Film Financing
The process of securing funding to produce a film from various sources including investors, studios, and incentives.
Definition
Film financing assembles capital needed for production from diverse sources: studio funding, equity investors, pre-sales, tax incentives, grants, gap financing, and completion bonds. Most films combine multiple sources into complex financing structures.
Financing involves projecting returns, allocating revenue waterfalls, and managing investor relationships. Risk mitigation through pre-sales, insurance, and incentives makes projects more financeable.
Why It Matters
No financing means no film. Understanding financing enables filmmakers to package projects attractively while navigating deal structures that affect ownership and returns.
Financing expertise also identifies realistic budgets and structures that optimize risk-adjusted returns for all stakeholders.
Examples in Practice
A producer packages a film with pre-sales covering 60% of budget, enabling bank gap financing for the remainder at favorable rates.
Tax incentives in multiple territories reduce effective budget by 25%, making a mid-budget drama economically viable.
An equity investor provides development funding in exchange for first-look rights and producer credits on resulting productions.