Film Financing

PRAHLADRAI DALMIA LIONS COLLEGE OF COMMERCE AND ECONOMICS
FILM FINANCING
Chapter no 1
FILM FINANCING Page 1

Introduction to film financing

Film finance is an aspect of film production that occurs during
the development stage prior to pre-production, and is concerned with
determining the potential value of a proposed film. In the United States, the
value is typically based on a forecast of revenues (generally 10 years for films
and 20 years for television shows), beginning with theatrical release, and
including DVD sales, and release to cable broadcast television networks both
domestic and international and inflight airline licensing.
About
Film finance is a subset of project finance, meaning the film project's
generated cash flows rather than external sources are used to repay investors.
The main factors determining the commercial success of a film include public
taste, artistic merit, competition from other films released at the same time, the
quality of the script, the quality of the cast, the quality of the director and other
parties, etc. Even if a film looks like it will be a commercial success "on paper",
there is still no accurate method of determining the levels of revenue the film
will generate. In the past, risk mitigation was based on pre-sales, box office
projections and ownership of negative rights. Along with strong ancillary
markets in DVD, CATV, and other electronic media (like streaming video on
demand -SVOD), investors were shown that picture subsidies (tax incentives
and credits), and pre-sales (discountable-contract finance) from foreign
distributors, could help to mitigate potential losses. As production costs have
risen, however, potential financiers have become increasingly insistent upon
higher degrees of certainty as to whether they will actually have their
investment repaid, and assurances regarding what return they will earn.
Past film slate's poor performance records are showing up in public court
documents. Property and casualty companies (P&C) like AIG had offered
insurance against film slates and the bonds issued to fund them, but now fully
refuse to cover film slates. This ended in many lawsuits, starting in early 1999
(with Steve Stabler's Destination Films $100M bond fund failure and
subsequent lawsuit), and continue to this day with Aramid's lawsuit on
Relativity's Beverly-1-Sony film slate and the Melrose-2-Paramount slate.
Citigroup attempted to wrap the Beverly-1-Sony slate with a property and
casualty insurance wrapper (from the formerly bankrupt Ambac Assurance,
Corp.). After these "uninsured" slate financing arrangements (SFA) failed to
return even the original principal to investors, the market has sought solutions.
Traditionally, banks like JP Morgan have an entertainment division that uses
proprietary risk mitigation regression analysis to see if future film revenues can
meet an exceedance probability (where in the ultimate revenues allow the loan
to break even), but this is calculated guesswork, and has caused all of the major
national banks to lose millions in bad loans. An alternative to such loss
protection was developed by Geneva Media Holdings, LLC (originally as risk

mitigation for affluent individuals and "direct investors" under US tax incentive
IRC 181). Fully insured media funds are now being carefully reviewed by risk
analysts at major hedge funds, banks and institutional pension plans specializing
in investor risk mitigation.
Many outside of Hollywood fail to realize the longevity of film and television
after-market income streams. Many commercial films and network television
shows will make money for decades. For the investor who pays for part of the
negative costs, the time value of money is important. For many movie investors
the required rate of return for this "risky" investment may be 25% or more. This
means that while there may be TV revenues for an additional 10 years after the
movie is released, the PV (present value) of those revenues is diminished by the
required rate of return and the time it takes for these revenues to accrue.
Ancillary revenues (VOD, DVD, Blu-ray, PPV, CATV, etc.), tend to accrue to
the studio that purchased these residuals as part of their overall distribution deal.
For many movie investors in the past, the theatrical box office was the primary
place to gain a PV return on their investment.
VaultML has developed technologies usually seen in high frequency trading to
predict box office success and investor risk using artificial intelligence. They
claim to analyze over 300,000 elements from screenplay to form a basis for
prediction.Based on their published future predictions for 2015 they out yielded
the market on a return on investment basis.
Ryan Kavanaugh of the recently bankrupted Relativity Media offered
participation in profits to actors, rather than up-front fees, to lower production
costs and keep profits protected. Kavanaugh has attempted to use data from
major studios like Sony and NBC/Universal to build a complex Monte Carlo
system to determine movie failure rates prior to production. His projects and
business models have failed miserably, causing a half-a-billion dollars in losses.
The box office results of his movies have been mixed, as there is no set ratios,
blends, mixtures, method or secret crystal ball that can project movie revenues,
investor risk or rejection parameters.
Slated is the first dedicated online film finance marketplace for professional
equity investing. Combined with Slated's team, script and financial analysis,
investors can have ownership in films with real profit potential.
Epagogix has developed a system using neural networks to assess factors that
contribute to box office success. They assess a wide variety of movies of
different box office returns. Another film finance analyst, Steve Jasmine, claims
to have developed a system for predicting a film's box office success. This
system claims to quantify 800 creative elements of billion dollar grossing
movies to determine what audiences are most interested. Worldwide Motion
Picture Group offers a service termed "script evaluation" where a team of

analysts compare draft scripts to those of previously released movies in an effort

to estimate the box office potential of the proposed script. They also conduct
surveys and use results of previous focus groups to assist this analysis.
A final consideration is securing title. Since the collateral for film financing
arrangements can be based on the ownership of intellectual property rights, film
finance transactions generally commence with a title analysis.
Chapter No 2
Methods

There are five main methods of financing the production of a film:
1. government grants;
2. tax incentives and shelters;
3. private equity and hedge funds
4. debt finance; and
5. equity finance.
Government grants
A number of governments run programs to subsidise the cost of producing
films. For instance, until it was abolished in March 2011, in the United
Kingdom the UK Film Council provided National Lottery funding to producers,
as long as certain conditions were meant. Many of the Council's functions have
now been taken over by the British Film Institute. States such as Louisiana,
Massachusetts, New York, Connecticut, Oklahoma, Pennsylvania, North
Carolina, Michigan, and New Mexico, will provide a subsidy or tax credit
provided all or part of a film is filmed in that state.
Governments are willing to provide these subsidies as they hope it will attract
creative individuals to their territory and stimulate employment. Also, a film
shot in a particular location can have the benefit of advertising that location to
an international audience
Government subsidies are often pure grants, where the government expects no
financial return.
Tax incentives
Some U.S. states and Canadian provinces have between 15% and 70% tax or
cash incentives for labor, production costs or services on bona fide
film/television/PCgame expenditures. Each state and province differs. These so-
called "soft-money" incentives are generally not realized until a theatrical or
interactive production is completed, all payments are made to workers, financial
institutions, and rental or prop companies within the state or province offering
the incentives. Many other limitations may apply (i.e., actors, cast and crew
may have to take up residence in the state or province). Often, a certain amount
of physical shooting (principal photography) must be completed within the state
borders, and/or the use of the state's institutions. This would include rental
facilities, banks, insurance companies, sound stages or studios, agents, agencies,
brokers, catering companies, hotel/motels, etc. Each may also have to be
physically domiciled within the state or province's borders. Finally, additional
incentives (another 5% to 25% on top of the already generous soft money), may

