$1 million Movie Making: A Tough Sell

Producer-director Gary Winick announced that in January
he will close shop on his InDigEnt film company bringing an end to the high profile production outfit that championed low-cost, independent, and digital movie making.

InDigEnt made headlines at 2002 Sundance Film Festival with movies like "Tadpole" and "Personal Velocity".
When asked why he's closing shop, Gary said the million, instead of the $1 million to make $10 million."


I think this raises some interesting questions when creating budgets and business plans for independent films. Either you budget for less than $250K, or over $3-$5 million, but not in between for fear of not recouping that money back.

In recent years independent films have become more expensive to produce as more and more stars work in them. And as the movies' box office has improved, money from the specialty divisions of major studios (otherwise knows as mini-majors)has raised the stakes.

The good news is that in the future, Video On Demand revenue for indie films will level the playing field again, as itbecomes a significant revenue source for filmmakers. But until then, think long and hard about how much money you are trying to raise for your production and what makes real financial sense for the near future.

Also think about where your revenue is going to come from and if you are willing to do a platform theatrical release on your own to perhaps bring some more revenue into the coffers.

And if you want an evaluation of your project that you're thinking of writing up a business plan for, just email me back and I'll be happy to answer any questions you have.

When you're ready to dig in and get to work on a financial plan and distribution strategy that makes sense for the film you want to make, sign up for my Film Financing Secrets package and you'll have a solid plan in no time that you can present to potential investors:

http://www.film-financing-secrets.com

Until then, please continue to reply with any feedback you have and any experiences you've had with regards to raising financing and recouping strategies - I love to share real case studies with the group.

All the best,
Stacey
PS: Don't forget, maybe it makes sense to double or triple your budget and make a film that has potential of making even bigger returns that you imagined.