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Tax credits by local state governments hold a significantly special place in every filmmaker’s budget – no matter how big or small it is. ‘Massachusetts Film Office’ website http://www.mafilm.org/ very proudly displays pictures of some of the biggest Hollywood stars as the state newest taxpayers.   Filmmakers–who either shoot at least half of their movie or spend at least half of their production budget in the Commonwealth–are eligible for a tax credit equal to 25 percent for every new dollar of spending they bring to Massachusetts. Icing on the cake is that the state does not have any caps or limits and it does not require pre-authorization or pre-certification. The state started offering tax credits in 2006 and lifted caps in 2007. According to the Mass. Dept. of Revenue the numbers for new direct spending and major productions shot in Massachusetts has seen exponential growth: 2005 – 1 Production; $6 Million 2006 – 2 Production; $72 Million 2007 – 8 Production; $152 Million 2008 - 13 Production; $452 Million Massachusetts was one of the first states to establish an official state film office in 1979. Since then, the Massachusetts Film Office has welcomed over eighty feature filmmakers to the Bay State — including Norman Jewison, Sydney Lumet, Steven Spielberg, Clint Eastwood, and Martin Scorsese. In July of 2006, the state placed the new Film Office alongside the Massachusetts Sports Partnership under the umbrella of the Massachusetts Sports and Entertainment Commission, a private non-profit organization ...

In our effort to make FilmFundingSources.com a one-stop source for information on film finance, we present below one of the many professional outfits that connect filmmakers with investors. “At Green Light Film Funding we pride ourselves on honesty and our ability to structure unique funding solutions that are not available in the traditional lending arena. The Funding Options, like those of any other industry, have changed drastically within the last 12 months. However, with our combined 34 years of experience we know how to structure these difficult deals in today’s always changing environment.” “Whether your film has most or none of the funding required we can provide solutions that exist outside the traditional sources. Our investors realize the potential of funding films and that your film may be the next "Juno", "Garden State" or "Passion Of The Christ". “At Green Light Film Funding we EAT, SLEEP AND DRINK FILM FINANCING. Whether you are a film maker or potential investor we look forward to sharing your vision and working together with you and your team in the near future.” Source

Because of the prolonged credit crisis, industry experts predict that it is going to remain hard for producers to bring financiers to the table for the next few years, but this is also the good news for those who are able to get their movies financed. They will have access to a much larger audience once their movie is made. Also, there has been no better time to prove that necessity is the mother of invention. The tight credit has shone bright light on certain realizations i.e. talent has become increasingly entrepreneurial; that in the future, video-on-demand may actually be worth something; and that the spread of digital cinema will set the stage for the growth of digital 3-D.  Thinning of the herd also ensures that foreign rights will fetch more money and cast will be ready to work a bit harder for a considerably smaller payday. "Effectively, there has been a dislocation of supply and demand," said Paul Hanson, QED International COO, with "too many movies."                     The effects of the product glut can also be seen in the pre-sales market.                                 "If you have theatrical-based product with stars, they sell," Solomon said, citing as an example the Weinstein Co.'s "Nine," the upcoming Broadway musical adaptation helmed by Rob Marshall and featuring a starry cast including Nicole Kidman and Daniel-Day Lewis. But go into the market with a pitch for a smaller, non-mainstream movie, and the cautious buyer is likely to respond, "I'll see it when it's ...

“The explosion in ultra-low budget filmmaking over the past 10 years is due in part to the technological advances made in production and post-production. As the barriers to production fall, more and more people from around the world have the opportunity to try their hand at filmmaking. Next Wave Films is at the center of the ultra-low budget filmmaking information flow. In addition to having a unique overview of trends in production, we continually research new tools and processes as they are being developed. In this section, we will provide an overview of the mechanisms now available at various stages of the filmmaking process. We will also share with you what we've heard from filmmakers in the field.” In the late '70s and throughout the '80s, a number of outstanding independent filmmakers (including John Sayles, Spike Lee, Jim Jarmusch, Charles Burnett, Wayne Wang, Victor Nuñez, and Gus Van Sant) made first features on miniscule budgets. but relatively few filmmakers followed in their footsteps, hoping instead to find $1-3 million to make their first film. By the early '90s, fewer companies were financing first features and there was little money available. Then everything changed. El Mariachi, Laws Of Gravity and The Living End came out in the same year. Peter Broderick, President of Next Wave Films, wrote a seminal series of articles for FILMMAKER MAGAZINE discussing these films and revealing their budgets. The first article in the series, The ABC's Of No-Budget ...