be offered for off-season, low-income area, or family entertainment projects

shot in places of economic impoverishment or during poor weather condition
months in a hurricane-prone state or Arctic province.
A number of countries have introduced legislation that has the effect of
generating enhanced tax deductions for producers or owners of films. Incentives
are created which effectively sell the enhanced tax deductions to wealthy
individuals with large tax liabilities (e.g., IRS code sections 181 and 199). The
individual will often become the legal owner of the film or certain rights
relating to the film. In 2007 the United Kingdom government introduced the
Producer's Tax Credit which results in a direct cash subsidy from the treasury to
the film producer.
German tax shelters
A relatively new tactic for raising finance is through German tax shelters. The
tax law of Germany allows investors to take an instant tax deduction even on
non-German productions and even if the film has not yet gone into production.
The film producers can sell the copyright to one of these tax shelters for the cost
of the film's budget, then have them lease it back for a price around 90% of the
original cost.On a $100 million film, a producer could make $10 million, minus
fees to lawyers and middlemen.
This tactic favors big-budget films as the profit on more modestly budgeted
films would be consumed by the legal and administrative costs.
That being said, the above schemes are all but gone and are being replaced by
more traditional production incentives
The main production incentive is the German Federal Film Fund (de) (DFFF).
The DFFF is a grant given by the German Federal Commissioner for Culture
and the Media. To receive the grant a producer has to fulfill different
requirements including a cultural eligibility test. The film finance calculator on
germanfilmfinance. checks online if the project passes the test as well as it
shows the individually calculated estimated grant.
British tax shelters
Now, the same copyright can be sold again to a British company and a further
$10 million could be raised, but UK law insists that part of the film is shot in
Britain and that the production employs a fair proportion of British actors and
crew. This explains why many American films like to shoot at Britain's major
film studios like Pinewood and Shepperton and why a film such as Basic
Instinct 2 relocated its action from New York toLondon. These are commonly
referred to Sale & Leaseback deals; they were discontinued in March 2007,
though those initiated prior to Dec. 31, 2006 were grandfathered in.
Entertainment Tax

Maharashtra - 45%
No tax for Marathi Films. Besides tax exemption subsidy of Rs.15 lakhs
is given to Marathi Films.
In Maharashtra the subsidy given to the producers are as under:
1. Rs.15 lakhs at the time of starting the next production.
2. Rs.20 lakhs if the film is being produced in 35 mm Dolby/Digital. This
subsidy is given to 5 producers in a year on the basis of the script
selected by the government.
3. Additional Rs.15 lakhs if the film gets a National Award.
Orissa
Admission rate upto Rs.2/- 60%
Admission rate above Rs.2/- 70%
Panjab NIL
Rajasthan - 35%
Tamil Nadu
Tamil Films No Tax
Others 15%
Uttaranchal - 40%

Uttar Pradesh - 60% (likely to be 30% soon)

West Bengal
Bengali 30%
Others 10%
Andhra Pradesh
21% For films produced 08% Low budget Films 16% Big budget films
outside the State produced in State produced in State
Asaam
Up to Rs.2000/- 80% Above Rs. 2000/- 100%
Chapter no 3
Types of Film Financing

Private equity financing
Generally tax-advantaged theatrical film and television investment for affluent
individuals comes with little risk. Most often, the cost of production is recouped
by a combination of federal and state tax incentives, thereby eliminating most of
the risk. Capital is still required as a direct investment (partnerships can be
used), but must also be "at risk", which allows 181 IRC write-offs. For
example, if a private equity source is found (individuals with capital or a private
wealth management firm representing individuals personal funds), the investor
pays for the film or TV production, and receives back an equal amount of
capital in tax-incentives, pre-sales and state tax credits, thereby making the
investment and recoup a wash. This is a highly specialized tax play, and is often
looked upon as risky by those who do not understand the risk mitigation offered
through state tax and federal tax in centives like 181 IRC.
WHY DON'T PRIVATE EQUITY FIRMS ACTIVELY INVEST IN FILMS,

DESPITE THEIR POTENTIAL TO CREATE HUGE RETURNS IN LESS TIME?
The short answer: films don't produce consistent, predictable cash flows to pay
off the debt load created by traditional PE strategies.
At best, they are lumpy windfalls. At worst, they are complete disasters that fail
to break even. In either scenario, you are not getting steady-eddy cash
generation to pay off the interest until premiere weekend.
As others have mentioned, a more practical strategy that plays to the financial
engineering strengths of PE shops would be to buy the studio or buy the
distribution/syndication rights to portfolios of films, but even then, the valuation
would be extremely difficult as is most things artistic.
Relativity Media is an example of a financial player that has attempted to play

the movie space. They started out as an offshoot of a hedge fund, providing
financing to studios who struggled to find backers. But to my knowledge, even
they have not enjoyed tremendous success and struggled in the early years. As
evidenced by the sheer number of films they finance these days, they have
clearly moved to a much more diversified portfolio strategy versus placing their
chips on a select few films and taking huge stakes in them.
Hedge-fund financing
WHAT IS A HEDGE FUND?

A hedge fund is an alternative investment vehicle available only to sophisticated
investors, such as institutions and individuals with significant assets.
Like mutual funds, hedge funds are pools of underlying securities. Also like
mutual funds, they can invest in many types of securitiesbut there are a
number of differences between these two investment vehicles.
First, hedge funds are not currently regulated by the U.S. Securities and
Exchange Commission (SEC), a financial industry oversight entity, as mutual
funds are. However, it appears that regulation for hedge funds may be coming
soon.
Second, as a result of being relatively unregulated, hedge funds can invest in a

wider range of securities than mutual funds can. While many hedge funds do
invest in traditional securities, such as stocks, bonds, commodities and real
estate, they are best known for using more sophisticated (and risky) investments
and techniques.
Hedge funds typically use long-short strategies, which invest in some balance of
long positions (which means buying stocks) and short positions (which means
selling stocks with borrowed money, then buying them back later when their
price has, ideally, fallen).
Additionally, many hedge funds invest in derivatives, which are contracts to

buy or sell another security at a specified price. You may have heard of futures
and options; these are considered derivatives.
Many hedge funds also use an investment technique called leverage, which is
essentially investing with borrowed moneya strategy that could significantly
increase return potential, but also creates greater risk of loss. In fact, the name
hedge fund is derived from the fact that hedge funds often seek to increase
gains, and offset losses, by hedging their investments using a variety of
sophisticated methods, including leverage.
Third, hedge funds are typically not as liquid as mutual funds, meaning it is
more difficult to sell your shares. Mutual funds have a per-share price (called a
net asset value) that is calculated each day, so you could sell your shares at any
time. Most hedge funds, in contrast, seek to generate returns over a specific
period of time called a lockup period, during which investors cannot sell their
shares. (Private equity funds, which are similar to hedge funds, are even more
illiquid; they tend to invest in startup companies, so investors can be locked in
for years.)

Finally, hedge fund managers are typically compensated differently from mutual
fund managers. Mutual fund managers are paid fees regardless of their funds
performance. Hedge fund managers, in contrast, receive a percentage of the
returns they earn for investors, in addition to earning a management fee,
typically in the range of 1% to 4% of the net asset value of the fund. That is
appealing to investors who are frustrated when they have to pay fees to a poorly
performing mutual fund manager. On the down side, this compensation
structure could lead hedge fund managers to invest aggressively to achieve
higher returnsincreasing investor risk.
As a result of these factors, hedge funds are typically open only to a limited
range of investors. Specifically, U.S. laws require that hedge fund investors
be accredited, which means they must earn a minimum annual income, have a
net worth of more than $1 million, and possess significant investment
knowledge.
The popularity of these alternative investment vehicleswhich were first

