Pp9 financing films (1)


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Pp9 financing films (1)

  1. 1. Financing Films
  2. 2. Film Financing <ul><li>The producer (e.g. the studio or Production Company) must secure funding before the production of the film, before filming starts. </li></ul><ul><li>The problems with this is that it is hard to predict how much (if any) money a film will make. </li></ul><ul><li>Thee are various legal and procedural problems in securing rights to a film property. </li></ul>
  3. 3. Government Grants <ul><li>Grants are provided by Government Schemes designed to encourage creativity and new talent. </li></ul><ul><li>A film production can benefit a country in a number of ways: </li></ul><ul><ul><li>Employment opportunities </li></ul></ul><ul><ul><li>Development of Culture </li></ul></ul><ul><ul><li>Advertising a location to an international audience. </li></ul></ul>
  4. 4. Government Grants <ul><li>The UK Film Council offers subsidises to filmmakers in the UK meeting certain criteria. </li></ul><ul><li>The National Lottery also offer subsidises and grants to UK-based filmmakers. </li></ul><ul><li>The Escapist (2007) Parallel Films was funded by the UK Film Council, National Lottery and Irish Film Council. </li></ul>
  5. 5. Tax Schemes <ul><li>As mentioned before, there are benefits to a country in having a major film release shot on their shores. </li></ul><ul><li>The UK introduced the Producer’s Tax Credit in 2007 to help entice film producers to the UK. </li></ul><ul><li>The Producer’s Tax Credit offers a direct cash subsidy to producers choosing to shoot in the UK. </li></ul><ul><li>This has helped to bring large scale productions like to the UK. </li></ul>
  6. 6. Tax Shelters <ul><li>Tax shelters in the UK allow those who invest in UK Films to pay less tax, provided the film is shot in Britain and employs a far proportion of British Actors and crew. </li></ul><ul><li>As a result of this, many American Films choose to shoot at British Studios such as Pinewood and Shepperton. </li></ul><ul><li>This also helped to attract large scale US productions to the UK. </li></ul><ul><li>The UK Tax Shelter for Film Investment was discontinued in 2007. </li></ul>
  7. 7. Pre-Sales <ul><li>Pre-Sales involves the producers selling the right to distribute the film before it is made – this is the most common method of Film Financing. </li></ul><ul><li>In order to secure their investment, distributors (usually Major American studios like Universal) will expect certain elements that are likely to guarentee success. </li></ul>
  8. 8. Pre-Sales <ul><li>These may include ‘Marquee’ names (Star System) or some kind of change to a film to make it more commercially tenable. </li></ul><ul><li>If a ‘Star’ leaves the film for any reason, this would often result in the funding for a film being pulled, as with Terry Gilliam’s ‘The Man Who Killed Don Quixote’ (2002) </li></ul>
  9. 9. Pre-Sales <ul><li>Pre-sales are usually done by territory; e.g. Europe, Australia… </li></ul><ul><li>Pre-Sales can also be made of DVD or TV Distribution Rights </li></ul><ul><li>This is especially likely to be the case if the movie studio distributing the film is part of the same conglomerate as a TV Station. </li></ul>
  10. 10. Working Title Films <ul><li>Tim Bevan and Eric Fellner (Working Title CO-Chairman) have said for a long part of their history ‘90% of the time [was] spent trying to secure financing.’ </li></ul><ul><li>Working Title Films funds their films primarily through Pre-Sales, which is made much easier as they are part of the same conglomerate as their distributor, Universal Pictures. </li></ul>
  11. 11. Working Title Films <ul><li>Working Title Films are also able to secure Pre-Sales because their films contain many ‘commercially sound’ elements: </li></ul><ul><ul><li>Popular main stream genres (Rom-Com) </li></ul></ul><ul><ul><li>Big name stars (Hugh Grant, Julia Roberts) </li></ul></ul><ul><ul><li>Brand name recognistion </li></ul></ul><ul><ul><li>They are also increasingly known as ‘Prestige’ filmmakers, with films such as Atonement (2007) </li></ul></ul>
  12. 12. Warp Films <ul><li>A small, independent company such as Warp Films cannot offer secure returns on any large investments, as they do not make films featuring ‘Marquee’ names </li></ul><ul><li>As a result, they are likely to secure funding from sources like the National Lottery or the UL Film Council. </li></ul>
  13. 13. Warp Films <ul><li>This lack of funding may mean that such companies can only make films in ‘low-budget genres’ such as ‘social realism’, as they cannot afford the effects and casts of genres such as Sci-Fi </li></ul><ul><li>However, this is not necessarily a limitation – low budget films of this kind are often seen as more artistically pure’ and are perhaps more likely to receive Critical Acclaim. </li></ul>
  14. 14. The British Film Institute (BFI) divides films into the following categories. <ul><li>Category A: films made with British money, personnel and resources. </li></ul><ul><li>Category B: films co-funded with money from Britain and from foreign investment, but the majority of finance, cultural content and personnel are British. Category C: Film with mostly foreign (but not USA) investment and a small British input, either financially or creatively. </li></ul><ul><li>Category D: films made in the UK with (usually) British Cultural content, but financed fully or partly by American companies. </li></ul><ul><li>Category E: American films with some British involvement. </li></ul>
  15. 15. I.S Hand in next Monday <ul><li>Develop a case study into </li></ul><ul><ul><li>The Boat that Rocked </li></ul></ul><ul><ul><li>This is England </li></ul></ul><ul><ul><ul><li>Release date/Primary audience? </li></ul></ul></ul><ul><ul><ul><li>How were these films financed? </li></ul></ul></ul><ul><ul><ul><li>What was the BFI film classification and why? </li></ul></ul></ul><ul><ul><ul><li>Who distributed them? </li></ul></ul></ul><ul><ul><ul><li>Success? </li></ul></ul></ul><ul><li>Be as detailed as you can </li></ul>