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Life of the film producer; part 5
1. LIFE OF THE FILM PRODUCER:
PART 5
If a producer cannot gain financial support for their project from a studio, finding
alternate sources of financing is essential.
Studios don’t like to invest money into a production that only brings in $1 to $2 million in
profits.
Independent film production - is applied to any production company that is not directly
affiliated with a major film corporation.
An independent producer- works outside the influence of the studio and gets finances
privately.
Banks
Business owners
Wealthy Friends
Relatives.
Being independent means that the producer keeps the control over the project.
A producer who has retained the rights to project can make separate deals for
distribution of the film to various theatres as well.
When distribution rights are kept, the producer will then receive more of the profits that
are brought in by the film.
The independent producer will know exactly how much money he can spend because he
makes his own budget depending on how much money he has received from investors.
For a picture to reach a level where bet profits finally come into play, it must earn back
the cost of production, prints and advertising and any fees that a studio may add along
the way. For a studio picture, the earnings must be anywhere from 3-7 times the initial
cost of the film before a profit is established. On the other hand, an independently
financed film could reap the benefits of a "gross deal." The producer establishes this
type of deal with a distributor in which the producer receives their profit directly from
the amount of revenue brought in by the film. In the later case, the success of the film
will be much more profitable for the producer.
“For the independent film, it is obvious that word of mouth is essential for the success of the
film. Because the budget of the film is a major factor in production, it is safe to assume that
the millions of dollars a studio may spend to promote their feature will not be available for
independently produced films. The Blair Witch Project was a very successful film at the
Sundance film festival where the word spread like wildfire. It was considered one of the
scariest and most original films to be released in recent years. “