IFP » Steven Beer

The Art of Indie Film Financing

Steven Beer — Tue, 30 Nov 2010 18:28:20 +0000

I recently had the privilege of moderating an empowerment-themed panel at the CMJ Music Marathon and Film Festival. The panel, “Getting Indie Films Funded; A Dying Art Form?” featured star Indie producers Frida Torresblanco (Braven Films) and Lisa Cortes (Cortes Films), production company execs Morris Levy (M.E.G.A. Films), Jamin O’Brien (Worldview Entertainment), and music-film integration pioneer Jonathan McHugh (Island/Def Jam Music Group). Though the panelists hailed from diverse sectors of the industry, they were united in their message to the audience: bring a great script to the table along with a “no holds barred” empowerment attitude and anything is possible.

Morris Levy opened the panel by delving into the nuts and bolts of financing an independent film. He stressed that while unique projects can be appealing from the creative side, a film financing company will have more to offer to a project that has the capability of appealing to a broad audience. Levy also elaborated on the value that strong package elements (cast, director, script) bring to a film. He noted that the strength of the package is critical in determining the source and volume of financing for a project.

Jamin O’Brien tackled the title of the panel head on.� “Funding Indies isn’t a dying art form, it’s an evolving one.” He discussed the importance of structured finance, noting that securing alternative financing methods has become more prevalent given the difficulty in raising equity. Jamin explained how a filmmaker could still exploit the international marketplace to pre-sell foreign territories and raise capital. While stressing that he was associated with a more traditional, risk-averse distribution company, O’Brien also touched on the viability of self-distribution for today’s empowered filmmaker. He focused on the fact that fewer films are being sold at festivals today, and that advances have shrunk even for films that are sold. As a consequence, building print and advertising costs into a film budget is essential for a filmmaker or producer today.

Lisa Cortes expanded upon this alternative financing idea by stressing the need for grassroots buzz-building for today’s filmmakers to get a project financed. She assured the attendees that investment dollars are out there. An empowered filmmaker today has to sell a project to potential investors as an alternative to the stock market or other investments that may be earning diminished returns. Cortes also stated that an integral part of self-distribution and financing is to become expert with the project’s target audience. In particular, Cortes recommended scheduling a roadtrip of meet and greets to the film’s potential audience, and contacting organizations or prominent people within that audience as vital to self-distribution and financing today.

Jonathan McHugh discussed financing from the crossroads of film and music and gave examples where casting music artists helped attract financing. He cautioned filmmakers to pick the project and the cast surrounding the proposed music artist very carefully. Noting that it can be very difficult for a music artist to act for the first time, he suggested surrounding the artist with experienced talent to relieve pressure on that production. McHugh also advised new filmmakers not to disregard the happiness of the crew during shooting. He stated that unfortunately a film set can sometimes be poisoned by the unhappiness of a few key people. Problems can arise from something as simple as making sure the right food is on the craft services table for the crew. As McHugh said of the crew, “They work hard too, don’t forget about them.”

Braven Film’s Frida Torresblanco discussed the ability of a film to break barriers and touch people beyond North America and across the globe. She championed the importance of projects that have universal themes that people can recognize and relate to.� “There is no reason an independent film cannot be well made AND popular,” said Torresblanco. She continued on, saying that the quality of the script and understanding the potential audience for the film were paramount to any project’s viability. Torresblanco also emphasized the fact that while today’s marketplace has created many challenges, it has spawned an equal number of opportunities for the empowered filmmaker. Social media and other internet-based resources have created new avenues for self-distribution, and websites such as Filmannex.com have stepped up to fill the need in this arena. Torresblanco stressed that a filmmaker must possess the fortitude to overcome challenges and see a project through to completion. Often the process can be long and rejection-filled, but without the will to carry the project to completion the chance of success is zero.

The audience members asked some pointed and relevant questions. One question in particular focused on the use of social media when pursuing self-distribution. The panel agreed that simply posting a movie on the internet and sending out facebook messages was helpful but not sufficient to achieve critical mass. Instead, budgeting production dollars for P&A, and combining that with a targeted online marketing campaign that stretches over several months was far more effective in generating buzz about a film.

Though each panelist had a unique view of the current state of indie financing, their message was clear. If the script is top-notch, and the filmmaker has the drive to never stop working until the project succeeds, then nothing is impossible.

