The Business of Showbiz: Financing and Distributing Films
We often associate movies with glamour, success, fame, and money. The last one is quite an important aspect of the film business. Everybody involved in the process hopes to take a fat cheque home once the movie releases. But, wait a minute! Have you ever thought about how these movies actually make money? Behind every blockbuster or an Indie film is an elaborate process of financing and distribution. Are you interested in knowing more about it? Then, let us explore the nitty-gritty of how movies get made and seen.
The Concept Of Film Financing
Before shooting a single movie shot, the director needs someone to back the project. These people are the ones who like the idea of the movie and give funds to make a film. Depending upon the project, the money can range from a few hundred dollars to a few thousand dollars. See, if it is a small Indie project, naturally the cost will be quite less. However, if we are talking about big banner films, the costs are quite high.
Here are some of the ways in which the director secures the funding:
1. Studio Financing: The big players like Warner Bros., Universal, and Disney finance their own films. This means they are involved from the start. They take care of the creation of scripts, improving scripts, and taking the final product to the market. They even pay for crew salaries, actor’s fees, post-production expenses, shooting costs, and editing fees. You know, these studios often assume higher risk in the hopes of earning massive profits if the film becomes a super hit.
2. Independent Financing: Indie films often find it hard to get the backing they need from major studios. These films often secure funding from independent investors, film grants, and production companies. These days, crowdfunding is also emerging as a very good option for funding your films. Platforms like Kickstarter and Indiegogo help in the same. You have to share your idea and people who like it can pledge some money. Isn’t it great?
3. Pre-Sales: Another common method of getting the funds is pre-selling the distribution rights of the film. So, what does this mean? Basically, the film rights are sold to one or more distributors based on the estimated value of the project worldwide. The distributors make the payments in installments during the production stage so that the production costs are covered.
4. Co-Production: As the term suggests, it is a joint venture between two production companies from different countries to share the costs, profits, and risks involved in a film project. This approach reduces the burden on a single production company and helps them cover markets outside their native country. For example, Gandhi was a joint production between UK and Indian production houses.
The Distribution Phase
Once the film is completed, it is of no use if it doesn’t reach the audience. Film distribution covers everything from releasing the film in the theatres to making it available on OTT platforms, streaming devices, DVDs, and Blu-rays.
Here are a few components of the distribution phase that you should consider:
1. Release In Theatre: Distributors are the people who come into play here. They negotiate with the top theatre chains, get screen space for the film, and create marketing and advertising campaigns for the film. A lot of responsibility hinges on them as the timing of the film release can make all the difference when it comes to profits. For example, releasing a film during the holiday season can provide greater profits as more people have the time to go and watch the film. Similarly, avoiding clashes is equally important to get profits.
2. Digital Distribution: Once the film has been released in theatres, it stays there for a few weeks. After that, the film needs to be available digitally, especially today when the whole world is on the Internet. Here, the distributors have to negotiate with streaming platforms like Amazon Prime, Hulu, Netflix, and Disney Hotstar to show their movies.
3. Film Festivals: Often film festivals like Cannes, Sundance, and Toronto are a great way to get exposure, especially in the case of Indie or independent films. Being selected at any such film festival or winning awards can increase the prospect of attracting more distributors and eventually audience.
4. Home Entertainment: Though, with the rise of streaming platforms, physical media sales have declined in recent years, you cannot completely ignore them. There are still areas with weak internet connections where DVDs sell. Distribution of film rights for cable TV and in-flight entertainment is also a good source to generate revenue here.
Conclusion
Behind the film curtains lies the hidden and less-seen world of finance, profit-sharing, and budget of films. The money starts flowing from the time when the idea of a film is perceived till the film hits the floor. This is how most people are able to take money home! So, when you watch a movie on Netflix, Amazon Prime, or a theatre, remember that it has all been possible because of the commercial aspects of filmmaking.