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Make It High/Make It Low

8/18/2013

1 Comment

 
Picture
In today’s entertainment marketplace, when it comes to making money by making movies there seems to be two preferable ways to go about it.  One, make your film for the least amount that you can… or two… go for the big score. 

On the low end, you might want to consider making your film, non-union in a tax incentive state for under $2 million.  You use gifted amateurs, non-SAG actors and one veteran television star (who is just happy to be working). Then, if it is actually a good film, you can sell your movie to foreign distributors for $500,000, Netflix for $200,000, Video On Demand for $300,000, Redbox for $200,000, Pay Cable (HBO/Cinemax/Starz) for $50,000, and then free television for another $50,000.  If you can get a 25% tax credit from an incentive friendly state, then you are in the black.  No theatrical release, very little P&A spend and no shelping around from film festival to film festival praying that someone buys your movie.  

Scenario two, you raise $10 to $20 million and make a really, really great film, with an original concept,  a couple of big name movie stars, special effects,  an award winning director and all SAG, DGA, WGA, IA trappings.  You will then of course need either a major studio to buy (or distribute) your film – or $25 million in P&A to self distribute.  This path takes a lot of cash, whether it comes from you, investors or loans to pull off.  It is high risk but the rewards are big if you succeed.  Think of it as swinging for the fences.

What is not working very well right now is the $3 million to $8 million budgeted films that have no major stars, no distribution or P&A money.  You can’t make enough in foreign pre-sales to offset the cost of the film and unless you have a big name star in your pocket (think Matthew McConneghey, Brad Pitt, or Charliez Theorn) you won’t see big MG’s.  The domestic and foreign distributors only care about who’s in your movie.  They don’t care that you have a brilliant script, they don’t care that you have a great director, they don’t care that you have a killer marketing plan… they buy 90% based on cast. And a little on the concept.  You could put big name actors in a dreary urban drama and they would still pass.

So, don’t get caught in the middle with a film that doesn’t have the horses to win the box office race.  Consider the fast, inexpensive film… or go for it all.


1 Comment
Sean Connors link
8/29/2013 06:53:58 am

I couldn't agree more. I've been telling wouldbe filmmakers this exact thing for several years. I do believe there are some creative things that can be done in this "middle realm" that can be successful. But Mr. Kerr is absolutely right. It pretty much doesn't work using the historical Hollywood playbook, trying to make movies in this "middle ground".

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    Stephen Kerr is president of BMC (Business Marketing Consultants), a subsidiary of Bel Age Medias. 

    He has 30 years experience in the media and entertainment industry. 

    ​See more on his LinkedIn profile.

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