Monday, 22 November 2010

Funding Structures: Investors' Returns:

  • 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 

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