Film Finance, Scheduling, and Budgeting: The Budget (above/below the line)

We sat with an industry expert in film to take a closer look at how the above the line and below the line budget works in the film industry and tv industry.

“When the film is getting made, the producer will work with and help to assemble a team that will help to execute it,” explains Janet Grillo. “So, when we look at a budget, there’s a top sheet budget, which is a thick document, 26-30 pages of real detailed, thoughtful estimation of the costs, from development all the way through to distribution.”

There’s a top sheet, which is usually one or two pages, that’s summarizing what those costs are. On the top sheet, imagine a sheet and imagine a line. There’s an above the line, and then there’s below the line.

The costs above the line on the top sheet of the budget, are everything to do with the ideation, creation, and envisionment of the project before cameras roll. Think of above the line as before cameras roll, explains Janet.

“Below the line is when you’re ready to make the damn thing,” says Janet. “It’s getting the cameras rolling. So what’s going to be above the line? Your writer, your director, the cost of the intellectual property, meaning the screenplays, is it based on a book, a magazine, a comic strip, is it a remake, that’s the intellectual property and all the costs of developing that into a screenplay.”

The people involved with doing that are the director, the writer, yourself, the producer, and some other producing partners that you might have, they are above the line.

And sometimes stars. If to get the film funded, you’ve got some big market value actors, they’re going to be above the line as well, says Janet.

Below the line is going to be everybody else. That includes the cinematographer, camera crew, and everybody involved with handling the equipment to the lighting, the gaffers, all the teams that put the equipment in place, the production design. All the people who work on building the sets, costumes, the people involved with wardrobe, creating the look and making the costumes and dressing the actors, all of the people involved with hair and makeup. All of the people who work on the making of the film.

Finding an Advocate: Publicists: Publicists

If you’re a filmmaker, you often work with writers and editors at publications. And as you progress in your career, you might want people working with you to help navigate some of their questions. You might hire what’s called a publicist.
A publicist is someone who’s an advocate on your behalf. They have a lot of relationships with writers and editors, and they do some of that legwork for you. Before you even get your film into a festival, they might be emailing journalists to say, “so-and-so has a film at the festival, we invite you to check it out.”
They often know what the writers and journalists like, too. They’ll say, “this writer at Indiewire tends to like these kinds of films or these topics,” for example. Publicists might know that a journalist has written about one of your films in the past. They’re tracking all of that.
These are the different kinds of folks that are involved in helping you, your producer, and your team to make that first impression.
One of the first things that publicists do when they look at a film is to pick it apart. They figure out how to look at this film and they ask questions. What is the news from this film? What is newsworthy about it? Why is it exciting? Why does the film have a unique place in this world?
They will figure out how to amplify it in the best and widest way possible through press, online journalists, working with online journalists, and social media. They are continually working out how to continue building buzz around the film and the filmmaker. They want to amplify your point of view.
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Finding an Advocate: Publicists: The Press Kit

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“Before you get someone to watch your movie, you’ll need to get their attention,” says Eugene Hernandez. “But everybody’s got so much coming at them on a given day, and you’re trying to get their attention for even 20 seconds.” 

That’s why, Eugene explains, you should put a lot of thought into your press kit. “Because that’s how people are going to remember your film, both before and after they see it,” adds Eugene. “It’s really important to — for lack of a better word — kind of agonize over it. Ask, ‘Does this image represent the film? Is this the image we want other people to remember when they think of our film?”

Eugene also advises filmmakers to take pictures while still on set. Many professionals agree. Eugene has been on and moderated many film festival panels over the past 25 years. “The most common piece of advice is to take good pictures on your set,” he points out. “It sounds logical when you’re not making the movie, but when you are, it’s the easiest thing to forget.”

Think ahead to when your film goes to festivals or distribution. When a company wants to buy your film, they’ll ask for photos. If you don’t have those photos, you can’t recreate your set and costumes from four years ago. As you film, make sure you capture the images that will represent your film in the future.