Please give us your opinions or comments based upon your experience. I hope to see you at the film events in the months to come. Feel free to email me with questions and comments: beers@gtlaw.com.

Packaging and Financing Films in the Age of Empowerment

Steven Beer — Mon, 27 Sep 2010 20:51:39 +0000

Packaging and Financing Films in the Age of Empowerment

Last December I penned an article entitled “A Decade of Filmmaker Empowerment Coming” for Indiewire.com. The article presaged an era of empowerment for independent filmmakers; an era in which the filmmaker or producer takes a hands on approach to marketing and distributing their films. In this new era of empowerment, the antiquated industry standards for success like “all rights” deals from mini-majors are supplanted by the filmmaker’s unique definition of success—they are no longer tethered to the industry’s traditional priorities and requirements. Producers today are now able to establish customized and scalable distribution plans to snugly fit their production, rather than endeavoring to fit a round peg in a square hole.

This empowerment theme infused the Packaging and Financing “Ask-An-Expert” panel discussion this weekend at the 2010 IFP Conference. The panel, on which I served as moderator, included CAA agent Stuart Manashil, Paladin distribution exec Mark Urman, Fortissimo international sales VP Winnie Lau, and SAG Indie Rep Michael Sladek. The panelists’ candid comments based on their extensive experience confirmed that the traditional approach to packaging and financing films is under scrutiny. An array of novel alternatives to the traditional model is now at the empowered producers’ and filmmakers’ fingertips.

While the panelists acknowledged a shrinking market in which fewer traditional distributors are releasing independent films, they also noted the opportunity this created to synergize packaging and financing in order to help get a project off the ground. Given the higher bar to the traditional “all rights” distribution deal, Mark Urman of Paladin advised audience members to consider raising funds for P&A along with monies to finance production. With funds in hand, empowered producers can leverage these monies to raise the profile of the film with a theatrical release and increase the value of the film’s ancillary media and international sales.

Winnie Lau reported that the international marketplace faced competition from increased local productions and more selective buyers. Over and over again, Winnie said, these buyers seek films with strong packaged elements such as recognized cast and a proven director. The relationship between finance and package is becoming increasingly intertwined; a valuable package of elements (cast, script, director, etc.) facilitates production finance through reliable sales estimates and pre-sales. A strong package is the empowered producer’s key to a tool chest filled with viable financing methods.

Panel guidelines required a constructive approach from both the experts and the audience. Problems were viewed as challenges to be overcome and there was a genuine appreciation for positive trends over the past year. Stuart Manashil from CAA shared that, due to market realities and technological developments, the common $3 million dollar independent feature budget is now reduced to $1 million. For many filmmakers, getting their package financed is becoming easier.

On the subject of packaging, Michael Sladek from SAG Indie discussed how SAG’s reduced scale requirements for modestly budgeted films afford filmmakers the ability to work with skilled and recognizable talent at minimal cost. The panelists all agreed that the presence of established names in the package translated to greater value in terms of raising equity and leveraging international sales into production dollars. The higher quality of the SAG talent adds a material selling point to the package for an empowered producer, and as Sladek stated, it will no longer cost you an arm and a leg to get it.

The panelists also lent their thoughts on the market for short films. The panelists agreed that the market value for short films was limited. With a few exceptions, such as when the short film generated interest for a feature adaptation, short films were mostly viewed as calling cards for the directors. The experts also urged filmmakers just starting out to work with experienced producers who could leverage their credibility to heighten the project’s file and accelerate both the packaging and finance process.

I pressed the expert panelists on the ultimate “chicken or the egg” question: What comes first, packaging or financing? According to the panelists and other experts who weighed in on-line, the answer is unclear. On the one hand, the limitless bank account can purchase the most valuable properties and talent. On the other hand, according to an experienced and successful film financier, a valuable package is an essential condition to a finance commitment. No matter which side you fall on, today’s empowered filmmakers and producers have a bevy of tools at their disposal with which to put together a valuable package or secure financing. It’s a bright future full of opportunity for innovation, and the empowered filmmaker will be on the forefront to meet it.

Please share opinion and your experience. I hope to see you at industry events in the months to come. Feel free to email me with questions and comments: beers@gtlaw.com.