The chief goal of the conference is to educate equity and debt financiers on film business opportunities while mitigating risks, provide producers with effective methodologies to fundraising, and offer filmmakers several ways to create viable content and distribution options to generate revenue. This Conference is an excellent opportunity to have access to the stratagems of leading industry players.

The 12 Annual International Film & TV Finance Summit will be held on March 22 & 23, 2012 at the Luxe Hotel. Come and learn the process of obtaining financing and tax incentives needed to get feature films made, distributed and marketed in today’s market place.

Location: Los Angeles Film Studies Center
5455 Wilshire Blvd., Suite 1615, Los Angeles, CA 90036

Seminar Registration

I am frequently asked questions regarding different financing terms and financing sources, such as what’s the difference between senior debt and mezzanine?  What exactly is gap financing?  I am still amazed to hear naïve producers’ state that a bank is going to fund their film. 

Banks do not finance films – they lend money against collateral on the film such as presale contracts and license agreements.  And the collateral must be from a company with strong assets to guarantee the bank gets back their loan amount and expected interest.

The following is a list of financing terms and a short definition as well as what each level of financing expects for their money.  Every Balanced Producer should know these terms.  It is in order of priority of return on investment from the film’s revenues:

•         Senior Debt – principal + interest. No profits or rights

Banks cash flow presales contracts & foreign sales estimates (sometimes referred to as Gap) & license agreement & tax incentives/rebates

•         Mezzanine – principal + interest + small portion of the profits

Funds cash flow foreign sales estimates (sometimes referred to as Gap) & tax incentives/rebates

•         Equity – cash for large portion of profits & possible rights/ownership

•         Typically 110% – 125% Return on Investment (ROI)

•         Typically 50% of Net Profits if funding 100% of the film’s production budget

•         Typically Producer takes all talent profits out of their 50%

Other terms:

•         Venture Capital Fund (VC) – investment fund that manages money for those wanting to invest in small to mid-sized companies.

•         Hedge Funds – fund of investors money for highly speculative investments

I hope this clears up some of the chatter and confusion out there.  Let me know if you have any further questions.

• Principles & Practices of the Most Successful Producers
• Finding the Money: Sources of Film Financing Worldwide
• Closing the Money: Business Plan & Financial Projections
• Marketing & Sales Tools: Pitch to Investors, Talent & Execs
• Indie Distribution: Traditional to DIY to Hybrid & Beyond

Film Funding Workshop: Finance & Sell Your Film in the Digital Age

Saturday, March 19, 2011

10.00am – 6.00pm

It is sponsored by IIFF (http://filmfinancing.org) and will be held at:

LA Film Studies Center

5455 Wilshire Blvd

Los Angeles, CA

More details and are available at – http://gla.filmfinancing.org/031911.n0A

What’s on Your Mind

Recently read an LA Times Op-Ed about the Zuckerberg Revolution.  America’s favorite boy genius has announced a new form of messaging – a social inbox.  As Neal Gabler the author states:  “It qualifies as a revolution because how we communicate largely defines what we communicate.  You know ‘The medium is the message.’”  Gabler believes that Zuckerman’s Revolution may change our consciousness – the more we text and Twitter and “friend”, the less likely we are to have the means of expressing ourselves in interesting and complex ways.  In other words, empty communications drive out significant ones.

OK readers, would you agree with this hypothesis?  Are we who are embracing all these new models of instant, shortened communication turning into mindless, empty communicators?  Are we becoming unable to formulate and debate complex questions and issues?  And if so, how will this transfer into our industry?  Will film become even less intellectually involving and less complex with the issues and stories we decide to tell?

Is this a Revolution you are excited about?  Don’t hold back – let me know your thoughts – short or not…

Roadmap for the Balanced Producer

We in the film industry are always seeking the money in its myriad forms – from soft money, to mezzanine, to the all important king of all money – PRIVATE EQUITY.   When we do have the great fortune of attracting private equity to our projects, what are the current expectations of the investor regarding his potential Return on Investment (ROI) given our current economic climate? 

I believe the following points/questions can guide you and offer some sound suggestions when structuring and negotiating with that potential equity investor(s):

• What is the percentage of equity vs soft money?
• How quickly can the investor get his money back?
• How secure is the money being invested?
• What is the risk profile?
• Can you make a sound case for ROI of 10%-12% within 24 -36 months?
• Do you have a viable marketing strategy tailored to your target audience(s)?
• Do you have distribution of some form in place before you commence spending your investors’ money?

To get the serious attention of any equity investor, you have to think and talk like one yourself.  The more you can relate to them in their terms and with their best interest in the forefront, the more likely you are to successfully close a transaction with them.

Roadmap for the Balanced Producer

Just read a quote from Jillette Penn, of Penn & Teller fame, which perfectly exemplified my theories for the Balanced Producer:

“Everything we do is for ourselves and for the audience.  Anybody who does [only] one of those things sucks!  People who pander to the audience are horrible, and people who just do it for themselves you never hear about.  So it’s not either/or – you have to 100% satisfy yourselves and 100% satisfy the audience and there’s no room whatsoever for compromise.”

If we as filmmakers can make a film that we are 100% passionate about, and do all the research and analysis to know our target audience and pre-test that audience with distributors, then we have a great shot at satisfying that audience 100% as well.

Without this kind of balanced approach, without taking the effort and time to analysis our marketing potential and have those early conversations with distributors, we will be as Penn so aptly stated – Suckers!

 So let’s not compromise.  Let’s be fiduciaries to our investors, our audience and ourselves.

This book has everything you need to guide you towards getting films made that earn a profit and earn rave reviews.

The Producer's Business Handbook