The Business - Understanding Filmmaking

The Idea
Sources of Inspiration
This can be found in newspapers, books, films, or just in general conversation.
The Producer
The producer makes the idea a reality. Producers see lots of films so are in a position to know which ideas will sell. However, audience tastes can change dramitcally in the years it takes to make a film. The producer needs to attract a good writer and a good director for the project.
The Director
The director will work with the producer to develop the idea into something that can be filmed. The quality and past work of the director will become a key selling point for the producer to attract financial backing later on. Directors usually have agents, they act on behalf of the director to get the best deal in return for their time and skills, and then they take a percentage cut.
The Writer
The relationship between the producer, writer and director is the key creative traingle in the business. Producers have clear ideas of what they are looking for from a writer, and usually approach the writer and brings them on board the film they want to make.
Treatment
The writer will write a one page description of the main story and characters of the film. It should be written in a style that fits the genre of the film and give the reader an idea of what makes the film unique and interesting to watch.
Pitch
A pitch contains all the information the producer needs in order to sell the idea to financiers to commission a script. E.g. a one-liner, the genre, the target audience (market), the people attached, the rough budget, and a brief synopsis of the film.

Development Finance
Pitching the Project
The producer uses the treatment and pitch to get money to develop a script. The funding needed to support the project is called 'Development Funding'. A producer can invest in the development herself and if she can afford this, she will retain all the rights to the resulting package herself - This is of high risk as there is no external verification of the inspirational idea.
Production Companies
The producer approaches film production companies for development money. In return for the development funding, the production company will ask for the right to take the outcome of the development progress and to be involved in the making of the film. This means that they can receive a large percentage of future profits.
Sales, Distribution, Broadcast
The sales company sometimes provide development money for projects which they feel are marketable and in return ask for the right to sell the film to distribution companies and to take a percentage of the resulting revenue. The broadcaster will ask for the rights to show the film on a number of their TV channels in return for development money. The distribution company will ask for the right to distribute the film to exhibitors, retailers, rental companies, and broadcasters, and then take a percentage of the resulting revenue in return for development money.
Public Investment
The producer can also apply to a public funding body for a development grant. E.g. UK Film Council.
Private Finance 
The producer can even pitch the film to private investors, in the hope that they will support the project.  The investor gets the right to take the outcome of the development process, and to be involved in the making of the film.
Tying Down the Writer
The Writer's Agent acts on behalf of the writer to get the best deal for the writing and percentage cut.
The writer will commit to delivering a number of drafts of the script to the producer, in return for various financial benefits. There are 'Writers' Guild Minimums' for how much a writer should be paid for first drafts.

Script Development
Synopsis
A synopsis is written in the present tense and describes what the audience will see on the screen. It helps the writer and producer to check that the key elements of a script are in place and that the major events happen at the most effective stages of the story.
Step Outline
This contains short written descriptions of all the scenes that will eventually make up the script, detailing the action, showing where scene breaks will occur, describing important plot event and developments in characters. The writer plans the overall structure and pacing of the film.
Drafts
Must still be fully formatted in the standard way that everyone in the industry expects. The terminology used, page layout, font, and paper size have been standardised for years - The writer must follow them exactly. This is done to enable the script to be turned into a film in the easiest way possible. The script needs to effectively describe what will appear on the screen.
Revisions
The draft is then sent to the financiers. Writers often ask for script editors to help them - These are script experts who help writers to overcome problems they encounter during the writing process. There may also be story editors supporting the writer as well.
Final Draft
Once the director, the producer, and the writer have all approved the script, it becomes a final draft. For the writer, this is the finished product and is taken forward to the next stage. The director will now take the lead. The writer receives a fee and will also get another fee on the first day of principle photography, and possibly a percentage of the producers net.
Sales Treatment
This is a synopsis designed to sell the film to potential financiers. It is an advert for the script and uses more emotive language that the writers' original synopsis - It focuses on the key selling points.

