Description of Production Entity
Description of Production Entity
All feature film projects are produced within the context of the entertainment industry. The general health of the industry in important in evaluating the prospects for a specific feature film project. Therefore, the financier should be informed of the current and future prospects of the entertainment industry with special focus on development of revenue sources. This section will also help the financier to verify how well you understand current trends.
In you description of the product entity, include the following details.
Market for the proposed project
A a producer, you may feel that your film project is unique and its market can not be specifically identified. However, in order to sell the film to distributors and exhibitors, you must identify a primary market and the type of film goer your project will cater to.
Every film has or will have competition in its category. So, define your film’s market share and if the film will have particular appeal in certain territories as opposed to others, specify them, Identify the competition and give reasons about why film goers will prefer your film to others. Describe intended marketing strategies such as media campaigns and potential advertising. Such a description might include artwork for both print and television advertisements.
Does your project have any other competitive edge in the entertainment industry ? Are costs lower for some reason, such as low overheads, non-union labor, foreign location, foreign co-financing etc.? Describe costs for the project and compare them with that of other ongoing projects in the industry.
Present Production Activities
Though this section appears much later in the film finance package, write this section assuming that the person reading it has no knowledge of the entertainment industry trends and your production entity. Describe details as if you are talking to a person who is a total stranger to the industry. Be factual and clear in you description.
While describing this section, include as many items from the list given below.
The current or planned legal form of the production entity. Define the type of partnership general or limited, corporation, or other.
- Your current productions.
- The potential audience. including age group, sex, education and income level.
- The locations where you have produced your earlier films.
- The members of the production team including writers, directors, and above the line and below the line members of the cast and crew.
- The expected problems or threats that the production entity may face.
Future Production Plans
if the production entity or house is an ongoing business, state its long and short-term goals. Goals can be expressed in terms of total sales and or revenue, total number of films sold or produced, number of employees, profitability, market share, size and location of offices and position in the business.
Long-term goals are an expression of the short-term decision the producer needs to make in order to meet those goals. Hence, goal help the financier to evaluate the wisdom of investing/lending with this producer.
Other types of goals that you can describe include:
- Identification of certain types of creative personnel.
- Development of literary property.
Inclusion of broader production objectives
Such detailed objectives will show that the current project is part of an over all strategy and bound to impress the financier.
Production Activities and Suppliers
If in the preceding sections you have not already given an overview of the actual or potential production activities you have been or are engaged in, do it here. Provide a list of buyers of filmed entertainment who have purchase past productions including distributors, television network, video cassette distributors, etc. Here, highlight the factors tat were of particular interest to those buyers and led them into acquiring the productions.
If you are seeking to raise additional production funds after having already secured a commitment from a distributor or a financier, you need to explain the exact terms of the existing deal and the additional amount required to the secondary financier. It is best to provide written proof of the previous agreement, if any, to all concerned parties. Also, the agreement should clearly sketch the details of revenue distribution among all financier based on the amount they have lent you.
Suppliers are of many types, sizes and importance. While sharing details with the potential financier, list suppliers by name and their importance for the production. If the identity of the suppliers is sensitive information, which you do not wish to disclose, describe the suppliers in general terms. Along with this, describe suppliers items or services, which are important to the film and evaluate the business relationship between the production team and the supplier.
Specifying suppliers can be useful in establishing one’s credibility in the industry, as some suppliers are will recognized and known and your relationship with the suppliers may facilitate you credit worthiness and position.
By S3 Cine Production Google Profile