New Business Model for Film Financing

Modern Day Myth Prod. LLC

Modern Day Myth Prod. LLC

I am looking through an old copy of the Hollywood Creative Directory for Financing that I have and reading through the section of entertainment lawyers.

Do you recommend an entertainment lawyer with expertise in intellectual property and SEC regulations to put together the financing and distribution for independent films? I see a lawyer who has done this for a major Hollywood studio. Would that work for someone in my case looking to make a science fiction movie pilot for cable TV?

I know I will need an entertainment lawyer to shop the film to ShowTime and HBO later to be considered as a filler movie.

PS I called this a new business model because so many people here use crowd funding.
 
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How much are you trying to get people to invest?

If you're looking for $100k as an investment from people which you're not allowed to approach without a prospectus, you have to consider how much it'll cost to get the lawyer and make and file the appropriate paperwork.

Is this the same show that you've been trying to get off the ground for a while now?
 
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Sweetie said:
How much are you trying to get people to invest?

If you're looking for $100k as an investment from people which you're not allowed to approach without a prospectus, you have to consider how much it'll cost to get the lawyer and make and file the appropriate paperwork.

Is this the same show that you've been trying to get off the ground for a while now?
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As close to $1 Million as possible because this time, set construction is more costly than greenscreen, but looks so much better, SAG does not discount their stunt coordinators or stunt players. So, I have to budget studio minimum rates for them, and name actors and a TV science fiction director as well as outsourcing the post to a place studios use will drive up the cost. Also, the new script has multiple locations and we will need a licensed pyro tech for explosions and miniatures of a building built to blow up.

We may also have to pay the price to film a missile silo scene in an actual missile silo.

I have a lawyer friend who knows a VC in Japan he is willing to contact in Japan to setup a meeting to interest the VC in investing.

Some lawyers work on a percentage of whatever money they can get. Others want a retainer, or non-returnable fee paid up front. It depends on the lawyer / solicitor. They don't all work the same. My friend does not have a background in intellectual property or SEC paperwork. So, a second party will be needed. And, we have one lined up who has law offices in NY and Los Angeles.

And, yes to your last question. This is the same project I am trying to get off the ground as a TV series. It looks like the best method is the one Roger Corman used to get the Black Scorpion TV series on SyFy. He made two TV movies that aired on the ShowTime Network on Black Scorpion before he got the green light with SyFy for the series.

As a friend who has worked for Hollywood for over 40 years told me, HBO and ShowTime buy "Filler movies" from Indie filmmakers at different times of the year. That's the best way in. So, the next production has to measure up. With all the studio pros working on it, it should be light years better than what I can do. I am studying a studio sci-fi TV series pilot script, as members here know. And, I am learning a lot. Their scripts break rules Indie filmmakers, on a whole, don't break.

I want to know the difference between and Indie script and a studio script. And, the script I have is an eye opener. As the saying goes, "In order to break the rules, one must first understand the rules." And, I do understand what they are doing. Having a class with Syd Field helps to answer why too.
 
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Yes, get the advice from a solicitor(s) for each area you're looking at approaching investors as laws may change from area to area. In the USA, from my understanding, if you only approach those who qualify as sophisticated investors, you don't need a prospectus. If you're going to solicit investments from the general public, I understand that a prospectus is necessary.

Well technically speaking, the difference between an indie script and a studio script is who turns it into a movie and distributes it. In reality the differences are a little more complicated and will probably change depending on who you talk to and your perspective.

I recently came across a speech (State of Cinema from Soderbergh) who revealed the the studios are getting less and less interested in low and mid budget movies and are mostly aiming at the tentpole (100mil+) releases. Personally I find it a scary prospect when studios aren't really interested in 10-20mil budgeted movies as they're simply too small for them to risk distribution. Not sure if we're really there yet, but it's food for thought.
 
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Investors want an iron clad way to get their money back. That means they want a distributor. I am told both HBO and ShowTime pay out as much as $2 Million for movies. That is how to get the investor their money back. SyFy pays much less. They will only pay out $20,000 to $30,000 for airing a TV show I am told by an ex studio exec.
 
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You want to double check the amount HBO or Showtime pay for independent movies and if there are caveats like well established or previously had a relationship with them. Check what the bottom amount they pay for movies, because they most likely try and offer that to you. If they are interested, the rest is in negotiations.
 
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Morris has some solid advice.

Personally, there's no way I'd invest in something if "picked up as a cable network's b-movie" was the only hope and plan for distribution and a return on profit unless there was a signed agreement with the network that it had that distribution in a profitable amount as soon as it was finished. You're betting a lot of money on a strangers' decision. Whose to say the screener won't pass because of the artwork and not even watch it because they have a quota, or is in a bad mood and giving the thumbs down to everything and everyone. Shoot, you could walk in with the greatest movie ever made and have it shot down because whoever screens it first doesn't like sci-fi or your lead rubs them the wrong way and it's a total personal preference.

You should totally try and sell it to them... and everyone else at the same time.
 
