Movie Money Issue 1 of 2013
from global distributors and sales agents; all competing for fewer theatrical films in a crowded international marketplace; all trying to be the next Slumdog Millionaire. Today’s savvy distributor not only sells a movie after it is completed, but looks for product to pre-finance through its sales efforts by putting up a minimum guarantee (which can be banked by senior and mezzanine lenders) or getting involved in independent projects at script level; influencing casting choices in order to secure the best films early on in the production phase. Talent remains an important factor, but instead of the one-name headliner of yesterday’s indie marketplace, today’s films lean towards smart ensemble products with multi-national A-list actors (as well as directors and writers) that allow distributors to market the films to global buyers. This has increased the importance of agencies coming on to package the ensemble, financing and distribution primarily for the U.S. market at the major festivals. The most important trend for those seriously getting involved in film funding today is crowdfunding used to launch not only the development or post-production financing of a film, but
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the entire production, and also serves as the project’s first marketing efforts, establishing it with its first guaranteed audience before it’s even submitted to a festival. No film going forward today that hopes to garner a theatrical release in the United States can honestly seek success without a team that assures social networking on a global level, bankable ensemble casting, and financing that includes tax credits, minimum guarantees and crowdfunding in addition to the traditional equity investment. Today’s independent feature film investors no longer have to put up one hundred percent of the investment in order to reap the initially sought benefit of mingling with the stars. Instead, the smart ones have figured out that twenty five to thirty five percent of a film’s budget may be sufficient equity to invest in getting a film made in today’s independent feature film business, and still maybe hit the lottery with the success that gets them to profit. Vinca L. Jarrett, Esq. is an entertainment lawyer and president of FilmPro Finance, a financial consulting service for investors and producers funding oneoff films and building film slates. 21