It’s very important for an independent filmmaker to understand that a large percentage of this money comes from non-traditional sources outside the industry. Therefore, you should be prepared to explain to your investor what the indie film industry is all about and how your project fits into the grand scheme of things. The producer should be able to not only clearly identify and describe the segment of the film industry s/he is working on but also define the difference between independents and studios with some good examples supported by facts and figures. Getting investors to support your film is one of the most difficult challenges of filmmaking. To cash in on the $8 billion-plus independent film market, you’ll need a sound business plan and a firm understanding of the financing process. If you plan to write your own business plan, you should read at least two books on the subject. The business plan should include and address the following key elements: The Executive Summary The Business The Films/Projects – Scope, Attachments, Budget The Market Distribution Risk Financial Strategies The structure of your financing can vary significantly from film to film. What type of finance do you plan to pursue? Presales, co-production, below-the-line deals, negative pickup, limited partnerships, limited liability companies and bank loans each come with advantages and disadvantages.                  No one can successfully run a business without looking to the future. Forecasting is one of the most important elements of a business plan – and among the most frightening for most people. Key elements to include are: Financial assumptions      Domestic theatrical rentals     Domestic ...

FilmSearch.net establishes, for fee, profitable ties between sophisticated investors and serious film producers. It acts as the initial liaison between these parties, linking contacts with mutual needs and common interests. Submissions are screened for viability and quality, with a preference for minimal profanity, no nudity, and a rating between G, PG, or PG13. If these criteria are met and you wish to explore this mutually profitable relationship, FilmSearch.net could be the place where you might want to submit your proposal. "Benefits of Partnering with FilmSearch: FilmSearch offers producers invaluable assistance with getting their projects financed by serious investors. FilmSearch pre-qualifies every investor and establishes each investor's level of interest so that you don't have to. We are non-exclusive, which means no money will be received until a financing relationship is formed between two or more parties. In some instances, the Company may receive a fee for establishing an opportunity that does not lead to the fulfillment of a project. " "Services FilmSearch may Provide: Develop a formal contract outlining the terms and conditions between producers and investors so that you don't have to. Submit a prospectus to interested investors once their interest has been established. Credit check investors (on request) so that producers can rest easy doing business with them. Set-up telephone conferences between producers and investors and help ensure that the process is smooth and well managed. Facilitate producers and investors to communicate directly with each other through the FilmSearch.net web site." Source

"Screen Australia is the key Federal Government direct funding body for the Australian screen production industry. Its functions are to support and promote the development of a highly creative, innovative and commercially sustainable Australian screen production industry." "Screen Australia was created under the Screen Australia Act 2008 and from 1 July 2008 took over the functions and appropriations of its predecessor agencies: the Australian Film Commission (AFC), the Film Finance Corporation Australia (FFC) and Film Australia Limited." "Across its various departments, Screen Australia, supports the development, production, promotion and distribution of Australian screen content by: Supporting production of a range of content including features, documentaries, television drama and children's programs. Supporting the growth of screen businesses. Supporting marketing and screen culture initiatives which focus on engaging audiences with Australian content. Developing high-quality scripts and proposals. Facilitating innovation and audience-engaging online content. Supporting Indigenous talent and distinctive stories. Administering the Government's Producer Offset and International Co-production Program to increase the commercial sustainability of production in Australia. Providing authoritative, timely and relevant data and research to the industry and government. Promoting access to the extensive archive of Australian documentary screen content." Source

"Film Finances was founded in 1950 for the purpose of giving guarantees of completion to financiers of motion pictures. At the time, producers of motion pictures were finding it increasingly difficult to borrow money from banks because the producers could not show how budget overages, if any, could be met. The original founders of the company were film producers who had learned that mortgaging all they owned against potential budget overages was not a sound proposition. Film Finances was therefore formed to provide financiers with a service that gave them the assurance that the film would be delivered on time and that the over budget costs would not be the financier's responsibility." "FFI has given completion guarantees to all the leading banks involved in the entertainment industry, as well as all the major studios and distributors of motion pictures. FFI has now guaranteed the completion and delivery of approximately 6,000 Feature Films, Television Series, Movies of the Week, Films on Tape, Documentaries and CD-ROM Productions shot in all parts of the world." Source

National Film Development Corporation of India, established in 1975, is the central agency established to encourage the good cinema movement in the country. Its primary goal is to plan, promote and organize an integrated and efficient development of the Indian film industry and foster excellence in cinema. Over the years NFDC has provided a wide range of services essential to the growth of Indian cinema. The NFDC has so far funded / produced over 300 films. These films, in various Indian languages, have been widely acclaimed and have won many national and international awards. The organization promotes and organizes an integrated development of the Indian Film Industry and fosters excellence in cinema. It participates regularly in all major film markets across the world with a view to not only promoting its own films, but also facilitating the expansion of global markets for Indian Cinema as a whole. NFDC also provides essential pre-production and post-production technical infrastructure support to the film industry, keeping pace with technological developments. With our experience of over 30 years in overseas exploitation of Indian films, we offer all producers of Indian films a ready-made platform to promote the same globally. Within its objective of promoting good cinema, NFDC will henceforth undertake to promote and market Indian films for exhibition in all/any media formats in various languages. The Corporation would charge commission in accordance with normal trade practice. NFDC will also be offering subtitling ...