Some marketing and distribution panels recommend spending money on this process. “Hire a photographer,” says Eugene, “or if you have a friend who’s really good at that, invite them to your set. Have them take pictures while you’re shooting or rehearsing.” Eugene recommends taking some posed photos of the cast, too.

You may not use these photos for years, but they matter. “Those are the images that will fuel the materials you create,” advises Eugene. “Those are the images that you’re going to hand someone on your postcard three years later at a film festival. It’s essential.”

Finding your Audience: Marketing: Closeup on: The Lovebirds

 “Lovebirds came together because I had read this really funny script. It was originally a little bit darker and a little bit edgier, but it was just a really fun script about a couple that could be anybody who was breaking up. They got involved in what they thought was a murder while they were breaking up, and had to deal with their relationship while they had to stay together,” says Tom Lassally. “It was a very funny script and maybe more on the independent side when we first started it. When you’re going for a pairing like this, you’re trying to think, what is a fresh way to pair two great people?”

“I worked with Kumail before on Silicon Valley, and he’s such a gifted comedian and actor,” Lassally continues. “At that point, you would not see him do something like this. Then looking at Issa Rae, who at that point had not done a role like this, and to pair them as a really interesting couple. It was a really special dynamic that made the whole thing come together in a very different way. It was an example of one and one making three. The approach to do a romantic comedy with a African-American woman and a Pakistani lead and not necessarily have to make it about that seemed like a really fresh way to do a movie.”

“We financed it with a terrific company called MRC, and then Paramount stepped in to become our partner to release it. We did a lot of development with them, we worked on it with them, and we went and shot the film in New Orleans. Netflix came in because they liked the movie, but, on a practical level, they had a movie that already had Paramount and MRC spending money on marketing to create awareness for something, and that would be a good thing for Netflix.”

“All of these movies are sitting there. One of the first to be bought by a streamer, maybe even the first, was Lovebirds because they really liked the movie. They loved the cast, but they also knew they had some awareness going into them doing their job, which helped. The movie seemed to have performed well for them. At least people got to see it even though we were disappointed that we didn’t get to see it in theaters.”

Finding your Audience: Marketing: Marketing Unique Voices in Film

How the streaming wars brought new narratives to the marketplace
“I think one of the things audiences we work with look for is a story that hasn’t been told before,” says David Ninh. “I think with everything going on in the film industry, we know that we see a lot of white perspectives. We know we see works from a lot of white male directors. What’s exciting right now is a definite groundswell of support and resources for people of color, for minorities.”
“What’s interesting for producers now is there is a real interest in specificity,” says Tom Lassally. “There’s a real interest in different stories in film and TV. One upside to having so many shows is that to stand out, you’ve got to be really different.
I think that’s been great for business. The industry is now actively looking for unique points of view, quirky characters, different takes on the world, new voices. The TV and film industry is looking for people who have a point of view.
There’s only so many ideas to write about so execution is key. There’s so much interest in all areas.
It’s an exciting time to be a creator
“There’ll be an adjustment at some point in terms of the streaming wars and the film and TV industry. There’s so much,” Lassally notes. “Now that these services are becoming a la carte, requiring subscriptions to multiple streamers, most of America and the rest of the world can’t afford to buy everything they want.”
“So, I do think there will be consolidation. What’s still exciting though is that some uniquely singular stories have been found by massive audiences. I think it’s a very encouraging time for young creators to say, ‘I have a point of view and it might be really different. It might even feel really niche. But if I can execute it well, I can create something.’ There’re many examples of that. So, I look at that as the big positive.”
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From Idea into Production: “Start with Making a Movie”

 “People love to make movies. People love to watch movies. But how would you start with making a movie? A lot of my students make movies about some emotional experience that happened to them-the first time they fell in love, the first time they broke up with someone, their parents’ divorce, their parents getting remarried for a second time, them discovering something emotionally about themselves, a big event in someone’s life, which is great for the person that it happened to,” Says Thomas Mangan. “But why do I want to watch a story about someone’s first girlfriend or first boyfriend unless, it somehow relates to me?”

