A guide to the film production process

1. The Hollywood
Film Industry
Traditional Distribution
Key Companies
Profit making

2. The Production Cycle
• Production Company
Distribution Company
Exhibitors
Audience
Profit
finance
Returns
TV/
DVD
sales
The Conglomerate

3. Film Production Cycle
Pre production
Production
Post Production
Distribution
Exhibition
Marketing!

4. Distribution
• The Invisible Art – process known only
to those within the industry, barely
written about and also imperceptible to
everyone else.
Producers AudienceDistribution

5. David Wilkinson explains
distribution
• https://www.youtube.com/watch?v=JKObYf6
• Founder of UK based Guerilla Films –
who have distributed films such as;
Adam & Paul, Two Men Went To War
and “The Good Father”

6. What is it?
• Releasing and Sustaining a film in the market
place
• Worked best when the three key stages
(Production, Distribution, Exhibition) are
linked or controlled by the same company –
Vertical Integration
• UK system has more focus on marketing and
sustaining a film in the local market
• Independent Studios don’t ‘do’ vertical
integration

7. Independent Films
• Independent Studios don’t ‘do’ vertical
integration
• No formal connection between
Producers, distributors and exhibitors
• Collaboration – need to get a major
company on side
• £££££££££££££$$$$$$$$$$$$$$

8. Distribution Companies
• Determine how many copies (prints) of
a film to make
• Why might this be important?
• What might be some issues
surrounding this?

9. Who are the big
distribution companies?
• Viacom - $12.86 billion
• Paramount – one of the oldest (1912)
• United International Pictures (UIP) – covers
60 ‘territories’
• Time Warner – have over 5700 films
• New Line Cinema – ‘independent’ and foreign
films, home distribution
• Fox Entertainment Group – worth over $17.2
billion, 83% is owned by News Corp

10. Who are the big
distribution companies
• The Walt Disney Company – another very old
company
• Miramax – one of Americas largest internal
distribution companies
• Buena Vista International – distributes all Disney
films outside America
• Universal Studios Group – owned by the
European version of Time Warner (who made
their money from privatised water)
• The Sony Corporation – massive interests in
electronics

11. Seems like a lot but…..
• Viacom owns
Paramount and 33%
of UIP
• Time Warner owns
New Line Cinema
• Walt Disney owns
Miramax and BVI
• Fox
• Universal/Vivendi
• Sony
• Horizontal
Intergration

12. Distribution = Power
• Films can not be financed without the
help of distributors
• They have clout with theatre owners (or
are often the owners)
• Brand name recognition
• Own copyright
• Access to capital

13. It’s all about Money!
• Distribution Company and their
conglomerate owners are profit driven
so they must feel confident that they
can make sufficient return on
investment
• Films are expense to make
• How to do they avoid losses?

14. How much?
• How much do you think Bruce Willis
was paid for unbreakable?
• How much do you think Angelina Jolie
was paid for Tomb Raider – The Cradle
of life?
• Lets see who is the nearest!

15. The Cost
Unbreakable
•Story rights and Screenplay: $5,000,000
•Producers: $1,878,260
•Director (M. Night Shyamalan & Assistant):
$5,081,749
•Cast: $ 31,903,987
– Bruce Willis: $20,000,000Samuel L. Jackson:
$7,000,000Robin Wright Penn: $2,500,000
– Rest of Cast, Casting, Stunts, & Travel:
$5,568,388
•Production costs: $26,214,709
– Visual effects: $1,000,000
– Music: $2,253,456

16. Lara Croft Tomb Raider: The Cradle of Life
•Story rights and screenplay: $4 million
•Producers: $4 million
•Director (Jan de Bont): $5 million
•Cast: $17.25 million
– Angelina Jolie: $12 million Extras: $250,000
– Other (inc. Angelina's perks): $5 million
•Production costs: $67 million
– Set design and construction: $17.8 million
•Visual Effects: $13 million
•Music: $3.3 million
•Editing: $3 million
•Post Production costs: $1.5 million
•Total: $118 million

17. Terminator 3: Rise of the Machines
•Story rights (Carolco and Gale Anne Hurd): $19.5 million
•Screenplay: $5.2 million
– John D. Brancato & Michael Ferris: $1 million
•Director (Jonathan Mostow): $5 million
•Producers: $10 million
•Cast: $35 million
– Arnold Schwarzenegger: $29.25 million + 20% gross
profits
– Arnold's perks: $1.5 million
– Rest of principal cast: $3.85 million
– Extras: $450,000
•Production costs: $58 million
•Post-production costs: $4 million
•Visual effects: $20 million
•Music: $2 million
•Other costs: $33.6 million

18. Spider Man 2
•Story rights: $20 million
•Screenplay: $10 million
•Producers: $15 million
•Director (Sam Raimi): $10 million
•Cast: $30 million
– Tobey Maguire: $17 million
– Kirsten Dunst: $7 million
– Alfred Molina: $3 million
– Rest of cast: $3 million
•Production costs: $45 million
•Visual effects: $65 million
•Music: $5 million
– Composer (Danny Elfman): $2 million.
•Total: $200 million

19. Other Costs
• Promotion – often higher than
Production costs for a small $20 mill film
but dies become less for a higer budget
film
• Very hard to get accurate data
• Megamind cost between $130 - $145 m
and estimated Promotiom budget of
$65m

20. How do they make
money?

21. % of revenue from tickets
• Front Loaded Deals – on the decline
(bankruptcy and new revenue sources)
• ‘Standard Cut’ – but what that cut is
depends on the muscle of the distributor
• Around 50 – 55%

22. Other sources of money
• DVD’s – can add up to $100m and a
higher % goes back to the company
• TV Rights
• Merchandising
• But in 2009 theatrical box office
revenue was bigger than home video
revenue – piracy, Netflix, cost of 3D
tickets.

23. Task: Write an article for
“Totally Film Magazine”
• Include a description of all the stages
and their purpose
• Use a film (can be one of the ones
discussed during this session to detail
how much a film costs)
• Discuss the potential problems with the
current process