Film financing is a continuously evolving sector. Over the last three decades it has seen many subtle as well as sudden direction changes – individual investors through brokerage firms in 1980’s, German Tax Credits in the 90’s, and then investment banks and hedge funds in the first decade of the new millennium. Each of the above strategies ran its own course before the recent economic downturn brought the industry to almost a halt. The length of one of the deepest recessions in recent history eroded investors’ confidence so much that even the concept of slate funding does not seem to be safe enough. Now, the latest argument being used by film producers is that although slate film financing is not 100% safe, neither are other alternatives, supposedly safe investments, such as real estate and art. This argument has quite a bit of truth to it because the film-industry is recession-proof to a great extent.      "We have witnessed a surge of existing investors interested in upping their commitment as other opportunities have become less compelling," Eraklis said. "I recently had an investor tell me that we no longer occupy the high-risk portion of his portfolio."                                           Anybody making the Hollywood-is-safer argument just six months ago would have been laughed out of town. Complex accounting methods, tremendous competition, soaring costs - it was not exactly a safe part of the woods, even for the most sophisticated investor.                                          "Is investing in movies more attractive now because of what is happening elsewhere in the economy? Yes," said Daniel Black, ...

Ticket sales are significantly up compared to a few years ago. Unlike most other industries, film industry is believed to be recession-proof. In fact industry experts say that movies enjoy a recession-fueled boom because it’s a relatively inexpensive family pastime compared to other activities such as attending a sporting event or a concert. This means that a good movie will make money and the studios that have a history of making such movies will have no problem finding financiers. So, what should independent or small time filmmakers do to make films? Be creative. They will have to do things differently such as using technology to cut costs of production as well as distribution. But despite an eager audience, Hollywood CFOs are finding it hard to secure the backing that major films require. For the past four years the industry was beloved by hedge funds, private-equity firms, and individual investors, but most of those entities have pulled back. So have investment banks; Deutsche Bank, Merrill Lynch, and Morgan Stanley all axed their film-financing units last year.        Jerry Nickelsburg, senior economist for the University of California, Los Angeles's Anderson Forecast project, which models various aspects of the California economy, says studio finance executives and producers will need to be more creative in financing and producing movies. "Studios are doing things differently already," he says. "We're seeing lower production costs [despite higher] revenue generation." But, Nickelsburg adds, don't feel too bad for Tinseltown. "The one advantage the film industry has is that the movies are ...

Jimmy Lifton, a Californian born in Southfield, Michigan, leads a group of investors to build Unity Studios in Allen Park, Michigan at a cost of $146 million. Lifton, a 30 year veteran of Hollywood and principal of the largest independent post-production audio studio, Oracle Post, in Los Angeles, is building the Lifton Institute for Media Skills that will implement the largest re-training programs ever enacted in Michigan. The news is music to ears of skilled and unskilled workers in the region, who can expect to receive on-the-set training and production experience. Lifton sees the project as a one stop shop and factory in the tradition of Henry Ford’s over a century ago.  Moreover, the project is a welcome investment in state hard hit in recent years. The City of Allen Park is part equity owner in the project and its residents will get first shot at jobs created by it. Unity Studios is going to be a 750,000 square foot film, TV, and media production studio factory and village spread over 104 acres. The facility shall provide a welcome boost to the state’s economy as well as aspiring local film makers’ aspirations. According to Governor Jennifer       City of Allen Park residents and laid-off union workers from across the region will get first shot at the jobs, Allen Park Mayor Gary Burtka said. “Unity Studios amounts to an economic development blockbuster and the best economic news announced in Downriver and southeast ...