created in 1949has waxed and waned over the years. Hedge funds
proliferated during the market boom earlier this decade, but in the wake of the
2007 and 2008 credit crisis, many closed. One, Bernard L. Madoff Investment
Securities, turned out to be a massive fraud. As a result, they are subject to
increasing due diligence.
Some of the more popular hedge fund investment strategies are Activist,
Convertible Arbitrage, Emerging Markets, Equity Long Short, Fixed Income,
Fund of Funds, Options Strategy, Statistical Arbitrage, and Macro.
Despite these recent challenges, hedge funds continue to offer investors a solid
alternative to traditional investment fundsan alternative that brings the
possibility of higher returns that are uncorrelated to the stock and bond markets.
As a result, hedge funds are likely here to stay.
Get comprehensive and up-to-date information on 6100 + Hedge Funds, Funds

of Funds, and CTAs in the Barclay Global Hedge Fund Database.
Also known as slate financing deals.
Private investors
One of the hardest types of film financing pieces to obtain is private investor
funds. These are funds invested by an individual who is looking to possibly add
more risk to his investment portfolio, or a high-net-worth individual with a keen

interest in films.
Debt finance
Pre-sales
Pre-sales is, based on the script and cast, selling the right to distribute a film in
different territories before the film is completed. When the deal is made, the
distributor will insist the producers deliver on certain elements of content and
cast; if a material alteration is made, financing may collapse.In order to gain the
marquee names essential for drawing in an international audience, distributors
and sale agents will often make casting suggestions.
Pre-sales contracts with big name actors or directors will often (at the
insistence of the buyer) have an "essential element" clause that (as per the
example above) allows the buyer to get out of the contract if the star or director
falls out of the picture and a marquee equivalent cannot be procured.
The reliance on pre-sales explains the film industry's dependence on movie
stars, directors and/or certain film genres (such as Horror).
Typically, upon signing a pre-sale contract, the buyer will pay a 20% deposit to
the film's collection account (or bank), with the balance (80%) due upon the
film's delivery to the foreign sales agent (along with all the necessary
deliverable requirements.)
Usually a producer pre-sells foreign territories (in whole or part) and/or North
American windows/rights (i.e. theatrical, home video/DVD, pay TV, free TV,
etc.) so that the producer can use the value of those contracts as collateral for
the production loan that a bank (senior lender) is providing to finance the
production.
Television pre-sales
Although it is more usual for a producer to sell the TV rights of this film after it
has been made, it is sometimes possible to sell the rights in advance and use the
money to pay for the production. In some cases the television station will be a
subsidiary of the movie studio's parent company.
Negative pickup deal
A negative pickup deal is a contract entered into by an independent producer
and a movie studio wherein the studio agrees to purchase the movie from the
producer at a given date and for a fixed sum. Until then, the financing is up to
the producer, who must pay any additional costs if the film goes over-budget.
Generally, a producer will have a bank/lender lend against the value of the
negative pickup contract as a way to shore up their financing package of the

film. This is commonly referred to as "factoring paper". Most major North

American studio and network contracts (incl. basic cable) are
collateralized/factored by the bank at 100% of the contract value, and the lender
just takes a basic origination/setup fee.
Splitting the roles of studios and networks necessitated a means for financing
television series appropriate to the varied risks and rewards inherent in the
separation. A practice known as "deficit financing" consequently developed an
arrangement in which the network pays the studio that make a show a license
fee in exchange for the right to air the show, but the studio retains ownership.
The license fee does not fully cover the costs of production hence the "deficit"
of deficit financing.
Deficit financing developed after the varied risks and rewards were determined
and carried out through film financing. Deficit financing occurs when the
license fee for a show doesnt fully cover production fees. A studio has
ownership of the production, but as license fees are handed out in exchange to
air a show, the phrase deficit financing comes into play as costs were not being
met and paid.
From the late 1960s through the mid-1990s special regulations from financial
regulation's and syndication's rules created relations between television
networks and independent production companies. These rules stated that
ownership of the rights to the programs reverted to the producer/production
company after a specified number of network runs (syndication). Profits from
any other sales, including syndication, generally benefited the production
community. Because of this, production companies produced original shows at a
loss, hoping that they would eventually be run by syndication and make their
money back.
Gap/supergap financing
In motion pictures, gap/supergap financing is a form of mezzanine
debt financing where the producer wishes to complete their film finance
package by procuring a loan that is secured against the film's unsold territories
and rights. Most gap financiers will only lend against the value of unsold
foreign (non-North American) rights, as domestic (North American: USA &
Canadian) rights are seen as a "performance" risk, as opposed to more
quantifiable risk that is the foreign market. In short, this means that the foreign
value of a film can be ascertained by a foreign sales company/agent by
evaluating the blended value of the quality of the script, its genre, cast, director,
producer, as well as whether it has theatrical distribution in the US from a major
film studio; all of this is taken into consideration and applied against the
historical and current market tastes, trends, and needs of each foreign territory
of country. This is still an unpredictable practice. Domestic distribution is also
unpredictable and far from ever a sure thing (e.g. just because a film has a big

budget and a commercial genre and cast, it could still be unwatchable and thus
never receive a theatrical or television release in the US, thus being relegated to
being a big budget, direct-to-video film.) Any certainty in the entertainment
business, lending against foreign value estimates is preferable to betting on
strictly a domestic success (comedies and urban films being two notable
exceptions: they are referred to as "domestic pieces" or "domestic plays".)
True to its mezzanine nature, in the pecking order of recoupment of investment,
generally, gap (or supergap) loans are subordinate to (recoup after) the
senior/bank production loan, but in turn, the gap/supergap loan will be senior to
(recoup before) equity financiers.
A gap loan becomes a supergap loan when it extends beyond 10-15% of the
production loan required to shoot the film (or in other words, when the
percentage of the gap required to complete the film's financing package
becomes greater than a bank is willing to bear, which is traditionally 10-15%,
but can sometime be a flat dollar threshold like US$1,000,000.)
Gap/supergap lending is a very risky form of capital investment and accordingly
the fees and interest charged reflect that level of risk. But at the same time it is
not unlike buying a house: nobody pays 100% of the purchase price with cash;
they pay about 20% in cash and borrow the rest. Supergap financing works by
the same principle: put down 20-30% cash/equity and borrow the rest.
Over the years, because of the high risk nature, many supergap companies have
come and gone, but a few established players have survived the ups and downs
of the markets with Relativity Media, Screen Capital International, Grosvenor
Park, Helios Productions, Endgame Entertainment, Blue Rider, Newmarket
Capital, Aramid Entertainment, MDG Entertainment Holdings, Limelight, RJG
Entertainment and 120 dB all active in the current debt financing space.
The Internet portal germanfilmfinance.com] aims to support national and
international film makers in the acquisition of production financing. By
combining national and regional financing components including a Supergap
loan, it is possible to finance up to 50% - 65% of the entire film project budget.
Product placement financing

Income from product placement can be used to supplement the budget of a film.
The Bond franchise is notable for its lucrative product placements deals,
bringing in millions of dollars. In the film Minority Report, Lexus, Bulgari and
American Express reportedly paid a combined $20 million for product
placement, a record-high amount. Product placement may also take the form
of in-kind contributions to the film, such as free cars or computers (as props or

for the production's use). While no money changes hands, the films budget will
be lowered by the amount that would have otherwise been spent on such items.
A feature film that has expectations of reaching millions of viewers attracts

marketers.
In many cases no payment is made for product exposure and no promise of

marketing support is made when consumer brands appear in movies. Film
productions need props for scenes, so each movies property master, who is
responsible for gathering props film, contacts product placement middlemen
agencies or product companies directly. In addition to items for on-screen use,
the product/service supplier might provide a production with large quantities of
complementary products or services. Tapping product placement channels can
be particularly valuable for movies when a vintage product is requiredsuch as
a sign or bottlethat is not readily available.
One of the earliest examples is The Garage, a Buster Keaton/"Fatty"

