Why a Professional Movie Budget by a Line Producer is a Film Finance Requirement

Why is a professional movie budget by a line producer a film finance requirement?

For anyone living under a rock the last few years it should be extremely evident that the financial world was rocked, stirred and shaken.  As it begins to recover certain truths have emerged:

1. Scrutiny – Finance sources are under more pressure than ever to engage in more intense scrutiny of investments than ever before.

2. Risk Aversion – Capital markets have adopted a new risk aversion that makes the past laughable and seemingly like wild party days.

3. Return on Investment (ROI) – Investors were smacked over the last four years.  They want, rather need to see a strong return on investment.

For these three main reasons alone the intensity of the importance of a movie budget created by a professional line producer is critical.  Film financing today demands a fresh look at the markets for film distribution and correspondingly the true cost of the film budget associated with the expenditure of their funding.  A movie budget must be created with experience, be detailed, accurate and created by a veteran producer with extensive experience analyzing every aspect of the production.  No formulas, templates, sample film budget or software program can inject the knowledge of a production manager scrutinizing every detail, parameter, contingency and aspect of the movie budget that investors would expect them to have undertaken.

Filmmakers should be prepared, invest in themselves and present their investors and lenders with qualified, professional film budgets for analysis.  Shortcuts most often lead to dead ends.

Jack Binder

Producer

FilmBudget.com

Summer 2012 Studio Tentpole Film Budget List

Summer 2012 is shaping up the be the summer of the most expensive blockbuster production film budget expenditure of all time.  With the Major Hollywood Studio’s revenues on decline the ‘Tentpole’ movie with its enormous budget is seen by the bean counters as the certainty in a changing and declining revenue landscape.   As digital proliferation of films, piracy, the economy and falling dvd sales take their toll on the bottom line the studios and larger indie production companies like Lionsgate / Summit are betting big on the VFX / CGI laden popcorn, super-hero action movie like never before, clearly.

With a continually more fragmented audience, growing cable channel line-ups and expanding reality television programming it has likewise become increasingly more difficult to reach the fans to put ‘bums in seats’.  Part of the calculations certainly must include the broad reach of the superhero, sequel, ‘based on the television series…boardgame…’ franchise which aids in the marketing of these productions.  Utilizing the convenience of familiarity the bet is on recognition factor.   Not detailed in the proliferation of newsworthy budget figures are the massive amounts being spent to promote these behemoths and guarantee the return on investment at this massive scale.

Summer 2012 Studio Tentpole Film Budget List:

The Lorax                                  $70,000,000

John Carter                              $250,000,000

Hunger Games                          $80,000,000

The Avengers                          $220,000,000

Battleship                               $200,000,000

The Dark Knight Rises             $250,000,000

Men In Black III                      $215,000,000

Prometheus                            $200,000,000  (rumored)

The Bourne Legacy                 $90,000,000 (unconfirmed)

Total Recall                           $200,000,000

* Film budgets are gathered from available industry trade data, news articles and published reports.  Actual film budgets are intentionally guarded secrets by the studios and released, confirmed or denied for marketing and/or corporate rationale and should always be taken with a good dose of scrutiny as to the actual figures.

By Jack Binder

Film Budget | European Film Festival in China 2011

EUROPEAN FILM FESTIVAL IN CHINA

Europe is marketing its movies to China and apparently, the Chinese are loving it!

Such is the success of the annual European Union Film Festival in China that the event, which is now its fourth year, could be expecting greater numbers than ever before!  Last year, the event expanded to showcase films in three Chinese cities and according to EU Ambassador Markus Ederer, the number of moviegoers increased from 5,000 attendees in 2008 up to 13,000 in 2010.

What: European Union Film Festival

When: November 1^st – 30^th 2011

Where: Beijing and two other cities in China (TBA)

The film festival, organized by the Delegation of the European Union to China and supported by the Embassy of Poland,  invited all 27 EU Member States to showcase one recent, popular and successful film.

