Free Trial

Safari Books Online is a digital library providing on-demand subscription access to thousands of learning resources.


Share this Page URL
Help

Chapter 4: The Industry > What Do You Tell Investors? - Pg. 82

82 Filmmakers and Financing Thanks to improvements in the technology, filmmakers believe that they can deliver a better product. Theater owners, once they get over initial costs, can charge more per ticket. DreamWorks Animation SKG says that it is releasing all its new films in 3-D. The company's comedy Monsters vs. Aliens, currently in distribution as this edition goes to press, earned $59.3 million in its opening week- end and has grossed over $340 million to date worldwide with an estimated budget of $175 million. On a more moderate budget of $20 million, Lionsgate released My Bloody Valentine 3-D, which has earned $71 million worldwide to date. One motivating factor is the belief that teens and twenty-somethings are staying home to play video games, and 3-D will bring them back to the theater. At the moment, much of the forward movement has been stalled for the same reason as the rest of the digital screens--the credit crunch. Digital projection systems are required for 3-D screenings. Currently, only about 2,000 of 40,000 screens in North America are 3-D ready. Since moviegoers have the same money problems, there also is the question of how many will be willing to pay an extra $2 to $5 for a 3-D film. Then another question recently became public: Who is goingtopayfortheglasses?Neitherthedistributorsnortheexhibi- tors are prepared to take on the expense. The glasses cost 75 cents each; however, overall we are talking about millions of dollars. whAt do you teLL InVestors? All business plans should include a general explanation of the indus- try and how it works. No matter what your budget, investors need to know how both the studio and the independent sectors work. Your business plan should also assure investors that this is a healthy industry. You will find conflicting opinions; it is your choice what information to use. Whatever you tell the investor, be able to back it up with facts. As long as your rationale makes sense, your inves- tor will feel secure that you know what you are talking about. That doesn't mean he will write the check but at least he will trust you. Tables and Graphs A picture may be worth a thousand words, but 20 pictures are not necessarily worth 20,000 words. The introduction of user-friendly computer software has brought a new look to business plans.