Arbuckle comedy which featured the logo of Red Crown gasoline in several
scenes (although there is no definitive proof that this product placement was
paid for). Fritz Lang's Dr. Mabuse the Gambler (1922) contained a prominent
title card in the opening credits reading "The gowns of the female stars were
designed by Vally Reinecke and made in the fashion studios of Flatow-Schdler
und Mossner."
Among notable silent films to feature product placement was Wings (1927), the
first to win the Academy Award for Best Picture. It contained a plug
for Hershey's chocolate. Fritz Lang's film M (released in 1931) includes features
a banner display for Wrigley's PK Chewing Gum, for approximately 2030
seconds.
Another early example occurs in Horse Feathers (1932), wherein Thelma

Todd's character falls out of a canoe and into a river. She calls for a "life saver"
and Groucho Marx tosses her a Life Savers candy. It's a Wonderful Life (1946)
depicts a young boy with aspirations to be an explorer, displaying a prominent
copy of National Geographic. In Love Happy (1949), Harpo cavorts on a
rooftop among various billboards and at one point escapes from the villains on
the old Mobil logo, the "Flying Red Horse". Harrison's Reports severely
criticized this scene in its film review and in a front-page editorial. In Gun

Crazy (1949), the climactic crime is the payroll robbery of the Armour meat-
packing plant, where a Bulova clock is prominently displayed.
L ATER FILMS
The Cannonball Run and Smokey and the Bandit film series featured
conspicuous placements. The film E.T. is often cited for its multiple, obvious
placements.
Cheerios and Coca-Cola had product placement in the Andrew Lloyd

Webber musical Evita and in Superman: The Movie and the sequel Superman
II. Clark Kent eats Cheerios for breakfast in Smallville. In Superman II's
climax, Superman crashes into a giant Coca-Cola advertisement and saves a bus
full of people bearing an ad for Evita, before he smashes into
a Marlboro delivery truck.
Perhaps the ultimate example of product placement comes in the film Cast
Away in which the Tom Hanks lead character is a FedEx employee. References
to the delivery company FedEx are in nearly every scene in the film, with the
FedEx logo and name preposterously over-emphasized.
E ARLY TELEVISION
In other early media, e.g., radio in the 1930s and 1940s and television in the
1950s, programs were often underwritten by companies. Soap operas were so-
named because they were initially underwritten by consumer packaged
goods companies such as Procter & Gamble or Unilever. When television began
to displace radio, DuMont's Cavalcade of Stars television show was, in its era,
notable for not relying on a sole sponsor. Sponsorship continues with programs
being sponsored by major vendors such as Hallmark Cards.
The conspicuous display of Studebaker motor vehicles in the television

series Mr. Ed (19611966), which was sponsored by the Studebaker
Corporation from 1961 to 1963, as well as the display of Ford vehicles on the
series Hazel (19611966), which was sponsored by the Ford Motor Company
from 1961 to 1965, are notable examples of television product placement.

Chapter no 4
Crowdfunding
With a rising popularity of online crowdfunding more and more films are
getting financed directly by their consumers this way. The crowdfunding
platforms Kickstarter and IndieGoGo have their own categories dedicated to
films.
Crowdfunding films gives the consumer a voice in what films are being
produced, allow for riskier, more socially relevant, more innovative, less profit-
oriented independent films with smaller and marginal target audiences that can't
be found in mainstream cinema and lower the entry-barrier to new
filmmakers. Crowdfunded films include Iron Sky, Kung Fury, Veronica
Mars, Code 8, Star Trek: Renegades, Manthanand Anomalisa.
Crowdfunding has a long history with more than one root. Books have been
crowdfunded for centuries: Authors and publishers would advertise book
projects in praenumeration or subscription schemes. The book would be written
and published if enough subscribers signaled their readiness to buy the book
once it was out. The subscription business model is not exactly crowdfunding,
since the actual flow of money only begins with the arrival of the product. The
list of subscribers has, though, the power to create the necessary confidence
among investors that is needed to risk the publication.

War bonds are theoretically a form of crowdfunding military conflicts. London's

mercantile community saved the Bank of England in the 1730s when customers
demanded their pounds to be converted into gold - they supported the currency
until confidence in the pound was restored, thus crowdfunded their own money.
A clearer case of modern crowdfunding is Auguste Comte's scheme to issue
notes for the public support of his further work as a philosopher. The "Premiere
Circulaire Annuelle adresse par lauteur du Systeme de Philosophie Positive"
was published on 14 March 1850, and several of these notes, blank and with
sums have survived. The cooperative movement of the 19th and 20th centuries
is a broader precursor. It generated collective groups, such as community or
interest-based groups, pooling subscribed funds to develop new concepts,
products, and means of distribution and production, particularly in rural areas of
Western Europe and North America. In 1885, when government sources failed
to provide funding to build a monumental base for the Statue of Liberty, a
newspaper-led campaign attracted small donations from 160,000 donors.
Crowdfunding on the internet first gained popular and mainstream use in the
arts and music communities. The first instance of crowdfunding was in 1997,
when fans underwrote an entire U.S. tour for the British rock group Marillion,
raising US$60,000 in donations by means of a fan-based Internet campaign. In
the film industry, independent writer/director Mark Tapio Kinesdesigned a
website in 1997 for his then-unfinished first feature film Foreign
Correspondents. By early 1999, he had raised more than US$125,000 on the
Internet from at least 25 fans, providing him with the funds to complete his film.
[12]
In 2002, the "Free Blender" campaign was an early software crowdfunding
precursor. The campaign aimed for open-sourcing the Blender 3D computer
graphics software by collecting $100,000 from the community while offering
additional benefits for donating members.[15]
Crowdfunding gained traction after the launch of ArtistShare, in

2003. Following ArtistShare, more crowdfunding sites started to appear on the
web such as IndieGoGo (2008), Kickstarter (2009),
and Microventures (2010). However, Sellaband, started in 2006 as a music-
focused platform, initially controlled the crowdfunding market. This can be
contributed to creators and funders, who perceive the platform to be more
valuable with more members. Later, Kickstarter gained popularity for its wide-
ranging focus. Both platforms prohibit equity funding. However, Sellaband
offered revenue sharing, a type of equity crowdfunding, for three years after the

platforms founding. It was later controlled by a German company and

heightened security restrictions. The phenomenon of crowdfunding is older than
the term "crowdfunding". According to wordspy.com, the earliest recorded use
of the word.The conspicuous display of Studebaker motor vehicles in the
television series Mr. Ed (19611966), which was sponsored by the Studebaker
Corporation from 1961 to 1963, as well as the display of Ford vehicles on the
series Hazel (19611966), which was sponsored by the Ford Motor Company
from 1961 to 1965, are notable examples of television product placement
With a rising popularity of online crowdfunding more and more films are
getting financed directly by their consumers this way. The crowdfunding
platforms Kickstarter and IndieGoGo have their own categories dedicated to
films.
Crowdfunding films gives the consumer a voice in what films are being
produced, allow for riskier, more socially relevant, more innovative, less profit-
oriented independent films with smaller and marginal target audiences that can't
be found in mainstream cinema and lower the entry-barrier to new
filmmakers. Crowdfunded films include Iron Sky, Kung Fury, Veronica
Mars, Code 8, Star Trek: Renegades, Manthanand Anomalisa.
Crowdfunding has a long history with more than one root. Books have been
crowdfunded for centuries: Authors and publishers would advertise book
projects in praenumeration or subscription schemes. The book would be written
and published if enough subscribers signaled their readiness to buy the book
once it was out. The subscription business model is not exactly crowdfunding,
since the actual flow of money only begins with the arrival of the product. The
list of subscribers has, though, the power to create the necessary confidence
among investors that is needed to risk the publication.
War bonds are theoretically a form of crowdfunding military conflicts. London's

mercantile community saved the Bank of England in the 1730s when customers
demanded their pounds to be converted into gold - they supported the currency
until confidence in the pound was restored, thus crowdfunded their own money.
A clearer case of modern crowdfunding is Auguste Comte's scheme to issue
notes for the public support of his further work as a philosopher. The "Premiere
Circulaire Annuelle adresse par lauteur du Systeme de Philosophie Positive"
was published on 14 March 1850, and several of these notes, blank and with
sums have survived. The cooperative movement of the 19th and 20th centuries
is a broader precursor. It generated collective groups, such as community or
interest-based groups, pooling subscribed funds to develop new concepts,
products, and means of distribution and production, particularly in rural areas of

