The Business of Film & Filmmaking
The Business of Film
The Business of Film. The UK Film Industry contribute £1.6Bn annually to the UK GDP and £1.6Bn to the Exchequer. film is the UK’s shop window to the world
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The Business of Film
“Nobody knows anything… it’s a guess – and, if you’re lucky, an educated one.”
(Screenwriter William Goldman’s famous observation on the film industry:Goldman, 1983)
The Business of Film – 101
- Year 1 – Back an Idea
- Find an Idea
- Find Investors
- Year 2 – Build an Asset
- Shoot the movie
- Edit the movie
- Year 3 – Sell the Asset
- Promote, Sell and Distribute the movie
- Recoup Revenues
- Pay back investors
Three year is a good fit, as that is the number of years an investor must hold their EIS & SEIS shares in order to take advantage of tax free profits. But profits can keep coming in many years after the movie launch.
Follow these steps and you’ve got your film, from script to screen. Why wouldn’t you invest?
You have a great investment, great movie, great cast, great timing, great upside, all bases covered, reduced or mitigated risks at every stage, secured pre-sales and fantastic global distribution deals with reputable partners with long term revenues from exploiting sales into the latest derivative digital platforms. That’s a green light in our book.
To understand who gets paid out, when and in what order it helps to understand the Value Chain model (who’s gets paid out) and the Recoupement schedule (when they get paid in what order). So to summarise:-
- The Value Chain – The independent film making process is very convoluted, involving many third parties and partners at every stage. This is called the value chain.
- Recoupment Schedule – The order and % they get paid out as known as the recoupment schedule.
To help you understand the values chain and recoupement schedule we’ve prepared these two pages.
Independent film makers must bring in partners or outsource components to subject matter expert companies to complete the making of the film. Then they must strike pre-sales and distribution deals to ensure the Film reaches the intended audience and many more besides. This group of specialist contributors is known as the value chain.
Budgets are typically built to order while the recoupment schedule determines the order of the pay out of multiple participants.