Professional Documents
Culture Documents
Prog TV Gea Eng
Prog TV Gea Eng
for production, contingency money has been put aside, and the many other details have been
finalized so that the actual shoot can begin. Chapter 8 explores the specifics of production.
3. Post-Production Costs
This is traditionally a challenging area for producers to accurately budget. As you’ll learn in Chapter
9, there are many factors in the post-production process to consider. These include the hours of
footage that need to be screened, logged, and loaded into the editing system; the skills and style of
the editor, and the costs for the editor, editing facility, the audio mixer and the audio facility; any
graphics, artwork, animations, text, captioning, credits, and other design effects; music, narration,
voice-over, sound effects, sound design, and even foreign language translation.
These costs are project-specific fees or salaries paid to the creative personnel (producers,
directors, writers, and actors, depending on multiple factors including union affiliation, time
required, special perks, and star power). Above-the-line fees are paid in several ways:
• Union fees: If the writer is a member of the Writers Guild of America (WGA), that fee is stated
in the WGA contract with the producer. The same applies to a director who’s a member of the
Directors Guild of America (DGA) and to a Screen Actors Guild (SAG) actor.
• Daily or weekly fees: The personnel agree to a fee to be paid daily or weekly.
• Flat fees: Often a producer agrees to pay a fee to an above-the-line creative in install-
ments: one-third on signing a contract or deal memo, one-third on completion of
principal photography, and the final one-third when the project is completed.
• Producer fee: Because the producer is usually the person deciding how fees are paid, this
can be a very arbitrary fee. The producer(s) generally takes the project from start to finish,
and works longer than most everyone involved. Some producers take weekly fees, others
work on a flat per-project fee. A producer might also defer payment until the project is sold
in exchange for a bigger fee at the back-end of the deal, although there are seldom little, if
any, profits to be made in the majority of projects.
2. Below-the-Line
These costs tend to be more predictable, covering the technical crew and their equipment,
resources, and standard expenses like overhead, insurance, and more. Below-the-line personnel
can be union or nonunion; this depends on whether the company behind the project is a union
signatory who has agreed to adhere to union regulations. There are several unions that cover
professionals such as writers, directors, actors, camera operators and audio engineers, grips and
gaffers, make-up and hair, wardrobe, and others.
Union members are protected by strict rules that include hours worked, overtime, meals and
breaks, benefits, and pension and welfare (P&W). Nonunion members can be more flexible with
the hours they will work, they aren’t paid benefits, and their rates tend to be more negotiable than
union members who are often bound by rate scales. Nonunion members can be as qualified
as union workers, and often, union members will work on nonunion jobs. Membership in a
union doesn’t necessarily imply quality or experience.
In the early stages of developing your project, you may be asked by a potential buyer or investor
for an estimated budget that details the possible production costs. Drawing up this estimate and
putting specific figures on a sketchy idea can be a real challenge, especially for a beginning
producer. Often the script hasn’t been written yet, and there is little information that can act as a
basis for a budget. Ironically, the producer is looking for development money to expand the idea
into a format that can be broken down and budgeted. When a potential buyer asks for a rough budget
estimate, your response might include one of the following options:
• Ask about the client’s financing parameters. Most are experienced enough in the business,
and have an amount in mind that they’re willing to spend. For example, they may have
only $300,000 to spend, but your budget estimate is $350,000. You might be able to trim
your budget down by $50,000, or you can justify the reasons behind your estimate and
convince them to raise their offer by $50,000.
• Give the buyer choices: a Plan A budget that reflects everything on your production wish
list, and a Plan B budget that covers fewer extra effects, locations, and other items that add
to a budget.
• The buyer may be willing to give you a small development fee for expanding your script,
research, location scouting, or doing a script breakdown.
• A buyer may be so dedicated to your project that they can find additional money from
other budgets, or they may genuinely not have the amount you’ve budgeted. Often their
commitment to your project can motivate you to pare down your budget as much as
possible and to somehow make it work.
• Don’t be afraid of walking away. If, for example, a buyer won’t budge from a $200,000
offer and you’re quite sure that your budget of $300,000 is realistic and professional, you
can politely refuse their offer and look elsewhere. The skills of negotiation can be
developed over time; meanwhile, an agent or entertainment lawyer can be a tremendous
asset in making a deal.
2. Actual Budget
In the attached CD, you can find a sample project budget that has several columns. One is
labeled actuals and the other is labeled estimated. The figures in the actuals column represent
what was actually spent, rather than what was originally estimated (seen in the other column).
Consider the example of a producer who budgets enough money to cover a three-day shoot
on a beach. Suddenly, an unexpected storm shuts down the entire production for all three days.
The production has stopped, but the talent and crew are still receiving full pay. After the storm
passes, the producer shoots the necessary scenes for three additional days. In this example, the
original estimated costs called for three days of shooting while the actual costs were for six
days. This extra time and salary have to be covered in the budget, somehow.
You have to know what things cost, because you have to know when you can say yes
and when you can say no. We’ve got $30K to do this, and $30K seems like a lot but then
you realize that $30K covers your travel, your crew, three days of shooting, your
transfers, expenses, editing, the mix . . . you have to know what is in the budget.
What is allocated for what portion, and realistically, can it be done?
—John Rosas, excerpt from interview in Chapter 11
An effective budget outlines each and every category involved in every phase of the project.
Each category in the budget is known as a budget line. There is no one standard budget form
that’s used by all producers. Depending on the project, a budget could be one short page or a
dozen. Some budgets are separated into above-the-line and below-the-line costs; other budgets are divided
into preproduction, production, and post-production categories. But all budgets must clearly specify what
money gets spent and where.
