43 Ways to Finance Your Feature Film: A Comprehensive Analysis of Film Finance / Edition 3

by John W. Cones

Overview

John W. Cones has updated his now classic 43 Ways toFinance Your Feature Film: A Comprehensive Analysis of Film Finance with a substantially reorganized and expanded third edition.

An essential reference guide for film professionals on every side of film financing, 43 Ways answers the question that every filmmaker and producer ultimately faces, the issue that can make or break any venture into the film industry: How do I finance my feature film? The third edition includes updated information and coverage of new options for financing.

In his clear and concise style and with expertise amassed over his nearly twenty years of experience in the film finance industry, Cones breaks financing options down into six main areas: gifts and grants, investor financing, domestic government subsidies and tax incentive programs, lender financing, international finance options, and studio or industry financing. Beginning with the forms of financing most likely to be accessible to independent feature film producers, Cones proceeds to other forms that become increasingly available as the producer’s career matures.

As an objective adviser, Cones provides specific, concise information regarding the many possible financing strategies and lists the distinct pros and cons of each strategy. This guide covers the options for film financing in rich detail so that even first-time producers and filmmakers will be able to make educated and informed decisions about the best approaches to financing their films. An extensive bibliography contains additional information about each form of film finance. Cones also counters much of the bad advice being provided by pseudoprofessional film finance consultants and points out scams that may separate unwary film producers from their money.

Although the book focuses on financing feature films, much of its information is relevant to the financing of other kinds of projects, such as short films, documentaries, videos, and multimedia and theatrical endeavors. Anyone considering making or investing in a feature film will be well served by this practical and helpful guide.

Product Details

ISBN-13:	9780809326938
Publisher:	Southern Illinois University Press
Publication date:	03/06/2008
Edition description:	3rd Edition
Pages:	384
Product dimensions:	6.12(w) x 9.25(h) x 1.10(d)

About the Author

John W. Cones, a securities and entertainment attorney based in California, is the author of The Feature Film Distribution Deal (available from Southern Illinois University Press).  He has extensive experience in the financing of feature films, television pilots, documentaries, infomercials, live stage plays, and Internet companies. 

Table of Contents

Preface     xi
Introduction: No Single Best Way     1
Subsidies     9
Gifts and Grants     11
Domestic Government Subsidies and Tax Incentives     21
Investor Financing     39
Active Investor Vehicles     47
The Investor-Financing Agreement     49
General Partnerships and Joint Ventures     52
The Initial Incorporation     59
The Member-Managed LLC     64
Passive Investor Vehicles     67
The Manager-Managed LLC     71
Limited Partnerships     74
Corporate Finance     80
Securities Compliance     95
Private (exempt) Offerings
Statutory Exemptions of the 1933 Securities Act, Section 4     96
Intrastate Offering Exemption     103
Regulation D     105
Public/Private (Hybrid) Exemptions
Public/Private (Hybrid) Exemptions     115
Public (Registered) Offerings
Small Corporate Offering Registration     128
Regulation A     131
Regulation S-B     135
S-1 Public Offerings     138
Over-the-Counter, NASDAQ and Stock Exchanges     141
Lender Financing     147
Lender Financingwithout Distributor Contracts     149
Negative Pickups and the Artificial Version     157
Presale Financing     166
Gap and Supergap Financing     177
Insurance-Backed Schemes     184
Securitization     188
Studio/Industry Financing     193
Studio Development and In-House Production     195
Studio Production-Financing/Distribution Agreements     199
Studio-Based Production Companies     204
Independent Distributors     207
Domestic Studio Facilities     210
Film Laboratories     213
Talent Agencies     215
Actor Financing     217
Product Placements     221
End Users     225
Completion Funds     227
International Finance Options     231
Foreign Equity     233
International Coproductions     244
Foreign Tax Shelters and Tax Incentives     256
Blocked Currency or Blocked Funds     275
Foreign Currency     279
Foreign Below-the-Line or Facilities Deals     281
Foreign Government Subsidies     283
Foreign Debt Capitalization Programs     289
Conclusion: The Broader Film Finance Environment     291
Finding Investors     297
Limited-Use Business Plans     299
Financial Projections     304
Securities Marketing Considerations     307
Sources and Further Reading     331
Index     359

Editorial Reviews

Cones’s 43 Ways to Finance Your Feature Film includes something for everyone. The book is well suited for independent filmmakers who wish to learn how film financing occurs throughout the industry and how to converse with their attorneys about legal arrangements when they discover potential investors for their film projects.”—Entertainment and Sports Lawyer

“[Cones provides] valuable pointers and insights to the burgeoning producer.”

—Boxoffice

From the Publisher

Under the four broad categories of industry, lender, investor, and foreign financing, Cones a securities and entertainment attorney, suggests and explains 43 specific routes to that pot of gold that must precede the cinematic rainbow. He summarizes the benefits and drawbacks of each without advocating any one over others. His focus is on feature films but his information is also relevant to short films, documentaries, videos, multimedia projects, and theatrical endeavors. Includes an extensive bibliography for each approach. Annotation c. Book News, Inc., Portland, OR (booknews.com)

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