With many Studio budgets exploding to over $250 million, & many of them losing money, it’s no wonder distributors and investors are seeking more indie films. The $3-$8 million budgets are the sweet spot, however, the under $3 million are becoming more popular.
Solid stories with great acting tend to be found in the indie market, more so then the bloated studio market. I do budgets and schedules for all size production, including tons for studios, and the expenses in a $200 million plus budget would blow you away. Many studios automatically add up to 20% in the budget for “studio overhead” with no breakdown of what that is. Oversized crews, $100 million just to talent, producers at 15%, equipment that will rarely or ever be used but they want it “just to be safe”, VFX costs that are rarely ever “bid out”, multiple location countries that often can be “cheated”, travel & living costs, and the list goes on.
I recently did a budget for a "Studio" for $175 million (can’t say the project at this time). I came in at $130 million and gave them everything they wanted including an extra 5 days of shooting. The budget wasn't approved because $175 million was appropriated & they needed to spend that full amount. So, I added another $45 million in bloated costs and the budget was approved. This is the problem with studios.
It’s known that whatever your budget is, on average, multiply it by 3 and that’s what the film has to make in order to break even. So that $300 million film has to see nearly a billion $ just to break even. Hence so many that are failing. Disney/Marvel are excellent examples of mismanagement and 4 of their last 6 releases have lost over $100 million apiece (upcoming Snow White is predicted to lose over $200 million, and that’s coming from Disney’s own analysts).
Enter the scaled down indie film. Often better stories, better acting and appealing to a wider audience. Be excited if you’re an indie producer. Best Picture at the Oscars was only an $8 million budget.
So write that script! But be smart. Don’t write a $50 million movie and try shoving it into a $3 million budget. Yes, many indie films fail, but a lot more are succeeding. Make sure you’re prepared for an investor. Is your budget accurate? Is your shooting schedule realistic? Do you have a film financing business plan (required by most investors, & they don’t require a pitch deck). Have these items ready when an investor asks for them. You don’t want to have them wait a couple weeks so you can get those items. Hint: They won’t wait.
Hollywood is going through a major change. However, good content at a decent price will ALWAYS be in demand. If your project is solid and the budget is right, there’s an investor out there for you. It may take time to find them, but the payoff is worth it.
DM me for my budgeting, scheduling, consultation and film financing business plans services rates and info.
Now go out there and change the world.
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You're funny Shane! Happy Friday, going to be an awesome webinar!!!
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Hello, Sydney and Shane. My name is Rey Parla. . . I am an artist in Brooklyn, NY. This is precisely the course I have been waiting for since joining the Stage 32 community. I am looking forward to it. Thank you for making it available here and through the emails. See you soon. ~Rey
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This has been very helpful as someon who is new to all of this, I really appreciate this webinar.
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Bravo! This looks incredible! While collaboration is important, knowing how to take charge of your production and wear many hats is likewise a huge advantage!
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Thank you to everyone who attended today!! How was it for all?