Producing for Film Midterm

Gross Points vs. Net Points

  • 1 Gross Point is 1% of Box Office Gross

  • 1 Net Point is 1% of Profit after Recoupment and Cost


Recoupment: To pay back all the people you owe money


Investment Terms:

  1. ROI = Return on Investment

  2. Recoup = Make money back

  3. Net Points = Percent of profits minus cost & recoupment

  4. Gross Points = Profit straight from gross box office revenue

  5. Parris Passus = Side by side, (when investors recoup the same amount at the same time, i.e. each dollar that comes in gets divided $.50 each)


Order of Recouping

  1. Buyer/distributor

  2. Sales agent commission

  3. Sales agent recoupable expenses

  4. Producers representation

  5. Production Company

  6. Debt

  7. Equity Investors

  8. Deferrals

  9. Producers


Line Producer: 

  • Makes the budget

  • “Boss of the crew” - top of the “BTL”

  • Hires crew, trailers, locations, etc.

  • Works on the project from greenlight to post-production


First AD (Assistant Director): 

  • Makes and runs schedule on the film.

  • Oversees all departments and reports to director and producer

  • Directs extras and calls the slate (Quiet on Set, Everyone Back to 1)

  • Liaison between the director & the cast

  • Makes call sheet/blueprint for the next day


“Everything but the kitchen sink”: 

  • The first budget that has everything needed to make the film


Pay or Play: Producers will pay actors/crew their salary whether the film gets made or not. 


Per Diem: “Per Day” = Daily spending money/allowance given to cast & crew while working out of town


Back End: Profit participation


Development vs. Pre-Production:


Development

Pre-Production

  • Writing into a screenplay or pitch

  • Acquiring IP (always acquire before development)

  • Packaging (finding writers, directors, actors)


Option Agreement (TV Shopping Agreement)

  • Agreement between you and the creator, where the creator gives you the rights for a certain amount of time for a certain amount of money

  • Ex. “We would like to option your book for an initial term of 18 months for $500. If I set up the project in that time, I’ll give you $50,000 (purchase price). If I don’t set up the project, I’d like to extend for another 18 months at an additional $500.”