Exam 4: Movie Financing

Independent producers use picture financing.

What is equity financing?

Independent producers finance films 1 at a time using:

Studio financing is usually picture financing.

The major studios are now divisions of larger publicly traded parent companies, so these are possible funding sources

Soft money is

Celebrities never use crowdfunding to finance their movies.

Do studios generally finance 1 film, or a slate of films?

A PFD is when a distributor finances full development, production and owns the film.

Why is financing multiple films less risky than financing a single film?

Presales are when a producer develops a project, and "presells" or "prelicenses" the distribution rights to create collateral for a loan to fund production.

Describe coproduction financing.

Film financing is risky.

In film finance, the green-light means

Studios are divisions of large media companies, using funding by their parent companies and have many sources of financing available to them.

Describe why financing film as a product is so inherently risky.

Why is film an expensive art form?

A producer may try to negotiate for "turnaround" rights to a film if the distributor. doesn't complete it.

What is an advantage that independent producers have over studios?

Limited Partnership and Limited Liability Company are never used to raise picture financing.