Filmmakers are raving about Michigan’s new incentive program launched in April 2008. The number of films made in the state has shot up dramatically from 3 projects ($2 million) in 2007 to 35 ($60 million) in 2008. According to Janet Lockwood, director of the Michigan Film Office, the state has quickly become one of the favorites of the film industry. The generous package includes, among other things, rebates as high as 42% for qualified expenditures, project budgets as low as $50,000 to qualify, and 25% tax credit against taxes for investments in studios and other related infrastructure. It also offers up to 50% break on money budgeted by producers for on-the-job training for state residents.          But, is it really beneficial to the state as much as it is made out to be? There is no definite answer; it is too early to call for the vote. There are people, who question the benefits the program brings to the state and therefore oppose it. Although Governor Jennifer Granholm, the key architect of the program, has made it clear that she would not sign any legislation repealing the program, her term ends early next year which could put the program up for changes. But even with a few minor tweaks, the program has the potential to make Michigan very-very attractive to the film industry in the long term. This is especially true if the current plans to invest in building or expanding of four studios in and around Detroit are followed-up on. ...

The recent broader financial reform legislation by the US Congress may have prohibited trading of movie futures, but its proponents have not given up totally yet. Earlier this year, Media Derivatives, Inc., a division of Veriana Ventures LLC of Arizona and Cantor Fitzgerald LLP had gained approval from the Commodity Futures Trading Commission to establish film futures market and start selling futures contracts based on movie-ticket sales. Almost every other group from Motion Picture Association of America to The National Association of Theater Owners had opposed the deal citing that insider trading amongst other things may harm a film’s prospects. Although Media Derivative CEO, Rob Swagger, has declined to provide details he has stated that the company is in talks that may lead to market for such securities outside the U.S. The MPAA is going to oppose such trading as well. Cantor Fitzgerald had dropped its plans last week, while Swagger of Media Derivatives still wonders why a film should not have a way to hedge itself when almost all other segments of the economy have a means to offset risk. The company has been contacted by interested parties in several countries about selling film futures contracts, Chief Executive Officer Rob Swagger said in an interview. He declined to identify potential partners or the countries where his company, a unit of Scottsdale, Arizona-based Veriana Ventures LLC, might do business.                       “We’ve been approached by a number of groups from abroad,” Swagger said. “They’ve asked to have dealings ...

Indian billionaire Anil Ambani is well known for his high taste and investments in mega projects. The 51 year old Wharton alumnus has once again shown that he sees world as his oyster. His Big Entertainment is the largest investor in Steven Spielberg’s DreamWorks SKG that last year declared a plan to raise $825 million with the former’s help. DreamWorks will receive equity from Ambani’s Reliance Group and banks loans along with from Walt Disney Co. Reliance Big alone put in $325 million in 2009 in DreamWorks which is a proof that it is certainly working on expanding its U.S. presence. What makes the deal sweeter for DreamWorks is that Reliance has agreed to give the studio the freedom to make the films it wants to make. DreamWorks started production in 2009 with the goal of making half a dozen films each year. One of the early movies released was ‘Kites’ in May 2010 which happened to be the first ever Bollywood film to open in top 10 in the U.S. and Canada. ‘Kites’ follows two immigrants, one from Mexico and the other from India, who go on the run to escape a vengeful Las Vegas casino owner. The film, introduced in 207 theaters, had sales of $958,673, according to researcher Hollywood.com Box-Office. Spielberg broke away from Viacom Inc.’s Paramount Pictures in September. He spent $26.5 million of his own money to buy rights to 17 films from Paramount, Variety reported in January.                      In February, ...

Due to increased processing powers of personal computers, blazing speed internet connectivity, and highly compressed media content the world is watching a revolution of sorts in the way it entertainments itself. But these new opportunities for the film distributors bring their own challenges – one of them being how to maintain control. Therefore technology is being constantly improved to meet filmmakers’ needs in three major areas: Security – Robust digital rights management solutions. Quality – High quality watching experience similar to that of watching on TV. Improved Economics – Time to focus on creating efficient business models for distributing content online. No buffering delays and improved codecs save time and lower bandwidth costs and increased compression efficiencies mean DVDs can hold more movies. The distribution of films on reel was expensive; quality degraded after certain number of runs; and distributors had no control. Improved technolgy i.e. digital distribution has solved many such problems. Technology has so rapidly and vastly changed the rules of the media distribution game – be it music or films – that it is becoming increasingly impossible to ignore it. Consumers’ expectations are constantly increasing. Not only the consumers expect their favorite movie or music to be delivered with multiple options but also filmmakers and distributors themselves are exploring different ways to distribute their product. New technology like Windows Media 9 Series strives to achieve higher quality, greater efficiency, and greater audience reach all while driving down costs. All of these benefits open up new distribution opportunities to the film industry. The benefits of ...