Western Europe and North America. In 1885, when government sources failed
to provide funding to build a monumental base for the Statue of Liberty, a
newspaper-led campaign attracted small donations from 160,000 donors.
Crowdfunding on the internet first gained popular and mainstream use in the
arts and music communities. The first instance of crowdfunding was in 1997,
when fans underwrote an entire U.S. tour for the British rock group Marillion,
raising US$60,000 in donations by means of a fan-based Internet campaign. In
the film industry, independent writer/director Mark Tapio Kinesdesigned a
website in 1997 for his then-unfinished first feature film Foreign
Correspondents. By early 1999, he had raised more than US$125,000 on the
Internet from at least 25 fans, providing him with the funds to complete his film.
[12]
In 2002, the "Free Blender" campaign was an early software crowdfunding
precursor. The campaign aimed for open-sourcing the Blender 3D computer
graphics software by collecting $100,000 from the community while offering
additional benefits for donating members.
Crowdfunding gained traction after the launch of ArtistShare, in

2003. Following ArtistShare, more crowdfunding sites started to appear on the
web such as IndieGoGo (2008), Kickstarter (2009),
and Microventures (2010). However, Sellaband, started in 2006 as a music-
focused platform, initially controlled the crowdfunding market. This can be
contributed to creators and funders, who perceive the platform to be more
valuable with more members. Later, Kickstarter gained popularity for its wide-
ranging focus. Both platforms prohibit equity funding.[8] However, Sellaband
offered revenue sharing, a type of equity crowdfunding, for three years after the
platforms founding. It was later controlled by a German company and
heightened security restrictions.
CHAPTER NO 5
TYPES OF CROWDFUNDING
The Crowdfunding Centre's May 2014 report identified two primary types of
crowdfunding:
1. Rewards crowdfunding: entrepreneurs presell a product or service to

launch a business concept without incurring debt or sacrificing
equity/shares.
2. Equity crowdfunding: the backer receives shares of a company, usually in

its early stages, in exchange for the money pledged.
REWARD-BASED
Reward-based crowdfunding has been used for a wide range of purposes,

including motion picture promotion, free software development, inventions
development, scientific research, and civic projects.
Many characteristics of rewards-based crowdfunding, also called non-equity

crowdfunding, have been identified by research studies. In rewards-based
crowdfunding, funding does not rely on location. The distance between creators
and investors on Sellaband was about 3,000 miles when the platform introduced
royalty sharing. The funding for these projects is distributed unevenly, with a
few projects accounting for the majority of overall funding. Additionally,
funding increases as a project nears its goal, encouraging what is called
"herding behavior". Research also shows that friends and family account for a
large, or even majority, portion of early fundraising. This capital may encourage
subsequent funders to invest in the project. While funding does not depend on
location, observation shows that funding is largely tied to the locations of
traditional financing options. In reward-based crowdfunding, funders are often
too hopeful about project returns and must revise expectations when returns are
not met.
EQUITY
Equity crowdfunding is the collective effort of individuals to support efforts

initiated by other people or organizations through the provision of finance in the
form of equity. In the United States, legislation that is mentioned in the
2012 JOBS Act will allow for a wider pool of small investors with fewer
restrictions following the implementation of the act. Unlike nonequity
crowdfunding, equity crowdfunding contains heightened "information
asymmetries". The creator must not only produce the product for which they are
raising capital, but also create equity through the construction of a
company. Syndicates, which involve many investors following the strategy of a
single lead investor, can be effective in reducing information asymmetry and in
avoiding the outcome of market failure associated with equity crowdfunding.

SOFTWARE VALUE TOKEN
Another kind of crowdfunding is to raise funds for a project where a digital or

software-based value token is offered as a reward to funders. Value tokens
are endogenously created by particular open decentralized networks that and are
used to incentivize client computers of the network to expend scarce computer
resources on maintaining the protocol network. These value tokens may or may
not exist at the time of the crowdsale, and may require substantial development
effort and eventual software release before the token is live and establishes a
market value. Although funds may be raised simply for the value token itself,
funds raised on blockchain-based crowdfunding can also
represent equity, bonds, or even "market-maker seats of governance" for the
entity being funded Examples of such crowdsales are Augur decentralized,
distributed prediction market software which raised US$4 million from more
than 3500 participants; Ethereum blockchain; Digix/DigixDAO;[32] and "The
DAO."
DEBT-BASED
Debt-based crowdfunding (also known as "peer to peer", "P2P", "marketplace

lending", or "crowdlending") arose with the founding of Zopa in the UK in
2005 and in the US in 2006, with the launches of Lending
Club and Prosper.com. Borrowers apply online, generally for free, and their
application is reviewed and verified by an automated system, which also
determines the borrower's credit risk and interest rate. Investors buy securities in
a fund which makes the loans to individual borrowers or bundles of borrowers.
Investors make money from interest on the unsecured loans; the system
operators make money by taking a percentage of the loan and a loan servicing
fee. In 2009, institutional investors entered the P2P lending arena; for example
in 2013, Google invested $125 million in Lending Club. In 2014 in the US, P2P
lending totalled about $5 billion. In 2014 in the UK, P2P platforms lent
businesses 749 million, a growth of 250% from 2012 to 2014, and lent retail
customers 547 million, a growth of 108% from 2012 to 2014. In both countries
in 2014, about 75% of all the money transferred through crowdfunding went
through P2P platforms. Lending Club went public in December 2014 at a
valuation around $9 billion. Debt crowdfunding in the U.S. has further evolved
with the May 16, 2016 enactment of Title III of the JOBS Act, which allows

unaccredited investors to invest directly in private businesses through regulated