“When I encourage my students to pitch, or when you’re pitching any type of project, you have to have a nice hook. It’s really the telling of a joke. It’s a setup of a story.”

“I’m going to tell you something that happened to me,” Mangan continues. ” I didn’t know it at the time, but my first girlfriend was the princess of Monaco. It just so happened she was at camp. I went there, and I met her there. I didn’t know any of this at the time. To my surprise, when her parents came, they were Prince Rainier and Princess Grace.”

That’s how you tell a story about someone falling in love and make it much bigger but somehow relate it to you as a person. To say, you’re not going to believe what happened to me today. I was riding the subway and so-and-so did this and so-and-so did this. If you remember, the big bank robbery that happened, the guy tried to escape by the subway. That’s where I ran into him. If you take a big event story and then somehow make it personal, that’s where the story has resonance as a pitch.

In the independent world, if you’re going to make your first film, your first film should be one of three films. It should be either a quirky comedy, a real relationship movie, not a romantic comedy, or a horror film, slash, thriller film. If you concentrate on one of those, you have the best ability to break out and connect with audiences.

Most audiences want to go to see a movie that they have a human connection with emotionally. If you go to see a movie that scares you, it’s worth the $10 or $20 you paid for it or $7. If you see a movie that makes you laugh and you laugh at that movie, then you feel that the money’s been well spent.

From Idea into Production: Producers’ Multiple Roles

If you ever go to a movie and watch the credits, looking for a producer, you’ll see that there are many different kinds of producers. For example, there’s usually just one director. In a film, there’s usually just one cinematographer. In a film, there’s usually only one person who does craft services. But there can be dozens of producers, because all the roles that a producer is associated with may be broken up into several smaller jobs,” explains David K. Irving.
You have executive producers, producers, co-producers, associate producers, assistant producers. All of them may do overlapping jobs, or many of them may do similar jobs. The only way you can find out what somebody did on a picture is to call somebody from the picture and ask what they did on that particular picture. Whatever their duties are, the producer is very key because, as a director, you want to have a partnership with somebody who will be a buffer between you and the world, to make sure that you, as a director, can do the best job possible.
“In preproduction, the producer is responsible for raising money for the film. Again, the script will be his or her best asset if you can cast any name. People that help put a lot of elements together is called packaging, “Irving states. “Sometimes you presell the films, sometimes you take ideas to festivals and get some upfront money from a foreign distribution. Producers have a number of ways where they can gather all the funds to make sure you have ample money to do a film. Financing is key.”
“In preproduction, the planning, in addition to storyboards and floor plans, includes creating a schedule. The schedule and the budget have to be balanced, as does the schedule has to balance with the script, and the budget has to balance with the script. If you have a script that takes place on the planet Septetus with 55 aliens and spaceships, but you only have $200,000 to make the film, it’s going to be very difficult,” says Irving.
“The opposite is true as well. If you’ve got two characters on a park bench like the movie, I’m Not Rappaport, a $60 million budget would be too much for that film,” Irving explains. “Always finding a balance between the script and the budget is your job as a producer or your job as a director. The same can be said for the schedule.”
A director needs five things to make a film:
1. Adequate resources, which is the budget
2. A great script, which we’ve mentioned already.
3. A fabulous cast
4. A fabulous crew
5. And they need *COUGHS* their health
Once you have all those elements, you can make a film. The producer will help you make sure that all the elements come together.