The script was written, the trailer was made and shown, the audience is now buying the tickets……but, wait….the film is not made yet. A thirty-three year old part-time filmmaker and full time teacher from Tel Aviv, Israel is trying to blaze a trail that one day could become a beaten path. The filmmaker, Ido Angel, is experimenting with micro-finance as a possible route to producing films. Well, it might seem a far-fetched dream at the moment but I would not underestimate the power of either the internet or micro-finance. Ask, Mr. Obama, whose internet savvy campaign amassed impressive totals to help him get to the Whitehouse; or Mr. Muhammad Yunus, who made the Nobel Committee to sit up and take notice of power of micro-finance and award him the 2006 Nobel Prize for Peace.       Mr. Angel is collecting only $10 per person and we don’t know the film’s budget. So, this particular film, The Great Fiasco, may or may not ever see light of the day. But it will certainly inspire many more enterprising filmmakers to give it a try. With the power of the internet, do you think it’s possible to convince 15,000 investors to contribute $1,000 each? I certainly do. Moreover, with the advent of technology the cost of filmmaking has been dropping steadily – digital films need shorter time and lower budgets to make. A project today costs less than a third of what it would have only 10-15 years ago. Also, do you think it’s possible ...

Relativity Media has slowly and steadily been expanding striking one deal after another. This time Liberty Media’s loss is Relativity’s gain because it is buying the former’s Starz Overture Film Studio. This deal, which comes on the heels of July 6 agreement with Netflix, adds marketing and distribution capabilities to Relativity’s already impressive portfolio.  Netflix accord is a proof of Relativity’s fresh and different approach because it has bypassed the traditional TV networks in favor of a rising star, whose strategy is to generate revenues through online sources. As a side note, Netflix is expanding into Canada starting in third quarter of 2010. Earlier in 2009, Relativity had purchased Rogue Films from NBC Universal. That deal brought with it 30 films that were in development. Its plan is to finance or produce 20 to 30 films annually. New York based hedge fund, Elliot management Corp. is another of relativity’s partners that help provide money. With so many impressive deals in short succession, it seems that Relativity has its hands in everything. Like any major studio, Relativity now has the capabilities to take a movie all the way from inception to distribution.      Relativity Media LLC, Hollywood financier Ryan Kavanaugh's film production company, will consider a public stock offering after striking a deal to add distribution and marketing capabilities.                               “Down the road, we’ll be looking at several options, one of which could be a public offering,” Kavanaugh said in an interview, without providing a timetable.                                  Relativity, based in West Hollywood, California, is acquiring the 45-person marketing ...

The Weinstein Company launched a $285 million Asian Film Fund in 2007 to finance two dozen Asian-themed films over six years. Weinstein brothers, Harvey and Bob, co-founders of Miramax Studios, have released Asian films in the US before and think that it is the right time to expand. The buying power of consumers in Asian markets is growing at a very fast pace and also people in other markets are developing a strong appetite for cultures from various Asian countries. The much lower production costs of Asian studios provide potential for more bang for the buck. Theme of each movie will be carefully selected to ensure that it is well received in its home market and caters to the western palate. Financing is being provided by various groups such as Continental Entertainment Capital, Israel Discount Bank of New York, Citigroup Global Markets, Inc., and PMA Capital Management Ltd. Goldman Sachs has helped in structuring the deal and placing the fund. Weinstein Company will also be an equity investor in the fund. The movies will mostly be filmed in Asia and deal with the region's "unique culture and showcase the talents of leading Asian filmmakers," the company said in a statement.                      Titles slated for the fund include a live-action version of "Mulan" and a remake of Japanese director Akira Kurosawa's 1950's epic "The Seven Samurai."                          The move is part of the company's intent to increase its profile in Asia, it said. Weinstein has hired Asian film executive David Lee, who will oversee the fund's creative aspects.

In the last three years, the film industry has witnessed a slow but steady pull-back from large investors such as hedge funds and investment banks. The large scale global economic meltdown is the primary reason but not insignificant is also the reason that the investors have not liked the way the slate deals have been structured by the studios. This might result in a fundamental shift in strategy the large investors adopt in their future dealing with producers and studios. The painful slowdown in the capital inflow has forced Hollywood also to re-evaluate its own attitude towards financiers.   Two veteran Hollywood producers, Arnon Milchan and Terry Semel, are planning to launch a $1 billion film fund that would be run differently than funds in the past. They would not only be hands-on executive producers of the funded films but also pick and choose projects from different studios. What is going to add credibility to their effort is the fact that they both are putting up over $200 million each of their own money. Ares Capital is another group, among several others, that is mulling the launch of a similar large film fund in the $1 billion range. "They think that with there being no slate financings around and with their specifice pedigrees and reputations in the business, it's a great time for them to do this," said a financial community insider familiar with the duo's plan. "All sorts of people are saying they don't want to invest in Hollywood anymore. So ...