Dictionary of Film Finance and Distribution: A Guide for Independent Filmmakers
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Dictionary of Film Finance and Distribution: A Guide for Independent Filmmakers
The goal of this book is to level the playing field a bit when it comes to negotiating the financing and distribution of films. The large film studios and theater chains employ attorneys and others who are experts in negotiating film contracts, and there are many significant barriers to entry in this industry. The information contained in this volume should prove invaluable to all those concerned at one time or another with film finance and distribution, including attorneys, distributors, executive producers, producers, associate producers, studio executives, screen writers and directors seeking to independently produce a special project, exhibitors, broker/dealers, money finders, motion picture accountants/auditors, investors, profit participants, federal and state government officials and film students. Most independent film-makers and producers have limited knowledge of the law, in part because the film schools and universities that educated them stress the technical, creative or production side of film-making, not the business side. One consequence of this disparity is that independent film-makers and producers are usually at a disadvantage when it comes to negotiating the financing and distribution of a film. The terms and phrases defined and discussed in this dictionary are those of feature film finance and distribution, including film production, marketing, accounting, insurance, securities, legal structures (e.g., corporate, limited partnership and limited liability company financing vehicles), and general financial arenas. All of the principal forms of feature film finance are covered, including studio/distributors, production companies, lending institutions, co-financing, pre-sales, grants, foreign and passive investor financing involving the sale of a security. Why would a book on film finance also discuss distribution? Film finance cannot be adequately explained if no provision is made for how invested money may or may not return to financiers and/or investors (i.e., the financial side of distribution). The feature film industry has a history of anti-competitive practices, and distribution is often at the center of these problems. This book fills a critical gap in the literature of the motion picture industry. As with many industries, the U.S. film industry has developed some unique terminology to describe certain concepts associated with film industry activities. The terms and phrases defined and discussed in this dictionary are those of feature film finance and film distribution, along with numerous other related terms from the production, marketing, music, legal, accounting, insurance, securities (including corporate, limited partnership and limited liability company financing vehicles) and general financial arenas. Some additional terms and phrases are included, not because they commonly appear in film finance or movie distribution agreements but because they are essential to a well-rounded understanding of the industry and environment in which such film finance and distribution agreements are negotiated. Still other terms were selected and included by the author because they may aid in the understanding of additional terms in this dictionary. In many instances, the definitions also show how the defined term or phrase is specifically used in the film industry and with respect to additional terms, certain entries contain a comment from the author which is clearly biased in favor of the independent producer.
