Film Finance

[bigletter]Finance plays a major role in film or movie production. The finance of a movie production starts with the preparation of the production budget. The total production budget is divided into three stages:[/bigletter]

• Pre-production budget (50%)
• Production budget (30%)
• Post-production (20%)

The pre-production budget will cover cast and crew payment, feeding and accommodation, location cost, government permits, and other logistics. The pre-production budget also covers all the equipment, which include cameras, sounds, lighting, costume, production design materials, and the production office.

The production budget covers the daily running cost of the movie production which includes, feeding, transportation cost, power generation, and other production logistic overhead.

The post-production budget includes editing, music production, advertisement, and social media cost. 

The producer prepares the total production budget and forwards it to the executive producer.

Most secular movie productions are financed through a combination of investors, tax credits, grants, and other sources. This funding must be secured (usually by film producers and sales agents) at the beginning of a motion picture’s development, to pay for all the costs that accrue during the making of a film. There are two main ways that this funding can be secured:

• Through a studio: the film studio handles most of the financing when a feature-length film is being made under the umbrella of a major film studio. The company producing the film is usually tasked with doing the legwork to gather enough investors to fund the film.
• Independent funding: a film project made without the help of a major studio is called an independent film. When a film is being produced independent of a studio, it’s up to the film’s producers to secure financing for the project. Independent filmmakers use their personal network, tax credits, and grants to raise funds for their films. Most times, films or movies made in church, for the propagation of the Gospel fall under this category.

Church or independent ministry movie production may be financed through:

1. Grants.
2. Tax incentive.
3. Donations from church authority/members/other friends.
4. College/university project work/volunteers.
5. Product placement.
6. Use of church equipment and staff.
7. Use of church members for catering services.
8. Placement of drama/church/group bank account at the beginning or end of the movie.
9. Offering/raising funds during premiere activities.
10. Drama members’ financial and non-financial support.
11. Collaboration with other drama groups or organizations.
12. Use of personal savings or drama group savings.

Watch out for part 2 in our next edition!