Archive for General Biz

If there is a demand for epic films, the difficulty in meeting that demand is financing. As Susan King’s interview with Baz Luhrmann illistrates,

“Australia” deliberately hearkens back to the kind of filmmakers and films (think David Lean and “Lawrence of Arabia” or John Ford and “The Searchers”) that gave cinema its bigger-than-life scale. The kind of epics that few directors or studios even try for anymore.

Luhrmann argues that fear has been the genre’s worst enemy.

“Fear of the money, fear of the scale,” Luhrmann said recently. “It’s not easy to sell. It’s easy to market a film about one genre. But it’s not easy to market in this modern age — a film that will make you laugh, make you cry, make you swoon. This belonged to a time where cinema was grand and very brave and very, very absolute.”

Excerpt from Los Angeles Times

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New York based Elliott Associates has recently parked an additional $1 billion into Ryan Kavanaugh’s Relativity Media which will finance a large slate of Universal Pictures’ films over the next few years.

Noci Pictures Entertainment (www.noci.com) a Chicago and Los Angeles film production and structured finance company thinks it may have the answer and its own opportunity with its $300 million dollar international tax advantaged structured film deal that has an option to be principally protected as well using CPPI, including a stand alone 100% principal protected Prints and Advertising Fund which will insure the Company’s U.S. theatrical distribution.

Apart from Elliott Associates, other investors including billionaires,family offices from Wall Street to Silicon Valley to the Middle East to Russia have been parking their money into Hollywood.

Anil Ambani, Larry Ellison Of Oracle, Paul Allen Of Microsoft, Steven Rales, Fred Smith of Federal Express, Norman Waitt, the Co-Founder of Gateway Computers, Jeff Skoll Of Ebay, Marc Turtletaub of The Money Store, Roger Marino Of EMC Corp, Sidney Kimmel Of Jones Apparel Group, Minnesota Twins owner Bill Pohlad; Real Estate Developers Tom Rosenberg and Bob Yari, and, financiers Sheikh Waleed Al Ibrahim, Michel Litvak, and Philip Anschutz are all behind the finance of a lot of films that range from box office hits to Academy Award winners.

Traditionally a lot of media and film funds have sunk because the equity parlayed into these deals was junior. Most of these funds have, and continue to, finance large budget studio films in the $40-$100 million dollar range with senior and mezzanine debt being first and second in position while the junior equity is usually never recouped.

excerpted from The Open Press - for complete story click here

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Nov
26

Coming Soon

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Free Information on Finding Funds for Your Production.

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