Out of all the
risks that motion picture studios, I feel in this case completion of
risk considers the alternative financing mechanisms for film financing; the
evolution of film finance, and the nature of tax-motivated film financing would
be the greatest issues here and most
detrimental to the studio. If
there is no written contract that guarantees a motion picture will be finished
and delivered on schedule and most importantly within budget, picture
completion guaranty cannot be honored. From my understanding, I would think that most major studios require a
completion guaranty.
If I were in
charge of an independent film studio, I would choose the co-production options
of financing. When doing this, you
have to use wisdom choosing your partner.
If the benefits are not in the best interest of the project, it can be
total disaster. When closing with each partner,
I would create the public relations on my film before you even start shooting. That way my actions will make good advertising
and will generate goodwill with the public. With paperwork and legal work, it will take a lot
of time.
I think social
media such as Facebook and YouTube are new forms of financing that can be used
for motion pictures today. The movie industry has embraced the concept of
social media because it’s changed the way movies are promoted and connect with
fans on the many different products. One
of the best examples of this strategy was for Paramount’s Paranormal Activity. The film, which was made for less
than $15,000 went on to gross more than $150 million at the box office.
http://www.linkedin.com/groups/Facebook-Twitter-make-your-movie-3425943.S.148966609?qid=a5e57221-5361-4ee8-9a5e-05355390b5b6&trk=group_items_see_more-0-b-ttl
Traditional
venture capitalists would be more likely to back a major studio, but it’s not
always an option for all businesses. These
capitalists are obviously looking for a higher rate of return on their investment,
which is understandable, but I feel sometimes the greed of great returns will
take away from the success of the project. Personally I would rather go with independent
movie production.
Independent producers can put a movie into production with little or no
help from any major studios. I feel the angel investor is
less concerned about losing their money with more interest to be a part of the
action.
It
is very important to make sure funds are managed the right way. I think for many years now, investment procedures in Hollywood films have and will
continue to change over time, shifting from customary finance deals that
initially operated on a movie-by-movie basis.
In order to reach a new set of strategies, with each varying levels of
potential profitability is geared toward funding entire slates of Hollywood
films. As we all know, making a film
takes money, even for the most practical creator. If I were making a movie, finding
investors is always the first step I would take in making most any independent
film. As for product placement, so many
movies have been successful do to this concept.
This way the owners of the company get there products advertised and the
producers get the funds they need.
