What the movie industry does for the economy…

What the movie industry does for the economy…  More goes into making a movie then what most people may think.  There is more to making a movie then just a few big name actors and directors.   Have you ever watched the end of a movie, you know the part with the credits?  Look at all the people that it took to make that movie and all the people that got paid.  But still, there is more then just that, there is local business like carters, locations and printers, to name a few, that also makes money off the movie.  Making movies boosts the economy “drastically.”

A lot of states offer tax incentives.  Michigan is one of those states.  Former Governor Jennifer Granholm invoked a state tax incentive in 2008 in an effort to help the state economy grow after the fall out from the automobile industry.  In 2008 we had such films as Grand Torino, Up in the Air, Scream 4 plus a hundred other movies to the state.  But all good things must come to an end.  When we elected a new governor, Rick Synder, he decided that the state could not afford these tax incentives and put a cap on the incentives that films could get.  The incentives that Granholm put in place brought new studios and schools, not to mention jobs, to the state. 

Maxsar Digital Studios a 1.6 million studio that opened 14 months ago is threatening to close.  A lot of industry people moved back to their native Michigan when the tax incentives came about, but they are relocated back to Los Angeles.  This decision of Snyder has affected more then just the film industry.  It has affected businesses like hotels, catering business and vehicle rentals. 

These new tax incentives have affected me personally.  I attended one of the new schools that came to the Detroit area.  Oh, did I mention that the state paid for me, along with many others, to go to school to work in the film industry.  But the job outlook in the state in no the same as it was just a few years ago.  But I will not give up, because I have a great love of making films.

Movies And The Economy

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Movies And The Economy: Courting Adults In A Time Of Declining Film Attendance 

There is a dilemma facing American theaters today.  In 2002 at it’s peak of admission of 1.57 billion movie goers to 15% less in the last decade.  American theaters are in the “recessionary era of shrinking paychecks” and dull Hollywood fare.  Think of what theaters have to compete with today.  With technology making it easier to watch movies from the comfort of your home to cable companies getting movies to you sooner and sooner, theaters are having trouble competing. 

In 1948, 67% of Americans went to the movies at least once a week, today that number is less then 10%.  Movie going is one of the cheapest forms of entertainment, cheaper then lets say sporting events or concerts.   

“If movies are to stay in the black,” they need to persuade adults to come.  How do they do that you ask?  Well, food is an important factor to the profit making.  Most theaters make up the difference by rising popcorn and pop prices.  If you think about it theaters are more in the snack business then they are in the movie business.  

Video on demand is threatening the “livelihood” of theaters.  The possibility is that, film lovers that like to stay home no matter how attractive the movie is will spend a few dollars more and rent it on demand, if it is offered at the same time. 
The days of hundreds of people amercing themselves all at once in a theater is vanishing.  Something needs to draw people back to the movies.  It needs to be a “special experience.”  In 2011 there were a lot of remakes and sequels, there has been little “originality and inspiration” to bring people to the big screen.  Something needs to happen to bring people back to the theaters.  The question is, what?

Six Things the Film Industry Doesn’t Want you to Know!

Six Things the Film Industry Doesn’t Want you to Know!

First is tricky Hollywood accounting.  This may sound ridiculous, but it happens quit often.  “A studio makes a movie,” and then distributes the movie, but however the distributor is basically a separate company and both belong to the same parent company.  And they also set whatever fee they want.  This is the interesting part if they want to charge themselves eleven “quintillion” dollars for distributing the movie they can.  It doesn’t stop there, even if they, in the box office, earn billions of dollars, they are still in debt, to themselves, and have not turned a profit. 

Take for example David Prowse, who was the guy in the Darth Vader costume in the original Star Wars trilogy, get this he has “never been paid for Return of the Jedi because it hasn’t turned a profit” in 30 years.  Think of all the home movies and theatrical re-releases that movie has had and he never got paid.  That is just one example of how Hollywood accounting has screwed someone over.

Next is extorting theaters.  We’ve all been there at the movies and spent $7 on a box of popcorn.  The truth is movies theaters had to look for ways to “increase revenue,” upping the prices on things like candy and adding ads to the start of films.  You may ask yourself why is this when new releases are continually breaking records and make “obscene amounts of money?”  It’s simple, film studios don’t want theaters getting a break.  

Third, fake reviews.  You’ve probably never seen a trailer for a movie that is dumb.  Think of one critic’s review of “Live Free or Die Hard” got cut from “hysterically overproduced and surprisingly entertaining” to “hysterically…entertaining.” 

Then there’s, copyright bullshit.  The thing is big companies use copyrights as a way to keep people from what they right. 

