekend of the film, is word-of-mouth.
With some films, it may also be appropriate to schedule free showings in a church, synagogue, or other spiritual gathering place. As many of you have read, this method was used to great effect by Mel Gibson with The Passion of the Christ, Facing the Giants, and What the Bleep Do We Know? This method doesn't only apply to religious or clearly spiritual films. Christian churches also embraced having screenings of March of the Penguins. By having such screenings, which often are free to the participants, you create word-of-mouth before a film opens on local screens.
Complementing this approach are the more purely social networks, which are a $1-billion industry projected to grow to $2.4 billion by 2012. MySpace (125 million unique users) and Facebook (200 million unique users) have become one of the focus sectors in media and entertainment. With their large communities, finding “friends” of similar film tastes in a social network is fairly easy. In addition, the success of Twitter and similar networks has encouraged a habit among members of sending short comments as soon as they leave the movie theater. As with any mainstream marketing, the strategy starts with the people at the top, the opinion-makers or “influencers,” and their channel partners, and it extends through the ranks to the people who see films the first weekend. They then spread the word to everyone else. In 2009, Twitter has joined the social networking pact. It was an important way of sending out information during the 2008 presidential election and can work well with films, also. Fans get the opportunity to discover and impact the films of tomorrow, while getting insider access and VIP perks for their contributions. Be sure to research what is happening currently. In December 2008, the global Internet audience surpassed 1 billion people according to new figures released by comScore. The Asia-Pacific region accounted for the highest share at 41 percent, followed by Europe (28%), North America (18%), Latin America (7%), and the Middle East and Africa (5%). In terms of nations, China had the largest online audience with 179.7 million users, followed by the United States with 163.3 million.
No matter how big a site is and fast it has grown when I am writing this edition, it can fall out of favor with consumers just as fast. According to a Nielson spokesman, Jon Gibs, “Remember Friendster? Remember when MySpace was an unbeatable force? Neither Facebook nor Twitter is immune. Consumers have shown that they are willing to pick up their networks and move them to another platform, seemingly at a moment's notice.”
Self-marketing is an area in which it is good to think outside the box. Explore what is best for your film. Remember, however, that anything you describe in your business plan is a type of promise to the investor. Do not say that you will do something for which you don't have the money or other resources.