Toxic Martian Productions

Debt Versus Equity in Film Finance - Baseline Intelligence

2012-01-29T13:44:00.000-08:00

Debt Versus Equity in Film Finance - Baseline Intelligence

Indie Film Box Office Springs Forward, as Clock Falls Back - Baseline Intelligence

2011-12-29T09:40:00.000-08:00

Finally some good news for independent film makers! Independent films are trending ahead of 2010, even thought the total box office returns are down for 2011.

Indie Film Box Office Springs Forward, as Clock Falls Back - Baseline Intelligence

Don’t slam your projects into production.

2011-12-16T08:32:00.000-08:00

Don’t slam your projects into production.

In this economic environment where cash for films has become hyper competitive and difficult to come by, it’s more important than ever before to keep your eye on the ball. That ball being a crystal ball we all wish we had that tells us what project is ready to move forward based on future events. It’s impossible to predict what will happen economically, socially or geopolitically, not to mention the competition your film may face when it’s ready for distribution. However, it’s our job, as producers, to see into the future and determine if a project should be moved forward based on the information available to us now, what talent is available, what the budget is, and how can we mitigate our investor’s financial risk.

All too often I read about high profile producers spending large sums of money on projects they admit were not ready to go into production. Anytime a producer has potential financing a clock starts and producers act with urgency to package a project in order to start production and get the money. Particularly in this economic environment when money is here today and gone tomorrow there is no easy answer to avoiding slamming a project into production prematurely. I can only share how I approach such issues, or have tried to thus far.

We have spent years working with writers and seeking out scripts that are ready or near ready for the director. If a project passes when we run the numbers using the budget and potential box office return against the waterfall, we then start working on where soft money could come from and product placement opportunities. We put together an extensive casting wish list. If a project receives financial interest we’re ready to hit the ground running, but if we’re not able to go into production with all our ducks in a row the project will be put on hold. That’s not to say that situational data shouldn’t be considered and plans of action adjusted accordingly. If you don’t feel you have the best for your project it’ll show on the screen.

It’s important to have as many projects ready to go in more than one genre and budget range. Also, if you’re not willing to fully explore the potential of your projects why should an investor take such a high risk on you? This is a business and every script should be seen as a company start up necessitating a business plan. There’s no shame in putting a project on hold until you feel it’s ready.

Good Luck!

Time Wasters and Scammers

2011-12-12T14:27:00.000-08:00

How to avoid being scammed and wasting your time with investors claiming interest in your project.

I recently had a finance person suggest that I may be a time waster after I tried to explain how we packaged projects… Budget, seek Equity, Gov’t Incentives/Credits/Rebates, Product Placement and how once the talent was attached the sales estimates could be run and then on to pre-sales. It became painfully obvious this wasn't a sector he was used to investing in. Once I provided a production package/business plan with budgets and numbers, NO script, with most of the aforementioned I never heard from him again.

I also once had a fund manager exclaim he would only invest in projects by A-List talent. Not only did I feel compelled to explain how that wasn’t a formula for success, but if the project presented wasn’t properly put together, per the above, the fund could be found in violation of its fiduciary duty. Financiers must understand or be willing to educate themselves on how a film is packaged in order to understand the potential risk of the project being presented to them. Period. I don’t have to tell you how this conversation went. It was best to get this information up front before I wasted any more of my time with this individual and I was able to move on to more productive relationships.

My point is If you know your project inside and out, with a budget, potential markets based rating and genre with the estimated box office returns, potential product placement in place or a campaign, gov’t incentives/credits/rebates (soft money) anticipated based on locations, you’re less likely to be taken for easy prey. It’s incredibly time consuming and can be expensive, but it will save you time in the end. Not to mention you’ll find all the flaws within your project through this process.

Never pay upfront fees to investors or people claiming to be a financial professional. If you’re not able to complete due diligence on the potential investor request an NDA. If an investor is serious they’ll make clear what they’ll require of you before placing funds in an escrow account, i.e. professional payroll service, Line Producer, to oversee that account. If your instincts tell you to walk away, or the deal is too good to be true, walk away…

Good Luck!

Accounting Transparency: The Path to More Film Investors - Baseline Intelligence

2011-12-11T13:23:00.000-08:00

I have to agree with Jeremy. It's unfortunate the entertainment industry isn’t further along. The entertainment industry has come a long way in this regards, but we haven’t learned our lesson.

