Producer's Notebook
Ranting and Ravings of a movie producer.
by Darlene Cypser
- Useful links for Filmmakers:
- Movie Data Sources:
- US Government Sources:
- Angel Investor and Venture Capital Information:
- Miscellaneous:
- Titles or Credits Before Feature. Yes, I know every indie wants to promote themselves
right up front. But think about it. When you are sitting there in the movie theater wouldn't you
rather get on with the movie? Do you care who these people are before you have seen the film? Isn't
two minutes of credit before the film more likely to make you curse the names on the screen than
praise them? Keep them short or leave them out all together. Your fans will thank you. Even your critics
will thank you.
- Using Copyrighted Music. Do not, I repeated, DO NOT grab your favorite CD to use for
background music on your indie film. If your film uses music in the soundtrack that you do not
have the rights to, it may make your film unmarketable. Some independent filmmakers think "I'll sell
the film to big distributor and they will take care of getting the copyright licenses." While that
may be true in some cases, it is a very unprofessional attitude. The production company is responsible for obtaining
the necessary clearances and releases. A distributor may decide not to acquire a film if the
producer has not done their job or the distributor may require to producer to obtain the clearances
within a certain period of time. If the producer does not meet the requirement, the distribution
contract is breached.
The best thing to do is to contact local musicans in your area. Many of them will gladly
allow you to use their music just for the exposure.
- First Feature As A "Calling Card". I keep hearing filmmakers say that they didn't really
expect their first film to get distribution or make a profit. They say it was just supposed to
act as a calling card so they could raise investors or a demonstration of what they could do.
Is this "sour grapes?" Did they do the best they could? Are they saying this because some big
distributor did not drive up to their door with the media in tow? I could understand saying
that the first one was for "practice" or a "learning experience" because every movie is a
learning experience, but eventually you need to make "the real one" that you want people to see.
- Think Like An Investor. Filmmaker A comes to you and says, "I made this film for $5,000,
we played at a few film festivals and then we gave up and never made a dime on it. Now I would like
you to fund my second movie." Filmmaker B comes and says, "We made this film for $5,000. While we made a few mistakes along the way, and
couldn't find a US distributor, we found a sales agent who found us some foreign distribution deals
that brought in $10,000, and after paying our expenses on the first film, we would like to take the
remainder and invest it, along with some of your money, in a better film."...Whose film are you going
to invest in?
- Unco-operative Filmmakers. If there is anyone reading this you have probably figured out that
I act as a sales agent for other independent filmmakers. Movie distribution is a strange business --
though not in any of the ways you might think. One of the oddest things is the difficulty in extracting
screeners from filmmakers. I have had filmmakers grab me at conferences, festivals and markets to beg
me to help them get their movie distributed....And then they don't send a screener. If they left me
their card with a note on it about their movie I might later think of it and send them a reminder.
But often they don't send a screener. Sometimes I go out hunting for new films for us to represent.
Some websites for independent filmmakers scream "All rights are available," or "Seeking Distribution,"
and then they have NO CONTACT INFORMATION. But some do, and I send them a message explaining that we are
looking for films to represent at the American Film Market, etc., etc. A high percentage of those I write
to never respond. Does that mean that they already have distribution? Does that mean that they are
re-editing their movie? Does it mean that they couldn't take rejection any more, and have slit
their wrists? I have no idea. Then there are those that respond but who have a swelled head.
They act rude and condescending. They will invite me to a screening but not send a DVD or tape
-- or they want to start making demands before I even screen it! I am leery about such people,
but it is usually not a problem because such people rarely get around to sending me a screener.
Then there are the filmmakers who are very nice and promise to send a screener next week....
and next week... and next week. It is true that less than 1/3 of all the screeners that reach
me are saleable, but maybe I am missing a fair number of good ones that never arrive? And
how do these filmmakers expect to get distribution when they won't send the screeners? I
suspect that these are the same filmmakers who populate web bulletin boards complaining
that they can't get their movie distributed. *Sigh* "Give me your tired, your poor...."
Cut. Strike that. Don't give me your tired and poor movies; Give me you scary, exciting,
fun-filled movies.
- The 'Going Rate.' A lot of folks ask me to give them an idea of what their movie
will sell for. Boy, if I could predict that I'd be a zillionaire. I will refer you to an
article in the Boulder Daily Camera on October 23, 1999 entitled "But Will It Play In Paraguay?"
about a mathematical model to predict the success of movies. It includes some quotes from an
obscure movie producer:
www.buffzone.com/buffzone/news/23dfilm.html
At the beginning of each major film market, the Hollywood Reporter compiles and distributes
its "Going Rate" figures that give ranges of the distribution fees that can be expected
in different territories for different budget ranges. You would think that you could
extrapolate to your budget range with some simple division. Not quite, because those
figures are for theatrical movies with name actors.
However, we do use the HR going rate figures to help us create our ballpark "asking prices"
for each movie that we represent. First of all, we aim to cover the production budget with
the domestic sale -- we don't always succeed, just as studio movies don't always succeed
at that. Then we try to get the profit from the foreign markets (even if the foreign markets
sell first). What we do is use the average ratios represented in the HR "Going Rate"
figures between the domestic distribution fee (i.e. budget) and the foreign fee.
For example, the HR Going Rate figures from AFM Novemebr 2004 show Mexico at 10% of the
domestic fee. So for a $100,000 movie I'd expect to get no less than $10,000 for the Mexico
rights. However, if someone is merely buying the home video rights to Mexico you have to
figure it on being some fraction of that.
We also tweak the figures based on our feel of the movie and what it was shot on, etc.
We never set an asking price for any territory less than $1000 no matter how the math
comes out because it is usually not worth the expense of putting the deliverables together.
The HR Going Rates tracks about 38 territories with ratios of 2% to 25%. If you sold
the rights to your movie in all territories then you would have the potential of a
return on your investment of between 250% to 450% but it is rare for an indie to sell all territories.
I know what you are thinking: "But I did everything on deferrals and thus my budget is
miniscule." My response is that you are writing your budget wrong. Your budget figure
should include those deferrals -- after all you agreed to pay them and you expect to make
money and thus pay those as expense of the movie, right? You don't include only what you
pay for with cash in hand. I guarantee you that the studios don't do so. You include
everything that you pay for or agree to pay for or even barter for as an expense in
your budget and then at the bottom where you are listing your financial resources to
cover that budget you list separately the cash you have on hand, the balance of your
credit cards that you plan to use, the second mortgage on your house, and all those
deferrals, product placements and barter agreements that are going to cover that budget.
That's the proper way to come up with the property production expense budget.
Your next thought is probably: "But, hey, I want to make $10 million by investing $10,000."
Uh, huh. Try lottery tickets or move to Las Vegas.
An independent film that can earn 150% to 200% of the budget is doing remarkably well.
Remember that standard investors are seeking returns on their investment of 5-10%
and venture capitalists look for returns of 25-50%. So a potential profit of 50-100%
is very remarkable. Possible, but not probable.
For your first feature be pleased with a profit of 10-20% and make a better movie next time.
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Inferno Motion Pictures is a registered Trade Name of Inferno Film Productions, LLC
Copyright 1999-2010 Inferno Film Productions, LLC
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