2. FILM MAKING PROCESS
FILM MAKING
PROCESS
DEVELOPMENT
STAGE
PRE-PRODUCTION
STAGE
PRODUCTION
STAGE
POST-PRODUCTION
STAGE
DISTRIBUTION
STAGE
DEALING WITH
FINANCIERS

3. MEANING
• Film Finance is an aspect of film
production that occurs during the
Development Stage prior to the Pre-
production, and it is concerned with
determining the value of proposed film.

4. MODES OF FINANCING
MOVIE

5. COMMON FORM OF FINANCING
DEBT FINANCING
There are the three standard example of debt borrowed from
different practices across the world:
Pre production loans
Gap financing
Laboratory debt
EQUITY FINANCING

6. DEBT FINANCING EQUITY FINANCING
1.Most suitable for new film
companies.
2. Entitled to repayment of
principal amount and interest
thereon.
3.Repayable before the film is
completed / equity investor begins
to recover their money.
4.They have charge over the
assets of the film.
1.Suitable for existing film
companies.
2.Entitled to share in the box office
collections.
4.Equity investors are paid after
making payment to all lenders.
4.They are the owner of the movie
And have full control over the
movie.

7. Negative Pick- up
negative pick up is the filmmaker’s “ field of
dream “ – if she shoots it ,the money will come.
Sale of distribution rights
Agencies
Self- funding

8. Studio financing
Fox star studio produces Hindi and
regional language Films through
acquisitions, co-productions, and
in-house productions for worldwide
distribution.
Foreign investment
Walt Disney has partnered with Yash Raj films to make animated movies .
Reliance ADA Group has entered into a production
Deal with dreams works Studios promoted by Steven
Spielberg to produce film with an initial funding
Of US $ 825 million for the first three years.

9. Crowd funding
(EMERGING TREND IN BOLLYWOOD)
Crowdfunding is the practice of funding a project or venture by raising monetary
contributions from a large number of people, typically via the internet. In 2013, the
crowdfunding industry grew to be over $5.1 billion worldwide.
. "I Am" is one of smallest budget films of 2011 in Bollywood . With crowd-funded 'I
Am' winning two National Awards, TOI explores how profitable this financing trend is .
The biggest disadvantage of crowd-funding is you can't raise a lot of money through
it.
CROWD FUNDING SITES IN INDIA
www.funduzz.com
www.start51.com
www.catapoolt.com
www.fundmydream.com
www.indiacrowdfunding.com

10.  Access to finance via co-production treaties
India has entered into film co-production agreements with
Britain(2005), Italy(2005) and France(1985)
Cash deals
Bank financing: (interest rate is about 15% p.a, 2% higher than
the other loans)
IDBI Bank has so far financed two dozen movies.
The Export-Import Bank of India has financed blockbusters like Veer Zara,
Dhoom And Dhoom 2.
Yes bank has financed break ke baad and few other movies.

11. Bank finance for film industry- RBI Guidelines
Amount of loan: ( 35% to 40% of the budget, increase to 50% on merit basis but
does not exceed 10 crore )
Period of loan: ( fixed on the basis of cash generation of the project)
Security:
-laboratory letter, conveying on the rights in favors of the lender.
-music audio/video rights, CD/DVD/ internet rights, etc assigned to the bank.
-banks have first hypothecation charge on all the tangible and movable asset
under the project
-all agreements and intellectual property rights should be assigned in favor of lender.
 Follow up/ monitoring: ( monitor the timely shooting
/processing of film, assessing expenditure, obtain periodic
flow of information from the producer)
 Risk factor: ( by considering the track record of producer)

12. National Film Development corporation limited
(NDFC)
Central agency established to encourage the good cinema movement in the country.
Its main purpose is to encourage the high quality cinema.
Main goal is to plan, promote and organize an integrated and effective development
Of the Indian film industry.
NDFC has so far funded / produced over 300 films.
NDFC provides essential pre-production and post- production technical infrastructure
Support.
Government of India is also working with NDFC towards developing a comprehensive
legal structure to get all kinds of movies insured which will definitely give the boost to the
film industry, specially to the film sector

13. Film incentives:
(indirect way of financing films)
Countries around the world offer various incentives to encourage film
producers to use their locations to shoot films such as:
Cash rebates
Tax credit
Interest free loans
Soft funding (easy processing of visas, discount
on accommodation and travel, assisting in
identifying location)

14. FILM PRODUCTION:
FINANCING
ISSUES

15. Problems related with debt
Problems related with equity
-General solicitation
-Investor requirement accredited
-Disclosure requirement
-fillings
Piracy
Difficulty in predicting the
success of movie

16. Lack of assurance regarding the
completion of the movie
Lack of transparent data
System of minimum guarantee abolished
Risk attached to film making
- (risk from adverse
weather condition, Death or accident of a
lead actor etc.)

17. Top 10 Most Expensive Indian
Movies
10.Mughal-E-Azam $10.5 Million
9.Ghajini $12 Million
8.Love Story 2050 $12.7 Million
7.Ek Tha Tiger $13 Million
6.Don 2 $14 Million
5.Vishwaroop $16 Million
4.Dorna $17 Million
3.Blue $24 Million
2.Ra-One $27 Million

18. CONCLUSION
In the last, I want to conclude that investing funds in
film industry provide satisfactory returns now days.
With the increase in foreign participation, the shape
of the film industry is changing rapidly in India. New
producers/ directors are coming ahead and are
exploiting the facilities available . All these efforts are
ultimately adding to the diversity of Indian film
industry and providing a much-deserved international
Character.

19. THANK
YOU
PRESENTED
BY:
MEENU