Accounting Transparency: The Path to More Film Investors - Baseline Intelligence

Proliferation of Digital (VOD/SVOD/ETC.) and the Further Fracturing of Markets - Baseline Intelligence

2011-11-30T09:56:00.000-08:00

Proliferation of Digital (VOD/SVOD/ETC.) and the Further Fracturing of Markets - Baseline Intelligence

Spend Less & Make a Better Movie - Baseline Intelligence

2011-11-18T13:34:00.000-08:00

Spend Less & Make a Better Movie - Baseline Intelligence

Grandfather Your Section 181 Benefit Today | The Wrap Movies

2011-10-28T09:07:00.000-07:00

Grandfather Your Section 181 Benefit Today The Wrap Movies

Can Brands & Indie Films Collaborate Without Sacrificing Integrity Or Goals? Hope for Film

2011-10-26T09:10:00.000-07:00

Can Brands & Indie Films Collaborate Without Sacrificing Integrity Or Goals? Hope for Film

The 5 Smartest Financing Tips From the Film Independent Forum - indieWIRE

2011-10-23T17:03:00.000-07:00

The 5 Smartest Financing Tips From the Film Independent Forum - indieWIRE

How I Go About Choosing Comparable Pictures - Baseline Intelligence

2011-10-18T14:01:00.000-07:00

How I Go About Choosing Comparable Pictures - Baseline Intelligence

Top That Production Incentive

2011-10-14T13:33:00.000-07:00

"The United States’ budget woes have led to growing calls for cutting incentive programs to improve states’ balance sheets. However, while state governments are increasingly being pressured to demonstrate the effectiveness of incentive programs, the packages have by and large remained intact throughout the country. Outside of the U.S., incentives are as strong as ever ─ as Canada’s provinces offer a slew of generous packages to attract production. This fierce foreign competition has many U.S. film fighting to hold on to their incentives despite economic concerns."
For more:
http://www.p3update.com/preproduction/locations/1238-top-that-production-incentive

Why So Many "Accredited Investor Only" Film Offerings Fail - Baseline Intelligence

2011-10-13T17:41:00.000-07:00

Why So Many "Accredited Investor Only" Film Offerings Fail - Baseline Intelligence

Gov. Brown Extends Filmmakers Tax Credit Through 2015 | The Wrap Movies

2011-10-10T14:08:00.000-07:00

Gov. Brown Extends Filmmakers Tax Credit Through 2015 | The Wrap Movies

Two Cons of DIY Film Distribution - Baseline Intelligence

2011-10-07T15:28:00.000-07:00

Two Cons of DIY Film Distribution - Baseline Intelligence

MRC Closes on $350M Credit Facility | The Wrap Media

2011-09-20T12:11:00.000-07:00

MRC Closes on $350M Credit Facility | The Wrap Media

Harry Sloan & Jeff Sagansky: The Future Is Content -- and It's Outside the U.S. | The Wrap Media

2011-09-19T18:07:00.000-07:00

Harry Sloan & Jeff Sagansky: The Future Is Content -- and It's Outside the U.S. | The Wrap Media

Casting Directors Ratify Contract | The Wrap Movies

2011-09-17T15:13:00.000-07:00

Casting Directors Ratify Contract | The Wrap Movies

Prescreen Launches Limited-Time Indie Streaming | The Wrap Movies

2011-09-16T08:43:00.000-07:00

Prescreen Launches Limited-Time Indie Streaming | The Wrap Movies

Comparable Films Tables: To Comp or Not to Comp - Baseline Intelligence

2011-09-14T19:21:00.000-07:00

Comparable Films Tables: To Comp or Not to Comp - Baseline Intelligence

Grosvenor Park Gets Back in Film Game With $100M | The Wrap Movies

2011-09-13T09:20:00.000-07:00

Grosvenor Park Gets Back in Film Game With $100M | The Wrap Movies

New Film Fund Extremal Will Commit P&A Financing - Up-Front (video) | The Wrap Movies

2011-09-10T15:30:00.000-07:00

New Film Fund Extremal Will Commit P&A Financing - Up-Front (video) | The Wrap Movies

When You Don't Need a Film Business Plan - Baseline Intelligence

2011-09-07T16:55:00.000-07:00

When You Don't Need a Film Business Plan - Baseline Intelligence

Casting Directors Union, AMPTP Come to Tentative Agreement | The Wrap Movies

2011-09-03T13:54:00.000-07:00

Casting Directors Union, AMPTP Come to Tentative Agreement | The Wrap Movies

Ex-WB CEO Jordan Levin: Product Placement to Grow 20% a Year Through 2013 | The Wrap Media

2011-08-20T14:10:00.000-07:00

Ex-WB CEO Jordan Levin: Product Placement to Grow 20% a Year Through 2013 | The Wrap Media