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Morris said:
You want to double check the amount HBO or Showtime pay for independent movies and if there are caveats like well established or previously had a relationship with them. Check what the bottom amount they pay for movies, because they most likely try and offer that to you. If they are interested, the rest is in negotiations.
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I need to personally speak with producers about Showtime. However, I do know two independent producers who got HBO to pay out $2 Million for their films.

You are right about their bottom pay. It may be less that $1 Million.
 
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PaulGriffith said:
Morris has some solid advice.

Personally, there's no way I'd invest in something if "picked up as a cable network's b-movie" was the only hope and plan for distribution and a return on profit unless there was a signed agreement with the network that it had that distribution in a profitable amount as soon as it was finished. You're betting a lot of money on a strangers' decision. Whose to say the screener won't pass because of the artwork and not even watch it because they have a quota, or is in a bad mood and giving the thumbs down to everything and everyone. Shoot, you could walk in with the greatest movie ever made and have it shot down because whoever screens it first doesn't like sci-fi or your lead rubs them the wrong way and it's a total personal preference.

You should totally try and sell it to them... and everyone else at the same time.
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A friend who has 40 years experience working for the studios recommends HBO and ShowTime. SyFy may just go for the series later.

Kenneth Johnson had to make 3 TV movies on The Six Million Dollar Man before it got picked up as a series, Roger Corman needed two movies for Black Scorpion. I am scripting another pilot script to follow this movie in case we have to make a second pilot.

Once it gets aired on a cable TV network, selling it as DVDs is easy. It will get more distributors than just CreateSpace and me. Places like BestBuy.com will be interested as well. That is another stream of revenue to pay back the investor.
 
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Modern Day Myth Prod. LLC said:
A friend who has 40 years experience working for the studios recommends HBO and ShowTime. SyFy may just go for the series later.

Kenneth Johnson had to make 3 TV movies on The Six Million Dollar Man before it got picked up as a series, Roger Corman needed two movies for Black Scorpion. I am scripting another pilot script to follow this movie in case we have to make a second pilot.

Once it gets aired on a cable TV network, selling it as DVDs is easy. It will get more distributors than just CreateSpace and me. Places like BestBuy.com will be interested as well. That is another stream of revenue to pay back the investor.
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I'm not saying HBO or Showtime is a bad route to go. I think it's a great route.

Of course DVDs and other distribution are much easier if you get picked up by a cable network.

I am saying it's just as unlikely a route as any major distribution for an indie film. Yes, they pick up indie films, but only a minuscule percent of all indie films made each year.

Don't limit yourself to one source of distribution. As an indie, the odds are already heavily stacked against you (and me and everyone else independent). Increase your tiny odds by hitting everything hard, pursue any and every mean of distribution.

We've both been on this forum long enough for me to know that you'll ignore this or argue this based off of some guy who in your opinion super knowledgeable or connected (but oddly isn't offering you an in). This is for anyone else reading the post trying to figure out how to fund and sell their movie.
 
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Paul, when and IF this does get made the way it is being planned, it will have something the networks always asks for. And, that is names they know. Even an investor knows the value of that for a ROI.

After you pitch a network submission person the logline, they ask, "Who is in it?" If you telll them and they reply, "Never heard of them." They hang up the phone.
 
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We are looking to go to a talent rep with sci-fi heroes for hire to get our name talent.

And, yes, we will try additional networks.

Heck, if IC2 gets accepted now into the B-Movie Film Fest, I will try to get it on REEL 13. It did pretty good in the Bare Bones Film Fest. I want to keep the momentum going. The USPS reports B-Movie Film Fest received the submission today. The festival just has not recorded it yet with withoutabox.com.
 
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If you're that sure of them picking it up, why don't you pre-sell it to them and also get some pre sales in other regions? That way you don't really need investors for it or if the pre sales don't quite cover it, the investors amount is reduced and their upside benefit is increased.

After you pitch a network submission person the logline, they ask, "Who is in it?" If you telll them and they reply, "Never heard of them." They hang up the phone.
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So who do they want in it?
 
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Without already approaching the talent or their rep yet, I will only say names familiar to fans of science fiction TV shows, plus one science fiction film star.

The scripts need to be 100% complete before we can go to the talent rep and lawyers to go to the investor.

Right now is too early.
 
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I would not mind a packaging producer as a business partner. I am looking for a business partner. I will share with all here advice you will get from a packaging producer. "It all starts with the script. The script must be strong enough to attract major talent."

So, until the script is ready, I cannot go to to a rep to approach a talent rep.
 
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Modern Day Myth, I suggest that you check out a site called filmspecific.com, if you haven't already. It's a website dedicated solely to the distribution and business side of filmmaking.
It is a paysite, but the small price you will pay is small compared to the amount of information you can get there.

If I remember correctly, there is a frequent user at the message boards who has produced TV movies recently and even pre-sold them, so you might want to ask advice over there.
 
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Thanks ED. I've also gotten into contact with TV producers and studios execs on The Producers Network on LinkedIn for free. The studio people there giving me some tips have impressive credits with studio productions and TV series on IMDB. But, the more sources the better.

Thanks.
 
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