Packaging
What is packaging?
The producer comes up with a rough budget, based on the initial rough budget. It is an estimate of how much funding she can expect to secure the script, and where she intends to channel it to make the film sell. This enables her to choose suitably priced 'above the line' talent.
The Cast
Stars are commercial assets, and attract funding to a film. Green Light Names are people with sufficient clout in the industry or at the box office to secure financing for a film. 'Lure Points' are the percentages of future revenues that the producer gives away at this stage to lure people into the package.
The Heads of Department (HODS)
Getting a well known editor on board early can help persuade potential financiers that the finished product will be an enjoyable piece of cinema. The Production Designer is incredibly important for the visual experience of the film, they will design all sets and the objects seen in it, keeping a consistent vision for the production. The Director of Photography is responsible for giving the film the distinctive look that will make it a success.
Detailed Budget and Production Schedule
The Line Producer  is the logistical expert. Their responsibilities are to supervise the budget, hire the crew, approve purchase orders, make sure all departments are doing their respective jobs within the budget, and ensure that the schedule is met. The Budget is a long, spreadsheet document that itemise in huge detail the money that the producer intends to spend on making and finishing the film. A key part of the budget is insurance costs, since all productions must be insured against public liability, loss of shooting days, and other eventualities. The Production Schedule shows which people need to do what, for how long, and where, in order to get the film made. This remains in draft state until funding, cast, and crew have all been finalised.
Finance Plan and Recoupment Schedule
The Finance Plan is the producers plan of how to raise finance for the film, listing the people and organisation that the producer intends to approach with the project. The Recoupment Schedule is an estimate of how the film will make money, listing estimates of revenue from all likely sources.
The Complete Package 
This includes a final draft script, a sales treatment, a list of attached stars and HODs, a detailed budget, a production schedule, a finance plan, and a recoupment schedule. The producer must now present this to a number of potential funders.

Financing
The Market
The film finance marketplace is international, and to maximise the chances of getting the funding she needs, the producer must travel. Different countries offer different tax-breaks to those who fund films and so the producer needs to be aware of these laws when deciding which countries to approach.
Investment
Private Finance, Co-Productions (Many production companies worldwide are reluctant to act as the sole investor in a film project. Instead, they will identify a project that fits their demographic, and enter into a partnership with the other production company). Public Investment (They channel public investment into film projects that have commercial or artistic merit, or serve the public interest).
Pre-Sales 
The Contract is a legal document that determine who will receive how much and in which order. In general, the more they offer upfront, the more broad-reaching will be their rights over the film in the future. The Sales Company will want the right to sell the film to distribution companies in some or all territories, and to take a percentage of the resulting revenue. The Broadcaster will ask for the right to play the finished film on a certain number of their TV channels. The Distributor will ask for first refusal on the right to distribute the film to cinemas etc. This means that, rather than getting a percentage of revenues in the future, the distribution company has bought the film before it's finished and will get all the revenues that result from distribution in specified territories.
Banks and Gap Funding
Banks will back a range of films with a range of risk levels, to try and even out returns. In return for their investment, they will ask for a share of future revenues, and will charge interest. Gap funding is a loan to cover a shortfall between the money raised so far and the total budget, but interest rates are usually high and the loan is paid off first before other financiers see any money.
Completion Bonds
These are guarantees that if the production runs out of money, the bond issuer supplies the necessary funds to complete the film. They are usually required by investors and banks to protect their investment. The completion guarantor will impose numerous conditions on the producer.
Green Light
Once all the essential funding and insurance is secured, the film gets a 'Green Light'. However this is very complex and a hard thing to achieve for the producer, who has to negotiate all the parallels within the process.

Pre-Production
The Kick-Off Meeting
The Shooting Script - Once a script has gained funding it is locked off and given scene numbers, and it is expected that no major changes will occur. It is used for scheduling, budgeting and for day to day filming. Casting Director - They will need to start shortlist actors for all the roles required by the script. The Editor - They will take on the responsibility of choosing the people that will be required once the film moves into post production. The Head of Sound - During pre-production, he is responsible for hiring his team of sound recordists and boom operators. He will also discuss the sound design of the film with the director and producer. The Director of Photography - He has to work with the production designer and the director to make sure that everyone is clear about that style of film to shoot and will decide the shooting format. The Production Designer - They need to hire an entire team to make sure that all the sets are designed and that the construction department builds them to specification, and oversee all the props and other objects seen in the film. The 1st AD - They are responsible for keeping the filming on schedule and will be present during the pre-production to help plan the shoot. The Line Producer - Responsible for managing every person and issue during the making of a film.
Casting
The casting director will identify possible cast members and will arrange auditions. In large productions a whole casting department is employed to get this process right.
Storyboarding
The Storyboard Artist will draw each key scene in a way that it will be eventually filmed. The Director of Photography will be present at this meeting to make sure they understand the directors requirements for each shot. This allows them to plan each shot in more detail. The Director will plan every frame of the film at this stage by creating a 'paper edit'.
Production Design
The Production Designer works with the set designer and construction team to create artificial sets that suit the needs of the production. The Art Director will take the designs from the production designer and create every detail of the look of the film. The Location Manager scouts for the locations that fit the design of the production and work with the producer, director and production designer to decide which ones to use. The Construction Manager oversees the building of all the film sets, based on the models, storyboards and the set designer's schematics.
Special Effects Planning
The visual effects supervisor is responsible to the director for planning and designing all the special effects needed in the film. The physical effects are designed far in advance of the shoot to give the special effects team time to prepare each one.
The Production Unit
The Production Accountant is responsible for managing the film's finances. Film productions are usually registered as separate trading companies so that the complex financial structures and liabilities can be managed more easily. The Production Manager deals with day-to-day money issues and are responsible for balancing and supervising all the administrative and technical details of the production, budgeting and scheduling, and managing the activities of the entire crew. The Line Producer must write the schedule, arrange contract for equipment hire and personnel, and arrange insurance. The 1st Assistant Director deals with the crew and makes sure they are on schedule, and to assist them. They will work out and write shot plans for each day, and determine the equipment required.

