Film budget

The art and science

 1. Development
Phases of 2. Pre-production

making a
3. Production
4. Post-production
film 5. Marketing and distribution
6. Exhibition
 • Story idea is discussed and finalised

• Draft of the script written

Phase 1 • Financial logistics viewed and reviewed. What type of

film are you planning, accordingly you will plan the

Development
budget.

• This phase can go on for three months – one year

•  Film can be conceived or killed at this stage

•  Film studio has to confirm a budget, procure rights of

any work that is to be adapted into a film
•Did you Know?
•►An average of 35 films per week are released in India.
•► In 2019, as many as 17 Hindi films made it to the coveted Rs 100 crore club.And six Hindi films
made it to the Rs 200 crore club.
•► Hindi films contributed approximately 43% of the GBOC, despite comprising only 14% of films
released
•► Films in other regional languages, which accounted for 80% of films released in 2019, contributed
approximately 44% to the GBOC
Phase 1

Film budget – The science and art

Cost/Revenue/Profi of making a
t successful film
How is film revenue calculated
How earnings decide hit or flop
• Film that earns more than 4times the budget is a super hit.
• A big budget film with several stars that earns close to 2.5times the
budget is a blockbuster.
• Film that earns more than 1.5 times the budget is a hit.
• Film that earns less than the budget cost is a flop.
• Film that earns less than 3/4 of budget cost is called ‘box office
bomb’.
 Basic sources of revenue

THEATRE BROADCASTING DISTRIBUTION MUSIC RIGHTS DVD/VCD

COLLECTION RIGHTS RIGHTS RIGHTS
 Preparing a budget

Besides regular
cost, consider the “prep days” Genre Pick up days
following:

Kits required Damages Losses/Insurance

Success and failure of film in terms of money
• Film that makes profits is a hit
• Film that makes losses is a flop

• Who earns the profits?

• Producer
• Distributor
• Theatre owner

• Know more from

https://www.reddit.com/r/bollywood/comments/bej88g/what_makes_a_film_hit_flop_super_hit_or/
 ABOVE-THE-LINE:
           
  Pre-Production and Development # UNIT PRICE TOTAL $ COST

           
RESEARCH       0
1000
Books, research materials 1 allow   0
1010
Videos, screenings 1 allow   0
1020
Meetings (advisors, staff, etc.) 1 allow   0
1030
Misc research 1 allow   0
1099
           

  TOTAL       -
           
   
  Producing Staff # UNIT PRICE TOTAL $ COST

           
2000 DIRECTORS, PRODUCERS, WRITERS       0
Producer/Writer/Director (loanout) 1 flat   0
2010
Box Rental - Dir/Prod 1 allow   0
2011
Expenses - Dir/Prod 1 allow   0
2012
Producer 0 flat   0
2020
Box Rental - Prod 0 allow   0
2021
Expenses - Prod 0 allow   0
2022
Executive Producer 0 flat   0
2030
Expenses - Exec Prod 0 allow   0
2032
Writer 1 flat   0
2040
Box Rental - Writer 0 allow   0
2041
0
2099 Personnel Taxes (FICA, Medicare, FUI, SUI, payroll)   %  
           
Box rental
• kit fee - production company pays a crew member for the use of
equipment that may include single-use items also like tape, gels, etc.
• Compensation for using crew’s equipment
• E.g. sound artistes prefer their own equipment.
• Hair and make up kits essential in transforming actors
     
   
  Rights, Music & Talent # UNIT PRICE TOTAL $ COST
           
3000 STORY & OTHER RIGHTS       0

3010 Story Rights   allow   0

3020 Title Report (Thomson & Thomson) 1 allow   0

3090 Miscellaneous   allow   0

          

3100 ARCHIVAL PHOTOGRAPHS & STILLS       0

3110 Researcher fees (Outside contractor) 0.2 weeks   0

3130 Preview fees 1 allow   0

3140 Shipping/messenger 1 allow   0

3150 Stills duplication costs 1 allow   0

3160 Stills licensing 18 stills   0

3190 Miscellaneous 1 allow   0

          
 STOCK FOOTAGE & FILM CLIPS   0
3200
Researcher fees (Outside contractor) 1 weeks   0
3210
Preview tape fees 1 allow   0
3220
Shipping/messenger 1 allow   0
3230
Stock footage licensing 30 seconds   0
3240
Stock footage transfer costs 1 allow   0
3250
Film clip licensing 0 seconds   0
3260
Film clip transfer costs 0 seconds   0
3280
Miscellaneous 1 allow   0
3290
 
 
TALENT       0
3300
Union & Guild Performers 0 allow   0
3310
Union & Guild Fees 0 allow   0
3320
Personnel Taxes (FICA, Medicare, FUI, SUI, payroll) 0 allow   0
3330
         
 
MUSIC/COMPOSER       0
3400
3410 Composer (all-in package includes musicians, score, and recording session) 1 allow   0
3420 Music Supervisor 0 allow   0
0   0
3430 Add'l Music Rights (songs, etc.) allow
           
Box Office Verdict from
https://www.bollymoviereviewz.com/2013/04/bollywood-box-office-collection-2013.html

BOX OFFICE BOX OFFICE VERDICT

MOVIE NAME BUDGET (COST+ P&A)
COLLECTION (HIT YA FLOP)

Badhaai Do 11.79 Crore 45 Crore —

Gehraiyaan 8.5 Lakh Views 70 Crore Flop

Khiladi ( Telugu) 19.5 Crore 60 Crore Flop

Pushpa (Hindi)  107.09 Crore 180 Crore Super Hit

Questions to answer
• Name two producers, distributors and theatre owners.
• Name two films which have been blockbusters.
• Name two films that could not recover their costs?
• Name an actor who has turned a producer/distributor.
• Name two women directors in Indian cinema
• Name two women directors in foreign cinema
• Name one of the highest paid screenwriters
How much do screenwriters earn?

3-5% Screenwriters in the industry get over Rs 1 crore for a project

2x Jump in fee for top-level screenwriters since 2015

6-7 Leading talent management agencies representing screenwriters

10% The commission that agencies charge screenwriters for every project they manage

6 months Avg time most studios give writers to finish a screenplay

Rs 2-3 cr Studios pay to buy remake rights for south Indian films

50:50 Split of remake rights revenue between producers and top-level writer-directors of Tamil movies  ..

Source: ET, January 6 2020

https://economictimes.indiatimes.com/industry/media/entertainment/why-this-is-the-best-time-to-be-a-writer-in-show-
business/articleshow/73616545.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst