ULTIMATE FILM FINANCING

1. Course Preview: if you ask filmmakers what is the most important subject pressing them Today, nine out of 10 will answer film financing. How to approach it, how to talk to it, how to secure it. That's why I created automate film financing, where we'll go over several tools and subjects that are at the center of film financing. I hope you will use this knowledge to push yourself and your projects further so they can finally take off. What I did here was to organize a great deal of knowledge in a systematic way. So things make sense. You save time in your project becomes more robust. My name is Paula Lady. You can find me in several markets and festivals I attend every year where I spend time with my friends, helped them in the development of their projects, make new friends and learn from them the knowledge I will be presenting to you over the following videos can be applied to any project fiction documentaries, General Art house at any budget. And if you have any questions about things I'm about to show you, please let me know and I'll be happy to answer them over this course. We will discuss important issues that are relevant to your financing your tasks during development, your financing plan, your financing options. Classes of financing. Where to find them. How to prepare a project for presentation. Your place inside the decision making process. Killer tools to help your project rise above the competition financing during production. Business plans teaching with perfection film funds packaging, networking in much more see you there. 2. Course Structure / A Complex System: - welcome to automate film financing. Thank you very much for having selected me to take you on this journey. Before we start, let's talk about the structure of the scores. As I'm sure you have noticed, we're going to be spending several hours together. I want you to understand how we're going to move here. First. We're going to talk about development. In my opinion, this is the most important stage of them all. And I want to make sure you understand it. Well, then we're going to walk through the other remaining stages and how important they can be to your financing. Third, I'm going to discuss the relationship between financing, distribution and talent. This will help you think about problems you may be facing with your own project. Then we're going to spend a lot of time exploring the different types of financing available to projects as well as your financing options. This will be a very interesting discussion because some options may or may not be a good match to your project. We're going to find out why there will be tons of examples here after this On number five, we're going to take a look at different financing plans. We'll see how they were constructed and why. On sixth, I'll explain how the money flows back to you in the risks to which you must pay attention. Finally, we'll discuss the structure of a business plan for a film or a film company. The reason why I adopt this structure is because a good understanding of these three parts will better prepare you to understand the financing part, because in reality, development and financing tend to go hand in hand. Once you understand your options, these three elements become much more easy to understand at any time. Feel free to ask me questions or schedule an online consultation with me. Let's start. I'm going to start by saying something that's very unpopular. Tell my God, this is going to be so unpopular. You will be angry at me for saying this. In fact, you probably won't believe me and you turn off these videos. But I assure you it is the truth and we have to face it. Are you ready for it? Here he goes. Film financing is not too difficult. This is the good news, and it is true for several reasons it looks and it feels difficult because young filmmakers are not trained to deal with the financing aspect of making films. We are trained to do other things, like writing, directing thousands of people on forums, talking about gear, what's the best camera? Or just talk about films? No few financing is always a subject people avoid because, well, no one wants to be depressed. Another reason is lots of people who know we always try to protect their financing sources and keep the knowledge to themselves. They feel they have an advantage, and they do so why share now in reality, once you managed to successfully finance one or two fumes on your own, then you start to understand the bigger picture, and you see that it's not that difficult now. I am not saying it is easy, since it demands a lot of effort on your part. But are you ready for the bad news? Here it comes, although from financing is not that difficult. It is extremely complex. That's the bad news, and as bad news, it is pretty bad. In fact, the perceived difficulty comes from the complexity of all the issues to which you must pay attention The complexity comes from a big number of variables you don't control, but play a big part on the financing of your film. Now you may ask, What's the difference? Well, this is difficult. This is complex difficulties based upon the amount of effort needed to answer a question silver problem or complete a task. It may be easy, or it may be hard. The harder it gets, the less people can do it. Difficult problems usually have one or two solutions few people can get there. Complexity relates to the kind of thinking, action and knowledge needed in order to answer a question silver problem or complete the task. And how many different ways are there to do this? Complex questions, problems and tasks often challenge and engage people to demonstrate thinking at higher levels to communicate strategic and extended thinking and show depth of knowledge. For example, if I ask you to list all the film festivals in Europe, that may be difficult. There are so many it will get harder if I ask you to list them according to their dates. The difficulty comes from the fact that there is only one order that is the correct one, and few people can get their That's difficulty. However, if I ask you to analyze why they prefer different types of films and to evaluate their impact on those films. That's much more complex than difficult because it challenges and engages you to think critically and establish an argument that defense or justifies such impact, supported by facts and information. The complexity of film financing means you have to always consider the many impacts of your decisions on other important things. Again, I'm not saying there is no difficulty. I'm not saying it is easy. Every endeavor that is meaningful and worthwhile has its difficulty. But where film financing is the real killer is in its monumental complexity. Underestimate its complexity and you will be dead. Understand that complexity and you will be on your path to production. You will need a deep capacity for evaluation, creativity, forward thinking, analysis and adaptability. Let's start by breaking down the life cycle of a film to its most fundamental stages. We will call them the six stages of an independent film. The first stage is called development. In my opinion, it is the most important stage of all, because everything your film will be will be a result off how well you developed it. A few moves like a skyscraper and just like a skyscraper, it true need years of time, lots of resources, people and decisions. You cannot to build it on. Send. You need a strong foundation. That's development. If you don't put enough money, creativity, effort and time into your development, your project will either collapse very early and not to be produced. Or, if you still manage to advance, expose flows that are impossible to fix. A careless, sloppy or difficult development means that the odds of success tends to be overwhelmingly against you. You may end up in development hell without even noticing it. Development hell is the place where 99.9% off all unproduced projects are. In fact, most independent projects are born straight into development. Help. Few makers try everything they can in order to get those projects produced. And yet production never happens, and they lack forever on people's desks, computers, conversations. And yet they seem to be unable to take off from development and fly into production. By the way, development hell has nothing to do with the quality of a project. In fact, several great films were at one point in development hell for a decade or more. This list includes films like Brokeback Mountain, Dallas Buyers Club and Watchman Watchman spent over 20 years in development Hell, it had different directors, different studios, different actors attached. And yet, for over 20 years it could not materialize. Was it a bad project? Of course not. But along those years, there was something not clicking and that kept blocking its production. The existence of a development hell is the ultimate proof of the extreme complexity of film financing, and we will come back to this issue later. But now let's focus on your development. Develop your project carefully and you get closer to turning the odds to your favor. If you do that, everything moves faster as you knock down barriers that keep you from going into production . As you move through development, you will be working simultaneously on four fronts. I call these fronts the filmmaker's personal war, and it will be war. We're focused on each of these four fronts on the next videos. It's going to be fun. See you there 3. Your Creative Battlefront. Part 1: Market Conditions: - on the previous video, I was talking about the importance of development, given the complexity of film financing, and it is true, your development is key to understanding all the elements that will be interacting with you as you try to move your project into production. As you start your journey through development, you will be working on four fronts. I call this the few makers personal war, and it is a war. Let's not sugarcoat this. You will be battling the elements, a market that saturated with films, fear risk piracy, bad films, good films, bad feelings that are being communicated and promoted as great films. Seriously, the market is a mess now. These are your four battlefronts. Creative, legal and financial packaging and your assets. The few makers personal war is fought on these four fronts. On this video, I'll be focusing on the 1st 1 creative for your creative development. There are a number of tasks you must perform in order to ensure you come up with the best project possible. Think of this tasks as your weapons against your enemy and your enemy is called indifference. That's your enemy. That's the army you want to destroy you want a project that we will leave No one indifferent Distributor's sales agents? Financiers You want to capture their attention? Trust me, you cannot afford indifference. So here's your first task to analyze market conditions. Keep in mind that with some luck, if you start developing today, there's a big chance the entire process of development, financing and everything will take four years until you start shooting. Four years is not a long time for a first or second feature. We will discuss later ways of bringing that down. But keep in mind that four years is a very reasonable time. Here's an example. Devoid was released in 2000 and 16. Well, I met the few makers in 2000 and 13 when they were presenting the fumes in Montreal trying to finance the project, and they did have an amazing project back then. Now, to get to that point, they already had one year or two of creative development behind them. Now, analyzing the market conditions is very important precisely because lots of things will change in three years, four years, or how long it takes to get you into production. Ideally, you want to check the post of the market constantly and see if your project makes sense now , one year from now or five years from now. So the first question is, this is the fume, um, trying to make in tune with the market. Is there anything similar that's been produced recently? Is your film the kind of film that's already been done? Why do you think the market wants your film, or why don't they want your film? What can you do to change that? These are hard questions to which there isn't really just one answer. That's why it is so complex. Another question you must ask yourself is, What value does this project to bring to a saturated market? The reality is that no matter what film you're making, there is a high probability that there are already similar films in the market. Digital technology made the process of making a film so cheap that even if you have a great project, still you'll be fighting just the noise they make. Because of that, it is very important that you define and understand exactly what value your film brings to the market. Question Number three is even more complex. Who would be dying to watch this film. Define your audience, describe them, make sure you know which films they love, considering that they will also love your film and why will they love your film? Producers, directors and screenwriters should discuss these issues because they can help you guide the creative process so the project don't end up lost. Drifting too far from your intentions, the clearer your audience is to you, the more you know them, the more convincing your entire project looks when it comes to financing. The fourth question looks simplistic, but it isn't. Is your project art house or genre? Don't kid yourself thinking it is everything to everybody. Yes, the frontier between General and Art House is fascinating and filled with great films, but there is always a predominance of one over the other. Selecting the strongest pool will help you select better partners for your financing. We will discuss this in more depth later. Of course, these questions will lead you to others, and you must reflect upon them because they will help you situate your creative work. This will lead us to your next task. Working your ideas. You are trying to develop the strongest project possible On the next video. We'll continue. See you there 4. Your Creative Battlefront, Part 2: Getting Feedback and Creating the Style: - working your ideas. You are trying to develop the strongest project possible, one that will conquer your enemy Indifference. Here are the questions you should be asking yourself. What great concept does this project contain? Of course not every project needs a great concept. For example, if you are making a documentary about lions on the Serengeti, there may not be a great concept there, but the question will always remain, if not a great concept. What do you have to offer? Another complex question. Only you can answer. What are the strongest elements I want this project to have. This is a very personal question is it's the brilliant performances. Is it the violence and gore, or is it a unique subject no one is expecting? Do I have strong characters? Do I have an unforgettable story? What makes your character strong? What makes your story unforgettable? These questions will come up time and time again. As you try to finance your project, you must have an answer for them. Do I have a great treatment? Do I have a great script? If there is any doubt on your mind that what you have is not great, continue your development and rewrite your script. Since financiers rarely read the same script twice, it would be foolish to show the market a script that's undercooked. You will be wasting everybody's time, and you will be wasting your chances. These four questions cover areas that are fundamental to your financing concept, production values, story and script. There is this silly urban myth that says that financiers are stupid and understand nothing of cinema, that they only care about money. Yes, they do care a lot about money, but they are far from stupid. In fact, the best financers have access to the best projects, the best talent, the best people. So they do know how to read, evaluate and judge projects. And even if the people making the decisions don't, I assure you they have people working for them who can so wise up. Another task you will be undertaking is writing her script or having a writer doing that for you now, regardless of your role, it is important that you understand the needs of creation, the time needed for creation and, of course, who's making the key creative decisions in the project. Some projects need time research and that means money to pay for the work of good writers. It is almost impossible to have a great script from a screenwriter who has a day job and can only write on Sundays. If all you have is a Sunday, then you'll need lots of time until something substantial comes up. There are, of course, exceptions, but they are exceptions, not the rule. Also, if you are the producer, do not leave your writer in the dark. Give him feedback, development costs money. And you cannot afford four months not knowing anything, just to discover that the script delivered is not what you expected. Ask for a sin. Oxus then expanded again and again, all the way into a treatment. Make sure all the people involved know exactly what project is being written and what's in there. Writing needs time, and you cannot waste it. Writers need guidance. Getting professional feedback is another essential part of your development. You may choose to use a professional reader or a script doctor or someone outside your structure to give you notes. That's okay, but try to find a trusted person from the industry who understands where you want the project to go and has experience in reading projects of that particular genre. Don't give your zombie script to someone who has never seen more than one or two zombie films. Also, people who love you will hardly give you the best feedback unless, of course, one of them is head of development at Paramount. Great feedback means a lot of work. Try to pay for it just to make sure you get some actual feedback that's relevant. It is also important that you all agree on the fumes style. Here are some of the issues you must think about our theme and style a great match in this project. Team and style are frequently connected, and they have a visual impact on the project. Sometimes style individuals are not easy to define or put into words. In this case is, Can you identify successful films with a similar style to those who will finance your film ? It may be helpful to be able to see successful examples of films that come closer to what you're trying to achieve. In the end, it will be important to be able to define it in words to explain and discuss it so you can improve on the visual references you already have. The next task you'll be facing is extremely important. That's the positioning of your film position. He means defining where your fume stents in relation to others in the market and in the minds of the audience. On the next video, we'll discuss your positioning. See you there. 5. Your Creative Battlefront, Part 3: Let's Position Your Project: - the positioning of your film position, he means defining where your film stents in relation to others in the market and in the minds of the audience. You usually do this by selecting the key qualities your film must have in order to achieve whatever your goal is. In the auto industry, for example, Rolls Royce positions itself as the most expensive, the most exclusive and the most luxurious of all cars. Pay attention to the fact that they're positioning has no contradictions like the most fuel efficient, the most practical or even the most reliable car in the market. The qualities they chose have an impact on everything they do from the materials used to the way they advertise. Everything is in sync with the positioning during development. We do the same with films. Take a look at the following films. They are very different exactly because they choose their positioning very carefully and communicate them very clearly. The evil dead is all about shocks and violence. The eighties classic The Return of the Living Dead is all about zombie fund. The remake of Suspiria also shows some blood and violence, but it positions itself clearly as art house horror American by positions itself as the automate teen sex comedy filled with nasty humor and embarrassing situations. Legally Blonde positions itself as a hilarious coming of age story off. You should never judge a book by its cover. The Big Lebowski bets all of its chips on a unique character with a unique position in life , played by a major actor. As you can see, all of these films are very clear on the qualities that either elevate them above other films and separate them from similar films. The posters you see are just a reflection of a positioning that was defined still, during development, positioning influences the way you produce and communicate. That's why positioning is one of the first things you do during your creative development. You do not need 10 qualities. Otherwise, you're positioning becomes a cacophony filled with possible contradictions. In most cases, one to treat qualities are more than enough to position your film. Once you have defined your positioning, your mission in life will be to make sure your fume delivers on those qualities. Some filmmakers believe positioning of film contradicts the uniqueness off the fumes they are making. However, there is a cost to you Pay for avoiding to position your film. The cost is focused. The film may end up not know me exactly what it is, and because of that, it may not fully deliver anything specific. Audiences are not stupid. They will do the positioning of your film by themselves if you don't do it yourself. In the end, you may have the very unpleasant surprise of realizing your audience positions your film according to qualities you hope for different. Your last task on the creative front will be to make sure you have all the rights you need in order to continue your development. Time is a crucial element here. Like I said before, it is very common for an independent film to take a number of years in development stage until it gets into production. With that in mind, the last thing you want is to develop a project only to see your rights expire. So be careful when you negotiate terms of your contracts with screenwriters or the owners of the book, you are adapting. Depending on the fume you're producing. There will be many other rights created from your film if you are producing Children's content. For example, your intellectual property may have the potential for licensing contracts for merchandising , toys and countless other things. Well, if you are making the film in contributing to the intellectual properties, fame and profile, try to own or control the rights you hope will be quite valuable. One thing is to be the owner of the rights. Another thing is to be the one who makes business decisions in the name of the owner. Negotiate those contracts carefully and always have a great entertainment lawyer to help you your finances. We love to see all the contracts in order. The ideal solution off course is when you create the entire intellectual property that becomes successful in this case, you own and control it. Here's an advice. The creative side of your development is the only instance of your film that you control almost at 100%. Everything else on your film will suffer having influence from the elements. Plus, because of that, your creative development is also the most intimate and personal part of your film. This means you must invest your time inattention in it. Financiers know when development is poor. We have discussed the first front of the filmmaker's personal war against indifference. By now you have realized that your development includes several steps that are fundamental to financing your film. On the next video, we'll continue into your second battlefront. See you there. 6. Your Legal and Financial Battlefront, Part 1: Networking & Rights: - on the previous video, we discussed the creative battlefront of your development. Film financing in all its complexity is not really about money. It's about putting in the market films that we leave No one indifferent. If you don't take their creative front seriously, no one will take your financing seriously. On today's video, we'll explore your second battlefront, legal and financial. On this front, you will have several tasks that are as important as anything you can think of. Let's start by one. People seldom talk about creating a network. Here's an absolute truth. A producer is not an island. Your journey through development in financing will make you ask for advice, favors and help. Plus, don't think that you know enough film is such a complex and ever changing subject. No one knows everything. Also don't think that asking for advice, favors and help puts you on the spot or is a sign of weakness. On the contrary, these air science that you are a part of this community lots of people can and will help you be humble, graceful and accepted. There are many ways to start a network attending film festivals, film markets, conferences, events, courses look for people who are decision makers, gatekeepers and have experience. Also, look for people just like you who have similar goals and interests. If possible, share projects give and get feedback and collaborate, you can complement each other's networking, avoid networking through social media, go to real places and meet real people. Social media is just a bunch of people on the list that will never care about you. You need riel relationships. Really. Empathy rial networking Here are two tasks that demand a lot of brain power. The acquisition of the rights you need in order to make your film and the definition of all the ancillary rights you want to create from your film. On the previous video, we discussed the need you have for ownership or control of the intellectual properties and rights that exist before your project inside your project and will come from your project. Typically, you have pre existing properties that may or may not be very tangible ideas, concepts or something palpable like a book. You will use them inside your script, and that script will materialize in a film. Yep, I'm talking about rights, Inside writes inside rights, and, like I said on the previous video. You must make sure all contracts are valid that are no conflicts, and they last a long time. Then you have to define what ancillary rights will exist from your film. Make sure you define own and control all of them as much as possible. Lawyers are needed here. Next comes your financing plan in your budget. The financing plan is the document that specifies all the different sources of finance that will make up 100% of the money or resources you need to produce your film. As you can imagine, the financing plan, often independent film is an ever evolving document. You start with very little and you keep looking for more. The financing plan gives everybody who's on the boat Ah, global picture of what you have and what you need. We will go into more detail about this very important document later. Your budget is also something you must have as soon as possible. Otherwise, how do you know if the money you are looking for is enough to produce what's on your script ? Also, during your development, you will be considering all the financing options you have. There are dozens of types of financing that are available for films and television. They're not the same. They don't look for the same projects, and you may not be able to get all of them. It all depends on the very nature of your project, and everything we discussed on the previous video will be important here. We will spend a lot of time later discussing each one of them, but that will come later. Now we enter a continuum because as you write your financing, plan your budget and consider all the financing options available. It is guaranteed that your financing plan will evolve according to financiers who want you . And those who don't plus market conditions and opportunities will have an impact on your budget. Budget and financing plans are living documents. They will evolve along with your project. On the next video, we'll talk about the decision of advancing without all the funding. We'll also talk about feedback from money and more. See you there 7. Your Legal and Financial Battlefront, Part 2: The Minimum Financing Needed to Go: - let's continue our journey through your second battlefront, legal and financial. Eventually, you will be able to unlock your financing or some financing. The question then will be how much of it very few independent filmmakers get 100% of the money they need in just one go. In reality, financing comes in. Smaller pieces in those smaller pieces do not come at the same time. If you are lucky, you get barely enough to push you into production. And sometimes you will be forced to advance with less than that simply because the money you just unlocked must be spent by a certain deadline. This is just a glimpse of how film financing is not for those who get scared easily. Another task you will have will be getting a sales agent. Many filmmakers don't know how sales agents work or what do they do. In fact, we will have a video just about this. Ah, longer development. You will be looking for presales. Pre sales are in advance. That means money and advance made by distributors or sales agents. Few makers tend to want presales badly, since that money is usually put into production, thus diminishing the amount of money they have to unlock from other sources. However, there are pros and cons in having pre sales, and the reality is a bit more complex. We'll go over this subject later too. As a result of your financing efforts during development, you will do some further positioning. You will find the need for adjustments to your positioning as you discussed the project and presented to potential partners in the events you will attend. As you can imagine, the complexity of the process will demand that you treat the project here and there in order for you to come closer to certain finances and partners. This is a very controversial subject because, of course you are the captain of the ship and only you can decide if any tweaking is needed or not. However, feedback, especially the negative ones, will alert you to potential weaknesses on the project. As a rule of thumb, you should always pay attention to feedback from money. I will say this again. You should always pay attention to feedback from money. You should read that feedback very carefully because even if they are, let's say completely off the mark and you disagree with it. It always indicates something. You either have a real problem in the project that needs fixing or there are mistakes in your communication that need fixing. You may also be talking to the wrong finance. Er oh, good or just talks is rarely the correct answer. Contracts, contracts and contracts. Seriously, I cannot stress this enough. It is so easy to screw up here in experienced filmmakers, forget about the importance of contracts. In fact, there is a place for filmmakers who don't pay attention to contracts. Hell, not just development help, but the real hell. Everything in the film industry is governed by contracts. Your finances will never touch you. If any contractor you should have is missing or is poorly written, finances are not stupid. In fact, they do have great lawyers to cover just that. You must be careful here. The fuel industry is cluttered with projects that collapsed because of this. Of course you never heard of them because they never got produced. We have to do better. This is the financial and legal battle front of your development. It interacts with the creative battlefront in many, many ways, one is constantly influencing the other. On the next video, we'll talk about your third battlefront packaging. See you there 8. Your Packaging Battlefront, Part 1: Putting a Dollar Value on Actors: - on the previous videos, we went over your creative, legal and financial tasks which represent your first and second battlefronts on your war to get your fume financed. These are fundamental parts of your development on this video. We'll explore your third battlefront packaging. Oh, films need packaging the word. The packaging is not applied to films by accident. All industries need packaging in the film industry. Packaging is essential, and this is true regardless of the type of film you want to make or the country where you are. At first glance, packaging is a container. It contains your film, but that's a huge understatement. Packaging is your film. It shows your fumes nature. It meets your films needs in order to exist and be handled. It correctly tells financiers and distributors what's inside and how it should be used. It indicates the qualities and ingredients of your film. It also indicates what it costs in its value. It is irrelevant if you care or not. About your packaging, you are the first element of it. Cast. Your talent is not necessarily the most important of your tasks, but it is certainly the most scrutinized one. Also, it is usually the one with the biggest impact on your chances of being financed and for how much. Here we're talking about actors. Casting your talent has a big impact on your financing, since sales agents and international distributors put a box office dollar value for different markets. To all the actors on your list, this is not a joke. Distributors, civilizations and other buyers and we'll talk about them in depth later are constantly monitoring the performance of films in their markets, getting feedback about the actors in those films and putting a monetary value that those names bring into a film. We producers and filmmakers rarely have access to those lists. You can sit with major distributors and sales agents and ask them about actor A or actress Bea. They will tell you who you should cast and who you should not cast. This means that depending on how much money you are trying to raise or what kind of distribution you hope your film will have, the casting will be one of the most complex operations during your entire development. Here's an example. Dallas Buyers Club Despite a stellar cast of Matthew McConnell Hey, the producers stew needed another bankable name with value in overseas markets. That's why Jennifer Garner was cast. Her name even appears before Jared Leto's name, who at the time did not have a significant wait outside North America due to the fact that he had spent the previous four years without appearing in a major motion picture. Films don't always make their money back in their native markets. This means financers. Try to think the cast in terms of its appeal regarding territories they consider important , and they know distributors and buyers track the value of the actresses names. This give you an idea of how important the international market is for American films. In Blue, you have the global box office value in the U. S. And Canada, while in green you have the global box office in the rest of the world. As a rule of thumb, the bigger the budget, the more important overseas territories become. A film that costs 10 2050 or $100 million does not cost just its budget. On top of that, the ruby prints and advertising costs distributors hope to recoup in their markets. That's why it is so important for them that you cast actors for whom they feel confident in spending money to promote. While Latin America in Europe don't show any growth, Asia keeps on growing driven by China. As a response, American producers try to maximize a fumes marketability by casting actors who have on overseas appeal, especially for Asia in Europe, America's most important foreign markets. So here's the few makers conundrum. Few makers want to be free to cast those who they believe are the best actors for their films. They developed their films and present their choices to financiers. But financers have something else in mind. They want to know what international buyers think of those choices, what value they put on those names that will make your financing easier or harder. Now, you may think none of that applies to you because you are a small few maker and you are trying just to make a small film Well, regardless of the size of your film, you will need a distribution, and we hope to recoup at least some of your costs. The problem is that the market is already crowded in all segments, and distributors and buyers have a lot of projects to choose from, and they will always choose the names with the most appeal. As a result, your potential financiers also can choose, and that will severely limit your possibilities regarding how much you can raise, which in turn will limit the budget you are aspiring to have. Independent filmmakers who don't have a lot of money will always have an incredibly tough time trying to contact bankable talent, getting them to read your script. That's even worse. There are basically five types of people who are unavoidable here on the next video. We'll meet them also. We'll go over your casting options. See you there. 9. Your Packaging Battlefront, Part 2: People You Must Meet: - on the previous video, we discussed the way distributors and financiers. Lucas, You're casting decisions now. We continue with our discussion. There are basically five types of people who are unavoidable here. Gatekeepers. These come in many forms. They block your access to stars agents and the people you want to talk to. They may be interns, secretaries, managers, trusted readers, lower executives or assistance. You should be able to easily identify them and try to win their trust because they can facilitate your access. Plus, a gatekeeper today can very well be a top agent tomorrow. And like I said before, a filmmaker is not a Niland. Always think of your networking gatekeepers are your target agents. Agents today are powerful brokers who are able to bring together 100% of the financing for a film, an interesting thing since they have become the very thing actors used to hire agents to protect them from. Nevertheless, the reality is this. Big talent agencies like William Morris, Endeavor UTA or I See and Partners have all the bankable talent from they're getting the money is the easiest part. The bad news is that they rarely speak to people outside their very restricted universe. For that, you need to pass through gatekeepers. Lawyers are a possible piece of your strategy. Virtually every film made in the world's greatest markets Hollywood, New York, London, Paris, etcetera are the result of complex deals and require extensive contracts, Memos, negotiations and lawyers are always a big part of it. This means they end up knowing everyone from smaller gatekeepers to agents all the way to the mega stars themselves. Plus, lawyers tend to have last gatekeepers between you and them, and they're easier to meet. And to be completely honest, you may find yourself teaching your project to lawyers who are so experienced they can do a lot for you. Then you have the unpredictable you meet. Julia Roberts is aunt on a plane and should be glad to put your script on her table. Or the guy who provides the cinnamon sticks Mary strips dogs use on their espressos. If you ever meet those people, befriend them because sometimes it works. Sometimes it doesn't. Then we have the casting directors. If you're gonna afford them, they are the best investment you ever make since they know all the gatekeepers, all the agents many of the stars, and their work goes far beyond that. Good casting directors may cost more, but they negotiate schedules, fees, and they know the value distributors and buyers put on actors. This is why casting directors are so used. They bring together the best of both worlds. They have the right sensibility regarding who are the best actors for your role, while also having an acute business knows for the numbers that bring financiers, distributors and sales agents right to you. If you have the chance of working with a casting director on your film, you are one lucky producer. Now. European fumes are a different universe. Europe has a heavily subsidised fuel industry that produces a large variety of things, from co producing American blockbusters to art house films. No one really cares. But because of the subsidies, also called soft money for a reason, it is possible to lower the financial risks of film represents. This means less pressure to make a profit. But different languages in a very fragmented market does not help, and the number of actors with a global appeal is smaller when compared to the star power of American actors in the end. Europeans don't necessarily have it easier when it comes to getting talent with global bank ability. We want stars because they bring recognizability, an insurance against indifference and a base audience. At the same time, we want to have the best project, something that can be sold well defined and therefore easily communicated, easily promoted at the same time, we want to keep the budget to the lowest so we can take the best advantage of having stars and a great project. With that, we hope break even well, come early and fast enough. We are in the profit territory. However, the reality is this. These three rarely come together. That's the complexity of it. There are many ways to get there, but by now you know the high number of elements you need to synchronize. Let's now talk about your usual casting options. No two projects are alike. Think carefully about your cast. You may not need a least stars in order to strike gold. You have options that can work on the next video. We'll explored those options. It's going to be fascinating. See you there 10. Your Packaging Battlefront, Part 3: Meeting Your Casting Options: - Let's now talk about your usual casting options. No. Two projects are alike. Think carefully about your cast. You may not need a least stars in order to strike gold. You have options that can work a list. Stars are the hardest thing to get. I'm talking here about George Clooney, Cate Blanchett, the names everybody wants. They are extremely expensive, very demanding, and it's gonna cost you a lot just to talk to the person who talks to them. Be least, actors usually play supporting roles. Many of them are incredibly gifted and will jump on a film that may propel them into the A list universe. Think about Pooja, Matty, Kevin Spacey, Sharon Stone and Alison Jenny. They all spent years as B listers playing supporting roles while slowly creating some bank ability. You may be the one with the right film. Some of them are incredibly accessible. Good but unknown actors, when you cannot get one of the other two good actors that are unknown, are your next bet. They don't bring anything to your film except their work. No friend days, no recognizability. It's just their hard work. The question here is if they are as good as you think they are. Nothing here is guaranteed, and it's up to you to get from them a performance that will do the almost impossible. The problem is, most financers are indifferent toe unknown actors, and you may not get any points here. Up and coming actors are usually young people. They've done a few things and constantly get praise for the work or for their gorgeous looks. And because they are young, the quality of the looks is as important as the quality of the acting. Regardless of why they are up and coming, it is clear their up and coming, and you can create a case for them when it comes to financiers. Fading stars Who wants a comeback? Bose Some of the most fascinating casting choices after all, we all love Sunset Boulevard. Some audiences will love to see the hottest actor of 20 or 30 years ago, who disappeared and fell off the radar, coming back in playing the role of a lifetime. Film festivals love that, and the Oscars love that, too. Character actors are those actors who specialize in certain types of roles. Goofy guys, bad guys, shy girls. These are actors who are constantly playing the only thing producers think they can play. But sometimes they have a lot more to give. Sometimes they do brilliantly when you cast them against type. They usually are as credible as B listers but suffer from the narrow scope of what the market offers them. Characters that go from a to B they can work. But very few filmmakers have the courage to risk casting them in roles that may be great and still run the risk of generating negative response from an audience that expected just more of the same stars with some pockets of fence. These actors operate in a very narrow corner of the market. They are usually related to horror, fantasy, or SciFi. They had important roles in films from 30 years ago, and because those films became classics, they are celebrated, invited to conventions and do carry some fans. You can your into your film if you cast them in an appropriate role, wanna know where they are? Go to conventions Doug Bradley, Elvira and many others fit right here. Fading stars with some pockets of fence are different from the ones who want to come back because they never laughed in first place. They are older character actors or B listers or a listers who are just older and don't have the same gravitational pull that allows them to move millions of fans. Because of that, their price value is reduced. You may even find some Oscar winners and nominees right here. Celebrities are a wild card. They are not actors, so it's not certain that they can deliver the performance you want from them. But they have their fans and someone. We work hard to make sure they follow their idol all the way to the movie theater. They could be athletes, politicians, musicians, supermodels, TV personalities, anyone who is a household name. The problem with those is that celebrity is a fleeting status, and by the time you're fume is released, that celebrity has been replaced by a funny cat on YouTube or just for gotten. Some celebrities can be very cheap and easy to obtain, since many of them would love to become stars. But there's always a risk here. Sometimes you are making a film, and half of your budget comes from a Bulgarian co producer. Because of that, at least half of your main roles must be Bulgarian, since their fuel fund demands it. But you want your film to be set in America, and your characters are Americans. Well, some American, British or French actors do have a Bulgarian pass support because their parents were born in Bulgaria or Greece or Brazil. These actors are very precious because they fulfill court production rules and still feel like real Americans or British or French. They may be great actors or bed ones, but you need them. Sometimes. These are the common options you have for your casting. In the end, we are doing what other industries do advertise names that few like brands. The talent is like a brand. It is art. But remember, it is called packaging for a reason. On the next video, we'll discuss your creative team, selecting your director and more see you there. 11. Your Packaging, Part 4: Selecting the Director & Further Positioning: - on the previous videos, we discussed your castings. Crucial importance to your financing. Your next task is to select your entire above the line to those who don't know. A fume budget is divided into two main sections. The above the line in the below the line, the above the line includes your cast, but it's more than that. It includes key creative elements and people with a clear and direct impact on what your film is. If you replace them with someone else, a key creative element of your film changes completely. The below the line consists in those costs that do not have a direct or personal creative impact. The camera, for example. If it malfunctions, you rent another one. No difference. The electrician's, the drivers, the catering company. They all can be replaced, and the film is still the same. The above the line, however, cannot be easily replaced. Since they are part of your fumes value. They shape the film. You can find the above the line people, for example, on the posters building block or on the fumes opening credits. They are the director of photography, the art director, the music composer, the editor. Those who really shaped the film with their artistic skills and choices. They are important to finances because they guarantee that the film Ruby of excellence on many levels and at least as competent as competing films. If you are an inexperienced filmmaker, try to surround yourself with well experienced above the line people, they will lend you their credibility. Selecting your director is also key to your financing. Some projects come with the director who created it, or he is part of the main creative team. In these cases, the project will be easy or hard to finance, depending on the track record of the director. In other cases, the project is born from a producer or from a writer. Here you will have to cast to your director the same way you cast your actors. It will all come down to the responsibility he has the expectations producers and financiers have and how much power he has over the project. Can he decide to turn a frantic SciFi action film into an introspective character study set on the future? Only you can tell. Here are the questions you should be asking when considering directors. Does he have a successful track record. It's always easier to finance a film from a director whose previous work can be evaluated. If it's a first time director, try to give him a short or at least surround him with enough experienced people. Does he usually go over budget? Some directors are famous for constantly going over budget. If there fumes still make a good profit, that may be seen as part of the game. However, this is always a gamble, and financiers may be harder to convince. It's the same thing with falling behind schedule. It depends on the usual results. Is he out of his comfort zone? It's always easier when the director has a proven track record in a specific genre. Then in general, it is relatively safe to assume he knows enough about filmmaking in order to do a different era. But some directors are so into a certain general or style it may not work or finances may think it may not work. Sometimes you have to build the case for that. Does he have some following? It's always great when the director has an audience who was willing to see whatever he'll do next. This can facilitate your financing. If that's the case, try to give numbers. Numbers always make a difference. Is he a festival? Darling? Festivals can be an important part of your films life, but let's not be ingenuous here. Festivals do have an editorial position or have a political tendency. If festivals are that important to you in your film, select a director who already has relationships with festivals. There is a joke about a director who makes a horrible film, but because his government is persecuting him, of course he will be treated like a king in Cannes or Berlin. Alec. Does he understand everybody's expectations and demands? Well, make sure he does. Here's a warning for producers. The wrong director can destroy a film and walk away free. That is the sad truth. During your packaging, you will also feel the need or be pressured to adjust the positioning of your project. This happens because the names you be casting will help your financing or make it harder. As a result, your production can become bigger or smaller, and that will affect your positioning as you are. Just be careful about contradictions suddenly, because you managed to attract a bigger actor, your budget gross, but at the same time, the film's style is supposed to look cheap and unfinished. See the contradiction, or you realize you only have 1/3 of the budget and the fumes supposed to have all those state of the art digital effects. Or you claim your film is supposed to appeal to lots of people. But all the actors are unknown. See the contradictions here? Financiers may love your project, but they are trained to find flaws that will make them say no. You must monitor your position very carefully, so it remains coherent. Polishing the script to better fit the talent is a very normal thing. You should not be afraid of it. Actors and directors will want to do it for different reasons. Actors may have an additional insight on the characters, or they may have trouble with lines that are hard to deliver. Directors may want to bring up certain moods and feelings that are personal to them. Discuss those publishing suggestions, make sure they understand the boundaries of such work. Also, it must be clear who will be doing that work as well as who has. The final word. Contracts are the record task during development. You don't have anything that's good or valuable until a contract is signed. Financiers love that. Your packaging is extremely important because it will affect the way the market perceives and relates to your film. When it's well done, it brings bank ability. Credibility builds familiarity, confidence, trust and offsets risk and fear. That's why your package on the next video, we'll talk about your assets. Oh, it's going to be fun. See you there. 12. Your Assets Battlefront, Part 1: Starting Your Chain of Title & Early Concept Art: - you want to finance your film, and the biggest part of your financing efforts takes place during a phase called development. On the previous videos, we discussed the 1st 3 battlefronts on your war for getting the financing you need. Here they are creative, legal and financial and packaging. The fourth better front is the acquisition and organization of all your assets. This means the tasks you undertake in order to produce and manage the assets you need to effectively communicate and promote yourself and the fume. You want to make two possible financiers. Your first task here is to start your chain of title Composing your chain of title starts during your development and will continue until the film is ready. But what is a chain of title chain of title is the name given to the organized paperwork that confirms the structure of all the financial and creative elements inside the film. They include contracts with actors, writers, director, music composer and other key creative personnel, the licensing of intellectual properties inside the film like music, art, graphic art, trademarks, etcetera, the correct and approved building order, and the contracts that stipulate that order all your financing contracts and obligations insurances. The chain of title is a real folder where you keep all such documentation carefully organized so you can check any information needed quickly. You should also keep your chain of title on a digital folder for easy sharing among your partners. Find answers. Sales agents, insurers, distributors and others were want to check your chain of title before deciding to do business with you. They want to make sure all the rights contributions and participations are in place are mutually recognized, and there are no conflicts that may harm the fumes. Promotion and commercialisation said differently. Your chain of title is the documentation that allows you to have a financial and creative structure and show everybody the order in which all materials must advertise them. It is the documentation that guarantees to everyone that you have the rights to the title, the script and source material, the directors creative work, that you have all the finances on the board and how everybody is built. So the chain of title is proof that you're feeling exists as a product that can be commercially distributed. Next comes the creation of some concept art creating the look. Why is this important well, because finances do not live inside your mind. No matter how you can explain what the film will look like, there is nothing like creating imagery that will help finance or see what you are imagining . And here the old adage is true. An image is worth 1000 words in this context. Can you imagine what a great poster can do for you? It is your job as a filmmaker to show them what film you are making, and this is regardless of genre. Every film has a look. If it's a monster, what does it look like? If it's a drama set in rural Wyoming during the twenties, in Manhattan, during the election or in a small village in Japan? How does it look like if it has real people or fictional characters? How do they look like you cannot invite someone to dance without revealing the music? In the same way, you cannot expect financiers to love your project and embark on such an expensive journey without defining and showing the look. Now you don't have to make 100 drawings. Sometimes when poster works, or maybe you do not need a poster, maybe you have drawings of what the sets look like, or you have two or three images of the costumes that show us the uniqueness of the alternate reality you are creating. You are the captain, and film is a visual medium. You can use just text, but images were always worth a lot more. Now be careful. You must also show credibility. Are you able to deliver that look? Is the look coherent with the budget? Remember that many times a big yes is made of small yeses. The more value that looks bring into the film, the more fascinating indistinct it looks, the more credible you are on your promises, the easier it is for you and your film to conquer the financiers, hearts and minds. All that we're doing during development regarding the financing is fighting this war to conquer hearts and minds. All the four battlefronts we're seeing here during development aim at the hearts and minds of your financiers. With each one, you are trying to make a case in favor of you in your film. After the creative legal in financing and packaging, your assets will bring it all home. On the next video, we'll explore the fascinating world of mood teasers. See you there 13. Your Assets Battlefront, Part 2: Types of Mood Teasers: - move . The teasers come next as the natural extension off defining the look. Yes, an image is worth 1000 words, but film film is life, and creating a mood teaser is not an easy task. Certain stories, ideas, concepts or visuals are so different and so unique that text or concept art alone cannot capture it. Or you just going to make sure you get a while. For that, you need a better weapon. There are basically four types of mood teasers. The 1st 1 is the mood teaser. A mood teaser is more a presentation. It shows the mood, the atmosphere, the ambiance of the fume you want to make. It can use narration, photos and audio visual imagery to establish them. Normally here you are using a combination of images and sounds that result from your research. Sadly, you won't find a lot of good references on YouTube because most filmmakers do not make those teasers public for fear of having to pay for some copyright infringement. The second, the Repo Matic trailer, relies more heavily on other films. Similar imagery in order to show financiers what a trailer of your film would look like. It tries to make people imagine the film from the imagery selected more than showing just mood and atmosphere, Repo Matic trailers try to show you how the great mood and atmosphere, plus other images can be engaging and easy to sell. Repo Matics are relatively easy to make, edited like a trailer but less unique since you are compiling and arranging images and sounds that already exist in order to create some new meaning that helps sell your film. A concept teaser is a teaser you make with imagery. You create an own. It's a lot harder to produce but wins at communicating uniqueness and precision regarding your vision. Again. You won't find a lot of those online because few makers are always very protective of their projects for obvious reasons. In its form, it is closer to the mood teaser. But because you made the content yourself, it's visually much closer to your concept. Now the best tool and also the hardest one is called the Proof of Concept. A proof of concept is a scene you make in order to show even more clearly what you are trying to achieve betweens bigon credibility but can be very expensive to produce because you're going to be using real actors. Riel sets real makeup, and that's also risky, and we'll get to that in a moment. The demo reel is a folder containing any combination off the teasers I just described. Sometimes you have a mood teaser in the Repo Matic. Sometimes you have a concept teaser. It all depends on what you can do. A few rules apply here if you really want to make a great impact on your finances. First length for these three do not exceed the length of Rio teasers and trailers. Two minutes and 20 seconds. Some people make a five minute teaser, and it gets boring beyond belief. Remember that the idea is not to show everything but to show just enough to make the other person crave for more. By minute number four, everybody will be asking When will this ever end? So be careful. Second rule. If you are making a proof of concept, it must be really great. Never, never, never produced a proof of concept. If you know it won't accurately represent the fumes value the moment you say. Oh, it's going to be like this, but better you lost it. Rule number three demo reels must be short. Onley include the best stuff. Do not throw in five versions of the same video that only change a few things or the video that was the preparation of the other better video. I know you love your project and everything has meaning in a purpose. We are all guilty here, but no, only select the very best, and that means leaving 80% of the stuff you made out. You want to be effective, not overwhelming. Let's look at three great examples of proof of concept. The 1st 1 come from the film stunk from 2000 and 15. Directed by Ben Ideas, producers Christian Becker and Benjamin Moons. The few makers made this proof of concept for financiers back in 2000 and 13 2 years before it got such a positive feedback. Distributors actually used it as a teaser when it came to release the film, something that is pretty rare. I was present at one of its first presentations, and everybody loved it. Let's watch it. Worst case scenario is a very interesting example of not one but two great proof of concepts that generated lots of buzz. The project was a comedy horror film to be directed by Dutch director Richard Rep. Horst. Let's take a look at proof of concept number one. - Now let's take a look at proof of concept number two. - Unfortunately , after several production problems, the fume ended up abandoned. The director, however, later reckon figured the project into what came to be Frankenstein's Army from 2000 and 13 . Actually, lots of the film's monsters and visuals come from worst case scenario, showing us that those amazing proof of concepts had so much power they helped the director reinvent the project and breathe new life into the abandoned project. Why do we do these well for several reasons? Because you don't have big stars because your strongest element is not the acting, because you want to express a complex idea because you want to accentuate a certain mood. Look, visuals a certain feel because you want to show the world that you can do it in boost your credibility because you really have something stunning to show, because it will give your project an edge over other projects. Not everybody goes the extra 1000 miles. You want to make sure your finances know that. And because it makes a great peach even greater On the next video, we'll discuss your presentation documents, benchmarking your film and more. See you there. 14. Your Assets Battlefront, Part 3: Creative Documentation: - your next desk on the assets battlefront is the production off all the creative documentation about your film that will be needed at different points. We start with the logline. The logline is your project summarized in two lines. You also need a great synopsis in different sizes. The sizes are important because you will be frequently submitting your project through online platforms, and many platforms come with limitations on the number of words you can submit. So it is highly recommended that you have a great synopsis and create smaller or longer versions. Director's notes sometimes also a producer's notes, is usually a document where the person in question, we'll talk about the project and let us know why he wants to make the film. What are the projects, values and why they matter. Why is the project relevant? Why is it engaging? Why it should be produced now? Why he is the best director to make this project. Why is it so personal? These are some of the questions the director should discuss. Some directors are great in going straight to the point. Some are more vague. It is important that the producer always read these materials and added them, if necessary. Keep in mind that these texts will be read by highly trained people, so avoid verbosity. A description of the characters is also a great asset To have the description can be physical, if relevant and psychological. Why the character does what he does and wants what he wants again. It is very important to go straight to the point and avoid verbosity. Finances have lots of projects to read and don't like to have their time wasted. Insecure directors think they can impress readers by showing off lots of tradition. Be very careful. A written version of your Peach is also a great idea. It normally contains all the vital information about your film on the limited space. We'll talk about your pitch soon. A full treatment is a very important thing. Lots of readers do not have the time to read all the scripts they receive. This means they will read your synopsis, and if they love it, they will advance to the treatment or descript. And engaging in well written treatment allows the reader to excess most of your scripts goodies without having to go through. Let's say, 100 pages, of course, he will end up reading the script, but by then the reader will be so immersed in your project, your chances of getting a positive feedback or a recommendation are higher. An interview with the director is also a nice touch. Interviews humanized people by allowing them to say things in simple discourse. Plus, there are personal or interesting things on Lian Interview can capture. It doesn't have to be a 10 page interview, sometimes one page with five questions. It's quite enough. Benchmarking is another important asset. Lots of potential financiers have quite some trouble understanding in which universe they can situate your film. That's why you should benchmark. Benchmarking. Your film means selecting 3 to 6 films that better define the universe of films where your project belongs. A careful benchmarking shows your finances, sales agents and distributors. What performance can reasonably be expected from your film? However, you must be careful on your choices, as they must accurately reflect what you can deliver. If you are doing a very low budget SciFi with no stars, it's silly to put Star Wars as one of your benchmarks. Let's look at an example. The act of killing is a 2012 documentary about paramilitary death squads in Indonesia during the sixties. The benchmarking for such project consists in other documentaries that cover similar subjects and themes. These documentaries include nostalgia for Delight, The Shock Doctrine and Impunity. Some filmmakers erroneously believe that when you benchmark your film, you are telling how unoriginal your film is. However, in reality, it is quite the contrary. Films do not come from the void, and it is very important to financiers. Toe. Understand what films influenced you? What films came before yours that established the universe of great films to which your film is the newest addition. This is particularly useful if the fumes in your benchmarking are good and successful ones . When you benchmark your film, you are actually saying not on Lee. I belong in a universe of great films, but I also think I can do a little better. Plus benchmarking means your fume has an audience. Once you select your benchmarking, you will show some information about those films. Pick what you think is more relevant. The box office. The numbers of territory sold the awards. They won the top performing territories, their budget, their sales agents who were the distributors in those top performing territories, feedback from critics and the audience and the promotional materials for feedback. You can go to rottentomatoes, Amazon. I am DB and get what you need. Of course, not all these elements will be equally relevant. If you are making a pure art house film, it would be more important to justify or benchmarking based on awards and feedback from critics than the box office or top performing territories. This means you really must understand the nature of your film. In orderto avoid putting useless comparisons. You must also understand the nature of your potential financers that we've discussed later . If you do a good job here, finances and other potential partners will better understand what you are trying to achieve . A good benchmarking is a weapon to clarify and helps situate your project in the universe. Another document you may need is a business or a marketing plan. We will go into those with more details. Later on the next video, we'll introduce the crucial subject off pitching and later how you can create a great beach . See you there 15. Your Assets Battlefront, Part 4: The Real Goal of the Perfect Pitch: - so far, we covered this start of your chain of title, the creation of early concept art and defining your films. Look, the different types of mood teasers, the creation of all the documentation you be circulating among potential financers, and now we continue with the creation of your pitch. Pitching a project is a very important part of the process of financing or film. It won't be too far off to say that few makers will be preaching dozens of times or even hundreds of times before they get any financing. This means you shoot, approach your pitching with lots of care and attention. Where do you peach. You will be impeaching your project on many occasions and different situations. Film festivals and markets are a great place to do that, since those are the places where you meet most financers producers, sales agents and other potential partners. You will also be preaching during training programs that include rial opportunities to meet financiers. You will also be pitching in professional meetings set by yourself based on your own networking. Why do we peach? The truth is that very few projects get financed on pitch. They usually get financed after a careful evaluation of the work done in all your four battlefronts. And for most independent films, that is a lengthy process. However, that relationship many times starts with a pitch, so the goal of a pitch is not necessarily the financing of a film, but to award the filmmaker more time with the finance ER that will lead to a relationship that will lead to the financing of the project. There are three basic types of pitch. The elevator pitch has an opportunistic nature. You enter the elevator with someone and have half a minute to capture that person's interest. It's named Elevator Pitch for obvious reasons, but it could be really anywhere. It could be the line to buy tickets to a concert or any opportunity that presents itself. The elevator pitch is whatever you can make of it. It's very risky because nobody likes to be ambushed, and not everybody likes to hear a pitch out of the blue. The session pitch is way more organized and usually takes place in events specifically created for pitching in film festivals, film markets or training events. You have a group of filmmakers in the group of financiers. Filmmakers pitch to the entire group at once or individually. Typically, it can take between two and 12 minutes, and they will tell you how much time you will have. You should manage your time carefully and in no circumstance go over time. It is considered to be very rude if you screw up and end up taking more time. In most cases, you, roby interrupted, be very careful. Sometimes your pitch is followed by a short Q and A from listeners or from the audience. If there is one, the long pitch is your goal here. A chance to sit down with the finance ER and spend a longer time talking about the project . This is a more personal pitch, and you are now free to discuss the project in depth. It is now up to you to start a relationship that will lead to the financing of your project . The goal of both of the elevator pitch and the session pitch is to break through the threshold of indifference that exists in every listener You want to stand out. You want to get such a positive response that will lead to an invitation toe a long beach over coffee. The drink a dinner or a formal meeting during the long pitch. It is your responsibility to establish credibility trust to generate empathy and show shared goals. You've burst through the threshold of indifference. Now you must win hearts and minds and fully bring your potential finance er into the amazing project you have in your hands. Now let's talk about the pitch. On the next video, we'll go over the most effective teaching structure, important considerations and more see you there. 16. Your Assets Battlefront, Part 5: A Killer Pitch Structure: - Now let's talk about the pitch. You will see that in itself, pitching is quite an art. There are many ways to pitch a project. No. Two people peach the same way. However, winning peaches are clear and go straight to the point, they are usually created around variations of the following structure. Who is the main character? Make sure everybody understands who is the protagonist. What's the story set up? Where does it take place in at what point in the life of the main character do we start to the story? What opportunity will be presented to the main character? Every story offers at least one opportunity to its many character. What is it? What are the main character's motivations? What drives him here? You can discuss what your character wants or what he really wants. What is the main characters? Conflict Here. You can introduce the forces of antagonism internal, external, etcetera. What is the main characters? Arch. When he gets to the end of the film, will he be the same person he was at the beginning? Did he grow? Did he change? Maybe he did not change. What elements will create a strong relationship of empathy between my main character and the audience. Why do you think the audience will care for your character? What are the elements you think will connect audiences and characters? What themes and subjects will be addressed by this project? Which successful films inspired this one? Why are you passionate about this story? Why are you the right person to tell this story or make this film and white? Now? Why is it so urgent? The 1st 6 questions allow you to get your audience acquainted with the main story without the long process of actually telling the story. If you're trying to tell the story, your time will end before you even get to the end of the first act. This structure keeps you focused on the drama and the main characters. Once you have given the basics about the story number 78 and nine who give your listeners a clear idea of how engaging and relevant your project will be to its audience. Also, it's positioning and its place in the market. If you do a great job by going from 1 to 9 now, it's time to close the deal and show the world you and only you can make this project explain how passionate you are, how urgent your project is and why it has to be made. Now it is important to understand that this structure is not a formula. In fact, there are many projects that won't fit here. No narrative films, for example, won't fit here. But for most narrative films, be them fiction or documentaries. There is a lot of freedom in this structure. You may few. You prefer to start right with number 10 or you have such an incredible antagonist that you want to start your pitch talking about conflict. Well, this is just a basic structure for a great pitch. Now it's up to you to make it your own. Have fun playing with this structure. Remember that you are not just selling a project. You're selling yourself as the best person to make that project. Here are 12 tips for a great pitch, right Your pitch On paper, don't be lazy. Start as soon as you can. In fact, you do not need to have a pitching session scheduled in order to have a pitch. If you have a project, start creating your own pitch now. Time it carefully, so it will never go over time. This is a big no no. It is rude and unprofessional. Even if your project is great, there will be others that are equally great and leave a better impression. Rewrite it as many times as needed. Rewrite ID and rewrite it and rewrite it until it is perfect. Memorize er pitch. Do not read it from a piece of paper. It looks like you are delivering someone else's pitch. If you are not 100% comfortable to present your project, why are you here? However, some people really have a problem speaking in public. If you do have a great pitch but can't deliver it well, find someone from the team who can do it for you or with you. If you're the producer, asked the director. If you're the director, ask the producer presented to yourself in front of a mirror 1000 times until you are comfortable presenting it. You should be so comfortable with it that it seems effortless presented to trusted people and get feedback. If people don't understand something or feeling different, keep on working. Consider producing a short printed presentation to give to your audience. Ask if it's OK to give it Not to everybody in the room, just the financiers. Many times one page is enough. And wait a minute on the previous video, I did suggest you should have a written pitch. Well, if you have it, try to use it. If the use of audio visual elements to complement your pitch is possible, use it well. There are no rules here, but this is the moment you be thankful for producing some concept art, a poster or even a great proof of concept. If there is time to show it, blend your preaching well. Dress comfortably inappropriately for the occasion. Do not just mechanically delivery or pitch. Allow for some spontaneity and fun. Every group of listeners is different. Once you master your pitch, then you can make it truly unique. Study the project well. Sometimes the peaches followed by a Q and A. Or you may be invited to a long peach over a drink. Then you will have to answer real questions about the project. Its packaging. How much you need. Hauser. Current financing plan. The rule here is simple. Talk, straight talk, clear talk now when in a Q and A or a long pitch. Do not talk. None. Stop. Do not overwhelm your listener with information. Listening is an art. Feedback is constant again. You are not selling just a project, but also yourself as the best person to make it. After preaching 15 or 10 times, you'll be so comfortable with your pitch that you can introduce changes here, a funny line there or anything that seems more appropriate to that moments Particular audience. On the next video, we'll discuss test footage, the importance of documenting the process and more see you there. 17. Your Assets Battlefront, Part 6: Start Thinking About Promotion Now: - producing preliminary image can also be a part of your development. Sometimes you are using a new technique, a new technology or something you think may bring a lot of value to the project. And yet it's hard to describe or visualize. If that's the case, show you to your financers. Make the tests you need and include them in your assets. You won't be showing it to everybody, but when you need to show it, there you have it. Now we come to another task documenting the entire process and creating the seats and raw materials for your promotion and great extras. It may feel that during development, that's a minor task. However, as the market gets more and more crowded and saturated with other films, the more you need to have a strategy for creating the promotional raw materials you know you'll be needing later on. Eventually, you will want to have a great trailer in your distributors were 12 promoter film and use great production stills, interviews, images that show what the shooting was like etcetera. Today these things are not a luxury. They are fundamental toe all independent films. The problem is they cost money the cost time. They also cost men power. You cannot underestimate the amount of work it takes. Plus, you cannot think all you need is the film, because today that's not enough. So even during development while you budget or discuss your film, you must have on your mind a clear idea of all the production values your film will have that deserve to be covered and promoted. Like I said previously, a filmmaker is not an island. You must understand that sales agents and distributors will have to sell and promote your film, and it's up to you to start helping them before they even joined the project. Also, you can use this to show your potential financiers that you are not just thinking about your own filmmakers. Valley, you are way ahead of the curve, already thinking about all the other dimensions of your films life. So here's the list of things you start planning already during development stage, since they must be budgeted. Interviews with the cast, the director, the writer and all the key people involved great production stills. They are a very important promotional tool that inexperienced filmmakers constantly overlook covering the shooting process that behind the scenes producing teasers and trailers. It takes a lot of time in brainpower to edit a great trailer. It is usually said that trailers from big studio films show too much or their trailers air just razzle dazzle. Even if that's true, it only shows the amount of work you have to do in order to have something of real quality that captures whatever audience you are targeting. Commentary soundtracks are also a great thing to do, but you must make sure the people are available. Then we have the more project specific stuff that may be more or less important, depending on the type of film you are making. Covering the creative process. Writing the story, facts that inspired the film and other things covering the creation of the look. Why it looks the way it looks, how it was achieved, etcetera. Technical aspect like special effects makeup, anything that brings value to your film, the actors, the acting process, creating the character stuff that will put a spotlight on your talent. Post production, editing, the film, digital effects, recording the music etcetera and later you also need some footage of your festival participation, since that can help bring buyers your way. Of course, you must have a great film. Otherwise, all this raw material false flat. But considering that no film is ever perfect, the existence of great promotional materials can be a decisive selling point, especially when your film is compared to others. Also, in reality, very few cells Asians and distributors will want to spend money on creating themselves lots of promotional tools. And this is especially true with small films. They may do a poster in the trailer, and that's it. Why? Because those things will cost them money. And if they spend money creating those tools that will be paid by their prints and advertising budgets, and that means less money that will be returned to you since those costs are recouped before yours. So as a reality check in independent films, you have to produce yourself most of your promotional tools with any money you have, so you won't be jeopardizing future returns. The question then will be how efficient can you be by making the most with the least and how you can split your brain between making the film and preparing all your promotional tools, try to schedule everything realistically and carefully. So by the time you delivery or film, you also be delivering your promotional tools and you start thinking about all this during development. These tasks will be fundamental if you want to start creating buzz around your film, creating and managing buzz is in fact, your next task on this battlefront. On the next video, we'll discuss Buzz. Why is it so important? See you there. 18. Your Assets Battlefront, Part 7: Creating Buzz: - creating and managing buzz is, in fact, your next task on this battlefront. People think buzz is something that started with the Internet, that it's false. The fuel industry has always fought tooth and nail to create buzz here. Arson. Welles tries to create buzz just from cutting Rita Hayworth's hair in 1946 for the production of The Lady from Shanghai. Bus means the propagation of your expectations without buzz on Lee, you know the great fume you are making. Buzz cuts through the noise and puts your fume on the map. It clears the road. It opens doors to you. It echoes through the market, making yourself known. It amplifies your expectations. It resonates with audiences. It makes you and your promise of value heard. Of course, creating buzz is not easy, and we depend on these issues the type of film. Not all films have it easy when it comes to creating buzz. It is up to you to analyze your project and think about where you can create buzz. Your network. Of course, having one we will only make it easier for you to get the message circulating as soon as you release it all independent films start buried deep in noise. That's the truth. It's not impossible to create and sustain buzz without a network, but it's harder. The appeal of your packaging. The best names always create the most effective buzz. If you don't have those, you still must find a way to communicate whatever you have in that department. Money is also a factor. Some people have brilliant ideas and create lots of buzz with no money. But those are exceptions. Eventually, you will need some extra help to create your buzz. Yes, you can do it alone with no money, but it will be harder. Your imagination is also a factor. In fact, it will be more important. The less money you have. So few free to experiment, brainstorm and discuss with your team how you can create buzz as long as it's not illegal nor ethically wrong. Anything goes finally creating buzz. We also depend on your schedule. While it is true that it's never too early to create buzz, it's takes a lot of effort, energy and money to sustain it all the way to the release. If you create buzz early on and let it die, your fume loses some of its urgency and importance. This means you should schedule your bus, creating efforts in sync with the fumes. Progress. It is very hard and costly to revive a project whose buzz died. Be very careful here. Buzz can help you catch the attention of financiers. Just be careful with its management. Here's what you're aiming for when you discuss buzz within your team. Whatever your film is, the buzz must be centered around its strongest values. Whatever your strategy is, it must be meaningful to the audience. It must be engaging. It must be relevant. It must be something people were want to share. The goals you define. A longer strategy must follow the smarter rules. They must be specific. Don't be generic. Be very specific here. Being a specific regarding your goal means the better. You're able to understand the way to accomplish it, like having great feedback from sales agents who saw your moods teaser. That's specific. They must be measurable. Something you can see measure Touch. How many of the people who saw your mood teaser gave you a positive feedback? 10%. 90%. It must be attainable, something that's realistically within your reach. Although your goal is to finance your film, this is a long term goal. Before that, you must break down this goal in many smaller ones that are attainable on the shorter term . And one by one, each one will keep you advancing. It must be relevant. It must be dead important to you, so it creates a priority over less important things. You must try to be able to see the entire road of small goals that are important to getting where you want to be, while at the same time seeing what goals also demand your attention but are less crucial, thus less relevant. It must be time bound. It must exist inside a timeframe. You may want to get feedback on your script, build your list of actors or do your casting well. You need a time frame so you can plan what you need to do or have in order to reach it. Such timeframe is your creation 13 or six months. How realistic is that timeframe? The answer is that it probably depends on how complex the task is and how many things are depending on you. It must be something you can evaluate and re adjust. If no one gives you feedback or if a certain goal is taking too long, you must be able to sit down, put your finger on the problem and readjust. Your last task on this battlefront will be considering a social, media and communication strategy. Every fume today is on Facebook, Twitter or Instagram. It's not enough just to be there. You must create relationships and build relevance on my film. We started a Twitter campaign very early since we knew we were going to do a crowdfunding campaign at some point. Therefore, we needed a large group of people who would be already listening to us by the time the campaign started. That's why we started tweeting about the film very early. By the time the campaign was launched, we already had over 20,000 people following us on Twitter. It took me only a few minutes a day for several months to build this. I'm pretty sure that by now you fully understand the crucial importance of development because while mistakes made in future stages can many times be fixed, you will be dragging the mistakes you made during development through the whole film. And that can be painful. Do not fool yourself. Helm your development stage with care. Give it the time, the resources and the attention it needs. Otherwise, you may never leave this stage. Remember, development hell is always looming. Your goal is to advance steadily, firmly and always on the next videos. We'll talk about power, the other stages of your fumes life. And then we'll talk specifically about financiers. See you there. 19. Understanding the Power Trinity, Part 1: Talent, Financing and Distribution: - today we will be discussing power here. It is important to understand where we're coming from. On the previous videos, we talked about all the relevant aspect of your development. We divided that work in four battlefronts. Creative, legal and financial packaging and your assets. Why is this important now? Because in the absence of a winning lottery ticket or rich parents on Lee, the best development, we lead you into production. But no development is ever perfect, and the fact remains that only 1% or less off what's being written will ever be produced. The majority of projects will remain in development hell forever. But if you think getting into production just makes it all easier, boy, you are in for a scary ride. Most often through makers do not get all the money they need to make the entire film. Sometimes they get enough to complete the shooting, but not enough to afford post. Frequently, they don't even get enough to finish shooting, and the worst is that many times, whatever money they can raise has to be spent before the end of the year or something like that, because the financier himself will lose access to the money after a certain date. So few makers are confronted with very strange options. Go for production anyway and try to continue to raise the money later. For post cut costs, make changes to the budget and make a smaller film or wait and risk losing everything, including the money already raised. This means that few makers many times we're choose to advance into production with their financing incomplete. The reason why I am bringing this subject is because filmmakers often don't see the full decision making process that ends up green lighting a film. Sometimes you have to take a more global overview in order to think of a strategy that will allow you toe, unlock all the money you need to make the entire film. So let's talk about power. You want the power to finance your film, but you do not control the money you need. But the financing exists, and you have to find a way to unlock it and make it move towards you. Or, if it does not flow to you, you must find out to whom it is flowing. Let's talk about the power trinity on the first corner. We have you the talent that means producers, directors, writers and actors. But it also means the people who bring them together and negotiate the conditions for all of it to happen. Agents, lawyers, managers, etcetera. Trust me, if these people are not happy, there is no film on the second corner. We have distributors. They are the interface that is closer to movie goers. They will be choosing what films to buy. But more important, which films are great enough to receive the best release, since they're the ones who can make it happen. On the third corner, we have the financiers. These are the people who will be funding your development, production and post. Their eyes are on the value of the rights to the film you are building. And don't worry. We'll discuss them at length soon. There is a firm balance of power between the three corners. They need each other, and the quality or capacity of one is linked to the quality or capacity of the others. Of course, few makers are usually here, and you start getting closer to financing your film. When you understand what each part expects from the other, then you can ask yourself am I making sure everybody is on the same page regarding needs, desires and expectations. Every fume that exists managed to put this relationships working somehow. And even if you are working with Netflix, a company that does everything still the corners are they're talking to each other, judging you. So let's see what each corner once from the other two. If you are a producer or a director and you are packaging your film, look into your own universe and see what everybody wants from the distribution. What, For example, do your actors expect? Talent expects from distributors the power of a wide circulation? Many actors won't consider your film until you can show them that your film will have it. People in the talent pool expect a guarantee that the film will not be ignored because everybody looks at the film as a firm step into the evolution of their careers. Everybody thinks of that because they all know a bigger distribution brings exposure a higher market value in bigger salaries in the future. If you believe no one is thinking about your feelings distribution, you are naive. This means you should start thinking about that. Still, during your development as a way to bring this trinity closer to you. The talent also wants something from financers. They want agreement on payments that are coherent with their contribution to the film's qualities, qualities that will make a distribution want to the film. They also want the guarantee that all the needed resources will be there to meet the demands of the fumes production values. That is why Mary of Strip brings her own makeup team. 37 years ago, my first play in New York City, I met the great hairstylist and makeup artist Roy Helland, and we, uh, we worked together pretty continuously since the day we clapped eyes on each other. He, his first film with me was Sophie's choice and all the way up to tonight when he won for his beautiful work in The Iron Lady. 30 years later, every single movie in between. That is why she also must approve the cinematographer. The best talent will always make sure the financing is there as a guarantee that everything that needs being done will be done. The talent knows that distribution and financing trust each other. They come hand in hand and one only comes on board. If the other is coming to with big films, this is quite easy. Sign up Metal Strip and both the best financing and the best distribution will immediately step writing with independent films. However, when you don't have matter, strip it will be a very delicate chemistry as we're going to see next, see you there. 20. Understanding the Power Trinity, Part 2: Where the Control Sits: - What does the distribution corner expect from the talent and the financing from the financing? They expect the right amount of resources on time and the guarantee that they will press the talent into making a film that brings to the table the value that was promised. This means that the bigger the distribution, the more they like financiers who are well experienced in the fume business. The distribution corner expects from the talent, the following, the best technical and creative quality and names with the highest market value. Remember that we discussed this issue when we were talking about packaging and the fact that distributors put a dollar value to the names in your cast. They also expect content that's engaging in meaningful to the intended audience, the guarantee of timely delivery and very important the best assets for communication and promotion that we already discussed. Distributor's understand that you need both great talent and experienced financing to produce a film that the best distributors will desire. The distribution corner knows what brings talent and financing together. They need each other in order to create engaging content. This is much more complex than it seems. Too few makers who usually do not have an accurate perspective on how their corner is being evaluated by both of the financing and the distribution corners. But the reality remains the best talent will most likely get the best financing and that we raised the distributions ears. Now let's look at what the financing ones from the talent corner they want the best development, which will generate content with the maximum appeal to the chosen audience. They want maximum prestige from the names involved to the prospective festival selection. They want full creative and production efficacy, which means all the right production values at the best price point. They want all the production values that were promised on the screen. And, of course, they want the entire film delivered by the promised date. The financing expects the distribution corner to take all that input it toe work, the best channels of distribution, the higher number of screens, the best strategies and the best promotion. The financing corner knows that if the best distribution is key to getting the money back, the best talent is the way to get the best distribution. So you have seen so far all the things that you can and will do during your development. The four battlefronts you will be facing will give you weapons on your war against indifference, indifference From whom you may ask. Well, now you know indifference from the financing ended. The distribution corners, everything you do during your development. Packaging, pitching, writing your great script, creating the look, mood teasers, contracts, budgets, networking Everything will either help you break the threshold of indifference or keep it undisturbed. Once you break that threshold and start your dialogue with them based on how great you went three or four battlefronts, you get to the position where you are able to finance your film. Now comes the $1,000,000 Question. Who has the power over a film? Well, looking back at our power Trinity, the answer is relatively simple. The person that is responsible for bringing together the largest percentage off the Trinity effectively controls the decision making process, especially the creative part of it. Normally, those persons come from the creative or the financing side. Let's look at some examples. Tom Cruise stars in Mission. Impossible Fallout Hey is the film's biggest star, and also the producer. Christopher McQueary is the director one of the producers and also the writer of the script . However, let's not kid ourselves. The person here who is running the show is effectively Tom Cruise, who, because he is a star, can bring the big financing and the big distribution you want on any film starring Tom Cruise. Sometimes the person in control is on the financing side. Take, for example, Iram Entry and Man, Captain America, Civil War or any film from the Marvel cinematic universe. You'll see that the control lies entirely with Marvel Studios or Kevin Faggy, the president of the company, who has a producer or executive producer credit. In all of those films, he is running the show. As you can see, the control tends to gravitate towards those two polls the talent that controls individual projects or financiers who own franchises and control their destiny. When we get closer to art house films or independent films with low budgets, their control tends to remain with the director, who normally is the main creator of the project in many times. Also, the producer Pedro Mood, over in large one tree. Here are two examples of directors with so much prestige, they bring their own audience with them in both the financing and distribution corners. Follow them, however, because they're not making films like Mission Impossible or Iran Men, their financiers and distributors are different from the ones in those films. These examples make something clear. There is always someone with the reputation, the credibility, the appeal, the knowledge or the power to bring together the talents, the financing and the distribution. That person controls the project, and he will get a trinity that matches those qualities. No qualities, no Trinity. So you should ask yourself, Do I have any of those qualities? Even if, to a small degree, you may not be Tom Cruise, Kevin Faggy or Pedro Almodovar, but still you have some qualities. The problem is that very often in independent films, the talent corner does not have enough to attract the best financing nor the best distribution. That's exactly why your work during development is infinitely important, because when you are not Tom Cruise, your project and other elements takes center stage, and you have to prove that you can make it on the next video. We'll look at the remaining stages of your films life and look at your efforts toe unlock financing. See you there 21. Financing Through Production, Price and Beyond, Part 1: - on this video will take a look through the remaining stages in the life of an independent film and see what actions you can take in order to continue your financing. As you conclude your development and unlock your financing, your advance into production production means preparing and shooting, also known as pre production and production. In this face, you'll be acquiring all the main elements that will be your film image and sound. However, your four battlefronts are not necessarily over. They did not end with your development. Instead, there are some unfinished business you'll be carrying with you for quite some time. They will be part of the process on the packaging battlefront. Once you reach production, the battle itself seems pretty settled. You have your cast, your writers and you're above The line is in place. However, you will be facing these questions. Is there any emergency? Is it all working by now? You understand that the financing you've unlocked is proportional to your ability to secure a packaging that represents value. You will be monitoring feedback and see if changes are needed on your legal and financial battlefront. You will still be looking for a sales agent if you did not get one during our development. However, at this point it should be easier to find a sales agent. Since you are already into production in many of your fumes, best assets can be properly evaluated by them. You will be also continually looking for presales. Nowadays, pre sales are very hard to get, especially on low budget independent films with no big names. We will discuss presales in detail on an upcoming video is your lock your package or start to the shooting. You can present a better case for pre sales than while you were in development. Because of that, you or your sales agent will be presenting the film to potential buyers. In case you haven't raised enough money to finish the film, you will be continuing to work on your financing plan and adjusting your budget. Depending on the type of film you are making, you have still be considering partnerships and seeing what rights you can monetize. The bottom line here is now that you managed to enter production, your project is more solid. This means that while your film was only potential during development, getting into production starts to turn that potential into verifiable value on your creative side, you are ready to go. You may still need some adjustments to your script or one last to rewrite. By now, you had most of the feedback you needed. You may also feel the need to produce some advanced key art based on Rio photos from your actors. You will be working with your art director or production designer, and that may allow you to show potential financers even better versions off the look We'll see on the film. You may start paying attention to the festival schedule and sending them early material that will put your film on the map and earn some submission invitations. And, of course, you will be preparing and shooting as you enter production on your assets battlefront. You may realize you can now produce deaths you could not afford during development. You were also be producing steals, screenshots and all kinds of materials that are only possible at this stage. You can produce interviews, footage that will be at some point used for behind the scenes later into the shooting. Maybe you can prepare selected Russia's or even a small show reel of the film to potential financiers. You may even create a first teaser and start releasing bits of the film into social media that may start your buzz. Oh, this may be important to potential partners who now begin to see the extent of your film, especially if you start getting positive feedback in generating market detraction after production comes postproduction. That's where your film will get its final form. Also, this is the face where all the elements generated during production are elevated into art. Your package battlefront is now one of your biggest assets. That's why we now bring those battlefronts into the assets you have been accumulating. The fuming that is taking its final form is just one of those assets you now have production, steals, screenshots and imagery that are perfect. This is important in the case of films that have lots of special effects. In many cases, you cannot show a production still with a green screen in the background. In those cases, you have to wait and to post in order to complete your set of production stills. Maybe the best of them are only available now. Perhaps you did not produce interviews with your talent during production well during post . You can produce better interviews. If your cast is still available, make sure you're put on their contracts. Availability closes for promotion. You can produce a better show real with shots that have been properly color graded, or you ask your cinematographer to color grade one scene or two. You want to show to festivals or buyers with your film in post. Perhaps now you can produce a better teaser or a trailer. If all the images ready, maybe you can edit your final trailer and get feedback from your sales agent if you have one. At this stage, you get closer and closer to your final visual presentation. The visuals air finished are almost finished. You can show better stuff to festivals and work on your communication strategy. You'll be fully concentrated now in managing your buzz, finalizing the film, preparing all the deliverables and, of course, getting feedback that you hope will translate into good word of mouth. If any financing is still missing, all of this can and will be important in solving that problem. Sometimes you are missing just enough to finish the sound mix or the final color grading well. These are all weapons. You have to make sure you and your film do stand out as you get closer and closer to finishing the film. Everything you have becomes now a part of your legal and financial battlefront, you may still be fighting to get a pre sale or one last financer that will allow you to finish the film. It is important that by now everything amazing that you're filming can be is clear. If you haven't found a sales agent so far, you will continue trying to get the best one helped by the assets you have everything you have and everything you did now become items on contracts you want to close. I know it will sound like a sacrilege, but the reality is a fume is simply a right. You or your sales agent will be selling to buyers. Those rights include your fume and all the raw materials that will be fundamental to its proper communication and promotion. It's all one big hard drive of hard work, sweat and tears that compose your film. And at the center of all that is your package creative work and intellectual properties that may be worth gold. The next faces called the delivery. Typically, it is the shortest face off the mall. On the next video, we'll talk about delivery and we will also discuss your films price. See you there. 22. Financing Through Production, Price and Beyond, Part 2: - the next faces called the delivery. Typically, it is the shortest face off them all. This is the moment your sales agent can finally see the finished film and show it to buyers . The fume is now ready for distribution with all the other materials needed for communication and promotion. At this stage, the fuming will either confirm or frustrate the promise of value you made at the start of your development. This is one of the shortest phases since your film only has a few months as fresh. After that, new fumes entered the market in yours will start to take the back seat, so it is important that everything is ready for delivery at the same time. If your strategy includes fume festivals, there is no time to lose. You should coordinate your festival strategy with your sales agent or at least get some advice from people with festival knowledge. You should get reaction from distributors, buyers, critics and make sure everything contributes to sales. During this stage, every aspect of your film will be evaluated and discussed. Remember that there are other fumes on the market, and unless you have the hottest fume everybody wants, it's a buyers market, so you have to make sure you get a high score in everything. Delivery dates are very important because distributors who bought your film were waste no time in setting release dates to your film and start making money. All the essence you have will be taken into account. Do you have a great poster? Does your film have a music and effects soundtrack for countries that dub the films? Do you have great steals? What will be delivered? What can be used freely? Are there any limits to any rights inside the film rights? Inside a film can be a very delicate subject. Be up front about it and discuss those issues with your sales agent. Here. The work of a great sales agent can be fundamental considering the short window of freshness you have. A great sales agent will make sure your film gets the maximum number of offers in the shortest time frame, making sure the fume enters distribution as soon as possible. As the fume enters distribution, new questions arise How successful your festival run has been. Did it have an impact on sales? Generally speaking, it is good for a few men to have a strong festival presence. However, some films are so small that their potential audience is almost entirely comprised of festival goers. This may put off some distributors from small countries. On the other hand, some films build momentum from festivals and managed to get better offers. Because of that, there is no right or wrong answer here. Since Notre Fumes are alike, every film is different, and even to similar films may respond differently to changes in context. The performance of a film in its native country is usually an important element because most films tend to be more successful in their own country, where the cast tends to be more well known. This seems to be true with foreign language films that don't necessarily have a big appeal in other markets or comedies that rely heavily on some cultural specificity. The important element here is to see if the success of a film in its own country has any effect on unsold territories or neighbouring territories. Sometimes a huge hit in Belgium or Brazil again spark a higher interest in an important foreign territory. The subject of supervision is always important as the producer must make sure someone will keep the sales reports flowing as defined on the contracts. This is the job of the sales agent. The same goes with performance analysis. At a certain point, filmmakers and sales agents must sit down and discuss what worked and what did not work with the film. There are usually lessons learned that will be very precious when it comes to your next film. And yes, the big question has the release of your film had any impact on your next project? At this point in your personal war against indifference, this is the only question that matters over one year. After your fume enters distribution, it glides into its catalogue life. This means the first window when your film had its highest level of freshness is gone to questions are now important. What are the next windows of commercialization and how the success or lack of it off the first window of release well effect its expansion into new windows, video on demand, home video broadcasters, etcetera? Also, will it become a classic? Will it become a part of a great filmmakers career after a few years where the distribution contracts be renewed? So finally we reached the full breakdown off the life of an independent film in its six stages. Now you may be asking yourself, How are the price of the film evolved through those stages? Well, independent films, especially those without big names, have a clear evolution. As you start to development, your film is little more than a vague promise. This is why it is so hard to get any financing at this stage. Your entire development will consist on you fighting through your four battlefronts in order to conquer hearts and minds, burst through the threshold of indifference and make this promise more secure. As you move through production, your values starts to shine, and by the time you reach boast, everybody starts to see your films goodies. The moment of truth arrives when your film is ready for delivery. This is when your film gets its highest price from buyers. Now it is important to note that I am not saying that when you reach this point, your film will make a lot of money. What I'm saying is whatever offers it may get from buyers, it's here when those offers reached their highest point, because now the film can be properly evaluated for what it is really worth, and distributors can set release dates and start making money. Yes, you can pre sell your film during development production our post, and you may even need it in order to closer financing plan and finish the film. But buyers are unlikely to give you a lot of pre sale money for a promise that may still be a year from delivery. Keep in mind that no one likes to pay for a promise in the same way that no one likes to pay and wait. Money is an expensive commodity if it is buried on the pre sale for a year. That's less money a buyer has to spend on another film that may be great and ready. By the time your film gets its release, its freshness starts to decline. The price will drop even more when it becomes a catalogue title. I call it the Big Unknown because after a few years it may slip into oblivion and drop its value to zero. Or it can become a classic and sustain its value or even gain value. Blockbusters with a great package containing lots of stars already start development with its value constantly high. The marketing machines at big studios make sure those projects starch development already with high prices. For obvious reasons, they have the stars, however, how they maintain their value after they're released Window is gone depends on how memorable those films turned out to be and how deep their resonate with audiences. Your film can become a surprise hit and managed to maintain a steady value years after its release. Or your film may not be a huge hit at first, but after some time it becomes a coat film, and then it actually manages to gain more and more interest. And, of course, value. Lots of things can happen to a film on its way to the audience. Some good. Some bad, However, a great development will make sure your film has the best weapons against indifference. Now that you understand the importance of development and what can happen during the life of your film, we are ready to meet the financers. See you there 23. Meeting the Financers: Who Are They?: - on the next several videos, we will be discussing the financiers. We'll cover them one by one. Films are creative products, and like many products from the creative industries, films have a real cost and the perceived value the real cost. He's easy to calculate, but because the elements inside a film have an intangible nature, it is pointless to attach its price to its cost. The perceived value looks at those intangible elements and makes an educated guess of the fumes. Worth the intelligibility is key to this discussion, since it usually cannot be easily apprehended by a number, it will stay as low as the market cares to pay for it. Or it may go as high as the market can afford. Price follows Perceived value, not cost. You may spend millions on the film that turns out to have little value. One cannot easily put a price on the Mona Lisa. Some sources say it is worth over $800 million. Others say that number is closer to $2 billion. The truth is, we can only guess the intelligibility of its components were blur Any attempt to price it? We'll never know until we sell it. It's history, rarity, age, beauty, importance, Faymann mystique, These air, all intangible elements one cannot accurately measure nor touch the same thing happens with a film. It's story, the way it is told the appeal of the actors, the directors style, the spectacle. These air also intangible elements that will suggest prices, but only the market will tell you it's really value. Another film about the Mona Lisa may be worthless, but put Tom Hanks in it and use a best selling book as source material, and the value becomes clear. The price will go as high as distributors can afford, based on the perceived box office potential. Why is this important to film financing? Because contrary to the Mona Lisa, which probably only cost Leonardo da Vinci the equivalent of $100 in materials, a few makin cost millions, one must understand why he's making this film, since the answer will suggest which finances will perceive his film as a valuable endeavor . It's like I've said before, your goal is to burst through the threshold of indifference. This means it is your job to know your financers and understand who puts money on which films and why there are roughly nine investor profiles, some are only interested in making money to them. The return on investment is all that matters. Others are in it for a deep love. They feel for cinema in the pleasure of making films possible. There are those who want to discover new talents, new styles and new voices. Certain investors are trying to raise awareness around certain causes they hold dear. Some wants to influence people, challenge them and change their minds. A number of finances are in it just for the fun of meeting the few makers they respect. Others feel that certain fumes need to reach an underserved audience. There are those who want to have the pleasure of being a part of cinemas, glamour and magic. And finally, some investors want to be a part of the project in order to better understand and learn about the business. These air not all the possible investor profiles. In fact, there are many more, and it is your job to understand them and see if you in your project aligned with any of them. Now let's meet the players here. There are six main types of financiers, each one bringing a number of specific classes of financing existing around you and your project. We have other producers, private investors and lenders, TV broadcasters and other platforms, media buyers and buyers of other rights, distributor's and sales agents and public funding. From these types, we can extract a total of 10 classes of financing that are available to films, TV series, documentaries, shorts and other related audiovisual content. The list we will be discussing does not come in order of importance, since certain films maybe more suitable to one type of financing and not another. So on number one, we have public funding. There are several types, and we will be discussing each one of them. On number two. We have what is called tax incentives. There are several types of tax incentives, and we'll explain how each one of them works. Third, we have coproduction, a very common way of splitting costs. On number four, we have TV and platform funding. They are different, but similar in several aspect. Presales are right on number five, a great way to lower the amount of money a producer has to raise on. Number six comes advertising as a way of complimenting your financing plan. Equity financing comes on number seven, a very common way of financing films that comes in different forms and has more than meets the eye. Licensing comes next on number eight crowd sourcing. A very talked about former financing comes on number nine and finally on number 10 awards and grants. We will follow this order and kick off with our discussion about public funding. I hope it's going to be enlightening. See you there. 24. Public Funding, Part 1: - On our last video, we identified 10 classes of film financing here. They are in no particular order on this video. We are going to start with public funding. Like the name implies. Public funding means money that comes from governments. This type of financing is not available everywhere in the world. However, it tends to be an important type of financing in the areas where it is available. You find strong public funding institutions in Europe, Canada in many Latin American countries, northern Africa, the Middle East, Australia and New Zealand, South Africa and some other parts of the world. There are four types of what could be considered public funding. National fume funds turns, national film funds, regional film funds and territorial support funds. What are the differences between them? Let's start by understanding national fume funds. Here are some examples the French CNC, Spain's IKA, Argentina's Inca and Portugal's IKA. These air just for examples. National fume funds have these characteristics. They are funded and controlled by national governments, meaning that their money, usually but not always, comes from the national budget or specific Texas and schemes created for that effect. Their goal is to develop the country's film industry. It's filmmakers inter support to their films. Their focus tends to be more cultural or artistic than commercially or market driven. This means such kind of money, like all other financing types, is not blind. They do prefer an art house film to a zombie flick. Although many of these funds over the years have developed a more balanced approach to projects, another characteristic of this type of funding is that it tends to be known. Recoup herbal, non recoup herbal means money you do not have to pay back. That is why this money is also known as a subsidy. Because of this characteristic, public funding is also known as soft money. For obvious reasons, there are some national fume funds that practice what is called a soft loan, which is money that only has to be paid back if the fume makes money or the producers only need to pay back a small percentage of the full amount. National Fume Funds supports a wide variety of activities related to filmmaking development , production, support for emerging talents, animated films, shorts, automatic funding based on previous successes, postproduction marketing and distribution coproduction festival promotion in many other activities not listed here. These financing schemes can be found on those institutions websites where anyone can read and discover what they do, the amounts they invest, how to apply deadlines, etcetera. Now, because these air national fume funds supported by governments, their aim is to support national films, not just any film. They are also primarily aimed at their own national few makers, and the production companies there are based on those countries. This means you have to be a Portuguese producer with a company based in Portugal. If you are looking for money from a Portuguese fume fund or you get a co producer from Portugal to do that for you, producers with the project go through an application face, followed by evaluation of the project and the team behind it. After this procedure that can take months, a decision is made and the selected projects step up to signing a standard contract with the film Fund. Payments will be made according to the production schedule, and when the fume is ready and audit will be made in order to verify the reported spending . Although there are many variations due to the specificities of dozens of film funds, across the globe. This is the basic order of events. Some fume funds are very generous and roughened up to 90% of a project budget. Other, less generous fume funds will finance 50% of the budget or less, requiring that the producer come up with the rest of the money through other means. All of these subsidies come up with a cap or a limit to how much the film fund will invest into a single project or the same producer. This means that although a fume fund can enter with 50 or 90% of a budget, they will also tell you the maximum amount they will invest in your film. In case your budget is just too high. There are advantages and disadvantages in working with film funds. Let's see the advantages. Yes, it's direct financial support to the producer in cash. The money can be a non recoup herbal subsidy or a conditionally or partially recoup herbal money, a soft loan to be paid back only if the fewer makes money to the producers. The guidelines are clear, stable and easy to find. They are usually published well in advance. In some rare instances, a Fume Fund may finance 100% of a film, although such high percentage is very rare. There are also disadvantages. Usually the selection is made based upon a very subjective perception of the projects, cultural or artistic merit that has little to do with the fumes appealed to audiences or its commercial potential. This means that decisions can be biased or the result of personal tastes of a particular jury. Another disadvantage is the fact that some from funds can run very slow, and a final decision can happen several months after the application amounts available. Differ a lot from country to country. France, the UK in Germany can easily put millions of dollars into a single project, while some smaller countries can barely invest $100,000 into one project. There's also a lot of bureaucracy, the demands for lots of documents, deadlines and different rules from film funds from different countries. Despite this, national film funds remain an important source of financing in the countries that have them . On the next video, we'll continue with transnational fume funds. See you there 25. Public Funding, Part 2: - the next type of public funding is the transnational fume Funds. Here are some examples here. Image covering 38 European countries plus Canada, Liberty Media covering 18 Latin American countries, plus Portugal, Spain and Italy, and Creative Europe, covering 28 members of the European Union plus other eligible countries. How do they work turns? National fume funds bear some resemblance to the national fume funds since they're also funded by direct or indirect contributions from governments. However, while national film funds have their main goal of supporting their own national films, the transnational fume funds only support co productions between member countries or projects with a transnational or cross cultural appeal, meaning that those programs have a strong focus on transnational cultural relationships. Their funding criteria tends to be a mixture of cultural and artistic merits as well. S commercial appeal. Many times the financing provided tends to be more a soft loan unless a non recoverable subsidy, the number of activities that are funded is quite widespread. Development, production of features, animation and documentaries, postproduction promotion, exhibition and distribution. Here's how it works. Let's consider this budget. 55% of it comes from national fume funds 10% comes from a transnational film fund, while the remaining 35% comes from other sources. Three producers agreed to make the film one from Denmark, one from Portugal and the 3rd 1 from Austria. Each one of these three producers has secured the financing from their own respective national film funds. The co production ratio, meaning the ratio of contribution from the three producers, is 50% from Denmark and 25% from each of the other two co producers. They apply together to your image a transnational film fund and get 10% off the budget. That financing, meaning those 10% will be assigned to each producer according to each one's coproduction ratio, in this case 50% 25% and 25%. This is an example of how producers combined national film funds and turns national fume funds. In this case, three different national fume funds and one transnational film fund the advantages of working with a transnational film fund our direct financing support to the producers, always on a pro rata basis. Depending on the fund, it can be known recoup herbal money or a soft loan, clear guidelines that are published annually and easy to find. The disadvantages start with the incredible amount of documentation that must be submitted . The need for a careful analysis of the real contribution from alco producers, the bureaucracy, the fact that's transnational fume funds usually cover a small percentage off the total budget and a very tough competition. Some small transnational funds, like the Unjust Friend, do not require a co production structure. However, Like any other transnational film fund, it requires that projects originate from one of the participating countries, in this case, Arab countries. This fund looks like a national film fund but covers multiple countries. On the next video, we'll continue with the other two types of public funding regional funds and territorial support funds. See you there. 26. Public Funding, Part 3: - on the previous videos, we discussed two types of public funding. National from funds and transnational film funds on this video will focus on the original film funds and later on territorial support funds. They are very different from the two we've seen previously. Here are some examples of regional fume funds Copenhagen Film Fund Humor London West Finland Film Commission Fume phones VN and Crack Out Film Commission, as their names indicate these funds are not representative of the country. Instead, they focus on the city or a specific region. These funds exist because local governments understood that while big events like the World Cup or the Olympic Games require massive investments in infrastructure that rarely generated the expected return, a large film production on the area can generate instant returns. With little investment made, a film brings stars dozens of crew members and journalists who will be renting cars, booking hotels, eating at restaurants, paying for local services and spending money on countless things. So original funds were created by local governments as an attempt to lure the film industry into their region. Their main goals are creating a robust film industry eco system in the area, promoting that region internationally as an attractive tourism destination and boosting local businesses with the money that a film production brings. But unlike national fume funds that are predominantly focused on the coach road and artistic qualities of a project, original film funds are looking at the money that the production will spend on that region and the economic impact that causes all kinds of benefits to better your your film into their area. They may even offer you a percentage of the money you are planning to spend their yes cash . They can also offer you free permits, access to special locations, their support and knowledge for problem solving and much more. They will do their best to make sure you spend the maximum percentage of your budget there , and they will try to help and make you happy. You can shoot there with a local crew or do your post with local post production companies . Here are the advantages of working with regional fume funds direct financial support to the producer in the form of subsidies, goods, services or other incentives. No need to comply with complex coproduction treaty regulations and the fact that some regional fume funds can finance a significant chunk of a fumes budget with some caps. Of course, there are also some disadvantages in working with original film funds. The producer, for example, must spend all the money they give you on the region, which kind of makes sense. But there is also a requirement that you spend an additional percentage up to 50% or much more, in some cases, off the money given on the region. This means that if they give you, let's say, $100,000 they expect you to spend all the money there and also bring your own money to spend there as well. There is little harmonisation of rules, making it tricky to combine them with other funds. There is also some degree of bureaucracy, deadlines, negotiations and changes in rules from fund to fund. Also, the fund you are considering may disappear next month after local elections. So here we have an example of a film that gets 10% of its budget from regional film funds, 55% from national film funds, 10% from a transnational film fund in 25% from other sources. The 55% from national film funds comes from three producers Denmark, Austria and Portugal, each one contributing. With its part, the Danish and Austrian producers managed to have the support from regional fume funds in their countries. Let's now consider that 25% through other sources is also split evenly between the producers. All contributions may not to be equal. However, when put together, we have a co production ratio of 40% from Denmark, 35% from Austria and 25% from Portugal. As we have seen previously, the transnational fund, we reproduce the co production ratio. The interesting part is that if we take out the 25% coming from other sources, we have 75% of the budget that is financed through public funding in a mix of non recoverable subsidies and soft loans. On the next video, we'll discuss territorial support funds. See you there 27. Public Funding, Part 4: - Let's now talk about territorial support funds. This is a type of fund that is quite different from its siblings. Territorial support funds are created as a sub fund of a national film fund. Their aim is to help developing countries with little or no support for film production. They also aim to foster relationships between those countries and the funding country and bring up filmmakers and stories that otherwise would never be produced. Here are two examples. The sore fund from Norway and the day or Cinema demand from Fronts. The main objective of sore fund is to strengthen film production in developing countries, where such activity is limited for political or economic reasons. Over 60 countries are covered, including Afghanistan, Brazil, Burundi, China, Kyrgyzstan, Mozambique, Sri Lanka and Zimbabwe. Open too few makers from around the world. The video cinema demand aims to facilitate and encourage international co productions and the production of works that will contribute to the promotion of cultural diversity. Territorial support funds go a little further than other funds as they become mainly financiers of foreign films. The director can or must be foreign, the language can or must before, in a co production structure may be needed, but the creative contribution from the main funding country will be limited. Here's an example to producers from Norway in Mozambique Apply to Soar Fund Mozambique does not have a reliable public fund nor a stable film industry. Both producers understand that without Norway's support, the fume would not be possible. Soar Fund finances the majority of the Mozambican film through a Norwegian co producer even though the Norwegian creative contribution will be minimal. Territorial support funds can cover the following activities, development, production and postproduction. The advantages of working with a territorial support fund are very straightforward. The possibility of raising money to fund foreign projects from developing countries plagued by insufficient financing films and filmmakers that otherwise would never see the light of day. Also, a significant part of the budget comes from a co producer who will not demands to make any significant creative contribution, thus leaving the few maker freer to make the fume he wants. There are also a few disadvantages. The main producer from a developing country must work with the European co producer whose costs are much higher, which can limit the reach of the money. Some funds in an attempt to install best practices in developing countries will demand that technicians from those countries be paid higher wages once more, shortening the how far the money can go. The selection of projects is also based on the subjective perception of cultural, artistic or political merits. Now there is sometimes confusion between transnational fume funds like your image and territorial support funds. Both types like a coproduction structure. Sometimes they require it and both recover multiple countries. So what's the difference with transnational fume friends? Countries are treated as equals. Any participating countries can co produced with each other, and each must bring a percentage of the financing that will be equal to each one's creative input. Territorial support funds are created by one country targeting other countries, like a mini treaty. This means that there is one country that we always participate in the structure. Transnational film funds follow a Perata principle. The financing is split between co producers according to the percentage of their relative contributions that will be financial and creative with territorial support funds. The principle is not necessarily applied. The main producing country, maybe putting a larger part of the money on the film however, it can function like a minority ical producer, and its creative contribution may not be a condition. A developed country can also create a territorial support fund with a neighbor. It does it for two reasons. To foster deeper relationships or to help. In moments of financial crisis, when Portugal was heavily hit by a financial crisis in 2000 and 10 fronts created a small fund to help Portuguese films, Portuguese producers could find a French co producer and apply for the financing. This concludes our discussion about the four types of what we call public funding. Over the next videos. We will move on to the fascinating world of tax incentives. See you there. 28. Tax Incentives, Part 1: - on the previous videos, we identified 10 classes of financing for film, TV, Web series and other audiovisual content. Recovered the first class, which are the different types of public funding. On the next videos, we will be discussing something completely different tax incentives, why they exist and how they work. When we discussed original film funds, we said that governments understand the importance of having a robust film industry. Why? Because few production boosts local businesses and that reality is reflected in many other sectors of the economy. That is why governments create tax incentives to attract foreign productions and developed the local film industry. There are four classes of tax incentives. Tax exemption, tax rebate, tax credit and tax shelter. All of them are created by national tax authorities, which means they have the power of legislation. Sometimes they are administered by national or regional fume funds. Tax incentives are found worldwide. However, despite small differences and specificities, they all falling to one of these four categories. Let's start with tax exemption. A producer with the project applies to the government for tax exemption status. The government will analyze the project and look at things like the budget how much the producer is planning to spend locally, and how will the money be spent. After approval, the government will grant to the producer a tax exemption status that, as the name implies, we will exempt him from paying V A T on the money spent by the production. The agreement will be very precise in stipulating how much money the producer can spend and expect to save, as well as which costs will be covered by the tax exemption. As the project enters production, the producer goes to local suppliers, where he will rent equipment, props, wardrobe and all the costs covered by the tax exemption. Hey communicates with each supplier and shows them the tax exemption status that will allow those suppliers to issue invoices that will not charge V A T tax or will reduce it significantly. Because of his tax exemption status, the producer saves money. He otherwise would have no option but to pay. This means there is now a significant percentage of his budget that was supposed to go to the 80 tax expenditures that now can be put back into the budget as production spending. The result is the producer can do more with the same budget. Since the exemption from paying V A T tax allows him to have more cash available to spend on other things. The advantages of the tax exemption are many. This type of incentive is fast to administer. It results in a direct reduction of costs that generates an immediate cash flow benefits to the producer as money that would be spent in local V 80. Texas can now be put back into the budget. The disadvantage is that this type of benefit is not so relevant in countries with a new, already low percentage of V A T tax. The second type of tax incentive is called tax rebate or tax refund. Tourists can recognize this symbol placed in hotels, shops and restaurants wherever they go went on vacation. Well, the principle is very similar. Let's take a look similar to what happens with the tax exemption here. The producer with a project will apply with the government in order to obtain a tax rebate status. An analysis of the project will also take place, and then something different happens. The tax authority tells the producer that if he spends that amount of money with v A T tax on eligible costs. Then the producer can, after the production ends, submitted the accounting toe attacks authority that will honor the agreement and pay back the producer the V A t tax he spent. So, as you can see, there is a big difference between tax exemption and tax rebate. The producer rue pay full V a T tax rate to local suppliers on Lee to recover its full amount, or a percentage of it at the end of the production. The money will be refunded in cash or as a note of credit for Texas. The producer may pay in the future. On many cases, a producer can sell notes of credit to other companies wanting to lower their own tax burden. Or, if the rebate will come as cash, he can take the agreement made with the government to a bank and discount a percentage of that amount. He was promised to cash flow it back into the budget. Here's an example. The Turkey Fume Commission administers a tax rebate scheme that will give a foreign producer 100% of the V A T tax paid during the production, 30 days after the report by a certified financial accountant is submitted. The tax rebate has a few disadvantages when compared with the tax exemption. The producer needs to find a way to cash flow, the free 80 collected until it is refunded to the producers bank account. Some tax authorities will take a long time toe ordered to the production before approving the amounts to be refunded. It demands some experienced accounting services. Otherwise, the amount approved for refund may not be what the producer expects with tax exemption. The V A T tax is saved immediately. At the moment of making a purchase with a tax rebate, the V A T tax is fully paid on Lee to be reimbursed later to the producer after an audit. So these are the 1st 2 types of tax incentives available to films and other visual content . Over the next videos, we'll talk about to the other two tax credits and tax shelter. See you there 29. Tax Incentives, Part 2: - on the previous video, we discussed the 1st 2 types of tax incentives available to films, TV series and other audiovisual content. Tax exemption in tax rebate or refund. On this video, we will discuss the third type tax credits. The tax credit is a very competitive form off tax incentive. It is similar to the tax rebate in the sense that you pay first and get the money back later. However, while in the tax rebate, we're talking about the V A T tax that will be paid back later to the producer with the tax credit. We're talking about a part of the full expenditure numbers. Let's look at how it works. The local tax authority makes an announcement about how much money will be available for tax credits for the following fiscal year. That amount is usually fixed because that's money the government will be paying instead of simply returning taxes that were paid by a producer. After that, producers apply with their projects and we'll explain in detail what kind of project they are producing. The complete budget, the part of the budget they plan to spend in the country and how the government will select the projects that better match the tax credit guidelines and its goals. The fumes budget is broken in two parts, one that will be spent by the producer in his own country and another he wants to spend in the country off the tax credit. Depending on the rules each country creates, there can be minimum and maximum amounts of money spent locally. There can be illegible and non eligible costs. This means the producer must carefully analyze the guidelines in order to see if a certain tax credit scheme is right for his needs. There is a lot of homework here to be done by the producer, So the part of the budget that will be spent in the country of the tax credit is further broken into eligible expenses and known eligible expenses. It is from the illegible expenses that the tax credit will be calculated. This means the producer gets a percentage of that amount. The percentage of the amount spent on the legal costs can go from 15% to 40% in some cases . That's a lot of money that is paid back to the producer. Let's look at this example here is a budget of $10 million from those $10 million. We have development costs that are not eligible, a percentage that will pay the above the line and the crew. We have production costs. We have a post production costs and even a percentage of crew members and services that can be hired locally at the country of the tax credit. Now let's break our film in two parts. Let's separate expenditures I have to make at home and those costs I can transfer to the country with the tax credit in this example. To make it simple, I'll make it 50 50. However, pay attention that now I split my production and post production costs into parts I have to pay at home. For some reason and expenditures, I decided to transfer to the other country, the country off the tax credit. Now, different guidelines may define that some production costs are known. Eligible for calculating the tax credit. This means I will have to further break that part of the budget. Now I have production costs that will be made in the country off the tax credit that are illegible and known, eligible now, imagining that these guidelines will pay me back 25% off all eligible costs. I can break once more the budget and get the amount that will be paid. And still, it's a lot of money. For this example. I defined 25% of the eligible expenditures and a small one million cap for the maximum amount to be paid back to the producer. In this case, we're talking about 10% of the entire budget that will be paid back to the producer. That's the equivalent of 3/4 of the post production costs. The producer does not have to wait for the final audit in order to receive the money. He can discount that contract through a bank that we lend him a big part of the money so he can cash flow it back into the production. Just like it happens with the tax rebate now, because that's money that the producer gets from expenditures and not just viotti tax. These tax credit schemes are very competitive. Let's recap of the sequence of events first, a tax authority defines conditions and eligible expenditures. Second, the producer applies and submits the film's budget, broken into pieces, the full budget and the amount that's going to be spent locally. Third, the budget is analysed. Total tax credit is calculated. Preliminary approval is issued forth after the production. A final report is prepared and submitted, along with all the accounting information that will be audited. Fifth, the tax authority. All it it's the report and all the accounting information and pays the producer in the form of cash or a credit note. The credit notes are tax credits, hence the name for future taxes the producer may need to pay in the future. In many cases, these credit notes can be sold by the producer to another company. The Canadian province of Ontario, for example, has three tax credit schemes, the 1st 1 based 35% of qualified entire labor expenditures. You can access it if you are an entire based company or if you are co producing with one. The 2nd 1 pays 21.5% of qualified on Tahrir production expenditures. The 3rd 1 face 18% of qualifying. Entire your labor expenditures for digital animation and digital visual effects created in Ontario, The advantages of working with tax credits are many fold. The ranges go from 15% to 40% in some countries or regions. The more you spend locally, the more money you can get back. Banks can discount those tax credit contracts, so the money up to 80% of it can be available to the producer before the actual payment. This means money. The producer cash flows right into production. Producers are able to cover considerable chunks of their budgets after discounting those contracts. Tax credits can be used in combination with other schemes. If you follow the rules now, here are some of the disadvantages extra work. The producer must submit lots of information about which parts of the budget will be shot in the area. How long will the production take? And, in the end, a lot of accounting information that will have to be sent back to tax authority for the audit. In some countries, it takes up to 15 months to get the money back from the time the final report is submitted , a considerable number of rules and details that can take some time to master. This means you should hire good accountants and bookkeepers in order to make sure everything is perfect when the time comes for the final audit. On the next video, we'll discuss the fourth type of tax incentive text shelter. See you there. 30. Tax Incentives, Part 3: - tax shelter, and this one is very different from all the three types we discussed previously. Tax shelters exist or have existed in many different countries, although Belgium has been consistently using it for quite a long time. In fact, they perfected the formula. How do they work? First, let's meet the players. We have a national producer with a project. He wants to finance the tax authority that creates the tax shelter as legislation and supervises it an intermediary lawyer who is central to the process. And finally, we have a tax paying private company or a person based on the country. The producer submits the project to the Tax Shelter authority that issues on authorization that allows the producer to raise money specifically under the tax shelter regulations. Now the producer with the tax shelter authorization goes to an intermediary who usually is a lawyer or, in some cases, another producer, who will prepare the investment offer and presented to companies or wealthy individuals who pay taxes. Under the tax shelter regulations, these companies or individuals receive a tax cut for the money. They agreed to finance the film to sweeten the offer, the tax shelter offers a Maj. Aeration over the money to be put on the film. So if a company agrees to invest, let's a $100,000. The tax authority will give them a tax discount of $140,000 or 40% over the amount financed . That percentage varies from country to country. Some countries allow producers to finance up to 40% of the entire budget through tax shelter. Others will allow 50 or 60%. The tax authority will publish the regulations so producers can know exactly how to move and how to make it all work. The producer must be a national company and must have all the documentation needed for submission. The budget, the financing plan, the script, the package, etcetera. The intermediary is a fundamental part unique to this system as the person who will spend a lot of time talking to investors and making sure all the legal documentation is their companies and reach individuals who financed. The film must also be based on the country, since the tax discount they are getting is for Texas, they would be paying in that country. Some countries put caps on the amount companies and individuals can invest in order to get the benefits. For example, the tax authority may stipulate that a company can only use 5% of the amount they would pay in taxes for the purpose of financing film. The specifics of the legislation can vary from country to country, but the principle is very similar. Everybody gets something the producer gets a big chunk of the film financed. The intermediary gets a commission on the money raised from several different investors, and the investors pay last Texas. In fact, the name tax shelter comes from the idea that companies or wealthy individuals can shelter themselves from Texas by financing a film. The more they pay, the bigger the shelter. The advantages of using a tax shelter are clear. Direct cash investment available to the producer. Very little judgment on the artistic quality of the project, the fact that investors do not control any aspect of the film, and considerable savings for companies and rich people regarding their tax burden. Some tax shelter schemes allow investors a chance to have a share on the fumes profits. However, there are also some disadvantages. The amount of paperwork between producers, investors and tax authorities is considerable. Because of that, the costs with lawyers and accountants can be very high, which makes financing a film through a tax shelter very impractical and expensive for low budgets. Also, there will be a lot of accounting because all the parties will have to account for all the money that is raised and spent in order to prevent fraud. And it's typical of tax shelters to have lots of rules and obligations, making it difficult For a small and unexperienced producer, you will need lots of legal and accounting help here. These are the four types of tax incentives usually available to films TV, Siris in other audiovisual content. On the next video, we'll talk about our next class of financing international coproduction. See you there. 31. International Coproductions, Part 1: - on the previous video, we discussed the four types of tax incentives that make our second entry into our list off 10 classes of financing that are available to films, TV series and other audiovisual content on this video will discuss international coproduction. Coproduction means two or more production companies agreed to produce together a film, a TV series, a documentary or any audiovisual content. All of them will bring a part of the resources, the money, the talent and the networking. The term coproduction is widely used to designate the relationship between producers in the same film. But coproduction is not a nisi thing. So before stepping into one, you should ask yourself, Why do I need one? Here are a few possible answers because you want access to more money than your country can fund because you need access to better talent and crews from other countries, or because you want to give your project a bigger profile and make it more appealing to international markets. So in this context, there is a leading co producer and a minority co producer. The leading co producer, also known as the majority co producer, is usually the one who owns the underlying rights and also owns a bigger share of the pie. He is usually the one who developed the script, bought the rights of the book If it's an adaptation and hired the director between the majority co producer and the minority ical producers. There is this thing called the co production ratio that I have mentioned on previous videos . This ratio is a principal. Most producers agree the percentage of the budget invested by a producer or country must be equal to the percentage of money spent by that producer or country. That must be also equal to the percentage of the creative contributions by nationals of that country that must be also equal to the percentage of revenues each producer or country gets in return. This ratio is very important when it comes to producers in different countries trying to get money from national funds, transnational funds or sometimes even tax incentives. This means you should pay attention to that. Now let's go a little bit back and define something very important. There are two types of coproduction Official Co productions, also known as Tritico Productions, and the Nun Official Co productions, also known as informal co productions. The official co productions are regulated by a treaty between two or more countries. The non official co productions are not regulated by any treaty. Let's see what this means. This is Brazil and this is fronts. There is a core production treaty between these two countries. In this treaty, producers from both countries will find the rules they must follow if they want the fume. They are co producing together to be considered both Brazilian and French by each respective government, thus becoming unofficial coproduction. Now you can ask, Why does it matter? Well, if it's unofficial co production and the fume is both Brazilian and French, then each producer can have excess toe all the benefits and financing each country has to its films. This is a win win situation for producers and a great reason to go for an international coproduction. The treaties can be bilateral meaning made between two countries trilateral, made between three countries or multilateral made by several countries. In Europe, for example, where international co productions are very common, there is the European Convention of cinematographic co production with over fourty participating countries. That's why the co production ratio is so important because the vest majority of co production treaties demand that there is a balance between financial contribution money spent, creative work and profit sharing. However, there is one caveat. While it is easy to compare numbers like money invested or money spent, it isn't so easy to put numbers on the creative contributions to solve that many financiers putting place point systems to evaluate the true nationality of a project. These points systems are not perfect, and in some cases they can be negotiated. However, they are good enough to evaluate the true nationality of the most relevant creative contributions to a film. On the next video, we'll take a look at the point systems used to verify the nationality of a film. See you there. 32. International Coproductions, Part 2: - on this video, we'll look at the point systems used in order to verify the nationality of a film and fight abusive behavior. Earlier, when we discussed transnational fume funds, we mentioned this one here Image, a fund that finances co productions within its member countries. Because every Marge's focus is on European films, they want to make sure the projects they finance do match the criteria. The producers of a film to be supported by your image must disclose the nationality of their cast and crew members. As you can see, the most relevant people are represented here and for a fiction film, you'd image recognizes the fumes as European. If it gets 15 out of 19 points for animation, it's 14 out of 21 points, and for documentaries it must be 50% of the points. The points system is not just a European thing. Screen Australia also has a similar point system designed to determine if the percentage of creative input matches the co production ratio of the Australian financial contribution. Now note that in both of these cases there is a big number of points on the actors just to make sure they are either European in one case or Australian in the other case. This happens because these two financers want you to understand they do not want to finance projects that are European or Australian, but only have American stars, which would make those films practically American to the eyes of the audience. On every Marge, for example, hire American stars on your first and second rolls, and you already reached your minimum. Now you may ask, How do they measure 1st 2nd or third role? Well, they will re descript and count the speaking lines or scenes, and later they will watch the film in time. Those appearances. And if they don't like what they see, then you have a problem because all this is in your financing contract now. Earlier, when we were discussing your packaging, I was talking about casting directors and actors, and I talked about these people here actors with the right passport. Do you remember them? Actors with the right pass support can belong in any of the other actress categories above . They can even be big Hollywood stars, and sometimes they do have the right past support to get you the points you need. Actors, directors and writers who have dual citizenships can be an asset to your production. And who knows? Maybe Tom Cruise has a French passport. Now, back to the two types of co production. The nonofficial co productions do not conform to a treaty. All parties are free to negotiate whatever conditions they see fit. Co producers inside the same country work just like that. They negotiate freely and agreed to whatever they feel makes sense. Some international films also worked like that when the entire budget is already in place and there is neither the need nor the will to wait for national film fronts or other public money. The film may or may not later be recognized as national from the participating countries. But that's okay. They don't need such recognition, since they're not looking for a public funding anyway. The need for national recognition. Therefore, an official car production will exist if you are trying to get money from public funds like national film funds. This means you must realistically evaluate your financing options in order to decide if you need an official coproduction or if a known official one is good enough. There are advantages and disadvantages to both types on the official co production. There is access to national fume funds, tax incentives or anything that demands recognition of nationality. The nonofficial co production has the disadvantage of having little to no access to national film funds or any financing that requires a nationality certification. But official co productions have the disadvantage of time. They are slower to set up, since virtually all aspects need negotiation and approval from authorities. And that can take easily six months. Non official co productions, on the other hand, are faster to negotiate and put together, since it is strictly a financial operation with no need to follow complex rules. Official co productions have the disadvantage of the fact that some compromising must exist regarding crew and cast due to the need to comply with nationality quotas and points with known official co productions. Go ahead higher big American stars if you want. Hire whoever you want, no one cares. And that great. Here are some examples of films that involved the co production of several countries. You probably won't notice which ones are official or nonofficial. However, before deciding which one is better for you. You should always consider your needs what you have to lose and what you have to gain. Black gold fronts Italy, Qatar, Tunisia, Where do we go now? France, Lebanon, Egypt, Italy, Simon and the Oaks. Sweden. Denmark, Germany, Norway, the Whistleblower. Germany Canada, U. S. A. Resident evil. United Kingdom, Germany Fronts USA. On the next video, we will be discussing our next glass of film financing TV and platform funding. See you there. 