A MOTION PICTURE PRODUCTION OVERVIEW

Article for Internet Publication by Marino Colmano

A MOTION PICTURE PRODUCTION OVERVIEW

This article is provided for informational purposes to those unfamiliar with the often long and detailed undertaking of making a feature length theatrical motion picture. In most instances making theatrical short films and documentaries require all the same procedures, however they generally require less time and money to complete.

Most of the material for this article is common knowledge within the industry. Much of the dialogue has been seen in print in similar form in many books and articles. It is important to remember that while all this information is the generally accepted belief and the common mode of operating a successful motion picture production, there is always room for the new, the renegade, and the unusual methods that risk-taking visionaries use.

"El Mariachi" is a perfect example. It was an extremely low budget film shot with an unorthodox approach which launched its very young director into the big budget follow up, "Desperado". Always follow your dream!

DEVELOPMENT

Initial activity relating to an independently produced film project begins with the "DEVELOPMENT" stage. In this phase, an executive producer, or someone acting in that capacity, takes a concept and begins putting together as many key elements of a motion picture package as possible, including screenplay, producer, director, budget, lead actors and so forth. Often this is done by a producer who then seeks an executive or does double duty.

Generally, efforts to raise the funds for the production then follow, and to a great extent, the success of fund raising efforts depend on what kind of motion picture package has been put together at that point. A common dilemma often occurs at this stage since some elements of the package, such as screen writer, producer, director and lead actors will not commit to a project until it is funded and investors may feel reluctant to invest without such commitments. Consequently, verbal commitments, tentative commitments, expressions of interest and letters of intent may have to be relied on in many cases. Some investors may understand that many stars and directors will not give their approval to use their name at all. They may agree to make financial arrangements contingent on the producers ability to deliver the promised talent.

In addition, an executive producer may find it necessary to conduct a preliminary, i.e. developmental offering to raise initial funds for the writing of the screenplay, the developmental expertise of a producer, for travel and expenses relating to raising funds for the main offering and promoting the project, and drafting of a production script breakdown and budget. This type of funding is extremely difficult to procure due to the fact that it is the first money placed in the project and possibly among the last money to be in line for re-coupment, often many years later.

Naturally, studio productions have an edge in this phase, since they maintain a stable of producers on their lots with first look deals and they are usually subsidized throughout the development stages even if a project doesn't get the green light. This accounts for many projects going into "turnaround", a phrase that is commonly used to describe a project that has already undergone substantial development. Most likely a screenplay exists which has undergone many revisions. At some point talent may have been attached and a pay or play situation existed. Another producer at a studio, or an independent, would have to negotiate to buy all of the project's encumbrances should he/she want to develop it further.

Consequently the development stage could typically extend from six months to a year and even many years in the case of extremely complex subject matter.

PRE-PRODUCTION

Following development, the earliest publicly official phase of bringing the project into reality is the "PRE-PRODUCTION" stage. Activities in the pre-production stage include hiring of creative personnel, including the director and principal cast, establishing shooting locations, a shooting script, shooting schedules and such other steps as are necessary to prepare for the actual commencement of photography. During this period the press announcement will be made that the picture is going into production. Trade papers are also made aware of the particular needs of the producers for additional crew members, supporting cast and extras. It may be expected that the pre-production stage of a picture will extend from 2 to 4 months.

PRODUCTION - PRINCIPAL PHOTOGRAPHY

Following the pre-production stage is the "PRODUCTION" or "PRINCIPAL PHOTOGRAPHY" stage. Principal photography consists of the actual filming of the screenplay with the members of the cast in order to produce the film negative. Principal photography may extend from 6 to 12 weeks for moderately budgeted motion pictures, depending on such factors as locations, complexity of action and stunts, and the weather.

Some discussion of a frequently used term is in order here. "Production Value" commonly refers to putting a lot of production dollars visible on the screen. Big budget pictures obviously have the benefit of major talent, incredibly talented Production Designers, Cinematographers and technical support crews all working with tremendous amounts of money and creative resources to accomplish the goal.

Low budget pictures typically must also rely on extremely talented cast and crew, but will have to work even harder with less money. This may necessitate a very low shooting ratio, less complex action and smaller crews (working much longer hours for less pay) shooting many pages of dialogue per day. Often this means using every trick imaginable to make the proverbial sow's ear into the silk purse. When successful in this endeavor, these pictures usually find themselves achieving a theatrical release and some well deserved acclaim.

Principal photography is usually effected in consecutive weeks; however, one or more interruptions in the shooting schedule sometimes occurs. Almost all of the film footage is shot during principal photography, although additional scenes may be added during post-production.

