1. Presentation
on
Film Finance
By
M. V. Sai Sunil
13M080

2. Film Finance
• Aims: to gain an understanding of how Film
studio and independent film gets made.
• To research the production process of a film.

3. Film finance is an aspect of film production that occurs during the development
stage prior to pre-production, and is concerned with determining the potential
value of a proposed film.
Film finance is a subset of project finance, meaning the film project's
generated cash flows rather than external sources are used to repay investors.
The main factors determining the commercial success of a film include public
taste, artistic merit, competition from other films released at the same time, the
quality of the script, the quality of the cast, the quality of the director and other
parties, etc. Even if a film looks like it will be a commercial success "on paper",
there is still no accurate method of determining the levels of revenue the film will
generate.

4. Film Finance
Film is a medium where creativity and business are forced to
meet.
There is no such thing as a safe bet because each film is to
some extent a one-off prototype.
However, Hollywood studios try to reduce the high risks of film
production by recombining / repackaging successful elements.
This is another way of saying that Hollywood works to a set of
generic conventions. Successful formulas make money.
Task: in 2 minutes brainstorm all the sequels, remakes and
TV/comic book adaptations that you have seen in the last year.

5. ‘The Package’
• The film package is put together by the producer.
• It is presented to potential investors, financers and
distributors.
• It must include the following key elements and
selling points:
– Script Treatment
– Generic Characteristics.
– A Proposed Budget.
– Storyboard of Key Scenes.
– Established director / writer with proven track record to
attract target audience and reassure investors.

6. The Pitch
Term used for the presentation of the
package by the producer to potential
financial backers.
The producer may say their film is a hybrid of
two successful movies.
“It’s Terminator meets Dirty Harry.”
- Hollywood Producer

7. ‘High – Concept Films’
• Made famous by Don Simpson and Jerry Bruckheimer as a response to high
risk film production.
• The repackaging of previously successful elements, such as big name stars and
directors.
• Remaking past hits or extending franchises (sequels).
• Often ‘high octane’ action/disaster movies.
• Made for a PG or 12 rating so appealing to a mass audience.

8. The summer blockbuster
• For many years film industry
has made mass market films
for the summer.
• Many of these films will be
released with merchandise tie
ins and big marketing budgets.

9. Commitment to Invest
Investors will only commit to a package when they
have a clear presentation of the target audience for
the film. This is done through extensive market
research. Which includes?
If a return on the investment is possible then the
project will be give the ‘green light’, meaning that
the studio will fund the next stage, which would
consist of the writing / finishing off of the screenplay.

10. Funding for Independent Films
• Independent film production is developed and
realised outside major studio settings.
• Sources of finance:
- Banks
- Investment Companies
- Rich Private Investors
- The Government:
the national lottery.

11. Independent filmmakers finance
• Example: Maruthi
• Maruthi the director of “E Rojulo” and “Bus
Stop” financed his first film one of his friend
by borrowing several family member’s credit
cards.
• He financed the whole thing for 80 lakhs with
most of the actors working for free.
• He also made some of his own camera
equipment to avoid expensive hiring.

12. Financing a film
• What do producers have to consider when working out the
costing of a film?
• Star’s fees
• Other supporting cast
• Crew
• Post production
• Film stock
• Travel/shipping and catering
• Mise-en-scene (set building, hiring props, vehicles etc)
• Film taxes
• Hiring/compensating

13. Bankability
• A Select group of stars who can guarantee a film’s
international success on the strength of their name alone.
• Bankability is the ability of a star’s name to: raise money
for a film
- attract support from major studios
- pull in cinemas-goers at the box office
- Task: brainstorm a list of the world’s most ‘bankable’
actors.
- How many are women?
- How many are black/Asian?
- Select two and list 5 of their films? Were they all
successful?

14. Stars Involvement in Film’s Production
• Gives them greater control over their career.
• Sometimes it is they who get the script first and get
to choose who will direct the film.
• Example: Tom Cruise
• As well as being a huge ‘bankable’ star, Cruise is also
a producer with the influence to get film made.
• He co-produced ‘Mission Impossible 2’ and Minority
Report
• Cruise chose John Woo as Mi2’s director and JJ
Abram for Mi3.
• Stars are now a franchise or a brand rather than
actors.

15. What is a film distributer?
• An independent company, which secures the placement of a producers
film. Eg: Waner Brothers, Film 4, Lionsgate.
• “Distribution” refers to the marketing and circulation of movies in theatres
and for home viewing.
• Distribution is finding out the identify and deliver the largest possible
audience for a film.

16. What is a Film
Distribution?
A Film Distributor is either a company or individual that
advertises a film.
The term “distribution” is the marketing and circulation
aspect of movies in theatres.
Home viewing the best examples of this would be
through (DVD, Video-On-Demand, Download,
Television etc).
Attempt to sell it to theatres and television which
include terrestrial, cable and satellite, airlines.
The distribution may be done independently or
through other theatrical exhibitors.
Release date will be set along with where it will be
available for viewings.

17. What is the objective of
a Distributor?• The main objective to persuade exhibitor to buy the film, to
rent or book the film for a short time at their cinema.
• The distributor will set up industry screenings so that the
exhibitors have an idea of the film.
• other advertisement methods such as posters and videos
which can be done online or on television also.
• After the film is released the distributor’s take is how to
distribute the released film, this is usually done through
DVDs, Blu-rays, online streaming/downloading or via TV.

