Film Financing

How do film companies get their Funding?

• The producer must secure funding before filming
• It is hard to predict how much (if any) profit a film will make

Key Terms:

• Above the line costs: What they plan on spending the majority of the budget on. For example, Directors, Location, Aquiring the rights (to a novel), Cinematographer, Cast etc.
• Below the line costs: These are the 'lesser' costs to the budget. For example, Accomodation, the remainder of the production team, extras, props etc.

Government Grants:

• These are given to encourage new talent
• A film production company can benefit a country by;
• Increasing employment
• Develpoment of National Cultuer
• Advertising a certain location around the world

UK Film Council:

• Offers subsidies to film makers in the UK meeting a ceratin criteria

Tax Schemes:

• The producers tax credit offers a direct cash injection

Tax Shelters:

• Those who invest in a film production pay less tax

Pre - Sales:

• This is the most common method of film financing
• This method involves selling the right to distribute a film before it has even been made