33. TV and Platform Funding, Part 1: - on the previous video, we discussed the two types of international coproduction and what you need to be careful about when considering it on this video, we will be discussing TV and platform funding. When I was thinking about this subject, this idea came to my head and made a lot of sense to me, because today we are not watching the same TV we were watching 15 years ago, even 10 years ago. Seems like 50. Yes, we still have TVs and TV channels, but all of this is changing today. TV goes way beyond this appliance sitting on our living rooms. TV today is a personal object. We carry it with us like a wallet, our documents or the house keys. At the same time, Vot turned our homes into video rental stores and binge watching changed the way we relate to TV content. The result is that some 10 years after a streaming platform became a major Hollywood studio , all the major Hollywood studios are becoming streaming platforms. So let's start by defining the universe. There are today several types of the thing we used to call television. Basically, we can divide them according to two parameters the way it is broadcasted and received, which is more a technical issue and the way we relate to its content. A more business model issue. On one side, we still have the good old TV broadcasting 24 hours a day with sequential programming and free to air. On the other side, we have content platforms that only exist when you log in. They do not have a sequential programming. Instead, they have a menu of contents you choose from. They can be paid or free to watch. Here are the usual suspects when it comes to regular broadcasting television, also called free to air. They are the legacy channels we know, and they have existed in every country for decades. Although in many countries the transmission technology has changed in the last 20 years, from analog signals to digital. In most cases, all you need to do in order to excess them is to own a TV set. After that, we have the cable channels or cable networks, these air channels that were never free to air. Instead, they come as a part of a multi channel television service. In the past, this used to be a standalone service. Today, however, it comes integrated in a larger bundle that includes cell phone service and Internet access , among other services. Next we have the S vote or subscription video on demand platforms. Some of them are also called O T. T, meaning over the top, since they do not exist inside a multi channel television service. Instead, you can access them directly, providing you have Internet access. They give you full access through their own website, their own application or as a built in feature on TV's and other equipment, they pretty much come off the TV grid. This business model was perfected by Netflix that positioned itself as the uncontested leader. However, as it business model matured, we are now seeing other players coming to the market with older muscle. That is why I said before with irony that after Netflix became a major Hollywood studio, all the major Hollywood studios are now becoming streaming platforms. However, s support services are not the only sheriffs in town because we also have the A vote platforms or ad supported video on demand. The leader of this segment, YouTube, has been around for some time, but others also exist. They do not charge you a subscription. Instead, they force you to watch advertisements in the middle of their content. The interesting thing here is that they seem to be evolving into two different choices where you can either remain free, using them as a vote or paying a monthly subscription to eliminate the ads. We also have TiVoed, which means transactional video on demand. This type of platform operates as a digital incarnation off the good old rental stores. There are two types of services here. The paper view model where you pay in order to rent a particular title that you download and it stays watchable for 24 or 48 hours and the E. S. T or electronic sell through. Also known as Plato own, where you buy the file that we will stay in your system to be watched at any time as many times as you want for as long as you. Well, that's debatable, but let's not go into that now. Catch up TV, a term often used, is not a platform. Instead, it's part of the deal that you make where you allow the broadcaster toe, allow viewers to rewind rewatch or savior content for a limited time. Producers do not make money with ketchup TV, so when you are negotiating your contracts, you should try to keep these windows short. There is also Peapod, or Premium Video on Demand, also known as O Travade, also known as Premium Home Cinema. This is also more a practice than anything here. The film is available on a V OD platform before opening in theaters. On the next video, we'll look at the landscape so you can better understand which of these financiers is best for you. See you there. 34. TV and Platform Funding, Part 2: - on the previous video, we discussed the different types of broadcasters and platforms. Now let's talk about the landscape where they exist. The entire landscape seems to be something like this. We have the Worldwide s VOD platforms, the A VOD platforms, the free to air channels, the cable channels and, finally, the National S board platforms. It's easy to understand who is where. Companies like ABC, NBC, BBC, ITV and so many others that exists in every country on Lee operate nationally. They were born from a national or regional context, and their audiences are also local or national. They may dominate their native markets and heavily export their content, but their vocation has never been international. They can in due finance projects. But their editorial line will always be tied to their geographic domain, where they cater for audiences they know well. Now we have the cable universe here. The channels are highly diversified as they answered the needs off particular tastes and themes like music news, travel, food, Children's content, movies, linguistic practices, international versions of national broadcasting channels, etcetera. Not all of them will find a new content, but those that do have very clear guidelines for the type of content they want because they operate through cable and rarely include life content news channels being the exception here, they can easily reorganize their programming and have different versions of themselves available internationally. Channels like MTV, CNN or Discovery have been available worldwide for decades already, and because of that they are used to commissioning or bagging worldwide rights for content . They think they can show on their international versions on the S a vote platforms that operate nationally. The landscape is filled with names that are seldom known outside their countries. These smaller platforms can and will fund projects they think will solidify or increase their market share. Then we have the A vote corner with a few names like Sony Crackle, Fluto Rock, who are voodoo. There is a lot of experimentation with this business model, as the goal seems to be how to find a sustainable way to get great content at no cost to the viewer. This players also fund projects, but you must understand each one of those business models in order to see if they are the best choice for your project. The conundrum in this corner seems to be how to be able to fund great and very expensive content like Game of Thrones or the walking dead without tons of advertising or the burden of a subscription. Finally, we have the S avant platforms with worldwide reach one of them, HBO has been expending its over the top platform into many countries. However, like I said, before, this business model has been perfected by Netflix, who is providing the roadmap toe all the big guns who are fighting for a worldwide audience . The big fight will be played by the companies with the big guns. Amazon, Apple and Google are fighting Netflix on the S vote battleground. However, there are more players that are well positioned. YouTube in Facebook just joined the fight for worldwide audiences on the eight board market . But then, on the S vote camp, we can also find Disney who started off being available only in North America. The group of the big guns is getting crowded with the only companies that can aspire to have a global presence. And the group tends to be even more crowded if the global players continue to evolve. And we have no idea yet about what other big studios like Sony, Universal and Paramount will do. The question now is who is the best finance er for you? Because while the guys with the big guns are the ones we all know, you should not overlook the national s a vote platforms or cable channels that are geographically closer to you. France, the U. K. Germany, the Netherlands all have national vot platforms that can and will finance you. Plus, because they are closer to you, it may be easier to meet and talk to them. With that in mind, it is very important that you understand the editorial line of a broadcaster or a V OD platform. So it is clear to you that the content to you have is in line with what they want to finance. Otherwise, you are wasting their time in yours. So how does it work on the next video? We'll look at the different forms of relationship between producers and platforms. See you there 35. TV and Platform Funding, Part 3: - on the previous videos, we discussed the different types of platforms and the landscape where they exist. Now let's look at your relationship. So how does it work? Typically, the bigger the broadcaster or platform, the harder it gets for a first time filmmaker without the producer or representation to sit at the table, you will need an agent, a producer or someone with the right networking in order to present something and be taken seriously. Festivals, markets and workshops are the best place to meet the people you want to talk to or the people who can get you there. This is the first obstacle you will have to contour after that. The reality is TV broadcasters and V OD platforms. Both national and global do finance a number of content feature films, documentaries. Siri's short format, Children's content in much more local broadcasters and platforms will be very open to finance projects in languages other than English. There are usually four types of relationships. When it comes to the financing of content, broadcasters and platforms will finance projects in exchange for the exclusive rights to show that project in their countries for a limited time. In this case, producers keep the international rights and are able to sell their projects internationally . However, in most cases, if that broadcaster or platform is not expecting to get older rights, they may not be willing to finance the entire budget, depending on many issues. This can be good or bad. You have to analyze the situation carefully and see what suits you best. Some broadcasters or platforms were also invest additional money and become co producers, thus having a share of the projects, international revenues and profits. In this case, they may keep the exclusive rights for their countries and get a share of the projects. International success. This arrangement has the advantage of benefiting from the broadcasters wide network and prestige when it comes to international sales. A broadcaster or a platform may also commission a certain project to a producer, finding it completely in keeping all rights to itself. Be careful when you find a scenario because you are giving away everything. Sometimes they can also arrive at a later stage or after the project is finished and pay for the same right as a or acquire it completely like see. In fact, many of Netflix originals fall into this category. The producers make the film. Netflix wants it and buys them out or keeps them. If they expect the filmmakers to continue the creative part of the work like it happens with Siri's, they expect will have multiple seasons. This is the usual sequence of steps executives and commissioning editors have the job off evaluating in selecting projects, producers submit their projects with as much information as possible and as clear and well developed as possible. Here. You should go back to everything we discussed about development. The executive will provide feedback, notes and request changes for the development. The difference now is that they're willing to pay for your ongoing development. Now a development contract will be signed between the producer and the broadcaster, or platform. All development costs are supported by the broadcaster or platform cast schedule, locations, budget crew. Everything is approved by the broadcaster or platform. After this milestone, a production contract is signed. The producer knows that executives will be on set. They will be involved in approving all aspect of production. The financing is provided in installments that are negotiated between all parties once the content is delivered according to the contract a final cost report is submitted and approved. The financing is fully paid. Documentaries are also approved in stages, development and production following a similar process. Animation in Children's content can follow a longer process because broadcasters and platforms will want to be more involved on the visuals, the writing and probably we want to test the content. Broadcasters and platforms are highly sensitive about Children's content, so expect a lot of interference here. There is a slight difference in philosophy when it comes to the amounts paid by broadcasters and platforms. Broadcasters, because they follow a linear programming, tends to see their content as slots on their schedule. This means the amounts paid by broadcasters tends to be fixed and consistent to what they already pay for that particular slot on their schedule. The OD platforms on the other side do not have a linear programming nor slots. They have a catalog always available. This means they can be more flexible and pay according to the contents true power to attract new viewers or keep the existing ones. One thing is true, though both broadcasters and platforms are highly sensitive to start power and your packaging here are a few things to consider. In some countries, broadcasters and platforms are forced by law to finance national content. The amounts paid by broadcasters are relatively easy to find. Most broadcasters are transparent about it. O. T. T s avant platforms, however, are not so clear about their amounts. They judge each project individually. Beyond the big guns, there are many national platforms that maybe financing projects, and they are easier to approach. You should consider them. If a broadcaster commissions a project, it normally expects to pay all the production costs and the producers, he's. If a broadcaster commissions a project it normally expects to fully own and control all rights, leaving the producer with zero writes, always be aware that the broadcasters and platforms ownership of rights is directly proportional to the amount of funding they put into the project. This means that the percentage of the budget invested by a broadcaster or a platform is equal to the percentage of rights owned by the broadcaster or platform that is equal to the percentage of power a broadcaster or a platform get on the distribution strategy that is equal to the percentage of revenues the broadcaster or the platform gets. You should always discuss with the broadcaster or platform the ideal financing structure for your project that should tell you what not to do in your financing plan. One common mistake first time producers often make is to arrive at the broadcaster with a project that's already have financed. When the broadcasters practice in expectation is to fully own and finance the projects it select for arriving with no other financing place when the opposite is expected. If you don't feel comfortable discussing these matters with them, try to find another producer who has been financed with a project that is similar to yours . There are advantages and disadvantages in getting funding from broadcasters and vo de platforms. Here are the advantages. The possibility of funding your entire project in one go lots of expertise and feedback from executives that have lots of practice in all stages of production. They bring prestige, validation and guarantee of quality to your project. Broadcasters have tried and true methods of working with producers. Broadcasters have standard prices and contracts. The disadvantages are the OD platforms do not always share the performance numbers of projects. Decision is made based on the projects appeal to the audience. Producers tend to have less little or no negotiating power on key issues. Few slots available for independent content when it comes to broadcasters some very strict technical specs and demands that must be obeyed. Some broadcasters and beauty platforms will even tell you which cameras are okay to use in which aren't. Producers must be careful in orderto avoid exclusivity conflicts. This could be a problem. If you have multiple financers onboard on the next video, we'll start our discussion about the next glass of film financing presales. See you there. 36. Understanding Presales, Part 1: - on the previous video, we discussed TV and video de platform funding and what you need to know in order to consider them on this video will be discussing presales. Technically, a pre sale is any sale that takes place before the film is finished and delivered. This frequently allows the producer to put that money into the production, thus reducing the amount of money that needs to be raised from other sources. Pre sale usually comes from three possible sources. A distributor, a sales agent or both. It comes from a distributor when that distributor base you in advance in order to guarantee the rights to distribute your film in his country, a distributor may feel that your film has enough value, so he considers it guaranteed that it will make a certain minimum at the box office. So in order to guarantee that he gets the rights to his country, he except to advance a small percentage of that money to the producer. That's why the pre sale is also called a minimum guarantee, or an MG. The distributor, who is more likely to pay a pre sale to the producer, is usually the one that's closest to him the distributor in the fumes native country. A pre sale comes from a sales agent. When a sales agent anticipates the payments from international distributors in advances, you a percentage from that here. There is also the assumption that the film will make money in those international markets. That's why sales agents will be willing to pay a percentage upfront because there is the belief that the film will recoup all of it. Let's see how the process works. You have your film, and you wanted to be distributed in as many countries as possible. But let's face it, there are over 100 countries to which your film could be sold and distributed. That is why an independent film needs the sales company that will get the right to represent and sell the film in all foreign territories except the fumes native country, yes, except your own country, because most of the time you can talk directly to national distributors and make a deal yourself. You do not need an intermediary here. Plus, a sales company will take a commission of between 10% to 30% of revenue spade to the producer. You want to avoid this in your own country where you don't need a sales agent. So if you have international co producers, each one of you will prefer to make those deals yourselves. A sales agent will take care of the rest of the world. Usually, producers sign a contract with the sales company and handle to it certain international distribution rights that will be further negotiated between the sales company and foreign distributors. Let's imagine you are an Argentinean or a Swedish film producer, and you want your film to be distributed in fronts. The reality is that there are dozens and dozens of potential distributors in fronts. Many of them may not be interested in the type of film you are producing. How do you know? Well, keep in mind that you want your film to be distributed in all countries. This means you would be talking and presenting the film to hundreds of distributors. Thousands if you consider the entire world. So what happens is that a sales company knows all the French distributors, and it knows which ones are likely to be interested in the type of film you are making. This means they will go straight to the ones they know want films like the one you Are making? How do they know? Because every sales company also caters for certain styles, generous in types of films. And because they already have catalogues of similar films, they end up doing regular business with the distributors that are in tune with such catalogue. For example, let's look at a few different sales companies and get an idea of what they like or don't like. On the next video, we'll look at some examples of how different sales companies position themselves. See you there. 37. Understanding Presales, Part 2: - on this video will start by taking a look at three very different sales companies. Raven Banner is a Canadian sales company that distributes films in the Canadian market and sells them to distributors worldwide. You can take a look at some of the fumes they have in order to see the type of films they like. Super Grid Pimped 200 hours, Curry's Matter. Blood, Sweat and Terrors. Snowflake Trench 11. It came from the desert. Here you are likely to find clear genre films, great horror violence and fund mostly English language and low budgets with quality. From this, you can imagine the type of films distributors that go to them are looking for. There are certain characteristics you are unlikely to find here. Arthouse films, social issues and LGBT films. Now let's go for something completely different. Fumes Boutique is a German sales company. In their catalogue, you'll find fumes from many different countries. Bluebird in My Heart, Scheherazade, Red Cow Complement, one revolver one day, Birds of Passage, El Dorado and Sex Tape. These fumes are completely different from what you'll find on Raven Banner. Here you'll find Art House, a predominance of drama, foreign language low budgets and social themes. What you won't find easily is horror, SciFi musical and English language. Another completely different approach can be found at Henry Films from the UK In their catalog, you will find the killing of a sacred deer Final portrait, How to Talk to Girls at parties, the Limehouse Golan, a Prayer before Dawn, their finest blade of the immortal and collect again Looking at the films, you know what type of projects they like. Stars UK co productions, bigger budgets, acclaimed directors, period pieces and genera with an auto revision. What you won't likely find here is straight genera, first time directors and no recognizable names. As you can see, we have three different sales companies with three different approaches. Now let's look at the universe of sales companies and see their positioning. They situate themselves according to two different parameters. The size of their corporate structure and the type of films they like, from small to mainstream films, starting with the bigger companies that, like big mainstream fumes with well known names all the way to smaller labels that like smaller projects. By looking at their films, you can situate any sales company on the map like this and see if they are a match for the fumes you want to make. Now, the sales company will identify in every country the right buyers and show them your film. After watching the film, the potential buyers will make offers and discuss the duration of the contract, which rights they want to buy. In many other conditions and obligations, sales companies close a deal with the distributor that makes the best offer for that country. These negotiations will take place simultaneously with distributors in many, many countries. The goal is to close the best deal with the best distributor in every country. The money will flow from the international distributors to the sales company that will take its feet and pay the producers. The money also flows from national distributors directly to producers. The best sales companies will do many things beyond just selling your film. They will supervise and collect revenues on your behalf. They will promote your film in markets and create advertising materials aimed towards international distributors. They will handle your festival career or advise you in that regard. They will centralize your deliverables, keep books, contracts, audits, etcetera. They will also send you sales reports periodically. But sometimes this dialogue can take place before the film is made. And if a sales agent feels that the project has a strong potential with international distributors, he may pre by your project in advance you a percentage of the revenues. He expects to get just a security fume and make sure he won't lose it. National distributors may also agree to pre by the project if they think the project has a strong potential regarding national audiences. When there is a possibility of presales, producers have the chance of putting that money into the fumes financing, thus diminishing the amount of money they would have to raise through other sources. Technically speaking, if sales companies and distributors are sure about the fumes success, there is no limit to the amount of money a producer gets from presales. However, smaller fumes from unknown directors with unknown actors rarely get a pre sale. This is a discussion you should have with the sales agents you meet. The advantages of having pre sales are the following. Simply put money to your film. A per sale from a sales agent confirms to distributors that your film has the potential for being successful and that attracts business when it happens early. Still, during development, the producer can get great feedback on many aspects of the production. Such feedback can be very valuable. Pre selling also has its disadvantages with small films. Sometimes a pre sale is the only money you'll ever get. Why is that? Because when a sales company or a distributor gives you pre sale money, they obviously will recoup that money when the fume gets released and they will still recoup Piana costs and fees. So if your film isn't a big success, it will take some time until those recruitments get down to zero, if they ever will. This means that when you get a pre sale and you put the money into the film, you may be eating the only profit you'll get. This is why you must be careful and discussed this issue with your other financiers, especially if they expect to make their money back. Another disadvantage is that the pre sale decision is usually based on the project's potential appeal to the audience. This means that small dramas, first time directors or foreign language films may have a harder time getting presales. Most of the time, they don't get any pre sale. Also, the higher dip resale, the worst year contractual conditions will be. If a sales company gives you a pre sale, the recruitment of that money becomes paramount. To them, this means that in many cases you the producer, we lose the power to refuse an offer made by a distributor. Normally, the final decision to accept or refuse an offer from a distributor belongs to the producer the sales agent is obligated to discuss with the producer. The offer made an advice if the offer is fair or not, but the final decision belongs to the producer. However, in the case of pre sales being made, the final decision may contractually pass to the sales agent. So this is another thing to consider on this video. We discussed presales On the next video, we'll discuss the next glass of financing advertising. See you there 38. Advertising and Film, Part 1: - on the previous video, we discussed presales and the role of the international sales agents. On this video. We will be discussing advertising as a source of financing for your film. We can all agree that film is an art form, and historically, art has had a very close relationship with advertising. There are three main ways in which advertising can help finance your project. I am talking about sponsorship, product placement and barter. Let's start to its sponsorship. Sponsorship is the support, often audio visual project through the donation off money, goods and services. Typically, sponsorship is spade by companies and brands, wealthy individuals, groups or organizations. What makes sponsorship so specific is that such support is done without the requirement of any financial return, creative control or product inclusion. Inside the content, this means there are limitations to all the advertising and publicity a sponsor gets out of it. In fact, in some countries there are laws that limit what the sponsor can do. But normally with or without those limitations, sponsors get lots of things ahead. Credit a presentation, credit their name as part of the title, their logo and name on printed information and documentation, and of course, the right to brag a little more. A sponsorship happens because there is a prestige involved in supporting a noble cause and by noble cause. You can mean anything from fighting for human