Funding Portals or Broker-Dealers.
LITIGATION
Litigation crowdfunding allows plaintiffs or defendants to reach out to hundreds

of their peers simultaneously in a semiprivate and confidential manner to obtain
funding, either seeking donations or providing a reward in return for funding. It
also allows investors to purchase a stake in a claim they have funded, which
may allow them to get back more than their investment if the case succeeds (the
reward is based on the compensation received by the litigant at the end of his or
her case, known as a contingent fee in the United States, a success fee in the
United Kingdom, or a pactum de quota litis in many civil law systems).
DONATION-BASED
Charity donation-based crowdfunding is the collective effort of individuals to

help charitable causes. A form of charity crowdfunding is civic crowdfunding,
in which funds are raised to enhance public life and space.
ROLE
The inputs of the individuals in the crowd trigger the crowdfunding process and
influence the ultimate value of the offerings or outcomes of the process. Each
individual acts as an agent of the offering, selecting and promoting the projects
in which they believe. They sometimes play a donor role oriented towards
providing help on social projects. In some cases, they become shareholders and
contribute to the development and growth of the offering. Individuals
disseminate information about projects they support in their online
communities, generating further support (promoters). Motivation for consumer
participation stems from the feeling of being at least partly responsible for the
success of others initiatives (desire for patronage), striving to be a part of a
communal social initiative (desire for social participation), and seeking a payoff
from monetary contributions (desire for investment). Additionally, individuals
participate in crowdfunding to see new and innovative products before the
public. Early access often allows funders to participate more directly in the
development of the product. Crowdfunding is also particularly attractive to

funders who are family and friends of a creator. It helps to mediate the terms of
their financial agreement and manage each groups expectations for the project.
An individual who takes part in crowdfunding initiatives tends to reveal several

distinct traits: innovative orientation, which stimulates the desire to try new
modes of interacting with firms and other consumers; social identification with
the content, cause or project selected for funding, which sparks the desire to be
a part of the initiative; (monetary) exploitation, which motivates the individual
to participate by expecting a payoff. Crowdfunding platforms are motivated to
generate income by drawing worthwhile projects and generous funders. These
sites also seek widespread public attention for their projects and platform.
Crowdfunding websites helped companies and individuals worldwide raise

US$89 million from members of the public in 2010, $1.47 billion in 2011, and
$2.66 billion in 2012 $1.6 billion of the 2012 amount was raised in North
America. In 2012, more than one million individual campaigns were established
globally and the industry was projected to grow to US$5.1 billion in 2013. and
to reach US$1 trillion in 2025.A May 2014 report, released by the United
Kingdom-based The Crowdfunding Centre and titled "The State of the
Crowdfunding Nation", presented data showing that during March 2014, more
than US$60,000 were raised on an hourly basis via global crowdfunding
initiatives. Also during this period, 442 crowdfunding campaigns were launched
globally on a daily basis.
PLATFORMS
As of 2012, over 450 crowdfunding platforms had been established. Project

creators need to exercise their own due diligence to understand which platform
is the best to use depending on the type of project that they want to
launch. Fundamental differences exist in the services provided by many
crowdfunding platforms. For instance, CrowdCube and Seedrs are Internet
platforms which enable small companies to issue shares over the Internet and
receive small investments from registered users in return. While CrowdCube is
meant for users to invest small amounts and acquire shares directly in start-up
companies, Seedrs pools the funds to invest in new businesses, as a nominated
agent.

Curated crowdfunding platforms serve as "network orchestrators" by curating

the offerings that are allowed on the platform. They create the necessary
organizational systems and conditions for resource integration among other
players to take place. Relational mediators act as an intermediary between
supply and demand. They replace traditional intermediaries (such as traditional
record companies, venture capitalists). These platforms link new artists,
designers, project initiators with committed supporters who believe in the
persons behind the projects strongly enough to provide monetary support.
Growth engines focus on the strong inclusion of investors. They
"disintermediate" by eliminating the activity of a service provider previously
involved in the network. The platforms that use crowdfunding to seek stakes
from a community of high net-worth private investors and match them directly
with project initiators.
Chapter no 6
Film Financing Agencies
NATIONAL FILM DEVELOPMENT CORPORATION OF INDIA
National Film Development Corporation of

India
Industry film industry

Predecessor Film Finance Corporation
Founded 1975
Headquarters Mumbai, India
Area served Nehru Centre, Dr. Annie

Besant
Road, Worli, Mumbai - 400
018, India
Key people
Nina Lath Gupta IRS
(Managing Director) [1]
Products Films
Owner Ministry of Information and

Broadcasting, Government
of India
Website Official Website
The National Film Development Corporation of India (NFDC) based

in Mumbai is the central agency established in 1975, to encourage high
quality Indian cinema. It functions in areas of film financing, production and
distribution and under Ministry of Information and Broadcasting, Government
of India. The primary goal of the NFDC is to plan, promote and organize an
integrated and efficient development of the Indian film industry and foster
excellence in cinema.
HISTORY
It was established in 1975. Over the years, NFDC has provided a wide range of
services essential to the growth of Indian cinema especially Indian parallel

cinema in the 1970s and 80s. The NFDC (and its predecessor the Film Finance
Corporation) has so far funded or produced over 300 films. These films, in
various Indian languages, have been widely acclaimed and have won many
national and international awards. A recent example is the third
ever Kashmiri feature film, Bub ('father' in English), which was directed
by Jyoti Sarup.
In 1982, the National Film Development Corporation of India chaired by D. V.

S. Raju was also one of the production companies for Gandhi, which won
eight Academy Awards
Film journalist and former editor of Filmfare, B. K. Karanjia remained the

chairman of the NFDC for several years, he had been instrumental in the
establishment of its predecessor, Film Finance Corporartion. Director Ramesh
Sippy took over the position of chairman of NFDC in 2012. He replaced
actor Om Puri who was appointed in 2008.
CINEMAS OF INDIA
In 2013, NFDC started its label, "Cinemas of India", specifically to promote and
distribute the parallel cinema film produced by it, since the 1960s. This also
includes the separate "Cinemas of India" website, many of the movies which
have long been out of circulation are now restored, and available as free online
streaming and also as DVDs. Notable films in the series, include Mirch
Masala (1987), Ek Din Achanak (1989), Train to
Pakistan (1998), Mammo (1994), Uski Roti (1969), Kamla Ki Maut (1989)
and 27 Down (1974).
NATIONAL FILM FINANCE CORPORATION

The National Film Finance Corporation (NFFC) was a film funding agency
in the United Kingdom which operated from 1949 until it was wound up in
1985. The NFFC was established by the Cinematograph Film Production
(Special Loans) Act 1949, and further enhanced by the Cinematograph Film
Production (Special Loans) Act 1952, which gave the NNFC the power to
borrow from sources other than the Board of Trade. The NFFC was abolished
by the Films Act 1985.
The lawyer Sir John Terry served as the NFFC's manager for twenty years from
1958 to 1978. During that time he helped to secure the backing for hundreds of
films and which launched the careers of several prominent film directors,
including Ridley Scott and David Puttnam.
John Terry was succeeded in 1979 by film maker Mamoun Hassan who changed
the direction of the NFFC: "Hassan is the nearest thing to a whizz-kid that this
country's film establishment has yet produced. (Indeed, to be strictly technical,
it did not produce him, since Hassan is Saudi Arabian and has had an
independent and international career as a film-maker.) Hassan has replied to
early salvoes aimed at his policies by firing back at his detractors with more
spirit than one has ever known from the NFFC before, in its generation-long
history."
Prior to leaving the NFFC, David Robinson of The Times commented "...
Certainly Hassan's five and a half years at the Corporation have been
characterized by independence and vim. His enthusiasm, pugnacity, taste and
passionate championing of an indigenous cinema have made him a significant
figure in the progressive areas of British cinema...."David Robinson (18
September 1984). "Interview: Mamoun Hassan A shining example". The Times.
Hassan left the NFFC in 1984 to return to film production
FILM FINANCE CORPORATION AUSTRALIA
Film Finance Corporation Australia (FFC) was the Australian Government's

principal agency for funding the production of film and television in Australia.

