March 28 at 8:15am

IndieFilmFinanceModelV2011.1 : The Ten Factors

Yesterday I went into some of the factors determining how the Model for IndieFilmFinanceV2011.1 may be set.  If you were taking notes you probably recognized that these are the factors, but I thought it was worth jotting them down for our cheat sheets:

  1. Price point / negative cost below $5M;
  2. “Estimated” Foreign Value at 80% or higher  of negative costs;
  3. Track record of collaborators in US Acquisition market to project 25% of negative costs;
  4. Utilization of Soft Money/Tax Benefits as revenue — not enhancement;
  5. Manufacture desire: inject freshness & an ability to cut through the noise;
  6. Predetermined & Accessible Audience;
  7. Aura Of Inevitability= Polished Script+Show Reel or Look Book + _________?
  8. Urgency of the deal;
  9. Something old (proven genre)
  10. Something new (fresh scent).

What does this all add up to?  Is there a formula we can use?  I think so.  Why don’t we just get to that tomorrow?

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    Have you guys used www.productioncritic.com, the film industry's first review website?  It is a great resource for anyone in the film industry.  You are able to find the best vendors based on reviews and ratings from your peers and can even post a crew listing and be found by hundreds of production companies.  The best part is it is free.  Check it out now at www.productioncritic.com
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  • Peter Levitan
    Oops - "in any particular film" should have read "in any particular formula." But you knew that.
  • Peter Levitan
    While I agree with Cotty Chubb that Ted's list is thoughtful and useful, I've found that people's reliance on success formulas (e.g. A-list talent + currently popular genre + strong script + currently timely theme) is often misplaced. Just as many films that have the elements of any formula (including Ted's excellent one here) flop as succeed, and just as many films without any of the elements in any particular film turn out to be dark-horse hits. Simply looking at films that succeed and identifying what elements they have in common never tells the whole story. Or as William Goldman is always being quoted on predicting marketplace success, "Nobody knows anything." But having said that, astute risk mitigation (such as in Ted's list) can only help optimize opportunities and the chances of success as much as one's able to affect outcomes.
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