Film Financing

Film finance is an aspect of film production that occurs during the development stage prior to pre-production, and is concerned with determining the potential value of a proposed film. Films can be financed in a number of different ways. Government grants and tax schemes are important for filmmakers to finance their films. Government provide grants or tax subsidises in the hope that the production of a film in a particular area will boost the local economy. Tax schemes are where the producer of the film sells a percentage of the film to the investor so that the investor pays the tax fees, the investor will be one of a wealthy living so will be able to pay the tax fees, basically the investor/s will pay the producer a sum fee to obtain the taxes. Equity finance is different to a tax scheme as equity finance comes with very little risks. Its basically giving rich people a share in a product you want to earn money on. However if your film doesnt make the money you thought it would then you'll be loosing out on money and intrest and the rich people wont get there share either. Debt finance is completely different, the investor will decide on a vast amount of the content of the film.. for example the investor can decide on the script and the cast. Before the film is even produced, the investor has to pay 20% deposit into the films account. Film financing is a part of film production and is concerned with determining the potential value of a film. It begins with theatrical release then to DVD sales, then to broadcasting on TV including international, then in flight financing,then on demand.
Its a subset of a project finance which means the generated cash flows are to repay investors. Its said to be impossible that to predict with accuracy the revenue of any film will generate.
The main factors of determining the sucess of a film include the public and their' taste, competition from any other films released at the same time,which is just the same as anything like films and msic and programmes ,its up to what the public like and how good it is.
If you had Bruce Willis in a film it could earn millions of dollors for America if the film fits his persona,or it could go the other way and be completly awful and a watse of money. Its about getting everything right wether the companys use the film funding properly.