Once a wholly owned government company, it was folded into a new

agency, Screen Australia in 2008.
It was established in 1988, its inaugural chairman being Kim Williams. Since its
establishment the FFC has invested in 1,079 projects with a total production
value of $2.58 billion.
OVERVIEW
The Australian government supports film and television production to ensure

that Australians have the opportunity to make and watch their own screen
stories. The FFC only funded projects with high levels of creative and technical
contribution by Australians, or projects certified under Australias Official Co-
Production Program.
To support diversity, the FFC funded the most expensive program formats:
feature films, mini-series, telemovies and documentaries. Cheaper formats such
as current affairs, serial drama and infotainment are fully financed by the
market, whereas the more expensive formats would in many cases not be made
without government assistance.
In May 2007, the Australian Government announced the creation of a new

agency, Screen Australia, which will merge the Australian Film
Commission, Film Australia and the FFC. Screen Australia started operating in
July 2008, effectively replacing Film Finance Corporation Australia.

Chapter no 7
List of film production companies in India

This is a list of film filmmaking, film distribution companies in india.
A production company may specialize in producing their in-house films or own
subsidiary development companies. Major production companies often
distribute films from independent production companies. This list includes both
active and no longer active (defunct) companies. Active production companies
are either run by themselves or as a subsidiary.
Film studios also create television programs for broadcast syndication.
Company Country Headquarters Est. Notes
14 Reels Hyderabad, Tel

India 2009
Entertainment angana

Annapurna Hyderabad, Telangan

India 1975
Studios a
Aamir Khan Mumbai, Maharashtr

India 2001
Productions a
AVM
India Chennai, Tamil Nadu 1945
Productions
Balaji Motion Mumbai, Maharashtr Subsidiary

India 2001
Pictures a of Balaji Telefilms
Balaji Mumbai, Maharashtr

India 1994
Telefilms a
Bombay Mumbai, Maharashtr

India 1934 Defunct as of 1954
Talkies a (then Bombay)
Chilsag
Mumbai, Maharashtr
Entertainment India 2003
a
Network
Cloud Nine Subsidiary

Movies of Kalaignar TV
Dharma Mumbai, Maharashtr

India 1976
Productions a
Eros Mumbai, Maharashtr

India 1977
International a
Eskay Movies India Kolkata, West 1988 Founded as Eskay

Bengal Video Private

Limited
Excel Mumbai, Maharashtr

India 1999
Entertainment a
Bangalore, Karnatak
Felis Creations India 2006
a
Fox Star Mumbai, Maharashtr Subsidiary of 21st

India 2008
Studios a Century Fox
Gemini Studios India Chennai, Tamil Nadu 1940
Hyderabad, Telangan
Geetha Arts India 1972
a
Kanteerava Bangalore, Karnatak

India 1966
Studios a
Kavithalaya
Productions
Mumbai, Maharashtr
Mukta Arts India 1978
a
Padmalaya Hyderabad, Telangan Unknow

India
Studios a n
Pen N Camera Mumbai, Maharashtr

India 2004
International a

Percept Picture Mumbai, Maharashtr

India 2002
Company a
Pritish Nandy
Mumbai, Maharashtr
Communicatio India 1993
a
ns
PVR Pictures India Gurgaon, Haryana 1997
Rajshri Mumbai, Maharashtr

India 1947
Productions a
Subsidiary
Reliance Big Mumbai, Maharashtr of Reliance Anil
India 2005
Entertainment a Dhirubhai Ambani
Group
Red Chillies Mumbai, Maharashtr

India 2002
Entertainment a
Mumbai, Maharashtr
R.K. Films India 1948
a
S Pictures India Chennai, Tamil Nadu 1999
Shree
Ashtavinayak Mumbai, Maharashtr
India 2001
Cine Vision a
Ltd
Shree
Kolkata, West
Venkatesh India 1996
Bengal
Films

Sudha Mumbai, Maharashtr

India 2008
Productions a
Sun Pictures India Chennai, Tamil Nadu 2008
Sivaji
Productions
Studio Green India Chennai, Tamil Nadu 2006
Suresh Hyderabad, Telangan

India 1963
Productions a
Mumbai, Maharashtr
Trimurti Films India 1970
a
T-Series India New Delhi, Delhi 2001
Subsidiary of UTV
Software
UTV Motion Mumbai, Maharashtr
India 2004 Communications a
Pictures a
nd The Walt
Disney Company
Viacom 18 Subsidiary
Mumbai, Maharashtr
Motion India 2008 of Viacom
a
Pictures 18 and Viacom
Mumbai, Maharashtr
Vishesh Films India 1986
a
Mumbai, Maharashtr
Yash Raj Films India 1970
a

Chapter No 8
Popular And Well Known Film Production Houses
Balaji telefilms
Balaji Telefilms is an Indian company owned by actor Jeetendra, which

produces Indian soap operas, reality TV, comedy, game shows, entertainment
and factual programming in several Indian languages. Balaji had a partnership
with White Leaf Productions from 1997 to 2006.
Balaji Telefilms is promoted by Ekta Kapoor and Shobha Kapoor and is a public
company listed at Bombay Stock Exchange and National Stock Exchange of
India. Its work includes Kyunki Saas Bhi Kabhi Bahu Thi,[1][2][3][4][5] Kahaani
Ghar Ghar Kii, Kasautii Zindagii Kay, Kaahin Kissii Roz, Kahin to
Hogaa, Kkusum, Kutumb, Kasamh Se, Pavitra Rishta, Bade Acche Lagte
Hain, Meri Aashiqui Tumse Hi, "Ye hai Mohabbatein", Kumkum Bhagya, the
recent popular productions are Naaginand Kasam Tere Pyaar Ki.
The company registered as 'Balaji Telefilms Private Limited' on 10 November

1994, at Mumbai with the objective of making television software including
serials and other entertainment content by Ekta Kapoor and Shobha Kapoor.
Balaji has specialised in formatted programming that can be adapted for

languages around the nation as well as abroad. One notable success has
been Kyunki Saas Bhi Kabhi Bahu Thi known as the master of all Indian soap
operas and also for setting a golden period on Indian television. Other examples
include Kahaani Ghar Ghar Kii, Kasautii Zindagii Kay, Kaahin Kissii
Roz, Kahin to Hogaa, Kkusum, Kutumb, Kasamh Se, Pavitra
Rishta, Parichay, Yeh Hai Mohabbatein (dubbed and produced in languages
across India), Bade Acche Lagte Hain, Kya Hua Tera Vaada, and Jodha Akbar.
In recent years the company has been expanding its reality shows output with
shows such as titles such as Box Cricket League on Sony TV.
Balaji was incorporated as a public limited company on 29 February 2000, and

its name was changed to 'Balaji Telefilms Ltd' on 19 April 2000. The company
made public issue of 28,00,000 equity shares of 10 each at a premium of 120
aggregating 36.40 crore. The issue includes a Book Built Portion of 25,20,000
equity shares and a Fixed Price Portion of 2,80,000 equity shares. In the same
year, 'Nine Network Entertainment India Pvt. Ltd', a wholly owned subsidiary
of Nine Broadcasting India Pvt. Ltd., merged with Balaji Telefilms Ltd. During
2000-04 the stock market capitalisation grew sixteenfold to 571 crore when
'Star India' acquired 21% stake in the business.
In 2007, the company incorporated wholly owned subsidiary Balaji Motion