From Idea into Production: The Producer

“The producer’s role can be defined like this: they’re the person who turns the lights on, staying until everybody else has left the room. Then finally, when everyone else is gone, the producer is the one to turn the lights off. The producer is the person(s) responsible for the making of the film from start to finish,” explains Janet Grillo.
“Typically, that involves conceptualizing the movie in some way, either engaging the services of a writer, a director. Sometimes it may involve optioning underlying intellectual property and hiring a writer to adapt it. It may mean finding a project and becoming partners with somebody else, joining another existing production team, or perhaps a writer/director who has already initiated the project.
It’s being part of a collaborative mind that supports the vision of the project—what it’s going to be. It’s figuring out how the team will assemble and then supporting the filmmaker in executing that vision. It’s bringing on required team members.
“As a producer, I would be there from the very start, helping to ideate what the team is envisioning,” says Grillo. “We determine immediately who wants to see this story. Who’s the audience? Is there an audience for this film? This helps us determine the market value, right? Because what gives a project market value is an audience.”
Determining your film’s value
How can you determine what the audience is?
Well, what kind of story is it? What’s the genre? What is the type of audience that typically wants to see this kind of film?
How is it enough like other movies that you can kind of sense its appeal, but different enough that it will draw an audience? We figure the film’s estimated production cost. So, then the question becomes, ‘is it too much? Will it cost more than the perceived market value?’
Market value for a movie is often contingent upon star attachments. So, the next question we try to answer is: ‘how can we get stars attached to a film that will give it this perceived market value and attract funders?’
“The producer is actively part of that ideation, that strategizing. Once market value is determined, we’ll try and identify potential funders. We’ll also look for producing partners, financiers, and distributors,” Grillo explains.
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Working with the Factory: Communicating with Factories

If you’re going to get into the fashion design business, it’s important to completely understand the varying complexities that impact the supply chain. Stick to the parameters of your business plan to get the full picture of its needs—in knowing every detail of your plan, you’ll make the best decisions for your business.

For example, if you’re going to focus on only selling underwear, you might immediately start planning to get your production completed in a hub like Medellin, Colombia. It’s a major manufacturer of underwear and denim apparel, and after locking down plans to source your production there, you may have questions about regular trips to Colombia throughout the year. It’s also worth wondering if fluency in Spanish is required, as you may want to go to the factories and communicate to the team how your product needs to look, wearability concerns, and customer expectations to consider.

Additionally, choosing Medellin as your production hub introduces questions about distributing the final product to America. Currently, Colombia has a free trade agreement with the United States, making it an excellent place to outsource. It also happens to be in the Eastern Time Zone, which is beneficial if you’re based in New York City. A production location that’s based in your time zone will reduce the likelihood of having to take midnight calls—which is often the case for those sourcing products from China, with a 12-hour difference between there and NYC.

The requirements of standardizing production can snowball to involve many small details. It’s crucial to think beyond exclusively sourcing a final piece of clothing. Rather, it’s important to think about so much more: the means of communication with vendors, ease of access to the site location, distribution pipeline quality, as well as current events and political issues.

At the moment in the United States, China is a frequent topic of conversation. We source many consumer goods from Asia, which menas political events can have an impact on your particular business. Understanding the intersection of global politics and economics and how it can affect a small boutique designer in the South reveals how pivotal these decisions can be in the global ecosytem, whether made in Washington, Beijing, Paris, or any other fashion hub.

Documentary and Animated Film: Making Documentary

David K. Irving believes that documentary is an exciting form of filmmaking. One of the most exciting things about documentary is that it’s about the truth, and he thinks that’s important. The truth can be very scary. Getting personal and close to the truth is a very rewarding experience for any filmmaker, in David’s view.
The major difference between documentary film and narrative film is that documentary films are usually built during post-production. You do a series of interviews. You come up with a script. You find all the images that you want. But ultimately, it’s based on what images, stories, and interviews you do have in the editing room. David thinks that the documentary often takes shape in the post-production phase.
He says this is very different from a narrative film. Much preproduction can be done in terms of identifying what the shape of the film will be the better. In post-production, it’s a question of realizing that vision. Documentaries are very exciting because they all happen in the moment.
David personally feels there are many different kinds of documentaries. “Cinéma verité, for instance, is a wonderful form of documentary,” says David. He thinks Ken Burns did a terrific job covering the Civil War and baseball to introduce this kind of documentary into the mainstream in American cinema. He thinks it’s become a very popular format for people to enjoy films.
And for David, the major point of documentary film is the same as narrative film. Both types of film have to tell a story.
He’s seen many documentaries that were just a series of interviews and images where there was no edification. There was no climax. The better documentaries are the ones where when you finished watching it, it feels like it’s the end of the story.
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