2. The Top Sheet
Most longer form budgets begin with a top sheet, a brief summary of the project’s costs in each
department. It gives the producer a valuable overview of the budget at a glance. A blank top sheet,
known as the Project Costs Summary form, can be accessed in the accompanying CD.
3. The Detailed Budget
A detailed budget addresses every aspect of the project’s production. Each detail in a script or
project translates into a cost that’s part of a key budget category, or account. These accounts
include all the departments and all expenses. Budgets are seldom distributed to anyone but the
producer, director, line producer, and/or the production manager. A detailed budget varies in
length, depending on the project.
4. Budget Lines and Categories
While creating a budget for a project, you might include any or all of the following categories:
• Producers: Each project has at least one producer with specific responsibilities. The primary
producer is usually at the helm of the project from day one, and gets paid until the project is
completed. His or her time must be budgeted for meetings, pitches, and day-to-day
development in the beginning, all the way through production and post-production, and
continue through consulting on marketing and distribution at the project’s end.
• Screenplay and/or story rights: If the script isn’t the producer’s original script, then the
producer must pay for the rights to use someone’s else’s story, script, article, book, or idea.
Reality shows often require rights and releases.
• Writer(s): Regardless of the source of the idea, a writer or team of writers is hired to flesh
out the idea or refine an existing script.
• Director: A director with experience, vision, patience, and the ability to work fast is a
major benefit to any show. He or she may be expensive but can save you money over the
long run.
• Actors: Well-known stars can escalate a budget, but their names attract viewers and
necessary sponsors. Unknown actors charge less, and with the right script, director,
rehearsal time, and network promotion, they can create a hit show.
• Talent perks: Stars often demand extra benefits such as a personal makeup artist, a wardrobe
stylist, a physical trainer, special trailers, travel accommodations, secretaries, and nannies.
• Crew: A crew can consist of 1 to 2 people or hundreds — it depends on the project as well as
any necessary union regulations. Basic personnel might include camera and audio operators
and their assistants, a director of photography, assistant director, a prop master, electricians
(gaffers), grips, a stylist, a script supervisor, scene artists, set designers, carpenters, still
photographers, a location scout, craft service, ambulance or paramedic/nurse on call, a tutor for
minor children, choreographers, stunt coordinators, and others.
• Staff: The project usually employs production secretaries, administrative staff, production
assistants (PAs) and interns, who are assigned to areas in which they’re needed.
• Locations: Costs for locations could include scouting fees, transportation, hotels for cast and crew,
meals, location and permit fees, and equipment rentals. A location can be less expensive
than building a set, although locations can have their own challenges: audio problems that can’t be
controlled — like airplanes and air conditioners — or inadequate electrical power for cables and lights.
Foreign locations create additional costs like varying personnel rates and wages, travel expenses, taxes,
and currency exchange rates. However, these costs, when compared to domestic costs, might still be less
expensive.
• Set construction: Sets can be elaborate and handcrafted, they can be computer-generated,
or they can be minimal and simple. This area might require a production designer, set
designer, construction costs, and personnel such as artists, painters, and carpenters.
• Hair and make-up: The needs of this department depend on the project’s talent requirements and
size of the cast, which includes supporting characters, minor children, and extras. Special effects,
such as fake blood or wounds, toupees, hairpieces, or wigs are also taken into account.
• Period pieces: Recreating another time period automatically increases the budget in
virtually every below-the-line area including locations and sets, wardrobes and props,
researchers, and production designers.
• Special effects: This category includes extra costs like explosions, stunts, smoke, special
lighting, car chases, gun shots, and rain.
• Music and sound effects: Most programs include show themes and filler music that has
been especially composed for the program, as well as additional sound effects and voice-
over narration. Occasionally, a sound track or theme song can become a popular hit. For
lower budgets, stock music is an excellent alternative.
• Transportation: Hauling equipment, cast, and crew from one location to another requires
trucks, vans, and other vehicles, along with tolls, parking, gas, and vehicle maintenance,
all of which can add to a budget’s costs.
• Meals: Keeping fed and energized is essential in any production, large or small. Make sure
there’s at least one full-sized healthy meal per day, and keep a table of healthy snacks, a
bit of junk food, and refills of coffee, tea, and water.
• Security: In many cases, a production needs the help of a security guard or team of guards
to protect equipment, keep talent isolated from fans, crowd control, and to generally keep
one eye on the big picture.
• Post-production: This area can be cheaper when producers and directors know how to
shoot less, edit “in their heads,” log and screen, and come prepared to the edit room. Costs
include tape transfers, loading into an editing system, the edit time, music and sound design
and mixes, and graphic elements
• Animation: If a show contains animated portions, or is entirely animated, this budget line
can be complex, and might include artists, designers, colorists, software operators, and a
variety of other personnel and equipment. However, animation can cancel out your costs
for props, wardrobe, make-up, and so on.
5. Additional Budget Lines
The producer also factors in expenses such as office overhead, petty cash, finance charges,
insurance and special riders, and payroll, accounting, and legal costs. Additional expenses
could also include music licensing, stock footage, stock music, and research fees,
transcriptions, and foreign translation.
• Office overhead: Whether you’re renting an office space or using your apartment as a pro-
duction office, you’ve got daily operating expenses such as rent, electricity, telephone (cells
and land lines), faxes, cable, the Internet, copy machines, a VCR and monitor for screening demo reels and
your own footage, and basic supplies like paper, pens, and staples. The standard overhead fee is 6 to 8%.