The organizers of the festival hope that the event will increase the appreciation of European films and culture among the Chinese, hence paving the way for the possibility of importing European movies into China in the future.

The films screened at this year’s festival include a diverse mix of local flavors and a wide-range of genres from comedies and dramas to documentaries. Moviegoers can view their films of choice in commercial theatres as well as in cultural institutions.

Among this year’s selections are some of the following European picks:

France – “The Piano Turner”

Denmark – “Aching Hearts”

Italy – “20 Cigarettes”

Portugal –  ”Beauty and the Paparazzo”

Each film is screened in its original language with English and Chinese subtitles.

Meanwhile, the European Film Academy has unveiled its nominations for the 2011 European Film Awards. You can see a full list of the nominees on their official website – www.europeanfilmacademy.org

Winners will be announced in a December 3^rd ceremony in Berlin.

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Film Budget | The international leader in worldwide film budgeting and scheduling production services for film finance, production incentives and film tax credits.

FilmBudget.com

Foreign Sales Agents and Film Finance Recommend a Custom Film Budget by an Expert

As Cannes kicks off it is again quite clear the message coming from the foreign sales agents and the film finance people. Consistently the message to producers is for them to obtain a quality, custom and accurate film budget and schedule from a hand crafted screenplay breakdown created by a seasoned line producer.

As foreign sales prices continue to fall and the dvd market shows further weakness, the clear implication is that the film budget must be reevaluated for todays economic reality. Early on the producers representatives are likewise insisting that they become more involved in the film budgeting process to ensure the filmmakers create a film budget and schedule that reflects the commercial aspects that the movie must achieve to gain financing.

FilmBudget.com is the international leader in worlwide film budget and schedule production services since 1997. Producing feature film and television productions since 1986, Producer Jack Binder is an expert in the field of studio and independent feature film and tv film budgets and schedules.

Top 10 Movies with the Highest Film Budget

The top ten movies that have the highest film budget for their production costs are listed below.  These production costs do not included marketing, finance costs, prints and advertising (P&A) or distribution costs.  The figures represent production film budgets only.

Top 10 Movies with the Highest Film Budget

Film                                                                Film Budget         Release Date

1. Pirates of the Caribbean: At World’s End       $300 Million            2007
2. Tangled                                                       $260 Million            2010
3. Spider-Man 3                                               $258 Million            2007
4. Harry Potter and the Half-Blood Prince          $250 Million             2009
5. Avatar                                                        $237 Million             2009
6. The Chronicles of Narnia: Prince Caspian      $225 Million            2008
7. Pirates of the Caribbean: Dead Man’s Chest  $225 Million            2006
8. X-Men: The Last Stand                                $210 Million            2006
9. Superman Returns                                       $209 Million            2006
10. King Kong                                                   $209 Million            2005

The numbers above are estimates of the film budget for the specified motion pictureproduction.  The production film budgets listed are sourced

from publicly available information including Variety, The Hollywood Reporter and IMDB.
FilmBudget.com

How Do I Get a Film Budget?

For many years it was not readily known how one goes about getting a film budget for their movie production.   Jack Binder, Producer of ‘Reign Over Me’ and ‘The Upside of Anger’ realized a gap in this realization back in 1997 and sought to make available for fellow filmmakers a film budget process whereby they could get a film budget for their project.  Jack Binder created the first online film budget production service.

Jack continued to evolve the concept but the basic working structure was that a film budget would be required in order for a director, actor, writer or producer to embark on obtaining film financing for their film production.  By using his extensive experience in creating motion pictures and likewise film budgets for all of his movies and television shows, Binder realized that he should have a ready answer for the many co-production partners, film finance executives, bank lenders and major studio executives who were approaching him about creating a film budget and schedule for their productions.

Finally it really hit home when reworking a film budget over and over again, that it became very evident that the process and knowledge involved was fundamental to receiving that elusive of all treasures, the Greenlight.  Through an ability to respond to questions and by knowing his film budgets inside and out, and through meticulous film budgeting experience Jack was able to remove the obstacles to getting the film into production.

