Final Exam - MDST 4150

Subscription Video on Demand (SVOD)Subscription Streaming Service - Netflix, Hulu, Amazon Prime Streaming services charge monthly fee for unlimited viewing of multiple films Release window varies but typically one year after theatrical Revenue: Distributor pays a negotiated flat fee for a specific period of time typically 18 months May have option to renew at the end of the initial periodFree TV and Basic CableFree TV Local stations broadcast over the air NBC, ABC, CBS, FOX Basic Cable First tier cable TV subscription AMC, FX, TMC Revenue: Negotiated flat fee for a specific period of timeCredit BonusPaid if the writer gets screen credit on the final filmCollective Bargaining AgreementA written legal contract between an employer and a union representing the employees that specifies conditions of employmentSignatory CompanyAn employer that has signed a collective bargaining agreement with a union. An employer that has signed a collective bargaining agreement with WGA. Any company intending to employ a Guild member, or to option or purchase literary material from a Guild member, must become signatory to the Guild's Minimum Basic AgreementUnion ScaleMinimum amount to be paid for specified work set by the unionForeign Sales MarketsForeign Pre-salesForeign Sales AgentForeign sales agents are responsible for working with distributors to find films that will generate good revenue in their territory and that fits the needs of that space.Completion Bonds (1)- approximately 5-6 per cent of the production budget of the film - guarantors commonly give refunds, referred to as the 'guarantee fee rebate' if the guarantee is not called upon. - guarantors have the right to monitor a film from the first day of principal photography of production. - This means that a completion guarantee company needs extensive knowledge of the production process.Costs (Completion Bonds)• the guarantee between the guarantor and the bank/ financier(s); • the completion agreement - between the guarantor and the producer. - Guarantor is under no obligation to make any payments until an amount called the 'Strike Price' has been paid into the production bank account - The Strike Price is the total amount of contributions by the financing parties of a production that the guarantor will agree to protect. **Approximately 5-6 per cent of the production budget of the filmBusiness Entities4 Types of Business Entities and their Pros and ConsLiabilityFiling for an LLCFor every production, once there is a semi-locked script and proper budget, an LLC (limited liability company) is created, which is the production entity, and a bank account under that LLC. The advantage of an LLC is to limit personal liability when running a business. TWO documents needed for SAG purposes are.. - LLC's Articles of Incorporation - EIN (Employer Identification Number) from the IRS (International Revenue Service)Articles of Organizationlimited liability companies must produce this document, and submit a copy to the state, to be recognized as a legal entity; generally provides minimal information necessary, such as name of LLC, its purpose, life, and names and addresses of organizers.Option AgreementsA contract whereby a writer grants someone, for a period of time and for a payment, the right to make a film of the writer's screenplay. 3 required parts - Length of the option period - The amount of the option payment - Purchase price of the script if the film is produced Option Period - length of time granted to a producer or studio to commence production of the project. - It can range from six months to two years, or longer, depending on the negotiations. - Such agreements frequently include additional periods of time for the producer to extend the length of the agreement in consideration of additional payments to the writer.Film Markets vs. Film FestivalsA market is a business venue closed to the public, either associated with a festival (Cannes) or not (AFM American Film Market), organized to bring global buyers and sellers together in a convention atmosphere, which encourages terrritorial deal making that would otherwise require much travel and far-flung communication. A festival is an established venue usually organized around screenings and prizes, dedicated to introducing movies of a certain style to a paying audience, attended by distribution executives seeking product and by opinion makers and journalists seeking stories, as well as by a paying audience.Intellectual PropertyAn intellectual property can be a number of things. A book, article, videogame, script/screenplay, art, tv show, webisode, someone's life story rights, or any other created form of expression.Literary AgentsThey find intellectual properties. They have the responsibility of knowing the desires and wants of the businesses and bringing the materials, intellectual properties, to their best match. What is a literary scout and what do they do? They are individuals that look for materials known as intellectual properties. They communicate to their clients when publishers acquire content. They essentially hunt for ideas to be produced.Royalties** What is an advance against royalties? **What does advance paid against royalties mean? It means that the royalty payment given in advance is part of the total royalties not in addition to the total royalties. **How are royalties determined? They are determined and based on retail price or "definition net" to the publisher. Paid twice a year in most cases. ** What is the typical royalty rate? They vary from case to case depending on the facts/factors. ** When are royalties paid? When the advance is acquired.Market Research- Market research is the study of the intersection between audience and content. - Informs decision makers with insights based on empirical data. - Market research is the study of the intersection between audience and content. - Informs decision makers with insights based on empirical data.Positioning Studies (Marketibility)Measure marketibility but also have a capability component. They assess the best strategic positioning for a movie, which is essentially how the marketing campaign will present the film to the world. MOST HELPFUL IN THESE SITUATION 1. mixed genre 2. tough challenge in terms of finding the right messaging to broaden appeal 3. identifying "sweet spot" when calibrating the tonality of the messaging 4. differentiation in a crowded catergory Several alternate positioning statements that describe the film's basic concept are developed each one playing up a different aspect of the film - Sample of 1,000 people split into 2 demographically matched groups - Results are compared in terms of * Overall interest * How each positioning fares with various target groups * What aspects of the positioning that surface as most compelling4 pillars of market research1. Capability - Earliest measurement of the potential of a given property 2. Marketability - measuring what attracts and persuades an audience 3. Playability - how satisfying a movie might be for an audience 4. Buzzability - measure of critical response and social media influence4 NEW demographic quadrants for film marketing model***New 4 quadrant model*** Spectacle, International. Franchise. Nostalgia. Spectacle It used to be the studios would only make a few spectacle movies per year. Why? Because they are expensive to produced. The rest of their slate typically would be comprised of a range of other movie genres and budgets to feed into their distribution system. That's all changed. Consider Walt Disney Pictures. International International market is responsible for 70% of box office revenues, a number which figures to continue going higher with China's rapid expansion as a movie-going nation along with growth in other countries. Franchise Have a built-in audience Nostalgia Remakes and RebootsCompletion Bonds- Discounting a distribution advance - Bank loans money to make the film based on agreements with distributors. - Risk to the financer that the distributor will not pay - A completion guarantee is a particular type of contract of insurance required by financiers and distributors of films to protect the investment they have made until such time as the film is delivered to them for exploitation - There are many reasons why a film may not complete. Running out of money usually tops the list. - guarantee that the film is completed and delivered on time and on budget; or - guarantee to repay the financier its investment if the film cannot be completedScript CoverageScreenplays are submitted to executive producers at studios only after they are requested by the executive. Because a producer may request dozens of screenplays to review, this person does not have time to read each screenplay themselves. Submitted screenplays are given to a reader to read in their entirety. Readers then complete Coverage of the screenplay and submit this coverage to the executive. Coverage consists of: Top Sheet Synopsis Comments