18. The process of Film
Distribution

19. c

20. What may the
Distributor consider?Some considerations:
• The first three days are important,
30% of films make their biggest profit
during these days.
• Enough advertisement as been done.
• Target audience what age and what
gender will want to watch the film.
• The ideology, genre, characters and
settings so they can base this around
attracting the audience to the film?
• Will the film deliver and justifies the
cost and risk of a theatrical release?
• What type of audience have been
attracted by similar films?

21. Considerations
continued• What competition Is there competition Will this
effect the profit?
• Which films are being released at the same time?
• Are the other films of a similar target audience?
• Will there be any need to change the dates of
release because of competition?
• Star Power-
• Is there any star power among the cast?
• What were the leads stars last roles and how
successful were they?
• Will cast members be availed to attend a premiere
or for UK/ international publicity of the film.
• Is the film made by a well known director? So that
they can use this as promotion.

22. Different
films and
screenings?
• Different films have different
releases in varied ways, the size
and profit of the film depends on
what kind of film it is.
• Films receive the largest screens
and profit.
• Foreign films normally have
smaller screenings and
sometimes even go straight to
DVD.
• 2/3 of the films in France are
French films, it gives the French
film industry more of a chance to
make larger profit.

23. Buyers Involved…
• Distributors
EROS ENTERTAINMENT -- B.O.: $6.6 million
YASH RAJ FILMS -- B.O.: $4.3 million
BIG PICTURES -- B.O.: $3.7 million
• Exhibitors
BIG Cinemas
CineMAX
PVR Cinemas
INOX

24. Buyers Involved…
• Satellite Rights
• SET Max aired two of the film industry’s
biggest hits, 3 Idiots and Rajnikanth’s Robot,
and also Band Baaja Baraat
• Star Gold has the rights of SRK’s Ra.One,
Zoya Akhtar’s Zindagi Na Milegi Dobara,
• Zee Cinema will screen Shaitan and Pyar Ka
Punchnama
• Music Rights

25. Indian Film Industry Size

26. Current Market Situation
• Bollywood is the largest
film producer in the world.
They produce roughly
1000 movies a year.
Hollywood only produces
500 and Japan produces
400 movies a year
• The Bollywood industry
had a revenue of US$ 2.5
billion in 2008, and has
been growing at approx.
9% a year. The revenue is
expected to reach US$
4.1bn by 2013

27. Bodyguard
• Release date : August 31, 2011
• Release ( In India) : 2,250 screens in 70 Indian cities
( Abroad ) : 482 prints
• Budget: Rs 60 crore
( Marketing and Print Budget ) : Rs 22 crores(
marketed by Reliance Entertainment)
• Box office : 215 crore

28. • Distribution ( In INDIA): Reel Life Production
Pvt. Ltd, was bought by Reliance
Entertainment for 64 crore. This earned
Reliance the co-producer status and an
equal share in the IPR for perpetuity
( ABROAD) : Released in Dolby
Surround 7.1
• Soundtrack :The music rights were sold to T-
Series for 6 crore.
• Satellite Rights : STAR network for 27 crore

29. • Release date : September 10 , 2010
• Release ( In India) : 1,584 screens
( Abroad ) : 300 screens (screened
in Norway at an international film festival)
(DVD & VCD launch) : Reliance Big Home
Video ( 12th October , 2010)
( Internet release ) : YouTube ( 28th
January , 2011 )
• Budget: Rs 42 crore
Dabangg

30. • Box office : Rs 213 crore
• Distribution ( In INDIA): Shree Ashtavinayak
Cine Vision Ltd
Arbaaz Khan Productions
( ABROAD) : Released
in Dolby Surround 7.1
• Soundtrack :The music rights were sold to T-
Series for Rs 9.5 crore.
• Satellite Rights : Pre owned by COLORS

31. ZINDAGI NA MILEGI DOBARA
• Release date : July 15, 2011
• Release (worldwide) : 1800 screens
( game launch) : Launched by Jump Games on ‘
La Tomatino Fest ‘
( tie-ups) : Excel Entertainment tied up
with Aircel to make the promos of the film available on
mobile and Internet

32. • Box office : Rs 145 crore
• Distribution : Eros International Media Ltd.
Excel Entartainment
• Soundtrack : Sold at Rs 7 crores to T-
Series ( Released on June 3, 2011 )
• Satellite Rights : Rs 31 crore

33. • Release : 13 July 2011 (2011-07-13) (International)
15 July 2011 (2011-07-15) (United
Kingdom &
United
States)
Special edition DVD as well as a fullscreen
and a widescreen edition of the film released in
2007.
• Budget: $250 million
Harry Potter and the deathly hallows -2

34. • Box office : $1,324,180,123
• Production: Warner Bros.
• Soundtrack and DVD: Blue Ray-$20-40.
• Copyrights : The rights for the first four
novels in the series were sold to Warner
Bros. for £1,000,000 by J. K. Rowling.

35. Paa
• Release date : December 4, 2009
• Budget: Rs. 15,00,00,000
• Box office : Rs. 39,00,00,000
• Distributors- Reliance big pictures
MAD Entertainment Ltd.
Amitabh bachchan corporation.
• Soundtrack : Owned by T- series