rights in Afghanistan to helping some poor Hollywood star making a film about whatever. The bottom line is that the project and the sponsor see a set of shared values. So this is a win win situation for both. Like I said earlier, before you consider sponsorship as part of your financing, you must check the legislation in your country to see what limitations are put to you or to your potential sponsor. There are several advantages when it comes to sponsoring. The first is money to your film without giving the finance, er, any editorial power or participation in profits. This is the kind of thing that is regulated by law in many places. There is also the prestige that comes from being sponsored, especially when the sponsor has a positive reputation. It's not just about money. Having a great sponsor helps your film gain stature and profile. Although the advertising possibilities are limited many times by law, there is still a lot of visibility that can be negotiated if you, our creative, think about the fumes, release its presence in festivals and all the activities that can be negotiated as part of the contract. In some countries, there is also a tax incentive status that comes with sponsoring, where a sponsor can deduct the investment from taxes and even get a bonus just like a tax shelter. Depending on what fume you're making, you can unlock a substantial part of its budget through sponsoring. It all comes down to finding the right sponsor whose values and philosophy are perfectly in tune with your film. There are also some disadvantages. The selection of projects is based on the subjective perception off social, cultural and artistic merit. This means certain films are more suitable to sponsoring than others. Action movies, horror and scifi Jurors that are associated with pure entertainment usually don't get sponsoring. Dramas that bring light to social issues or projects with some degree of contextual importance seem to be better positioned to find sponsors. However, we should not be naive here because sometimes social, cultural and artistic merits take a second place, and elements like the size of the project or its media impact become much more important. Sponsors are not selfless saints. Your film could be great. Inter vented, meaningful, But the fume next door is all that, and it has Charlize Theron. In fact, finding a sponsor takes a lot of time in work. Expect months of hard work. You may have to include your sponsor's name on the title of the project, or give them something that you put them on the same level as your project. This does not happen always, but when it happens, you must listen to it and make decisions. Some individuals sponsor films just because they want to have some fun, enjoy some moments in the spotlight and enjoyed the glamour. If that's the case, just to be prepared to take them wherever you go now let's talk about some great sponsoring women. Make Movies is a great example of sponsorship. This organization finances films made by women. Yes, women filmmakers are their sole focus. They act as facilitators in fiscal sponsorship between projects and potential sponsors. Their production assistance program is designed for women filmmakers who are actively fundraising for their films and need 501 C three nonprofit tax exempt status This is a status in American tax law, but you'll find similar conditions in other countries. According to them, Women Make movies, now sponsors more than 200 projects in its renowned production assistance program and has helped filmmakers raise close to $4 million in funding over the last five years. Now the money in question we're not finance the majority of a film's budget. However, it would be absurd to think that having your project financed by women make movies is just money. No, it's not just money. Women make movies has lots of prestige, and they have financed great projects by great filmmakers. This means they have a huge network that will help you unlock more money from other types of financing we've been discussing. Don't forget to check the tax laws in your country, state or region to see if there's any incentive to sponsoring. Also, try to understand your projects profile. It's media appeal and see if you have a convincing case to present to those who could sponsor you. Now it's time to move to the second way in which advertising can help you finance your film here. We're talking about product placement. See you there 39. Advertising and Film, Part 2: - Now it's time to move to the second way in which advertising can help you finance your film here. We're talking about product placement when we talk about product placement. We are also talking about brand strategy because products and brands don't advertise out of avoid, they want something. They want to engage consumers, solidify a certain image and eliminate the effort of selling these air all marketing goals . Product placement in the arts has a long history. We can go back to the 19th century and see Lady a Fun, a rice powder brand using the likeness and the name off. The biggest star of the era, actress Sarah Bernard, the French artist Edouard Manet, included the beer brand bus on his painting, a NBA woefully beige. And it's easy to understand why artists like product placement because it gives their art on authenticity of places, mood, people and atmosphere. It brings reality into the artwork. Now let's fast forward 100 years to 1982 when e. T. Conquered the worlds hearts with a taste for chocolate, not any chocolate. Recent species. Two decades later, a James Bond film contains dozens of product placements, so we can look at these projects and see that product and brand placement represent a significant part of their financing. However, it isn't entirely obvious how brands and products get into films. Not every product placement we see on films was paid by the brand. Most of the time, there is no money transaction off any kind involved characters just to use the products we use. Nevertheless, there must be a way to help us know when there is money involved or not, or how we can look at it. From a filmmaker's perspective, the rule is simple. If you really need something a specific brand or product that will be part of your story discussed, put in evidence or used in a very engaging way, then you should probably pay to use it. You don't have to pay a lot, but it is important that you have a paid permission. Why? Because distributor's may want to make sure the inclusion of brands and products does not bring a liability into the film. No distributor will want to set a release date and start promoting your film. If there is a chance, a court order will stop everything just because brand X is unhappy about the way it is portrayed. This does not apply to every object that appears on your film, just the ones that you choose to bring up front. A classic example is the French TGV train used in Mission. Impossible. The entire sequence is heavy with City I, so producers could have used any train of any caller and call it anything but for authenticity purposes. Because the scene is set in France, they thought at least French audiences would love to see a TGV on such an important scene. So they paid S. N. C. F, the French railroad company that operates the TGV. The payment makes such permission rock solid. Another scenario is when you are making such a small film that you can simply ask for a free permission. It can be argued that in these cases you don't have to ask for anything. And in fact, that's the idea, followed by 90% off all small independent films, especially those that are produced in smaller countries with the last developed film industry. This may work for lots of people. However, once you're filming becomes a success and it gets distribution in bigger markets, the liability issues may arise. So my advice is that you always ask permission to any brand that has a bigger role in your film. There are many exceptions to this, like homages or quotes, but I will not go too deep into this here, since these cases do not contribute to your financing. So now we get to the place we want. Brands will pay you because there is an opportunity. This means you will have to create construct, defended that opportunity and back it up with numbers. You don't offer a big brands an opportunity to buy a product placement on your film if you cannot prove that they will get more customers for being there. These three possibilities exist in fumes and other art forms. Take a look and you'll see that paid or unpaid product placement are very common in art. In music, both Simon talks about Kodachrome. The Eagles mentioned Mercedes Benz and many other artists also include brands in their songs. In Literature, Alters as different as Bret Easton Ellis or No Had a Balzac. Alexander Pushkin and Tom Clancy used brands to help us visualize their characters on TV shows like Sex and the city madman and many others. I had lots of brands thrown into their stories with great effect, while Samantha had used her pushiness to parlay her new man's hit off Broadway show into a hot on Broadway poster. Well, that's the first thing every woman in town will be saying after she sees it. It's huge on. That's the second, Honey, I'm not even sure the poster does your justice. Come on my dicks like three stories long the way God and Madison Avenue intended fumes do the same, and they have been doing it since the beginning of movies. 50 million fans can't be wrong. You all recognize this, don't you? I took the liberty of sending this to myself. I fed ECST it before I left Memphis events many times Knicks sponsorship and product placement with great success in art, a BMW painted by Andy Warhol becomes a knob checked of art. Even the theater uses brand placement as a way to comment on society. Video games earn a lot of money from product placement contracts that bring certain brands to a vast number of new consumers every year, and finally, brand placement contracts are at the center of whatever happens on the field. This is just to give you an idea of how easily you'll find a product placement in the arts or events on the next video. We'll look at the factors that can influence the decision making in the value of a placement contract. See you there. 40. Advertising and Film, Part 3: - on the previous video, We showed you different ways in which advertising appears in the arts. A product placement contract is frequently a win win situation for filmmakers. Why? Because you are benefiting from two sides from the strict financial point of view, these contracts are a great way of funding. They also feel gaps in your financing plan and helps you diversify your financing sources on the very specific project they can pay for the entire production. By using this glass of financing, you are lowering the amount of cash you need to raise through public funding, core production or other forms of financing. From the creative side, you are bringing into your narrative the evocative power off a brand or product. This means your fume borrows the brand values from the utilization over the brand. Product placement gives your narrative the credibility of real world situations, where audiences know that those products and brands are present. It also enhances audience engagement and empathy from objects and brands people often have or want. There are, however, some limits to product placement, fantasy worlds or period pieces. Lack of a credible space for product placement films like Lord of the rings, Hamlet and Gladiator take place in worlds or times that are so far away from us that no brand or product can fit without causing some feelings of strangeness, thus taking the audience's attention away from the film. There isn't a list of prices currently in use. Everything is negotiable, and sums do vary a lot from film to film. In 1975 Clary all paid $10,000 to have its products on the fume smile. 10 years later, California Racing Board paid $25,000 for a contract on back to the future. In 1992 France Telecom paid $500,000 toe appear on the film Libellous TWA. 10 years later, Ford paid between 30 and $40 million for putting the Aston Martin in Die Another Day. Let's talk about what influences a product placement decision, and it's cost if you are a few maker and you are considering using product placement as a financing source. Here are the elements that can influence prices. Notoriety or the fame of the brand is one important element. If you managed to attract attention over large brands, make sure you present a great case that affirms your films value bigger brands can and will pay more if they see an advantage. Of course, you can lower the price if you feel that will turn a maybe into a yes. However, the people behind bigger brands tends to disregard small price to deals, thinking the work just isn't worth it. They may be right or wrong. You must investigate the brands history of smaller deals and see what's their tendency. If there is a real and palpable opportunity, a big brand will pay for it. Identification of the brand is another important element for negotiation. When you put a product in your film, sometimes the brand isn't visible. This means showing the product and making the brand visible can help you negotiate a better deal. Now, showing the product making the brand visible and mentioning it on screen can be even more interesting. The goal here is for you to think of the many ways visibility can be achieved and how they can add to the price of the placing. The fumes budget is a double edged sword. Brands know a $200 million film will be a blockbuster, and they will spend a lot of money, not just on the placement itself, but also on the joint promotional activities. It's not just the film. It's also all the reciprocal promotion that will take place as the fume enters the release countdown. This means bigger films tend to get the priority over the smaller ones where the budgets and the promotional activities will be more limited. This knowledge can be helpful when you are selecting what brands to approach. The bigger ones with lots of money may not be interested, however, there are always smaller brands that do not have the money to pay for a blockbuster placement and could welcome a smaller film. But you always have to present a good case that will move them. Remember, you are always fighting to burst three or threshold of indifference. Your personal and creative intervention here is crucial. The type and general of your film. Not all violence are equal. Not all sex are equal. Not all the generous are equal. Brands can understand themes, ideas, subjects and can make their judgment based on those. That's why a Notre violent horror film won't get the same brand attention as a family friendly blockbuster. However, there are some brands that maybe more at home in a horror film. Then on a Disney movie, some brands may see value in the specificities of a certain film. It is always up to you to find those elements and find those matching brands star power and credits. Well, there is no easy way around this. The names of the stars, the director, the producer or the source material have a monetary value. The bigger the brand, the more they will pay attention to this. This means that if you really want to bring in a placement strategy into your financing plan, Star Power is the most secure way to do it. There are plenty of examples of this. Everlast is profusely placed in creed and impact on Zac Ephron. In At any Price, we are far from over. We'll continue our discussion when our next video's see you there 41. Advertising and Film, Part 4: - let's continue with money versus kind. Many times the placement does not involve cash. Instead, it involves stuff that saves the producer cash lots of it In cast away. FedEx provided planes, locations and countless things that saved the production time and money on the Italian job . BMW did not pay cash. Instead, they provided 32 vehicles built to strict specifications, as requested by the production on The Matrix Reloaded. Instead of money, General Motors supplied 24 prototype Cadillac CTS and Escalate E XP cars. The importance of the placement Some placements are more important than others. The more screen time, the more relevance it has into the story, the more valuable it is in the minority report, Tom Cruise is constantly checking his Viguerie watch as he races against time. This comes in connection toe, where it displaced the closest to the star, the best in I Am robots. The product takes center stage as it gives us precious information about Will Smith's character. He loves the past and mistrusts technology. His converse all Stars are, in his words, a thing of beauty. You can add a premium to the price of the product or the brands that appears at the center of the screen or in a close up story. Integration is also important. No brand wants to be out of context. Sideways takes its two main characters through a wine tasting trip. Wine is a constant thing on the film, and the opportunities for placement are enormous contact with the stars. It always adds value to the placement When the star, where's the article or the brand? Sometimes the brand will hire the star for its own promotional campaign. That is a different contract. Obviously, however, that only increases the value of the placement on your film. Exclusivity is another indicative of premium. Sometimes a brand will agree to pay more, just to make sure there are no other products from any competing brands. In iRobot, carmaker Audi made sure that all the cars that appear on the film our bodies, you see their models on the streets and the message is clear. The excellence of all these design will be the norm on futures cars. They even created a concept car used by the star making Audie the coolest brand. Those things resonate with audiences. Other uses, trailers, teasers and screenshots have a wide circulation much more than the film itself. If the fuming will be seen by thousands, comparatively, it's trailer will be seen by millions. Sometimes the producer can include the placement in the trailer, the more well integrated in the story. The placement is the easier it gets to extend it into trailers or screenshots. See if you can find the placement in this trailer. Your mother, she wants you to get on with your lives. Do the best you can. I don't like cover my own room without her. All he had was his imagination. Sometimes seasons people are allowed to smoke. Then you can do what you like. Fortune fell out of the sky. You can see one brothers on opportunity can hide away shaken. Spend it. Thea Other saw a chance to save the world who feels sorry for poor Children. Correct answer way. You have to give it back. But we can't do that. I thought it was from God. I thought it was a miracle. Can you still do good with it? You and your weird Stop talking to yourself. Your Allouni. I know you got it. That made you pull nothing to eat all day. brilliant same piece died a day 64. Alright, don't remind this. Did you bring 1000 scoop? Can't see that suspicion is suspicious. It's unusual. We're looking out for ourselves. Damian, we're on the road. Are you really saying What was your miracle? Don't you know it was you? Distribution potential brands like projects they know will have a wider distribution. Blockbusters are the obvious choice here, but many smaller films also have a wider distribution. This is true in France, Italy, Brazil, Israel, South Korea and many other countries where local projects can become hits and conquer national audiences. This means that although you are not producing a Hollywood blockbuster, you may have enhanced a project that is successful on a national scale. It cannot be compared to Disney's latest film, but still it manages to attract a large audience imposed on opportunity to many brands. Communication events. The more integrated in the story, the more likely the brand will partner with the distributor in order to create parallel events that will drive people's attention. Although perfect match dot com did not pay to be on, the film must love dogs. The centrality of the website to the story created opportunities. The website could not overlook the partnership between the film and the dating website expended into other websites and services like the Lifetime Channel 1 800 Flowers and Death created a win win scenario to all lifetime movie network Goes Hollywood and behind the scenes with the cast of the new movie Must Love Dogs. I went online and put your profile on perfect match dot com. We asked them what they think about finding the perfect match online. I do think that the perfect match could be found online. I don't see why. I don't see why not mate shopping That's timed, like going online to buy a pair of pants. Except there's gonna be a guy in them. I can see the appeal of, in a way, you know, voluptuous and sensuous. Must love dogs. How she is feeling your meeting tomorrow at 11. Bring a dog. I've heard a lot of success stories. Actually, I don't think I'm ready for him. She's a mess fast. We're able to sort of pinpointing much easier. He is hot. He likes you. It's really just an extension of what computers were designed to do in the first share information must love dogs in theaters everywhere. This Friday, I'm Elizabeth Perkins and you're watching Lifetime Movie Network. Lastly, the placement contract itself is key in understanding the value of the opportunities identified and the prices to be paid contracts Very a lot. No to placement contracts are ever alike. However, they all have a few things in common that you should take notice on the next video. We'll take a look at the things you should be careful about when considering a placement contract. See you there. 42. Advertising and Film, Part 5: - Let's look at the main elements in a placement contract. This is what you should pay attention to. First, they identify all the opportunities of placement that will be object off the contract. Is it to the inclusion off the product? On which scene is it the mention off the brand? What should the line of dialogue say? Which character will say it? Try to be as clear and specific as possible. Do not leave room for different interpretations here. Second, the writing of the contract itself. Avoid the using vague templates. You really must have a contract that leaves no stones unturned and addresses all relevant issues. Third, all the interventions to determine technical aspect. This means how many meetings, when and who will be making decisions and approving them forth. You must make sure the conditions inside the contract do not break any laws. Plus, you must make sure there will be no contractual conflicts. For example, by using a certain product on your film, a nectar may be in violation of a contract he already has with a different brand. Fifth follow up on execution during filming demands that the brand has people who have the power to decide what's wrong and what is right during production and make sure they're always available and aware of what's being shot. You cannot afford to have an entire crew standing by while the board of directors decide if a certain color around the brand's logo is good or bad, these decisions must be made in advance and follow the rhythm of the film's production. Sixth, there must be someone from the brand that will advise during editing and post just to make sure everything is being done to the satisfaction off all and according to everything that's already been discussed and approved. Seventh, there must be mechanisms, usually people in charge of verifying that all reciprocal publicity events during released are being prepared as they should be. And finally, the duration of the contract. You must include dates when all the different instances, activities and events are officially over enclosed, making the contract fulfilled. Putting an end to the placement relationship. This is particularly important whenever there are less payments that are waiting. Everything on the contract must have a date to end and if needed, something that will mark the end like a final report. The return of the products that were landed by the brand to be used on the film etcetera. Now the final question. How do I get the best out of it? There are two rules you should follow. You must legally establish the partnership agreements into the project as soon as possible . This means more time to brainstorm and negotiate deals everybody's happy with. You must identify all the placement opportunities as soon as possible so they can be better adjusted. The earlier you do this, the better. Those opportunities can be integrated into the script in ways that feel natural without compromising the script quality. Keep in mind the infinite possibilities of these four types of placement. Classic placement is the first and most obvious type. You see the product being used here, the Mustang used by Steve McQueen in Bullitt or the Nokia phone in The Matrix. Corporate placement does not show the actual product. Its focus is on the brand. The concept car we see on iRobot is not available for sale. Audie is not selling the concept car. It is selling the brand as creators of beautiful design in North by Northwest. Cary Grant talks about the 21 Club, a famous restaurant attended by New York's elite. This helps establish not just a character as part of that elite, but also the 21 Club as a place where you can find people like Cary Grant. Evocative placement is way more subtle. It does not try to highlight the brand many times it does not put any product or brand in clear evidence. What it does is to rely on our own capacity to identify the brand or product, buy parts of it or by giving us the wrong information. There are two great examples of this. The 1st 1 comes from the film Forrest Gump, where the title character talks about receiving a letter from a fruit company. The audience can see just enough of the logo to understand that the information given by the character is 100% wrong, and the apple and question has nothing to do with fruits. The second example comes from The Matrix. When Morpheus explains to knew how humans were transformed into this, and by this he means a battery. However, although more fuse does not hold the branded side of the battery to the camera, it's colors are enough for us to recognize a Duracell battery, he could have used an unidentifiable generic battery. However, by showing these colors, the film is appropriating the brand and creating, meaning humans are not just a battery. Humans are the best battery. A Duracell. On the next video, we'll look at a different form of placement. We'll also look at barter practices. See you there. 43. Advertising and Film, Part 6: - Let's look at the fourth type of placement. Stealth placement. Stealth placement is even more complex since it tries to be invisible. Take a look at this sequence from The Untouchables and see if you can find it, - huh - Here ? it is. The fumes wardrobe was made by Georgia. Our money. That's the brand, not the person. And yet it is treated like a person like as if this very famous brand was just another name on the fumes credits. This type of placement is not aimed at the average audience or even at the fumes audience. It is aimed at those who already know the brand, and we'll get an instant kicked by knowing that the fumes wardrobe must be something really special. Another well known example comes from the 1964 film Paris, when it sizzles with Audrey Hepburn and William Holden on the credits. It's written that Miss Hepburn's wardrobe and perfume were made by Hubert. There's Givenchy, no to the odd inclusion of Miss Hepburn's perfume, something the audience will never be able to experience through the film. And yet it is there, and you should know it. Product placement can be a great way to finance your film. However, like with ev