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AD/SPONSORSHIP FINANCING ROI STREAMS

PRODUCT PLACEMENT

Product Placement is the deliberate incorporation of a brand or product in a work in exchange for compensation. Product placements may range from unobtrusive appearances of a brand or product within an environment, to prominent integration and acknowledgement of the product within the work. For example, the producers of a film or television program may be paid to incorporate and present specific brands of automobiles or consumer electronics within, or works produced by vertically integrated conglomerates (such as Sony) may include placements of products from their other divisions as a form of corporate synergy.

In the 21st century, the use of product placement on television has grown, particularly to combat the wider use of digital video recorders that can skip traditional commercial breaks within television programming, and to engage with younger demographics. Digital editing technology has also been used to tailor product placement to specific demographics or markets, and in some cases, add placements after-the-fact to works that did not originally have embedded advertising before, or update existing placements within a work.

FOREIGN PRESALES

Obtaining a pre-sale distribution agreement is one of the best ways of getting financing for the motion picture.  Essentially, the filmmaker negotiates a deal with a foreign distributor in which the foreign distributor promises that, provided the filmmaker completes the film, the distributor will pay a pre-negotiated fixed fee for the distribution rights in the distributor’s particular foreign country or territory.

This is an effective financing tool, because the foreign distribution agreement is a form of security for investors.  The filmmaker is generally required, as a condition of the pre-sale agreement, to obtain a completion bond (an insurance policy covering the cost of completing the film if the filmmaker is unable to do so).  Since the completion of the film (regardless of how well it comes out) triggers the payment of the amount predetermined in the pre-sale agreement for the distribution rights in the territory covered by the agreement, the mere existence of such an agreement virtually guarantees that the investors will make some or all of their money back.  The financier, in the investment agreement with the producer, obtains a security interest in the funds to be advanced by the foreign distributor pursuant to the pre-sale.  This significantly lowers the risk of making an investment in the film.

FOREIGN RIGHTS SALES

A sales agent will acquire a set of rights from you, pitch and sell these distribution rights to potential distributors around the world, draft distribution agreements, deliver the physical and electronic materials of your film to these distributors and, finally, collect and pay the revenue due to you. An international agent will be your partner for years, helping craft the commercial life of your film on the world stage.

A sales agent will help you create marketing materials, as well as plan a festival strategy (if one is needed for your film). Whereas a domestic agent or producer’s rep works with you for a short term, often selling to only one distributor, your international agent should be thought of as a partner who will brand you to the marketplace in all of the countries of the world via all media — theatrical, video, VOD, TV and other ancillary media.

CROWDFUNDING

The world of crowdfunding has seen an explosion of success in recent years, whether the investment is for reward, debt or equity. It can be a great way to kickstart or grow your business and is a buzzword found time and time again in the start up and SME space, but what does it mean and how does it work?

Put simply, crowdfunding is the process of getting a large crowd of people to pay a small amount of money to invest in an idea or product, with the promise that when said idea comes to fruition, they will get first access to it. The idea can be anything, from an innovative piece of tech to a video game to a novelty gift. The key is engage people in your idea, be able to convince them to invest a small amount of money for a small reward, and then get them to share the project because they feel they have bought into something special and want others to know about it. The best crowdfunding projects get people talking about them and the investment follows on.

TRADITIONAL U.S. FILM SALES

Theatrical box office, VOD, cable, digital disc, etc…

Froad-Pages-Top
Cedar-Park-Nissan-Wrap

AD/SPONSORSHIP FINANCING ROI STREAMS

PRODUCT PLACEMENT

Product Placement is the deliberate incorporation of a brand or product in a work in exchange for compensation. Product placements may range from unobtrusive appearances of a brand or product within an environment, to prominent integration and acknowledgement of the product within the work. For example, the producers of a film or television program may be paid to incorporate and present specific brands of automobiles or consumer electronics within, or works produced by vertically integrated conglomerates (such as Sony) may include placements of products from their other divisions as a form of corporate synergy.

In the 21st century, the use of product placement on television has grown, particularly to combat the wider use of digital video recorders that can skip traditional commercial breaks within television programming, and to engage with younger demographics. Digital editing technology has also been used to tailor product placement to specific demographics or markets, and in some cases, add placements after-the-fact to works that did not originally have embedded advertising before, or update existing placements within a work.

FOREIGN PRESALES

Obtaining a pre-sale distribution agreement is one of the best ways of getting financing for the motion picture.  Essentially, the filmmaker negotiates a deal with a foreign distributor in which the foreign distributor promises that, provided the filmmaker completes the film, the distributor will pay a pre-negotiated fixed fee for the distribution rights in the distributor’s particular foreign country or territory.

This is an effective financing tool, because the foreign distribution agreement is a form of security for investors.  The filmmaker is generally required, as a condition of the pre-sale agreement, to obtain a completion bond (an insurance policy covering the cost of completing the film if the filmmaker is unable to do so).  Since the completion of the film (regardless of how well it comes out) triggers the payment of the amount predetermined in the pre-sale agreement for the distribution rights in the territory covered by the agreement, the mere existence of such an agreement virtually guarantees that the investors will make some or all of their money back.  The financier, in the investment agreement with the producer, obtains a security interest in the funds to be advanced by the foreign distributor pursuant to the pre-sale.  This significantly lowers the risk of making an investment in the film.

FOREIGN RIGHTS SALES

A sales agent will acquire a set of rights from you, pitch and sell these distribution rights to potential distributors around the world, draft distribution agreements, deliver the physical and electronic materials of your film to these distributors and, finally, collect and pay the revenue due to you. An international agent will be your partner for years, helping craft the commercial life of your film on the world stage.

A sales agent will help you create marketing materials, as well as plan a festival strategy (if one is needed for your film). Whereas a domestic agent or producer’s rep works with you for a short term, often selling to only one distributor, your international agent should be thought of as a partner who will brand you to the marketplace in all of the countries of the world via all media — theatrical, video, VOD, TV and other ancillary media.

 

CROWDFUNDING

The world of crowdfunding has seen an explosion of success in recent years, whether the investment is for reward, debt or equity. It can be a great way to kickstart or grow your business and is a buzzword found time and time again in the start up and SME space, but what does it mean and how does it work?

Put simply, crowdfunding is the process of getting a large crowd of people to pay a small amount of money to invest in an idea or product, with the promise that when said idea comes to fruition, they will get first access to it. The idea can be anything, from an innovative piece of tech to a video game to a novelty gift. The key is engage people in your idea, be able to convince them to invest a small amount of money for a small reward, and then get them to share the project because they feel they have bought into something special and want others to know about it. The best crowdfunding projects get people talking about them and the investment follows on.

TRADITIONAL U.S. FILM SALES

Theatrical box office, VOD, cable, digital disc, etc…