In the case of documentaries and docu-dramas, often the principal photography is scheduled to take place in various parts of the world separated by stretches of time due to editing requirements warranting the use of additional footage.

POST-PRODUCTION

Following principal photography is the "POST PRODUCTION" stage. During post-production, the film is edited to its final form. Music is added. Dialogue, soundtrack, special effects, music and the motion picture are synchronized and, in general, the film is brought to its completed form known as the "answer print". The picture negative is then ready for the production of "release prints". While the post-production stage may extend for any period, depending upon editing difficulties or the addition of new material, post-production generally averages from 4 to 8 months. Thus, the total production period for a motion picture may continue for as long as one year and, in individual instances, even longer.

DISTRIBUTION

Distribution agreements between independent producers and distributors vary greatly. However, there are certain "standard" arrangements which form the basis for most distribution agreements. In most cases, except where the producer pays all or a portion of the costs of advertising and prints, the distributor will be required to pay most, if not all, of the expenses of distribution. Distribution rights to completed films are often limited to a term of years and to certain geographical areas, although they may also be for a perpetual term and for the entire world.

In many cases (so-called "net deals"), a distributor receives a fixed or sliding percentage of gross receipts (all proceeds paid to the distributor from theaters, etc.) as its sales and distribution fee, and deducts its allowable expenses (consisting primarily of prints and advertising) from the producer's share prior to remitting any moneys to the producer. Distribution fees of 25% or more are common.

In a so-called "gross deal", a distributor may pay substantially all of its expenses out of its own share of gross receipts; however, in such cases, its percentage share of gross receipts, at least at the outset, is larger than the producer's share of such rentals and substantially larger than the distribution fee in a typical net deal, although the producer will share in gross receipts from the outset.

Thus, a gross deal would be more advantageous to a partnership at lower levels of gross receipts, while, at higher levels of gross receipts, a net deal may be more advantageous. Unfortunately, the future level of gross receipts for any given movie cannot be predicted with any degree of certainty.

There may be different combinations of net deals and gross deals in any one agreement, utilizing aspects of each. For example, distribution expenses may be deducted first, prior to the computation of the distribution fee and, thereby, both producer and distributor will share the burden of the expenses.

Customarily, different provisions are made for the sharing of proceeds from domestic theatrical, foreign theatrical and domestic television distribution. A distributor often is required to advance a lump sum to the producer upon the signing of the distribution agreement and also may be required to expend substantial sums for prints and advertising which usually are recoverable by the distributor out of the first proceeds from the film. Occasionally a distributor acquires, for a lump sum, the right to retain all the proceeds from the distribution of a film, such as for limited foreign territories where such practice is customary.

In any distribution deal, there may be third-party participation (producers, directors, writers, actors, crew, developmental investors, etc.) which will be paid, in whole or in part, out of the share of gross receipts which would be payable to the partnership or out of the general partner's share of cash available for distribution.

EXHIBITION

The theatrical distribution of motion pictures principally involves (1) the licensing and booking of the films for exhibition in theaters on a rental basis; (2) the creation, development and dissemination of advertising, publicity and promotional exploitation's; and (3) the purchase, delivery, storage, inspection and repair of positive prints used in exhibiting the films. Box office receipts, minus the share retained by the exhibitors, are referred to as gross receipts or "distributor's film rentals" or "distributor's gross" or "gross film rentals".

With respect to distribution in theaters, a distributor licenses films to exhibitors (theaters) in return for either a sliding scale percentage of box office gross receipts or a flat rental or a modified percentage or variations thereof. Under a percentage arrangement, the exhibitor agrees to pay the distributor a percentage of gross box office receipts. Under a modified percentage arrangement, the exhibitor may agree to pay the distributor a percentage of such receipts in excess of a specified amount, or guaranteed minimum. In the case of flat rental, the exhibitor agrees to pay a flat price without regard to box office receipts. These film rental agreements may provide (typically in the case of a major picture deemed to have strong box office appeal) for guarantees and/or advances from the theater operators, a portion of which may be non-refundable notwithstanding the box office results of a particular film.

While it is not possible to accurately predict what portion of box office receipts is payable to a distributor over the entire theatrical run of a film, in general theaters pay approximately 50% of box office receipts to distributors as film rentals.

TELEVISION

In addition to distribution in theaters, significant revenue is often derived from licensing pictures to television after theatrical exhibition. Films are distributed for exhibition on television by means of licenses to a major television network for a specific number of runs of a film or films during an exclusive period on a "network basis" embracing the network's affiliates across the country, and by licenses of exhibition rights to individual stations or groups of stations.

