1. How is a $10 million dollar gross for an independent film typically broken up before the producers receive their share? How much goes to the following entities / categories?
Exhibitors: Major studios usually collect around 50 percent of the gross and a strong independent will be able to collect between 35 percent and 45 per cent. The sums received by the distributor from the theatrical exploitation of the film is called the rentals. 10 million dollar profit.
Distribution Rentals: According to the author, if the distributor collects 40 percent of the 10 million dollar movie from the theaters, the producer has to split up a 4 million dollar profit.
Distributor’s Fee: The rentals will be first and take around 30 percent. The higher the profit the higher the rental so higher the fee. After the fee is collected, the cost of distribution and marketing are reimbursed. Takes 30 per cent, so subtract $1.33 leaving only $2.66 million.
Prints and Advertising: This is everything after the film. All the trailers, flyers, and comforts needed in promoting the film. This could take 100 percent of what is left. Costs around $3 million dollars.
Payout (financiers, director, stars): The financer will usually recoup the cost of the film, plus the money from a fixed deal or interest. $0 dollars left to spread.
Producer’s Net Profit: Possibly half the profit will go to financier and the rest will be divided among the producer, director, and the talent. -$333,000.
2. In terms of a return on investment, what is far more important than the potential box-office success of a film? What role does the “sales agent” play?
I believe Schamus is talking about investors, the deal-making success of the movie’s producer with whom you are working with. The success is measured by the amount of money the producer can get up front from the various distributors around the world in forms of advances and minimum guarantees against the producer’s. So producer has to secure guaranteed money before the film is released. The investor and the producer share the profits. The sales agency is the company that will special in the licensing of the independent film and collecting on contracts. Most of the time, the sales agent will advance to the producer a portion of the film’s budget as a way of securing sales rights to the title. The agents go into the marketplace and conduct business arrangements (sometimes on finished films or at the package stage) and close deals in each territory and making collections on the money owed. The agency’s fee can be quite small if they have no hand in financing the film because they are putting up no advance. If they put money into they have tons of leverage with the producers and can have fees of close to 25 percent.
3. What are some of the expenses associated with the Cannes Film Festival (or any festival, for that matter)? Unreal and almost not worth it. Cannes requires that you send in two prints of the completed film, one subtitled in French. You have to pay the lab, translator, a subtitling service, and shipping and customs to get the prints to France. The festival only covers 3 nights hotel for the director, but the festival lasts for two weeks so expect to pay for a room for an extra 5 nights. If you plan on bringing your stars, producers, and entourage expect another 200 to 400 hundred dollars a night per room. Food is extremely expensive, especially when eating out every meal. Press packets and stills for the press members will become expensive. Then you have to pay to send them. The scheduling is so chaotic that a publicist is in order. You have to pay the market section of the festival to replay your film another two times so that all the right distributors can get a look if they missed the original showing. After press and advertising, it can cost up to $150,000.
4. What costs are associated with the “delivery” of the film to a distributor?
When a distributor buys a film from a film festival they need both the physical elements from which release prints can be struck, supporting legal clearances and publicity materials needed for the cinema release. The total cost to get from the original negative to the check-print stage is about $45,000. This process is necessary because the splices on your negative can come undone at anytime and it is irreplaceable. You have to get the 16mm blown up to 35mm, which costs about $35,000. You have to technical clean up your location sound recording and replace many of the actual sound effects. Have every little sound placed on a separate track. Then you have to create master tapes to transform sound into image and then back into sound. All this will cost about $40,000. The cost of transferring the film to a master video is about $25,000. The distributor might make you buy errors and omissions insurance. It can cost up to $300 to $500 thousand dollars delivering a no budget film to a distributor.
J.J. Murphy’s Book page 25-45
2. What are some of the connections between Stranger than Paradise with the New American Cinema, including Shadows?
I think that Stranger than Paradise has the connection of ambivalence that displayed in Shadows. The characters are not very clear. The audience has to watch and cannot predict what a character will say or how they will act. Shadows was a film comprised of aspiring non-professional actors. The film was most improvised. The characters Ben and Lelia adds that element of unpredictability to the narrative. The film is not familiar because the narrative is built around subtly in its characters and not the story that they are living. “In terms of motivation, they remain open to the possibility of the moment instead of being constrained by defined character traits. As a result, their personal identities remain very much in flux.”