On film finance

In covering the scope of film financing, Cones ranges from a discussion of studio-based independent production company methods to an examination of lender financing without distributor contracts to a detailed analysis of active and passive investor vehicles and foreign tax shelters and incentives.

This book explains how to comply with the federal and states securities regulations when seeking to raise money from private investors for the development, production and/or distribution of a feature or documentary film. Drawing from the experience and expertise of a securities and entertainment attorney who has worked with independent filmmakers for 30 plus years, this resource explores securities law compliance in order to help readers comply with the law and avoid criminal and civil liability, while successfully raising investor funds for their film projects. Readers will gain an understanding of why the securities laws apply to most investor financing transactions, what choices need to be made by the filmmaker, what information needs to be disclosed to prospective investors, how to comply with the SEC’s policy regarding financial projections, what is the appropriate investment vehicle for various forms of investor financing, what limitations are imposed on the use of finders and how to handle the required federal and state notice filings. It is an essential resource for any film student taking a film finance course (or a production course with a film finance component), as well as any independent film producers, entertainment/securities attorneys and film school instructors, who want to be informed about the legal and practical aspects of investor financing of independent films.

The practical and legal aspects of writing a business plan for a film venture can be daunting to navigate without a firm grasp of know-how. With this in mind, John W. Cones's Business Plans for Filmmakers arms independent movie-makers and students with everything they need to successfully tackle the confusing intersection of law, business, and art when creating a business plan for a movie. This pragmatic volume offers plenty of examples and strategies for success, sharing straightforward insight into some of the toughest challenges independent filmmakers face when encountering these documents. With simple yet thorough detail and clarity, Cones outlines the legal requirements affecting movie proposals, including ways to evaluate the necessity for a business plan or a securities disclosure document, as well as the legal definition of "an active investor." Also addressed are the numerous subjects filmmakers and students must consider before a film offering, including the efficacy of a business plan to fund the development, production, and distribution phases of a film; common elements of fraud of which fledgling filmmakers should beware; the intricacies of revenue sharing; and how to render financial projections. Cones also imparts useful distinctions between such industry terms as "company financing" versus "project financing," along with many others. This bookalso includes in-depth guidance through the murky paths of investor analysis and key strategies to find and attract parties interested in financing film. Drawing upon his many years as a securities and entertainment attorney, and his experiences advising independent film producers, Cones offers the tools necessary not only to understand investors' motivations but also to use that knowledge to the filmmaker's advantage. Also provided are perceptive studies of the investment vehicles commonly used in business plans seeking investors, with analysis of each method's pros and cons. Throughout the volume, Cones uses sample plans to offer a real-world grasp of the intricacies of the business. In the business of this art, knowledge is power. Business Plans for Filmmakers dispels the myths and misinformation circulating among filmmakers to provide accurate and useful advice.!--?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /--

John W. Cones, whose real goal is to stimulate a long-term film industry reform movement, shows how the financial control of the film industry in the hands of the major studios and distributors actually translates into creative control of the industry. Cones discusses the pros and cons of the debate relating to the industry's so-called net profit problem and the way in which the distribution deal plays an integral part in that problem. He then breaks down five major film finance/distribution scenarios, explaining various distribution deals and suggesting ways of negotiating distribution. Critically examining the specific terms of the distribution deal itself, Cones covers gross receipts exclusions, distributor fees, and distribution expenses. He also investigates the various forms of interest, issues of production costs, matters of creative control, and general contractual provisions. For handy reference, Cones includes an extensive checklist for negotiating any feature film distribution deal. The list deals with distribution fees, distribution expenses, interest, production costs, creative control issues, general contractual provisions, distributor commitments, and the limits of negotiating. His nine appendixes present a "Motion Picture Industry Overview," "Profit Participation Audit Firms," "ADI (Top 50) Market Rankings," an "AFMA Member List, 1992-1993," a "Production-Financing/Distribution Agreement," a "Negative Pickup Distribution Agreement," a "Distribution Rights Acquisition Agreement," a "Distribution Agreement (Rent-a-Distributor Deal)," and a "Foreign Distribution Agreement." Cones wrote this book for independent producers, executive and associate producers and their representatives, directors, actors, screenwriters, members of talent guilds, distributors, and entertainment, antitrust, and securities attorneys. Securities issuers and dealers, investment bankers, and money finders, investors, and financiers of every sort also will be interested. In addition, Cones suggests and hopes that the book will interest "Congress, their research staff, government regulators at the Internal Revenue Service, the Securities and Exchange Commission, the Federal Trade Commission, and law enforcement officials such as the Los Angeles District Attorney and the U.S. Justice Department."

This dictionary is an aid to anyone involved in seeking to finance a feature film project, especially independents. It covers terms used in film production and distribution, marketing, accounting, insurance, securities, corporate structures and general financial arenas. All of the principal forms of feature film finance are covered, including studio/distributors, production companies, lending institutions, co-financing, pre-sales, grants, foreign and passive investor financing involving the sale of a security.

It's pretty broadly recognized that Hollywood movies contain patterns of bias, but it's not just people of color or women who are hurt by this. Many groups within America's multicultural society have complained over the years about negative and stereotypical portrayals of their own group members in motion pictures produced or released through the Hollywood-based studios. Yet, as an expert on the U.S. film industry points out, such complaints have had little impact on consistent patterns of bias in movies. This book takes a broader look at the nature of negative and stereotypical movie portrayals and tracks patterns of such one-sided depictions over a longer period time. As a result, the patterns of bias — and the source the problem — become more clear. The problem appears be that most of the people who have green-light authority in the U.S. film industry — for either the production and/or distribution of a motion picture — share a common ethnic/religious/cultural background. Thus, the stories of their cohort and those of all other ethnic, religious and/or cultural groups (whose members seldom achieve positions of power Hollywood) are being filtered through the cultural sensibilities of a single group. John Cones suggests that the solution could lie in increasing diversity at the highest levels in the U.S. film industry. This work grew out of the observed frustration of film industry critics who have pointed out examples of bias and stereotyping in specific movies over the years only to be rebuffed by the simplistic studio arguments that such films reflect the real world and that moviegoers vote with their pocket books. It can be shown that there is a consistent pattern to the choices Hollywood studio executives make with respect to the movies produced and released and the specific content of those movies, and it becomes obvious that Hollywood is selectively portraying reality. Movie goers only have limited options among all of the possibilities that could be portrayed on the silver screen. This book differs from other studies touching on bias in motion pictures. Most such books focus on the treatment of a single ethnic, religious, cultural, racial or other readily identifiable interest group, but this study attempts to provide an overview and to identify patterns over time. When the patterns of bias in motion picture content are sufficiently demonstrated and documented, it becomes easier to identify the source of the bias and to explain why such bias exists.