And strangling consumer choice, you see Hollywood studios don’t like companies like Netflix, Redbox or Hulu because they don’t want you to watch you what you want when you want at a reasonable price.  The reason is because it cuts into their profits of DVD’s and pay-per-view rentals. 

Last, stealing scripts.  It’s “almost commonplace.”  There are many examples of writers pitching an idea to Hollywood producers including a big name for the movie.  And then a few months later a similar movies with, that you guessed it, the big name actor, comes out.

How are Hollywood Blockbusters Financed?

How are Hollywood blockbusters financed?  That is a question that any independent filmmaker want’s to know.  There are lots of ways that Hollywood movies makes money, like when viewers go to the movies, rent it, when accessible by DVD, or they buy the soundtrack.  You can also get money from television, domestic and foreign, pay-per-view or cable.  But please keep in mind that a percentage of these revenues are split up to different parties, like the actors.

Another way that money can be made is by merchandising and licensing contracts.  Studios usually get a portion of this money.  Paying for a movie is more then just making the movie.  There is a lot of money that goes into marketing a movie.  This is why you can’t just depend on ticket sales from the movie you need to rely on other investing avenues.    

When you think of movies being made you think of them being made in Hollywood, but when it comes to financing “the shoot spread across the world.”  Take from example Germany’s tax code.  Investors looking to manipulate finances invest in a movie to get tax reductions “right away.”  What they do is buy a movie and then lease it back to the studio.  So we all need to look to the Germans to finance a movie.  

You can always try to get independent backers on your film, like doctors or dentist.  But that is easier said then done.  Another great way to cover costs is through product placement.  Now don’t be to in your face when it comes to product placement and remember to blend it into your movies plot it can help with cost.  Just “keep in mind that backing movies is always something of a gamble.”  So when trying to find a backer make sure you have a solid pitch, have a business plan for the movie. 

Film industry in Michigan moves forward after cuts to incentive program

At todays public meeting in Traverse City, Michigan of the Michigan Film Office Advisory Council, there is hope for the future, but there is still some lingering frustration about the recently revamped film incentives.  At the City Opera House the venue that is being used for this week Traverse City Film Festival, Michigan Film Office director Carrie Jones offered this update.

Jones states, “it’s been a year of learning for us,” she told the audience.  This new learning comes from the shift of an uncapped incentive program to one that has been capped, “at $25 million this year.”  For 2012 there is more then $16 million for this year with an approved for seven projects.  That takes up a substantial chunk of the available money. 
There are three additional projects with roughly $7 million set aside.  In the next few weeks they are expecting some announcements regarding signed agreements from some production companies.  There is $1.25 million that they have set aside for post-production work that they have yet awarded.  Jones is quoted saying there will be, “an effort” launched to reach out to filmmakers.

Advisory Council chair Emery King communicated concerns that this reduction in incentives that was reversing Michigan’s “brain drain” and that they were hoping would persuade young people to stay in the state, these new incentives have pulled the “rug out from under the program.”   Festival founder Michael Moore has concerns and is quoted as saying, “it has been decimated,” about the new incentives.  He also had some things to say that the state has to offer, such as “great locations and great people.

Amy Tan Where does Creativity Hide?

Amy Tan was born to US immigrant parents from China.  She rejected her mother’s hopes of her being a doctor or pianist, but rather she decided to write fiction.  Her books have been translated into 35 languages.  

Tan talks about, “Where does Creativity Hide?”  There are many aspects to this topic.  Tan talks about how do we create?  All the while standing next to bag black bag.  But I get ahead of myself.  She tells how we get it from our past live and childhood trauma.  Tan tells us of how her bother and father both died from a brain tumor within six months of each other.  She even talks about how VanGogh himself had a brain tumor as researchers now believe.

She tells of how she once wrote a book about a woman who overdosed and as it turns out her grandmother had killed herself.  Her mother did not believe in randomness.  Which goes back to how her brother and father died.  Her mother thought she was next as well as Tan herself.  That there is moral ambiguity in life and as artist we need to be aware of this and make sure we don’t fall into it’s trap.

Tan asks questions like, “Why am I Here,” and “What is the Meaning of Life?”  She talks a lot about serendipity and what we can get from the universe.  She has to let go of certain beliefs when she is writing.  Certain western beliefs and think more about cultures that are uncommon to us.  She has to create something out of nothing and that there is so much uncertainty in life.  Tan tells that she has to become the story.  

At the end of her presentation she again asks the question again.  Where Does Creativity Hide?  She tells us what is in the bag and lets out a small dog. Which shows that creativity hides in life. 