Publishers Protecting Margins at the Expense of Filmmakers - Baseline Intelligence

2011-08-19T08:19:00.000-07:00

Publishers Protecting Margins at the Expense of Filmmakers - Baseline Intelligence

Selling Independent Film Offerings to Passive Investors - Baseline Intelligence

2011-08-18T09:05:00.000-07:00

Selling Independent Film Offerings to Passive Investors - Baseline Intelligence

Google's Motorola Deal Makes It Clear: The Future's Going Mobile | The Wrap Media

2011-08-16T08:45:00.000-07:00

Google's Motorola Deal Makes It Clear: The Future's Going Mobile | The Wrap Media

Carl Icahn Snaps Up Lionsgate Shares 1 Month Before Annual Meeting | The Wrap Movies

2011-08-14T12:57:00.000-07:00

Carl Icahn Snaps Up Lionsgate Shares 1 Month Before Annual Meeting | The Wrap Movies

Flixster - Content in The Cloud - Can it Work? - Baseline Intelligence

2011-07-27T13:38:00.000-07:00

Flixster - Content in The Cloud - Can it Work? - Baseline Intelligence

Latest Streaming Challenger to Netflix: Walmart

2011-07-26T10:29:00.000-07:00

Latest Streaming Challenger to Netflix: Walmart

RealD and Cinemark to Roll Out 1,500 3D Screens | The Wrap Movies

2011-07-22T13:21:00.000-07:00

RealD and Cinemark to Roll Out 1,500 3D Screens | The Wrap Movies

Katzenberg: 'The Bloom Is Off the Rose' for 3D | The Wrap Movies

2011-07-22T13:20:00.000-07:00

Katzenberg: 'The Bloom Is Off the Rose' for 3D | The Wrap Movies

DISH Network Backs Opposition to AT&T/T-Mobile Merger | TheWrap TV

2011-07-21T09:09:00.000-07:00

DISH Network Backs Opposition to AT&T/T-Mobile Merger | TheWrap TV

Why You Need a Film Business Plan - Baseline Intelligence

2011-07-20T08:54:00.000-07:00

Why You Need a Film Business Plan - Baseline Intelligence

What are the Latest Online Self-Distribution Options for Filmmakers?

2011-07-11T13:40:00.000-07:00

Baseline Intelligence

Feet on the Ground, Head in the Clouds | The Wrap Media

2011-06-08T09:23:00.000-07:00

Feet on the Ground, Head in the Clouds | The Wrap Media

'X-Men' Producer: 'There's Too Much 3D Right Now'

2011-06-06T09:05:00.000-07:00

'X-Men' Producer: 'There's Too Much 3D Right Now'

Jeff Skoll's Participant Media: A Business, or a Hobby? | The Wrap Movies

2011-06-06T08:55:00.000-07:00

Jeff Skoll's Participant Media: A Business, or a Hobby? | The Wrap Movies

California Assembly Moves to Extend Schwarzenegger's Film & TV Tax Credit | The Wrap Media

2011-06-01T08:35:00.000-07:00

California Assembly Moves to Extend Schwarzenegger's Film & TV Tax Credit | The Wrap Media

Cable Giants Seek to Limit Internet Streaming, Slow Netflix

2011-05-31T09:12:00.000-07:00

Cable Giants Seek to Limit Internet Streaming, Slow Netflix

Baseline Intelligence

2011-05-30T11:42:00.000-07:00

Baseline Intelligence

AFTRA approves of SAG merger committee - Entertainment News, Labor Issues, Media - Variety

2011-05-15T08:48:00.000-07:00

AFTRA approves of SAG merger committee - Entertainment News, Labor Issues, Media - Variety

Warner Bros. Extends Production Deal With Alcon 2 More Years

2011-05-14T12:24:00.000-07:00

Warner Bros. Extends Production Deal With Alcon 2 More Years

The world from Wilshire | Features | Screen

2011-05-13T13:29:00.000-07:00

The world from Wilshire | Features | Screen

Mark Gill on The Film Department's Demise: 'We Had Impeccably Difficult Timing' | The Wrap Movies

2011-05-06T09:56:00.000-07:00

Mark Gill on The Film Department's Demise: 'We Had Impeccably Difficult Timing' | The Wrap Movies

I Lost My Investor! | The Wrap Movies

2011-05-04T09:32:00.000-07:00

I Lost My Investor! | The Wrap Movies

'The Indie Business Is Still a Good Business ... If'

2011-04-22T15:40:00.000-07:00

'The Indie Business Is Still a Good Business ... If'

So How Much Should You Allocate to the Producer of Marketing & Distribution? | The Wrap Movies