Contact Filmbudget.com for an accurate and proven film budget for your production – and get that greenlight!

Michigan Film Tax Incentives Economic and Fiscal Impact Report

Ernst & Young just released their analysis of the film tax incentives program in Michigan.    It is titled “Economic and Fiscal Impacts of the Michigan Film Tax Credit” February 2011.

The report was commissioned by the Detroit Convention and Visitors Bureau, Grand Rapids, Ann Arbor and Traverse City, Michigan organizations.

The Fiscal Impact Report clearly states what the proponents have been stating:  the film tax incentives work, creating a thriving and job creating industry.   The Michigan film industry has grown enormously since its creation in 2008.    The study finds an economic output ratio of $6 of activity for every $1 of film tax credit.  This has translated into an $812 Million successful return for the State of Michigan on a net outlay of $127 Million.    The incentives have created over 6,000 jobs and attracted major feature film and television production to a state badly in need of investment.

Read the entire Ernst & Young “Fiscal Impacts of the Michigan Film Tax Credits” report.

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Apple Itunes Leads 2010 Internet Film Consumption

Apple Inc.’s ITunes media store ended 2010 as the online go-to destination for electronic sellthrough, or EST, and Internet-based video-on-demand, according to a new report.

IHS Screen Disgest reported that ITunes held off challenges from Microsoft’s Zune Video (via Kinect 3D motion-control launch), Sony Playstation Store, Amazon VOD and Walmart’s Vudu as the EST/iVOD market increased more than 60% from 2009.

Read the full Home Media Magazine article

FilmBudget.com – Film Budgets for Professional Filmmakers

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BAFTA Awards: British Academy of Film and Television Arts 2011

The Orange British Academy Film Awards announces its nominees for 2011.

The BAFTA Awards is scheduled to take place on Sunday, February 13th, 2011 at London’s Royal Opera House.  Celebrities and the stars behind the scenes are going to be attending and receiving awards for their work in 2010.

The Orange British Academy Film Awards is an annual event set to recognise, reward and honor individuals for their outstanding achievements in feature films that were released theatrically to a paying audience in the UK within the awards year.  Further eligibility requirements can be found on their website.  The event is put on by the British Academy of Film and Television Arts (BAFTA).

BAFTA’s primary activities revolve around staging award ceremonies for the UK and Internationally.  It is a charity with close to 6500 members within its organization and was originally set up to advance and promote education via its events, whose aim is to create and clarify the public’s taste in the television, film, and gaming industries.

Through two rounds of voting of its members they have compiled the following nominees for the British Academy of Film and Television Arts:

For BEST FILM

BLACK SWAN – Mike Medavoy, Brian Oliver, Scott Franklin

INCEPTION – Emma Thomas, Christopher Nolan

THE KING’S SPEECH – Iain Canning, Emile Sherman, Gareth Unwin

THE SOCIAL NETWORK – Scott Rudin, Dana Brunetti, Michael De Luca, Céan Chaffin
TRUE GRIT – Scott Rudin, Ethan Coen, Joel Coen

For BEST DIRECTOR

127 HOURS – Danny Boyle

BLACK SWAN – Darren Aronofsky

INCEPTION – Christopher Nolan

THE KING’S SPEECH – Tom Hooper

THE SOCIAL NETWORK – David Fincher

For BEST LEADING ACTOR

JAVIER BARDEM – Biutiful

JEFF BRIDGES – True Grit

JESSE EISENBERG – The Social Network

COLIN FIRTH – The King’s Speech

JAMES FRANCO – 127 Hours

For BEST LEADING ACTRESS

ANNETTE BENING – The Kids Are All Right

JULIANNE MOORE – The Kids Are All Right

NATALIE PORTMAN – Black Swan

NOOMI RAPACE – The Girl with the Dragon Tattoo

HAILEE STEINFELD – True Grit

For BEST SUPPORTING ACTOR

CHRISTIAN BALE – The Fighter

ANDREW GARFIELD – The Social Network

PETE POSTLETHWAITE – The Town

MARK RUFFALO – The Kids Are All Right

GEOFFREY RUSH – The King’s Speech

For BEST SUPPORTING ACTRESS

AMY ADAMS – The Fighter

HELENA BONHAM CARTER – The King’s Speech

BARBARA HERSHEY – Black Swan

LESLEY MANVILLE – Another Year

MIRANDA RICHARDSON – Made in Dagenham

For a complete list of Award Nominees for the Orange British Academy Film Awards, you can visit:

