LIFE OUT LOUD FILMS LLC
THE FILM MARKET 2009
The total North American gross box office were $9.78 billion in 2008. For the Summer Movie Season of 2009, North American box office gross was up 2.51% and the International Box Office was up 5.90% for last year according to Rentrak.
The drawing power of high quality Hollywood feature films remains very strong as one of
-Ron Giambra, Executive Vice President Worldwide at Rentrak.
Despite current economical trends, it is important to note that investing in film is somewhat recession-resistant.
FACT: In the same year the stock market experienced the crash of 1987, theatrical film box office receipts broke records
INDEPENDENT FILMS:
SAME DEMAND, LESS PRODUCT, MORE
With the 2009 closing of studio’s independent film divisions such as Warner Independent, Picturehouse and Paramount Vantage (all triggered by the economy) there is greater opportunity for companies such as Life Out Loud Films. The scare of the economy has forced many independent filmmakers to place projects on hold as financing has been tough. We have decided to embrace the economy’s downturn and this decision has proven to be extremely lucrative. The American Film Market 2009 where 368 Exhibitors repping 28 different companies showed up to buy, sell, distribute and develop films was considerably slower then in the past. This left several Distributors disappointed since they were still looking for the same amount of product as in the past. With less product and the same demand, this has opened many doors for our company to approach distributors during development and to meet one on one with companies who are specifically looking for family film and who see the potential win win such a relationship will provide in the future.
"Money is one thing, but the idea of being involved in a film—being in and around something that's so creative and energizing—can be just as big a motivation," Michael Donovan, president of Rushing Wind Pictures in Seattle said. "[Investors can] leave a legacy...seeing their name appear in the credits for many years to come."
What most people refer to a film’s sale price is really the Minimum Guarantee (MG), an advance against a filmmaker’s profit. It is ideal to get the highest MG possible (as this money goes directly to the filmmakers and investors) and secure an amount higher than the negative costs (the amount spent on the film).
Box office Gross is the amount spent on tickets sold at the theatres. This gross is split between the Distributor and Exhibitor. The amount received by the distributor is referred to as Gross film receipts. These receipts and all other revenue from Ancillary Markets represent the Total Revenue. The Negative Cost and P&A (Print and Advertising costs) spent, are subtracted from the Total Revenue and the remaining balance is referred to as the Distributor’s Gross (shared by Distributor and Production as negotiated).
Industry results for Independent films of comparable size to "LAKE EFFECTS."
Phase 1
|
Title Budget * |
|
"Brick" $450,000 $2.5M Focus Features |
|
"The Station Agent" $500,000 $1.5 M Miramax |
|
"Waitress" $2.0M $4.0M Fox Searchlight |
*note: these numbers do not include Box Office, DVD sales, rentals, etc. See Phase 2
Below illustrates additional profit from Box Office, DVD and ancillary Markets. Not all films go through Phase 1&2. Some fall into one or the other, or neither.
Phase 2
|
Box Gross DVD Rentals Total Budget P&A Total Dist. Office Receipts Revenue Costs Gross |
|
|
|
Brick 2.1 1.1 2.6 0.8 4.5 0.5 0.4 0.9 3.6 |
|
Station Agent 5.7 3.1 9.0 1.3 13.4 0.5 1.3 1.8 11.6 |
|
Waitress 19.1 10.2 23.4 1.4 35.0 2.0 8.7 10.7 24..3 |
Note: Distributor Gross is in addition to any advances at initial sale (MG)
NOTE: Deals at festivals vary greatly. The prices announced in the press may depend on specific box office results, be advances against future revenue streams, or be total buyout prices with no further remuneration to the filmmakers and their investors. For most of the publicized dollar amounts, the negotiated agreement is not made public.
Below are films with similar budgets to “Lake Effects”.
Note: Several you have likely never heard of and several have no recognizable talent attached yet they still did well at the box office.
|
Title Budget |
|
"Osama" (2004) $45,000 $1,100,000 |
|
"Pi" (1998) $68,000 $3,200,000 |
|
"Facing the Giants" (2006) $100,000 $10,000,000 |
|
"Brick" (2006) $450,000 $2,100,000 |
|
"The Station Agent" (2003) $500,000 $5,700,000 |
|
"Star Maps" (1997) $700,000 $2,500,000 |
|
"Sling Blade" (1996) $1,000,000 $10,000,000 |
Despite current economical trends, it is important to note that investing in film is somewhat recession-resistant.
In the same year the stock market experienced the crash of 1987, theatrical film box office receipts broke records.