Getting A Job In Film After Film School

How do you get a job in the film industry?  We all want that ever-allusive job, and the truth is that 50-72% of graduates land a job in the film industry, often before they even graduate.  The main reason is because film school puts, “you in front of the very people who have jobs to offer: working professionals.”  Now, most schools don’t get work for their students before graduation.  Most traditional institutions, which charge 30-120k, graduate thousands of students a year.  Immediately upon graduation they come to the realization that as they enter a “highly competitive” film market looking for profitable occupation, that without real world understanding they are hopeless.  

The truth is even with a diploma you might not get hired.  It’s hard to get a regular job is today's market, and even harder in the film industry. There are a few reasons why this is the case.

One reason is because a job in the film industry is what we call a “premier job.”  Let’s be realistic where would you rather work as a cashier or on location?  At this point “you are competing with more people for fewer film industry jobs.”   The second reason is because work in the film industry is not like that of the traditional market.  So when a position in the film industry comes up, industry people hire from with-in the business.  Think about it, you don’t see job for the film industry in the help wanted ads.  Rather they look to film professionals if they know of anyone. 
So the question, is how do you get hired?  It’s not what you know so much as who you know.  

Go to a school that offers on set, real world experience.  Get to know industry professionals.  Look for an institution that offers real world training.

Start a Production Company

It’s important when starting a production company to look at it like a business and not a “creative endeavor.”  Here are a few steps you can follow to help start a production company.

 
Step 1

The first step to starting a production company is to write a detailed business plan.  This business plan should consist of the experience of the management team, the type of films you want to make, and the demographics you are shooting for.  You then should find movies that relate to the films you want to make and compare them to movies recently made and considered cost.

Step 2

Step two might not be easy but it is important.  Attain start up funding to pay for business individual filings, office equipment and if at all possible funds for you first screenplays.  It’s common that start up production companies function out of home offices until a project goes into “per-production.”  This helps reduce start up expense.

Step 3

You then in step three find screenplays to “develop and produce.”  It is important to remember that not all screenplays optioned will come to a realization.  You spend some “time and money developing” the film by making a budget and spending time looking for a director and actors. 

Step 4

Like in any business networking is a great way to find “industry professionals.”  You want to at this point find accomplished individuals to move the project forward and get it “green lighted.”  This happens when talent is committed to the project.  Get backing into place by signing a contract.

Step 5

You would then want to ask a lawyer that focuses on “entertainment law.”  He or she would review the contracts you have in the development stage.  Entertainment lawyers, unlike attorneys, work for a “producer’s fee” making it so they paid upon completion and distribution of the movie. 

Step 6

You would then want to make a demo reel of past projects you created.  This is a great way to show people what you are made of and what you are capable of making.

Step 7

In like any business marketing is the key to make your company sizzles.  Get a website and highlights members of your production company and posters of the films you’ve done.

An Independent Renaissance? We say Yes!

An Independent Renaissance? We say Yes!

Chris McGurk is the CEO of Cinedigm, and talks about the 7 Signs of the Renaissance.  Before he talks of about the seven signs he discusses the world of independent film is coming to an end.   Industry leaders keep saying, “That the sky is falling, the sky is falling.”  But really it’s not.  For years every time there is a change in the film industry they think it is the end of movies.  When television came about industry heads thought that television would bring studio movies to an end.  The on set of VHS and DVD’s and now digital downloads are also create yet another down spiral of movies and independent films, or so they say.  McGurk says there, “Is a cinematic forest that is filled with opportunities.”

With the seven signs of the renaissance there is a message of hope.  Independent films are passionate at making movies and they challenge us to think.  Independent films meet a tremendous need.  They supply a steady stream of talent.

The seven signs are number on; production cost with today’s equipment anyone can make a high quality studio like film.  Number two, distribution revolution (digital).  Digital is our friend.  In 2008 only 6% of theaters where digital, it is expected that by 2013 that 90% of theaters will be digital.  Digital movies are cheaper to make.  Creative distribution strategies are now required to meet the demand.  Think of some of the ways movies are distributed nowadays, such as Amazon, iPad and Kindle to name a few.

Number three; big talent is into small independent films because actors like to take on a challenge.  Independent films also attract the likes of famous directors and screenwriters.  Number four; Exhibitors want independent films.  They want it, “like air.”  Number five; narrow casting.  It modifies expectations of filmmakers.

Number six; targeted marketing.  Once you narrow cast into a theater to make the right people aware.  Social media is our future; sites like Facebook target the message more effectively.  Number seven; more dollars, commerce and art.  Because more commerce equals more art.  Film is the most expensive form of art.  Most artists have their canvas and go to a secluded place and paint or draw.  With film you need the collaboration of many people and equipment.

So to break it down, independent film is cheaper, easier to distribute, bigger stars, distribution demand, narrow cast and targeted market.  When it comes down to it, “people love the movies.”  Emotions for movies run high, people love it or hate it.  Cinema history will repeat itself.

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