Advertisement
The Context of Innovative Film Finance
(Page 2)
So What Does All This Mean For The Independent Moviemaker?
When talking to people about investing in your film, or what everyone knows is likely a very dumb investment, you’ve got to understand the context of film investment and the other investment opportunities afforded these investors. Be smart and know how to put together the right investment presentation that will give you the very best chance to succeed. The right presentation, for one, requires not just an understanding of risk and reward but also an understanding of the lessons learned regarding risk diversification—namely, that it can be “less” risky to raise money for a slate of independent films than it could be for one film. Yet, how hard is it to raise money for even one film? Well, it took the Coen brothers three long years to find the $250,000 it took to make Blood Simple—and it took more than 40 investors to raise it. The reality of anything on the level of a “true” independent film with a possibility to be sold is slim, simply because production values are not likely to be competitive in the marketplace. So manage your expectations and those of your investors, because any hopes of another The Blair Witch Project or El Mariachi will have to rest on the notion that you are trying to make a phenomenon, not a film.
Many dollars are spent by distributors to increase the production values of independent films to release level, and how many totally unknown independent films are there for every Blair Witch or El Mariachi released into the market? In today’s world it’s likely going to take you close to $1 million to give you the ability to put together a team of professionals both in front of and behind your camera to make and market a feature film with the chance at distribution sales to make financing a film more plausible, although not necessarily more easy.
There are other hurdles too, like dealing with the age-old question of “What happens to an investor’s money if you do not finish the movie?” Completion bonds are another discussion, but it’s safe to say it is one under the realm of risk diversification, making them an essential consideration for any moviemaker looking to make a serious independent film.
Raising private financing for an independent film presents enormous challenges but by all means, not insurmountable ones. There are many artists who are meeting these challenges every day—including many who lack the storytelling and moviemaking skills to fully realize the fruits of their labor. It’s these skills, together with an understanding of the context of film investment, that make the art of film finance all the more “scientific” to defy reason and continue to attract either smart or dumb money to the business. In the end, it will be the most imaginative and compelling stories that will attract capital and inspire moviemakers to develop the most innovative of ways to secure it.
Nelson Gayton is the managing director of The Wharton Media & Entertainment Initiative, a global “think tank” for knowledge development in the media and entertainment industries. In this role, he manages all industry relationships for the school, including the development of an experiential and interdisciplinary curriculum in partnership with industry sponsors. Gayton also continues to serve as a general partner for Crayon Ventures, a venture management firm with interests in entertainment, technology and education. He remains a frequent speaker, panelist and jury member at film conferences, festivals and universities, including UCLA and NYU.
Digg
StumbleUpon
Facebook
Del.icio.us
Reddit
YahooAdvertisement
COMMENTS | POST A COMMENT 
- Comment by Personal Finance on 10/04/08 at 3:24 am
I’m really impressed with your article, my friend will be so exciting to read that. Thank you for sharing, I really appreciate that.
This story was sponsored by
This story was published in the Guide to Making Movies 2007 MovieMaker Magazine. The headline was:
Dumb and Dumber/The Context of Innovative Film Finance
Order this issue | Subscribe to MM
Latest from the blog:
Cadillac Records Premiere to Benefit Phoenix House
Every now and then the glitz and glamour of the red carpet gets to be something more than just a flashy excuse for a new outfit or a ride in a limo, allowing the superficial side of moviemaking (pose for the camera!) to become something of substance, something more akin to the reason why a movie is made. With the New York and Los Angeles premieres of Cadillac Records, a period piece centered upon Leonard Chess (played by Adrien Brody) and the lives of the blues and soul artists who were part of his Chess Records label, the red carpet gets to do just that.
Posted 11.21.08 | News/Commentary | No comments yet...
Other recent posts:
In Theaters Now: Twilight, Bolt, Special
Notes from Movieland: Do It Yourself Distribution - Part II
Gotham Independent Film Awards Series Comes to NYC
Posts people are talking about:
SITE DELIVERY OPTIONS