The Shoot
1st Day of Principal Photography
This is the key moment in film production as the shooting begins and the funding is released.
Camera
The Clapper Loader takes unexposed film from it's canister and loads it into magazines. These then slot onto the camera. They will also write and operate the clapperboard, which gives the editor information about which shoot is which. The Grip works exclusively with equipment that the camera is mounted on to make sure that it runs smoothly. The Focus Puller is responsible for keeping the key element in the frame in focus and for shifting focus between elements in the frame. There is also the camera operator and the DoP on the set.
Lighting and Sound
The Boom Operator (responsible for holding the microphone), The Armourer (licensed to carry and operate weapons for use in films), The Make-Up Designer, The Gaffer (a trained electrician responsible for lighting the action), and his Best Boy are all present on the set for this.
Acting
The actors are the only members of the film personnel that will be seen by the public and therefore have a lot of responsibility to make the film a success.
Special Physical Effects
The Visual Effects Supervisor ensures that the shot goes according to pre-production plans.
The Special Effects Supervisor is responsible for every special effect on set. The Health and Safety checks the operation of all elements to guarantee the safety of cast and crew. The Stunt People are used as the insurers of the production will insist that no risks are taken with the actors and will even stipulate what the can and can't do, on and off set.
Chain of Command
Runners, the Assistant Directors (making sure everything runs smoothly on set and kept on schedule), and the Line Producer (acting as a representative of the producer on set) are all present to ensure the project is kept on schedule so financiers and insurers do not step in.

Post Production
Rough Cut
The editor remakes the film the in the edit suite and the assistant editor complies the sequences of the film into an 'assembly' so that the director and editor can see that the film's working, then they work on a rough cut. The rushes from the film are taken to the lab and turned into a roll of negative. These are transferred onto video tapes via telecine and then digitised into a non-linear computer edit suite as digital video files.
Post Production Sound
Foley recording is the recording of custom sound effects during post production in the same way that dialogue is dubbed. Automated Dialogue Reading (ADR) is re-recorded dialogue over the scenes by the original actors in a dubbing studio and is done in addition to or as a substitution for location sound. Instrumental music and existing songs may be used in the film also. The final mix can now be created and is done by a sound editor and they arrange all the tracks as accurately as possible to the locked picture.
Digital Effects and Titles
The credits are added by a digital composer, both the front titles and rear titles. Digital effects are also added, e.g. CGI (Computer Generated Imagery) or compositing: inserting computer generated images into live action footage and layering multiple photographic/CGI elements together.
Grade and Colour
The Telecine Operator makes all the shots look as though they belong visually to the same film. In the grade, they tweak the colours and contrasts to make the film look smooth and uniform.
Final Mix
The Sound Mixer puts the final touches to the film's soundtrack to make sure the film is as engaging and professional as possible. The Broadcast Mix has two channels and will be set to comply with broadcast standards. To allow the film to be shown in multiplex, cinemas and DVD, the final mix is separated into six channels for a Dolby 5.1 mix, which allows the sound mixer to place certain sounds in the theatre.
Final Cut
This means the film is ready for duplication. The sound mix is synchronised with the picture and attached to the edge of the negative (synch and edge). The producer negotiates to secure the final cut of the film, as the investors and attached distribution and sales companies decide what goes in and what gets left on the cutting room floor. The majority of directors do not have final cut on their films.

Sales
Selling the Product
The producer gets help from film distributors, and must secure contracts with the distributors for as many territories as she can and negotiate a good deal in each. The sales agent operates between the producer and the distributor, estimating their value and negotiating distribution deals.
The Trailer
It must sell the key elements of the film to the right audiences as defined at the packaging stage without giving too much away. The producer may commission the trailer herself to sell the film (promo), and as soon as a distribution company is attached, they will commission their own trailers as part of their marketing strategy.
Sales Toolkit
The sales report are detailed sales estimates, which involves taking the producers recoupment schedule and doing more detailed productions. The sales pack contains the key information and marketing materials needed to sell the film to distributors: the trailer being a key part.
Taking the Film to Market
It is vital to have a distinguishable product because the marketplace is very crowded. The producer must try and generate 'buzz' around her film (critical acclaim, audience enthusiasm, a great product etc.) Representatives of distribution companies from around the wold gather at these events looking for the next big thing.
Screenings
Star names virtually guarantee awareness of a film with the public, which makes marketing much easier. A high profile screening can also be great for generating 'heat' around a film.
Deals
The producer negotiates a contract with a distributor for the rights to distribute the film across certain territories. Once the film is sold to distributors, the film is no longer the responsibility of the producer in those territories.

Marketing
The Marketing Team
They must identify the best audience for the film, and find the 'hook' (The USP). They work out the value of this audience at the box office, draw up projections on how it will perform, and set an appropriate marketing budget for launching it. Above-the-Line marketing includes trailers, TV spots, poster campaigns: the most direct way to reach an audience. Below-the-Line marketing is more subtle, involving indirect forms of publicity such as press coverage, product tie-ins and merchandising.
The Audience
Creating positive word-of-mouth is the key part of marketing. The cinema release of a film is a launch event, and the marketing team ensure that the film is hotly anticipated before its release. To do this they need to find their audience and get them talking about the film before the launch. By segmenting the potential audience for the film, the marketing team can be more targeted in their approach, and ensure that the right people hear about the film at the right time.
Advertising
Market research is done with the potential audience on all poster and other marketing collateral to make sure that money spent on advertising is not wasted.
Press and Media Coverage
This is about getting your product endorsed by a third party as positive media is the best way to generate good word-of-mouth about any film.
Internet and New Marketing Models
This way, distributors can target only those people who are most relevant to their marketing objectives, rather and wasting money on nationwide advertising that could be ignored. This is particularly relevant for low-budget filmmakers, with only minimum spend on marketing costs.
Selling the Film to Exhibitors 
To get as many of their films shown as possible, the larger distributors often offer a packages to exhibitors, using it as a bargaining tool to persuade the exhibitors to take some of their less commercial products. The marketing budget is determined by the expected level of ticket receipts from a film; the higher the expectation of success, the higher the marketing budget. The cinema programmer is the key decision-maker in the exhibition world and selects the right mix of programming for the venue, responding to local audience interests.

Exhibition
The Premiere
Here, even lesser-known stars will still attract publicity and generate hype. Stars who can 'open' a film are those that will guarantee the film will do well in its opening weekend. However, star power can extend beyond actors as well. E.g. directors and writers.
UK Cinemas
The most important market for any film, as success at the box office can guarantee increased revenues in subsequent windows. Specialist cinemas can ensure that even films with a very niche market can reach their audience and make a profit.
Prints and Logistics
Hundreds of copies of the film are produced by the distributors, and these prints are then rented by the exhibitors who are screening the film. Special logistics companies transport these films to cinemas throughout the UK - This is a niche area of logistics. Making so many prints requires substantial investment from the distributors, and they will reduce their costs by releasing the film in waves.
Box Office Performance
Data about the film attendance is collected continuously, and used by the cinemas to decide which films to cancel and which to prolong. Slow-burners do not flourish well in the cinema market.
Revenues
The box office gross is just the starting measure for what everyone involved will make from the film. Producers can check these reports to figure out roughly how much they will make.
Recoupment
As the profits begin to appear, they will be channelled back to the production accounts department, who begin the long process of repaying the film's financiers. This is done in the strict order of priority laid down in the recoupment schedule during the film's financing.

Other Windows
Hospitality 
In-flight entertainment and hotel pay-per-view channels are the first way in which films are sold after their cinema release. This can be a very lucrative window.
DVD and Video
Theatrical release is seen as a platform from which to gain the more lucrative sales on DVD. The UK is the best market for DVD sales in the world and brings in more revenues in this window than the US.
Broadcast
Once all the other windows have been exhausted, the film will be sold to terrestrial TV. If a broadcast company put up money towards the production, they will have first option on the broadcast rights.
The Game of the Film
This window is seen in some quarters as a threat to the film industry and is rivalling films in terms of profile and market share.
Profit?
Only when the gross revenue has gone down the supply chain and the exhibitor, the distributor, and all the investors have been repaid, does the producer get anything at all. When money starts to come back to the production, the 'talent points' must be payed by the producer before herself.
The End?
The final income from a film is never known. Distribution continues in perpetuity and it may even be re-released in the future. It may be years until the producer begins to see any money - if at all.