http://www.bafta.org/awards/film/2011-film-awards,1572,BA.html#jump11

For location and transportation information regarding visiting Londons Royal Opera House, please visit http://www.roh.org.uk/visit/locationandtransport.aspx to help find your way to this extraordinary event.

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MARCHE’ DU FILM – FESTIVAL DE CANNES – THE CANNES FILM MARKET

The Marché du Film – Festival de Cannes | The Cannes Film Market – The Cannes Film Festival

The Cannes Film Festival’s marketplace for the cinema industry

When:   11 May to 22 May 2011

Where:  Cannes, France

Who:     Jérôme PAILLARD is the Executive Director for the Marché du Film

Website:   MARCHE’ DU FILM

The Cannes Film Festival is one of the world’s most prestigious and oldest film festivals. The private event is held annually in the month of May at the Palais des Festivals et des Congrès in the resort town of Cannes, south France.

Last Year’s President of the Jury for the 2010 Cannes Film Festival was American film director Tim Burton.  This year, the 64^th edition of the Festival is scheduled to be held from 11 May to 22 May 2011. The President of the Jury is American actor Robert De Niro.

The Cannes Film Market  |  Marche’ du Film

One of the Festivals annual events is the Marché du Film, which also gathers at the Palais des Festivals et des Congrès simultaneous to the Film Festival.  The Marché du Film is a hot-spot for buyers, distributors and producers for the ten day slot, dedicated to meetings and negotiations.   Global film productions engage here to obtain film distribution, film finance and foreign sales territory by territory.

This unrivaled international event allows for all professionals to develop their projects, establish co-productions and partnerships, and present their latest news.  The Marché du Film has been facilitating such exchanges, along with other buyers and sellers of the film industry since 1959, making it a major international platform for film commerce.    Producers prepare their film budgets for investors and distributors to engage in the film finance contributions to the film production.

Foreign sales companies set up shop and show their upcoming film productions, completed films and projects in development.   Many screenings take place during the Marche’ in conjunction with the Cannes Film Festival itself.  Filmmakers seek to show their films and also to finance their movie budget by raising awareness.  Film distributors are also out in force looking for the next hit film and demonstrating their current line up of films, and to find the right projects at the right film budgets to fund for their film slate of pictures.    About 10,000 persons participate with over 400 exhibitors at the Cannes Marche’ du Film – Cannes Film Market at the Cannes Film Festival.

Likewise the stars come out in force to lend their promotional support for the movie projects they are either attached to or have performed in previously.   Directors as well attend and in conjunction with the other talent help raise interest, awareness and film budgets and worldwide distribution for their movies.   Press junkets are common and the glamour of Hollywood movie stars is a welcome addition to the proceedings at every stage.

The Marché du Film, in the words of Gilles Jacob, President of the Cannes Film Festival, is “a hive of activity”, focused on the prosperity and achievements of quality cinema.  The Festival de Cannes would not be the same today without the Marché du Film.  It’s an exceptional and efficient meeting place of the cinema world, uniting artists with professionals and the media, on the French Riviera.

Maps, Transportation and Accommodation, Information

In order to participate in this coming years Marché du Film, you can book your screenings and register your company online commencing February 2011 Click Here.

Movies produced prior to 2008 and those that were already screened at a prior Marché du Film will not be accepted.

For information concerning short films, please contact the Short Film Corner at:
www.shortfilmcorner.com
email: sfc2010@festival-cannes.fr

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