2011-04-18T13:06:00.000-07:00

So How Much Should You Allocate to the Producer of Marketing & Distribution? | The Wrap Movies

Ex-WB CEO Jordan Levin: Product Placement to Grow 20% a Year Through 2013

2011-04-14T09:17:00.000-07:00

Ex-WB CEO Jordan Levin: Product Placement to Grow 20% a Year Through 2013

Seeking Film Finance? You Get What You Pay For | The Wrap Movies

2011-04-11T08:51:00.000-07:00

Seeking Film Finance? You Get What You Pay For | The Wrap Movies

House Republicans Vote to Kill FCC's Net Neutrality Rules

2011-04-08T14:36:00.000-07:00

House Republicans Vote to Kill FCC's Net Neutrality Rules

Netflix CEO Urges Congress Not to Overturn Net Neutrality Rules

2011-04-07T14:06:00.000-07:00

Netflix CEO Urges Congress Not to Overturn Net Neutrality Rules

Film Finance: What Is Mezzanine Financing?

2011-04-06T09:11:00.001-07:00

null

Theater Owners Ready to Rumble About Premium VOD | The Wrap Movies

2011-04-06T08:59:00.000-07:00

Theater Owners Ready to Rumble About Premium VOD | The Wrap Movies

Court Dismisses Verizon's Net Neutrality Appeal | The Wrap Media

2011-04-04T14:06:00.000-07:00

Court Dismisses Verizon's Net Neutrality Appeal | The Wrap Media

Tension High at CinemaCon Between Studios and Stressed Exhibitors

2011-03-31T10:04:00.000-07:00

Tension High at CinemaCon Between Studios and Stressed Exhibitors

The Effect of Net Neutrality and Online Video Services - Baseline Intelligence

2011-03-28T09:40:00.000-07:00

This article is from April 2010, I'm re-posting to offer those who haven't been following this issue some history on the matter.

The Effect of Net Neutrality and Online Video Services - Baseline Intelligence

Why Young Filmmakers Should Get Out of the Country More

2011-03-28T09:25:00.000-07:00

"The best way for artists to combat that United-State-of-Mind is to visit or live in other countries."

Why Young Filmmakers Should Get Out of the Country More

Good Morning Hollywood, March 28: It's HP7 2U

2011-03-28T08:57:00.000-07:00

3D Out, Luxury In at Theaters

Good Morning Hollywood, March 28: It's HP7 2U

WGA Boards Approve Contract With AMPTP

2011-03-25T14:31:00.000-07:00

WGA Boards Approve Contract With AMPTP

Netflix's Original Online Video Content...

2011-03-18T13:56:00.000-07:00

Baseline Intelligence

Box Office Down, 'Limitless' Set to Lead Very Limited Box Office | The Wrap Movies

2011-03-18T13:46:00.000-07:00

'Limitless' Set to Lead Very Limited Box Office | The Wrap Movies

The Downfall of Streaming Content

2011-03-17T09:47:00.000-07:00

I’m not sure if you’ve been following the FCC Net Neutrality Rules and the House Panel that voted to overturn its decision? How will this effect Netflix, Facebook/Warner rentals, iTunes, Fandom, Hulu streaming content? Would you pay more to your internet company limiting your bandwidth in order to get view the streaming content from these providers and as predicted today in the news “AT&T to implement monthly data caps for high-speed Internet service”. Netflix has already announced its concern over such a move. I’m a little concerned over the lack of attention to this topic and how this could hamper the expansion of online distribution and the millions being poured into cloud computing. iTunes recently announced it’s going to the cloud as well in order to solve the DRM and video download issues.

Highlights From Winston-Baker’s 3rd Annual Film Finance Forum | The Wrap Movies

2011-03-14T09:18:00.000-07:00

A few Key Terms to look for:
"it’s not enough to have a script, director and cast."
"Sophisticated producers need to be comfortable with what they know and what they don’t know and should surround themselves with those who know more."
"tax credits should be used to reduce the loan, not enhance the budget;"
"This, in turn, puts a lot of demand onto the shoulders of a small group of bankable sales agents."

Highlights From Winston-Baker’s 3rd Annual Film Finance Forum | The Wrap Movies

Spec Market Roundup -- February 2011's Sales | The Wrap Movies

2011-03-14T08:54:00.000-07:00

Spec Market Roundup -- February 2011's Sales | The Wrap Movies

Big Air Studios Wants to be Newest Mini Major

2011-03-10T08:35:00.000-08:00

An Indie distributor seeking to exploit films globally across multiple platforms.