Network licenses are usually for periods of 1 to 4 years. Depending on the subject matter of the film and other factors, it is often possible to license such rights before the film is released for theatrical distribution. Under such circumstances, an advance payment may be negotiated with the balance payable when the film is shown on the network.

Network licenses of feature films originally produced for theatrical exhibition require little expense and generally account for the larger share of gross receipts from television. A distributor or producer generally attempts to license motion pictures for network broadcasting before licensing to individual local television stations.

Certain films may be successful in theatrical distribution but not be acceptable for television exhibition, under community standards currently in effect, without substantial editing, which also might affect their marketability.

After initial foreign and domestic theatrical and television distribution of a motion picture, the owner of a film typically retains its ownership rights in the film. A substantial portion of the cost of the negative will have been depreciated during the initial distribution period so that the book value of the film will be minimal. The film may have a continuing market value, however, based on its residual theatrical or television (pay, syndicated or network) marketability.

ANCILLARY RIGHTS

In addition to exhibition in theaters and on television, other sources of revenue from motion pictures exist and new ones are blooming regularly. Commonly referred to as "ANCILLARY RIGHTS", they include merchandising of characters, exploitation of music and recording rights, and exploitation of rights in the underlying property, such as motion picture sequels and television series based on the property. An increasing source of revenue is the licensing of motion pictures in non-theatrical media such as pay and cable television, airline in-flight video, and video discs and video cassettes. Interactive CD-ROM is fast becoming the new wave and pictures are currently being produced specifically for this market.

Next to the quality and box office attraction of a motion picture, the advertising and publicity of a motion picture is probably the most important factor in determining box office results. The success of a film in its initial run, which can be substantially influenced by the effectiveness of the advertising campaign, generally affects the terms on which the distributor may be able to achieve further distribution of a motion picture.

A distributor will have the right, in consultation with the producers, to determine the marketing approach, supervise the creation of advertising material, including press books, trailers and other promotional material, and arrange for the advertising, publicity and promotion of films.

A distributor will expend funds for national or regional promotion through advertising in magazines, newspapers, trade journals, television and radio. Generally, in an exhibition contract where a percentage is negotiated, a distributor agrees to share the cost of local advertising at a ratio relating to the sharing of exhibition revenues. In other cases, where the engagement is not considered significant or a flat rental is negotiated, a local exhibitor may bear the full cost of local advertising.

SUMMATION

It is imperative that a filmmaker have excellent advisors, consultants and legal counsel during all the phases of motion picture production. While many techniques can be obtained by reading quality articles and books, there is nothing like hands-on experience in production to enhance the learning curve. The reader of this article may be a novice or very savvy in their particular field. However, it is rare to find one person with the entire spectrum of knowledge required to produce motion pictures. That very fact is what makes filmmaking a collaborative medium. I suggest that anyone interested in producing movies first build a very strong team of professionals in all the fields necessary to accomplish the goal.

Marino Colmano is an award-winning producer, director, and cinematographer. He is available as a consultant for other filmmakers in need of production proposals, synopses, screenplays, breakdowns and budgets. His company has an extensive track record of successful productions. Marino is available to line-produce for out of town companies. With his many years of finely tuned connections, he can supply razor-sharp dedicated crews and equipment for any type of production, whether film or video, large or small. His company, Lucid Media is a production and distribution company that specializes in dramatic and documentary films, commercials, client direct videos, and promotionals for the major motion picture studios.

Marino Colmano has completed live action promotional spots for Universal Pictures, MCA-TV, Castle Rock, and Twentieth Century Fox, including national commercials promoting WATER WORLD, JUNIOR, CARLITO'S WAY, SCENT OF A WOMAN, LORENZO'S OIL, DANCES WITH WOLVES, Mr. Baseball and BACKDRAFT, to name a few. Television Shows such as LAST CALL (Brandon Tartikoff's late night talk show for MCA-TV), THE GORDON ELLIOTT SHOW, M*A*S*H, THE BERTICE BERRY SHOW, THE SIMPSONS, THE CHEVY CHASE SHOW, SMALL WONDER, BATMAN-The Series, and STUDS have all been successfully promoted by Marino Colmano.

A collection of unique AWARD WINNING films and videos are available for review and can be ordered on-line. Please visit our WEBSITE for links to projects in development, films in distribution and biographical information on Marino Colmano. Thanks for stopping by.

Permission is granted to republish this article as long as the web addresses for Marino Colmano & Lucid Media are mentioned and linked.