- Difficult to predict
- Need to find other ways of ensuring investor getting money back
- If market unpredictable (as it is at present) it is even more difficult
Monday, 22 November 2010
Funding Structures: Investors' Returns:
Funding Structures: Guaranteeing Success/Reducing the Risk
- Prequel/sequel
- Known director/scriptwriter/stars
- Develop from existing format (novel, etc)
- Huge budget (can itself, create a 'buzz')
- Early teaser strategy established
- Release date scheduled carefully (Christmas, summer holiday, halloween etc)
- Avoid 'duplication' of similar genre released at same time (often impossible to know for sure)
UK and US Funding Structures: Initial Issues
- Initial investment: A company, its machinery, sites and personnel have to be 'set up'
- The demand and supply must be 'constant' (you can't have workers being idle - it costs too much)
- Market research has to be paid for, the company need to know that the product is 'liked' by its customers
- Advertising and marketing must be employed (print, moving-image, radio and e-media) to keep the 'buzz' about the product going, therefore, keeping sales at a maximum
- Industry factors are not fixed; they cannot be accurately predicted; tastes change and this can be disastrous
- Staffing costs in the movie industry are huge as is the race to develop new technologies; this can cripple companies
- The key word (in any company but very much in the film industry) is RISK
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