The Producer's Business Handbook

by Lee, Jr.

• ISBN13: 9780240803968
• ISBN10: 0240803965
• Edition: CD
• Format: Paperback
• Copyright: 2000-04-26
• Publisher: Elsevier Science

Summary

The Producer's Business Handbook delivers filmmakers a comprehensive examination of the business of entertainment and provides the information and tools required to engage all related aspects of global production and exploitation. Together with its companion CD-ROM, this handbook presents both instruction and worksheet support to independent producers at all levels of experience. the handbook also provides a global orientation to the relationships that the most successful producers have with the various participants in the motion picture industry. This includes how producers direct their relationships with domestic and foreign studios, agencies, attorneys, talent, completion guarantors, banks, and private investors. It provides a thorough orientation to operating production development and single purpose producing companies, from solicitation of literary properties through direct rights sales, and the management of global distribution relationships. Also presented is an in-depth discussion of the team roles needed to operate these companies, as well as how to attach and direct them. Worksheets and instructions are included for the business processes of development and production financing operations that are used by many of the industry's consistently profitable companies. The companion CD-ROM features extremely valuable spreadsheets available nowhere else, including the bank financing worksheet and the producer's share analysis and internal greenlight summary, the development and production activity projection spreadsheet, the development and production cash flow projection worksheet, and other breakthrough forms. This interactive CD-ROM also provides examples and exercises using the various worksheets provided.

Table of Contents

Preface	ix
Introduction	xi
How the Motion Picture Industry Functions	1	(16)
Major Participant Categories and Their Functions	1	(16)
U.S. Theatrical Distributors	17	(14)
The Major and Minor Distributors	17	(1)
Studio Integrity	18	(1)
The Three Studio Arenas	19	(1)
Studio Relationships with Independent Producers	20	(2)
Producer Relationship Comparisons	22	(1)
Worksheet: Producer's Share Analysis	22	(1)
Share Analysis Review	22	(5)
Split Negative Pickup Relationships	27	(1)
Studio Acquisition of a Renegade Picture	27	(2)
The Critical Effect of U.S. Studio Attachment	29	(2)
Foreign Territories	31	(14)
The Global Popularity of American Motion Pictures	31	(4)
Producer Relationships with Foreign Distributors	35	(2)
Establishing New Foreign Distribution Relationships	37	(1)
Nurturing the Relationship	38	(1)
Foreign Territory License Timing	39	(1)
License Documentation	40	(1)
Foreign Deal Memo Sample	41	(2)
Managing Global Relationships	43	(1)
Foreign Trends	44	(1)
Ancillary Markets and Rights	45	(14)
The Effect of Theatrically Released Motion Pictures on Other Windows	45	(1)
Audience Sizes In Major Windows	46	(1)
Ancillary Audience Characteristics	47	(3)
Producers Rely on Ancillary Earnings	50	(1)
Video Distribution	51	(1)
Premium Cable Television	52	(1)
Network Television	53	(1)
Free Television Syndication	54	(1)
Other Ancillary Rights	55	(4)
Entertainment Banking	59	(8)
The Banking Business	59	(1)
Basis of Lending Decisions	60	(3)
The Loan Approval Process	63	(1)
Production Financing Worksheet	63	(2)
Types of Loans	65	(1)
Gap Financing	65	(1)
When to Approach the Bank	65	(2)
Completion Guarantors	67	(6)
What Completion Guarantees Do	67	(1)
Producers' Perceived and Real Value of Completion Guarantors	68	(1)
Completion Insurance Relationships	69	(1)
The Completion Bond Package	69	(1)
Completion Insurance Cost	70	(3)
Attorneys, Negotiations, and Entertainment Law	73	(16)
Attorneys and Their Firms	73	(1)
Producers Performing as Attorneys	74	(1)
Negotiating	75	(2)
Vital Legal Aspects Relating to Story	77	(5)
Deal Memos, Letter Agreements, and Long Form Contracts	82	(1)
The Benefits Associated with the Producer Preparing Deal Documentation	83	(1)
Deal Reviews	83	(1)
The Attorney as Counsel	84	(1)
Dispute Resolutions	85	(1)
Literary Release Sample	86	(3)
Talent, Agents, and Agencies	89	(8)
The Relationship Evolution	90	(1)
Meetings with Talent and Agents	91	(1)
Attorneys as Agents	92	(1)
Planning the Deal	92	(1)
Development Negotiation	92	(1)
Points Participation	93	(1)
Preparation of a Fair Deal	94	(1)
Agents as Creative Resources	94	(1)
Talent Reserve	95	(1)
The Participation of the Producer's Attorney	95	(2)
Development, Production, and Producing Company Structures	97	(6)
The Power of Company Structure	97	(1)
The Companies	98	(1)
Chart: Business Structure	98	(2)
Development Company Financing	100	(1)
Securities	101	(1)
Forms of Companies	101	(2)
Development Financing	103	(14)
The Essential Power of Funded Development	103	(1)
Development Funding Sources	104	(3)
The Process of Securing Development Financing	107	(1)
Worksheet: Activity Projection	108	(3)
Worksheet: Cash Flow Projection	111	(6)
The Team	117	(8)
The Complete Team	117	(1)
Corporate Structure	118	(1)
Chart: Production Company	119	(1)
Chart: Development Company	119	(3)
The Production Company's Team	122	(1)
The Development Company's Team	123	(1)
Optimizing the Teams	123	(1)
Discovering, Negotiating, and Compensating	123	(2)
Production Company's Operation	125	(20)
Defining and Establishing the Production Company	126	(1)
The Story Search	126	(1)
Development Company Emphasis	127	(1)
Preparing the Investment Offering	128	(1)
Assembling the Team	128	(1)
Producing the Investment Memorandum	129	(1)
Raising the Development Financing	129	(1)
Investment Partner Communications	130	(1)
Working the Development Plan	130	(3)
Story Selection and Initial Green Lights	133	(1)
Predirector Picture Development	134	(1)
Director Attachment	134	(1)
The Producer/Director Relationship	135	(1)
Shooting Script	136	(1)
Lead Cast Attachment	137	(1)
Preparing for Physical Production	137	(1)
Maturing Marketing Materials	138	(1)
Preparing the Production Bank Financing Facility	138	(1)
The U.S. Studio Distribution Agreement	139	(1)
The Presales	139	(1)
Engaging the Completion Bond	140	(1)
Engaging the Production Bank Loan	140	(1)
Final Preproduction	141	(1)
Principal Photography	141	(1)
Post Production	142	(1)
The Picture's U.S. Branding	142	(1)
The Global Territories and Ancillary Markets	143	(1)
Motion Picture Development and Production Checklist	143	(2)
The Producer's Business	145	(8)
Multiple Picture Management	145	(1)
Time and Budget Economies	146	(1)
Establishing the Production Company Brand Presence	147	(1)
Sustaining Business, Artistic, and Personal Objective Balance	148	(1)
Managing Library Pictures	149	(1)
Advancing Team Vitality and Allegiance	150	(3)
Reports, Data, and Producer's Principles	153	(14)
Entertainment Industry Statistics and Reports	153	(2)
Chart: The Most Successful Pictures Ever Released	155	(6)
Chart: Theater Attendance and Earnings by Target Audience	161	(1)
Information Sources	162	(2)
Producer Success Principles	164	(3)
Index	167