Big Air Studios Wants to be Newest Mini Major

House Panel Votes to Overturn FCC's Net Neutrality Rules | The Wrap Media

2011-03-09T15:40:00.000-08:00

How will this effect Netflix, Facebook/Warner rentals, iTunes, Fandom, Hulu streaming content? Would you pay more to your internet provided limiting your bandwidth in order to view the streaming content from these providers?

House Panel Votes to Overturn FCC's Net Neutrality Rules | The Wrap Media

'Twilight' Studio Summit Closing $750 Million Refinancing, Big Investor Payout (Exclusive) - The Hollywood Reporter

2011-03-08T07:28:00.000-08:00

'Twilight' Studio Summit Closing $750 Million Refinancing, Big Investor Payout (Exclusive) - The Hollywood Reporter

AMC Theatres and Regal Entertainment Start Their Own Distribution Company | The Wrap Movies

2011-03-08T07:19:00.000-08:00

AMC Theatres and Regal Entertainment Start Their Own Distribution Company | The Wrap Movies

Is the Independent Film Business Really Back?

2011-03-07T09:52:00.000-08:00

Baseline Intelligence

Mitigating Movie Risk: No Final Cut to Indie Film Directors

2011-03-07T09:44:00.000-08:00

Baseline Intelligence

2011-03-05T18:48:00.001-08:00

Another source of information.
http://www.homemediamagazine.com/

Relativity Closes $200M in New Financing (updated) | The Wrap Movies

2011-03-05T18:23:00.000-08:00

Relativity Closes $200M in New Financing (updated) | The Wrap Movies

The New Model Of Indie Film Finance, v2011.1 Investors Hope for Film

2011-03-01T12:55:00.000-08:00

The New Model Of Indie Film Finance, v2011.1 Investors Hope for Film

IndieFilmFinanceModelV2011.1 :Necessary Attributes Hope for Film

2011-03-01T12:49:00.000-08:00

IndieFilmFinanceModelV2011.1 :Necessary Attributes Hope for Film

The Film Department Holdings Goes Public

2011-02-28T16:29:00.000-08:00

A sales rep that also handles US distribution. To the best of my knowledge, outside of the mini and major distributors, The Film Depart is the only distributor/sales agent handling US distribution.

The Film Department Holdings Goes Public

Film Exhibitors Getting Into the Acquisition and Release Game will Squeeze Others Out - Baseline Intelligence

2011-02-25T11:12:00.000-08:00

Film Exhibitors Getting Into the Acquisition and Release Game will Squeeze Others Out - Baseline Intelligence

Despite 'Whitest' Oscars in Years, Don Cheadle Upbeat About Black Success in Hollywood | TheWrap.com

2011-02-24T14:03:00.000-08:00

This is interesting after reading the article that used stats to show that rating/viewership declined as the diversity of the cast declined.

Despite 'Whitest' Oscars in Years, Don Cheadle Upbeat About Black Success in Hollywood | TheWrap.com

AMC, Regal may be getting into film distribution business - Los Angeles Times

2011-02-21T16:21:00.000-08:00

AMC, Regal may be getting into film distribution business - Los Angeles Times

The Changing Film Economy - Netflix, Epix, and Hulu Plus - Baseline Intelligence

2011-02-21T13:27:00.000-08:00

The Changing Film Economy - Netflix, Epix, and Hulu Plus - Baseline Intelligence

Baseline Intelligence

2011-02-21T10:14:00.000-08:00

Baseline Intelligence

Comcast Seeking to 'Destroy' Writers Guild, Members Say | TheWrap.com

2011-02-21T09:18:00.000-08:00

Comcast Seeking to 'Destroy' Writers Guild, Members Say | TheWrap.com

House Votes to Block FCC's Net Neutrality Rules

2011-02-18T14:54:00.000-08:00

House Votes to Block FCC's Net Neutrality Rules

Eva Longoria Comedy Closes International Sales Deal

2011-02-17T15:45:00.000-08:00

Berlin Film Market and Deals

Eva Longoria Comedy Closes International Sales Deal

All Sundance 2011 Acquisitions, By Distributor and By Sales Agent - indieWIRE

2011-02-11T12:24:00.000-08:00

All Sundance 2011 Acquisitions, By Distributor and By Sales Agent - indieWIRE

Why Indie Movies Are an Endangered Species

2011-02-09T10:43:00.000-08:00

Why Indie Movies Are an Endangered Species

Rupert Murdoch Launches His iPad-Only Newspaper

2011-02-02T09:02:00.000-08:00

Rupert Murdoch Launches His iPad-Only Newspaper

What is the future of film distribution? Apple and Netflix have already started moving distribution for lower budget films to digital platforms.