58 Chapter 4 BUDGETING THE CORPORATE VIDEO PRODUCTION categories are running over budget, you can reduce expenses in another category. While Hollywood seems to wink at films that go over budget, corporate managers take their budgets seri- ously. Video productions easily can go over budget when a large number of small expenses quickly pile up. Distribution and Marketing Budget You should learn early on if your production budget includes distribution--online and on DVDs or other media. You don't want to be surprised at the premiere screening to learn that your budget included distribution. Content distribution networks (CDNs) charge by the viewer and running time of the program. Some companies have their own distribution networks. Frequently the budget for a video includes its distribution. A request for proposals might ask for the rates for video on demand for X number of viewers per month, or it may want DVD replication and packaging. In addition to the costs for duplicating or replicating DVDs, consider the budget for graphic design for the DVD label. Packaging is another item to consider, as are the labor and fees for mailing the DVDs. If your company seeks to recover its costs by selling DVDs or uploads of the video, there may be marketing costs involved to promote or advertise the video. If this is the case, early on try to estimate the expected revenue from the distribution of the video. This can justify marketing and distribution fees, and per- haps could make the video profitable for the company. Once your video unit is a profit-making entity, you'll have many more opportunities to produce additional videos in the future. The Bottom Line The budgeting basics can be spelled out in three steps: 1. What do you need? 2. How long you will need it? 3. How much will each item cost? You don't want money to get between you and your creativ- ity. Having to worry about pinching pennies or constantly consulting the calculator can drain your energy. Developing a budget based on sound practices, consultation with others on the production team, and prior experience lets you do what you do best: produce exciting and motivating informational videos.