Film Funding 
Since the first audience watched a motion picture flicker on a screen in 1895, the art of filmmaking has exploded into a megaplex of ideas and images that have entertained audiences for the past 103 years. Let Skyview Enterprises facilitate your vision by indentifying funding for your project.
Over the years, film financing has become one the most complex and risky investments. Though it is easier for the Spike Lees, Francis Ford Coppolas, and Spielbergs of the world to land financing deals, there are viable avenues for independent filmmakers to secure financing. That's where Skyview Enterprises comes in using our extensive portfolio of private investors that are dedicated to entertainment such as film funding.
The Game Plan
Once you decide on a project, it is imperative that you immediately choose your distribution platform (i.e. film, television or cable) and not wait until after the project is shot. This decision not only effects your budget, but it effects your equipment list and shooting plans. The next step is to memorize your distribution plan, which will become part of the pitch to our investors. This means that you will have to do research. You will need to find out the requirements for gaining distribution whether it be through a major, mini-major, independent studio, television or cable station. It is also a good idea to find out what type of films are regularly acquired by your potential distributor. By showing our investors a concise and detailed game plan along with enthusiasm, Skyview Enterprises will make them feel more comfortable in investing in your project.
Advantages and Disadvantages of Industry Financing
The most obvious choice for film funding is industry financing. For example, there are studio development production deals, independent distributor financing, talent agency financing, end-user financing, and completion funds.
Studio Development Production Deals
An in-house studio production will usually start as a development deal. As a filmmaker, you will first have to pitch the concept to a studio creative executive and then submit a synopsis of the project to the creative department. If the studio decides to finance the development, production, and the distribution of your project, then the studio will ultimately own most of the rights associated with your film.
When a studio gets involved in your project, you can expect a tough road ahead of you. The first phase will be a "Development Deal Memo," which is a short form written contract between you and the studio. The Development Deal Memo will simply outline the agreement, salary, time schedules, screen credit, and percentage points. Most studios will give points of the net profit to unknown talent. By doing so, this gives you a false sense of security while ensuring the studio to make as much money as possible. Typically, net profit deals do not pay-off. Studios tend to juggle financing for different projects and use creative financing so most films do not "make money" (at least, on paper). For example, a studio will put the advertising budget of your film and that of another film in your budget creating an inflated advertising cost for your film. This means that the studio not only recoups their 30 percent distribution fee, but also recoups the extra money spent on the advertising that was not associated with your film. Therefore, the film's break-even point will be in flux enabling the studio to continue to generate money from your film. At the same time, their bookkeeping reveals a deficit to eliminate virtually any chance of the studio having to pay net profit participants their due.
The studio will make Development Deal Memo's contingent on a "Step Deal." A Step Deal is when the people working on the development of your project are paid incrementally as the project develops. In addition, the development work is reviewed and evaluated at each stage. This may sound great on the surface, but the real deal is that the studio has the right to stop development of your project at any given point.
However, a Step Deal offers you a few key advantages. You will be able to use the studio's money, as well as the studio's development companies. Because you are using these resources along with their professional script developer, you can ultimately make a bigger picture.
On the other hand, Step Deals offer many disadvantages. First, having Paramount actually pick up an unknown filmmaker's project is very slim. Second, there is the "Hollywood System," which is a relationship driven business. Third, there is theft! It is not uncommon for the studio steal your concept and have their development team work your idea in a new way. Therefore, you have to be careful with whom you share your ideas and to remember that scripts and treatments are copyrightable, but ideas are not copyrightable. Fourth, there is also the potential to lose your material to the studio if your project is delayed by the studio. Fifth, with Step Deals you can be fired at any stage, namely if you are not meeting the studio's schedule or if your work is not up to their standards. Once you are fired, you lose the rights to your project unless you negotiated properly before-hand. You must also protect yourself and your ideas against slipping into "Studio Limbo" (i.e. having the studio purchase a perpetual option on your project). Finally, you may run into a situation of not having your film adequately developed. Most studios tend to overbook the number of release pictures in a given year. If a studio picks up your film to meet their quota, then you can expect very quick development, production, and post-production time.
If you are seriously considering studio financing it is highly recommended that you hire an experienced entertainment lawyer. A seasoned studio executive will have more leverage than you and having a good lawyer on your side will only improve your situation.
Independent Distributor Financing
An Independent Distributor is a distributor who is not regularly or substantially affiliated with a major studio. They specialize in foreign distribution and most are members of AFMA (American Film Marketing Association). Although some have production divisions, they do not have the financial resources of a major studio. When submitting a project to an Independent Distributor, you must have some financing in place and be ready for principle photography. The reason being is that Independent Distributors do not have the resources to develop, produce, and distribute your project.
The advantages of Independent Distributors are few. First, they can distribute smaller films. Second, you can negotiate a better deal, because you and the distributor are on the same level. Third, they will offer more personal attention to you, as well as, support the film. Finally, you have a better chance of receiving net profits.
The disadvantages of Independent Distributors are that they have limited financial resources to put into your picture. This will impact the number of theaters in which your film will be screened. Also, you will have less collection clout with theater owners and overall smaller revenues. Lastly, Independent Distributors have a higher bankruptcy rate.
Completion Funds
Completion funds are designed to provide partial production financing or post-production financing. These funds can be provided for films that meet the following requirements: a) have completed principle photography; b) are complete except for post-production; or c) are complete through post-production, but can not be released from the lab due to unpaid lab fees. If you are obtaining financing through a lender, they will require a completion bond which will ensure the project will be finished. These funds rarely put up all the money needed to produce a film. Basically, they are sharing the risk with other investors.
Completion financiers successfully negotiate a higher per dollar percentage in the film. The reasoning is that, without the completion financing, the development and production financing has little chance of being recouped.
With this type of financing, your only advantage is that the completion financier is sharing in the risk as opposed to lending you the money.
Your disadvantages are two-fold. First, you have a weak bargaining position. Because completion grantors are providing the completion financing, they are in a better bargaining position. Secondly, completion fund financiers will not invest large amounts of money in your film because funds are limited.
