The document summarizes the first stage of film production, development. It describes how a producer acquires a property like a screenplay or treatment, options it to secure exclusive rights, then seeks financing through development funds from investors in exchange for ownership percentages. With financing, the producer hires writers, attaches a director and actors if possible, and creates an investment package with a budget, profit projections, and bios to attract further funds to move the project into pre-production.

1. TThhee 55 SSttaaggeess ooff PPrroodduuccttiioonn::
SSttaaggee 11 -- DDeevveellooppmmeenntt
Created by John Grace
Film Instructor and I.A.T.S.E. Member
DATA Charter HS, Albuquerque, NM
Offered under a Creative Commons License

2. TThhee 55 SSttaaggeess ooff PPrroodduuccttiioonn
• Development
• Preproduction
• Production
• Post Production
• Distribution

3. TThhee 55 SSttaaggeess ooff PPrroodduuccttiioonn
• Development
• Preproduction
• Production
• Post Production
• Distribution

4. DDeevveellooppmmeenntt
• Development

5. DDeevveellooppmmeenntt
• Development starts with a PPrrooppeerrttyy. A
property is a SSccrreeeennppllaayy, a TTrreeaattmmeenntt or a
SSyynnooppssiiss of a SSttoorryy CCoonncceepptt.
 Screenplay (90 to 120 Pages)
 Treatment (10 to 30 Pages)
 Synopsis (1 to 5 Pages)
• When a PPrroodduucceerr locates a Property he
wants to produce, he OOppttiioonnss it. An Option
is an exclusive right to market a project.

6. DDeevveellooppmmeenntt
• To Option a Property, the Producer pays
the Screenwriter an agreed amount of
money to own the CCoonncceepptt for a specific
amount of time. This can vary from $1 to
thousands of dollars for a 1-2 year option.
• If the Producer secures the funding to
produce the film, the Producer will
EExxeerrcciissee hhiiss OOppttiioonn by paying the writer for
the script according to WWGGAA GGuuiiddeelliinneess.

7. DDeevveellooppmmeenntt
• Writer’s
Guild of
America
(WGA)
Guidelines:

8. DDeevveellooppmmeenntt
• The preceding excerpt of the WGA
guidelines are taken from their website:
http://www.wga.org/uploadedFiles/writers_resources/• The range is based on the relative budget
of the film, the experience of the writer and
the WWrriitteerr’’ss AAggeenntt’’ss ability to negotiate.
• Well-known writers often make hundreds
of thousands to millions of dollars for a
single original screenplay.

9. DDeevveellooppmmeenntt
• Development can be an expensive
process and producers often look for
Investors to provide DDeevveellooppmmeenntt FFuunnddss
in exchange for a fixed percentage of
ownership in the Project.
• This early money is very speculative but
holds the potential for greater return.
• The industry term for any investment is
“OPM” or OOtthheerr PPeeooppllee’’ss MMoonneeyy.

10. DDeevveellooppmmeenntt
• The Producer pays the writer or hires
another writer to write or RRee--wwrriittee the
Screenplay.
• The next step in Development is locating
a DDiirreeccttoorr who matches the film’s Genre
and who might provide a LLeetttteerr ooff IInntteerreesstt
or a LLeetttteerr ooff IInntteenntt for the project.
• In addition, the Producer tries to secure
Letters of Interest or Intent from AAccttoorrss.

11. DDeevveellooppmmeenntt
• A Letter of Intent - often referred to as
“PPllaayy oorr PPaayy” deal is a legally binding
commitment to participate in a film project
• A Letter of Interest is not legally binding
and usually says something like “X is
willing to play the part of Y in film Z if his
schedule allows and if the money is right.”
• The Letter of Intent is the only option that
has any real value to savvy IInnvveessttoorrss.

12. DDeevveellooppmmeenntt
• The bigger the names Attached to the
project, the more attractive the investment
and the more money that will need to be
raised to get the Project off the ground.
• This can be a very time consuming part of
the project with attached names changing
for many months to several years.
• During the Option period, the Producer
creates a PPaacckkaaggee to help sell the film.

13. DDeevveellooppmmeenntt
• Investment Packages range from 10 to 40
pages and often include a Synopsis and/or
a Story Treatment, a PPrreelliimmiinnaarryy BBuuddggeett,
PPrrooffiitt PPrroojjeeccttiioonnss, AAppppeennddiicceess with
information on similar films and short BBiioo’’ss
of the Director, Actors and Producer.
• Packages are often extremely polished
presentations containing professionally
produced charts and artwork.

14. DDeevveellooppmmeenntt
• Film Package
or IInnvveessttmmeenntt
PPrroossppeeccttuuss

15. DDeevveellooppmmeenntt
• Next, based on the attachments, the
Producer creates a PPrreelliimmiinnaarryy BBuuddggeett to
show the investors what the film will cost.
• Also included in the Package are PPrrooffiitt
PPrroojjeeccttiioonnss of what the film might make in
both domestic and foreign sales.
• Profit Projections are mathematical
calculations of what similar films might
have made if they had your
director/actors.

16. DDeevveellooppmmeenntt
• FFiillmm BBuuddggeett
TToopp SShheeeett
A Top Sheet is
a one-page
overview of the
Budget.

17. DDeevveellooppmmeenntt
• …or very
specific based
on the actual
preliminary
budget.

18. DDeevveellooppmmeenntt
• The final element in most Packages are
short biographies of the Director, the
Actors and the Producers who are
Attached to the Project.
• Once the Producer has secured the
Investment Capital to produce the film, the
project moves into Pre-Production.
• Following is a link to a well-done package:
http://www.slideshare.net/DanielElder/a-house-divided-prospectus-

19. TThhaannkkss ffoorr YYoouurr AAtttteennttiioonn