Video Production Proposal Template
Prepared for [CLIENT.Company]
By [COMPANY.FirstName] [COMPANY.LastName]
About this Offer
This package is intended to give potential executive producers a realistic overview of producing movies in the world of independent film. No financial or legal information contained herein should be relied upon by potential executive producers/investors.
Executive Producers/Investors should rely only on their own judgement and consult their own legal and financial advisors prior to making a decision to become involved in this project. While producing independent movies can be profitable, as well as exciting, executive producers/investors should be prepared to see no return on investment.
The business plan is proprietary to Business Strategies and does not constitute an offer to sell, or a solicitation of an offer to purchase, securities. It has been submitted on a confidential basis solely for the benefit of selected, highly qualified investors and is not for use by any other persons. By accepting delivery of this business plan, the recipient acknowledges and agrees that: (i) in the event the recipient does not wish to pursue this matter, the recipient return this copy to the address listed below as soon as practical; (ii) will not copy, fax, reproduce, or distribute this confidential business plan, in whole or in part, without permission; (iii) all the information contained herein will be treated as confidential material.
Information herein is subject to chance as the management moves this motion picture further into development. The budget and schedule contained herein are preliminary and subject to possible adjustments once a bondable line producer is employed.
Video or Film description
[DESCRIPTION OF FILM]
Budget: [FILM BUDGET]
Shooting: [NUMBER DAYS SHOOTING] days
Location: [FILMING LOCATIONS]
Comparable Box Office Performances
Box Office Performances
|MOVIE TITLE #1||$1,200,000||$10,000,000|
|MOVIE TITLE #2||$600||$5000|
Understanding Movie Revenue
There are several ways in which movies “recoup” or generate revenue. This brief summary is in no way meant to be an exhaustive explanation, but does cover some basic points.
Various rights: There are 3 basic rights which movies sell or license to generate revenue.
- Theatrical: Showing the movie in traditional movie houses or cinemas;
- Video: This term refers to DVD and video home rental;
- Television: This term includes free and pay TV.
Foreign & Domestic: These are the 2 very broad markets in which the above rights can be sold or licensed. Domestic, in the United States, traditionally includes English and French speaking Canada.
Generally, the producers of the film will sell or license the various rights of a movie to a distributor. Each movie has 6 basic assets which it can sell made up of a combination of the above rights and territories. Depending on potential commercial viability, as perceived by a distribution company, distributors typically give the producers an advance, minimum guarantee and/or revenue share of the film. The distributor will commit certain additional funds for marketing, prints and production of product. These funds are usually recoup items for the distributor and will come “off the top” before the producers receive any money back other than advances.
In Hollywood, there are far too many real horror stories of the Executive Producer who puts up 1 million dollars for a movie that grossed 8 million dollars never seeing a dollar back. This is often attributed to the point structure on film recoupment.
To alleviate this issue, backers in our production will receive ONE HUNDRED PERCENT of all monies collected until they have recouped a total of ONE HUNDRED PERCENT of initial investment. This is referred to as a “net first dollar” deal. Meaning, the backer receives all money from the moment the production receives a single dollar until the film has broken even. This position is strengthened by use of “buy out” contracts and deferred net deals with above the line talent and crew.
Upon full recoupment of investment, backers then receive a pro-rata share of profits in accord with the investment arrangements. For the production, this would equate to one hundred percent of profit until they have recouped the entire budget of [TOTAL COST OF FILM] and fifty percent of all profit thereafter in perpetuity.
Investors will be issued preferred shares in [COMPANY.Company], a corporation to be formed upon investor commitment, in accord with their investments. The preferred shares shall have no voting rights, but they will be entitled to the accelerated financial distributions described herein and a FIFTY PERCENT (50%) equity positions in the project.
All investments shall be held in escrow by [COMPANY.Company] attorneys for the benefit of the investors until a minimum capital raise of the money is raised. At that time, [COMPANY.Company] may begin production. If, in the event, [COMPANY.Company] has been unable to acquire the minimum capital raise by December 31, [YEAR], all monies, plus accrued interest, shall be returned to investors.
Proposed Budget Overview
[DESCRIPTION OF MAIN CHARACTERS]
Conclusion and Summary
The motion picture industry has become an incredible engine of growth for the State of California, the U.S. economy, and the world. According to industry analysts at PricewaterhouseCoopers, entertainment and media companies generate over a trillion dollars globally with more than $570 billion coming from the United States.
The full script is attached to this proposal. We thank you for taking the time to go over this proposal and look forward to hearing from you.