Pictures which creates Bollywood movies. In 2010, the company incorporated
ALT Entertainment Limited a banner to produce and concentrate on niche and
youth subjects in films and television.
In 2012, the company incorporated BOLT Media Limited yet another a wholly
owned subsidiary of Balaji Telefilms which has produced the shows Love By
Chance, Yeh Jawani Ta Ra Ri Ri and Dharmakshetra and has created and
produced advertisements.
In November 2014, its wholly owned subsidiary Balaji Motion Pictures had tied
up a deal with B4U, a Bollywood film production company to co-
produce Bollywood films.
In 2014, the company and Ekta Kapoor were subject to protests in Jaipur led by
the Shri Rajput Karni Sena (SRKS), a Hindutva group. These occurred because
of perceived communal slights in the Jodha Akbartelevision series.[7][8]

RED CHILLIES ENTERTAINMENT

Red Chillies Entertainment (RCE) founded in 2002, is an Indian motion
picture production, distribution and a premier visual effects company based in
the city of Mumbai. The company was founded in 2002
by Bollywood actor Shah Rukh Khan and his wife Gauri Khan. It was
transformed from the now defunct Dreamz Unlimited.
Red Chillies Entertainment has formed a full-fledged film studio in India. The
studio's activities span across creative development, production, marketing,
distribution, licensing, merchandising and syndication of films in India and
worldwide. When it comes to digital and marketing innovations for films, Red
Chillies Entertainments Pvt Ltd has always been at the top of the game and
often a market leader.
Apart from film production, RCE has a visual effects studio known as Red
Chillies VFX. The company also has a 49% stake in the Indian Premier
League cricket team Kolkata Knight Riders.
Sanjiv Chawla was the executive producer of the company, while Gauri Khan
serves as a producer. In February 2013, Venky Mysore, the CEO of Kolkata
Knight Riders took over additional responsibility as chief of Red Chillies
Entertainment as well.
In 2004, choreographer Farah Khan, a good friend of Khan, decided to direct a

film with him. He then took over the production company Dreamz Unlimited
which he created with Juhi Chawla and director Aziz Mirza and transformed it
into Red Chillies Entertainment with his wife Gauri Khan, who became the
producer of the first production Main Hoon Na in which Khan starred as well.
The movie did well at the box office, becoming the second highest grossing film
of the year. Khan also starred in the company's 2nd release, the 2005
movie Paheli, belonging to the genre of Indian Parallel Cinema, the film was
critically acclaimed and was selected as India's official entry to the 79th
Academy Awards in the Best Foreign Language Film category.

The third film produced by the company was Farah Khan's mega-budget Om
Shanti Om, which was released in November 2007. The film was set in the
1970s and 2000s and paid tribute to Indian film industry of both these eras.
Upon release, it broke many box office records, grossing over 1.48 billion and
thus became the highest-grossing Hindi film of all-time at the time of its
release. The 2009 film Billu starring Irrfan Khan and Lara Dutta was the
company's next release, the film opened to good reviews, but was a failure at the
box office. The latest film produced by the production company is Roshan
Abbas's Always Kabhi Kabhi, the film did poorly.
The company continued working on other projects until finally deciding

on Ra.One (2011) starring Khan himself, Kareena Kapoor and Arjun Rampal.
The pre-production work began in 2007 after the release of Om Shanti Om. The
film's crew consisted of more than 5,000 members from India, Italy and the US,
and was pieced together by more than 1,000 people, working in shifts, in around
15 studios across the world. It saw the inclusion of several visual
effects techniques being incorporated in the production which were carried out
by Red Chillies VFX. With an estimated budget of 1.25 billion, Ra.One was
the second-most expensive film ever produced in Indian cinema, and the most
expensive Bollywood film. The film witnessed a level of publicity campaigning
previously unseen in India films, with marketing taking place over a period of
nine months and involving major brand tie-ups of a 52 crore (US$9.88 million)
which set the record for the largest marketing budget in India.
The film released across 3,100 screens in India and 904 prints overseas in
both 2D and 3D, making it the largest Indian cinematic release in the world.
Subsequently, the success of the effects and the 3D version of the film prompted
multiple other Bollywood filmmakers to consider technology as a part of film-
making, especially in view of the success of Ra.One and the inordinately higher
returns generated from 3D ticket sales. The film went on to break multiple box-
office records and according to its distributors, is the second highest-grossing
Bollywood film worldwide earning over 2.4 billion. Their next production
was Karan Johar's directorial venture, Student of the Year (2012), which was co-
produced by Johar's production company.
DHARMA PRODUCTIONS

DHARMA PRODUCTIONS PVT. LTD. IS

INDIAN PRODUCTION AND DISTRIBUTION COMPANY ESTABLISHED BY YASH
JOHAR IN 1979. IT WAS TAKEN OVER IN 2004 AFTER HIS DEATH BY HIS
SON KARAN JOHAR. BASED IN MUMBAI IT MAINLY PRODUCES AND
DISTRIBUTES HINDI FILMS.
INITIAL SUCCESS (19801998)
The company's first production was Raj Khosla's Dostana (1980)

starring Amitabh Bachchan, Shatrughan Sinha, and Zeenat Aman. The film was
the highest-grossing Bollywood film of the year.
The company then went on to produce Duniya (1984) and Muqaddar Ka

Faisla (1987). Its next film was Agneepath (1990), which was not a major box
office success, but won a National Film Award for its lead actor Amitabh
Bachchan. Its next two films were Gumrah (1993) and Duplicate (1998), which
were both directed by Mahesh Bhatt.
tributes Hindi films.

RISE TO PROMINENCE (19982009)
Karan Johar has directed six films for Dharma and has produced all of the
company's films since his father's death in 2004.
The production house reached a turning point with the release of Karan Johar's
directorial debut, the blockbuster romantic drama Kuch Kuch Hota Hai (1998)
starring Shah Rukh Khan, Kajol, Rani Mukerji and Salman Khan. The film won
several awards, including the National Film Award for Best Popular Film
Providing Wholesome Entertainmentand the Filmfare Award for Best Film, and
has become a classic over the years.
The company's next film was Karan Johar's family drama Kabhi Khushi Kabhie
Gham... (2001) featuring a large ensemble cast including Amitabh
Bachchan, Jaya Bachchan, Shah Rukh Khan, Kajol, Hrithik Roshan,
and Kareena Kapoor. This was followed by Nikhil Advani's tear-jerking
romantic drama Kal Ho Naa Ho (2003) starring Jaya Bachchan, Shah Rukh
Khan, Saif Ali Khan and Preity Zinta. Both of these films earned commercial
success and critical acclaim.

Dharma's next release was the natural horror film Kaal (2005), which received
mixed to positive reviews from critics. This was followed by Karan Johar's
musical romantic drama Kabhi Alvida Naa Kehna (2006) featuring a large
ensemble cast led by Amitabh Bachchan, Shah Rukh Khan, Abhishek
Bachchan, Rani Mukerji, Preity Zinta and Kirron Kher. The film became a
moderate commercial success despite the fact that it dealt with the controversial
subject of marital infidelity, though it was the all-time biggest earner in the
overseas markets at the time of its release.
Dharma's next release was Tarun Mansukhani's commercially successful

romantic comedy Dostana (2008) starring Abhishek Bachchan, John Abraham,
and Priyanka Chopra. This was followed by Ayan Mukerji's coming-of-age
film Wake Up Sid (2009) starring Ranbir Kapoor and Konkona Sen
Sharma. Rensil D'Silva's counter-terrorism thriller Kurbaan (2009) starring Saif
Ali Khan, Kareena Kapoor, and Vivek Oberoi. Both Wake Up
Sid and Kurbaan received critical acclaim, but the latter failed to make a mark
at the box office.
Karan Johar inherited the company from his father and made it a bigger
company in this period. SRK, his brother went on to say, "I love Dharma
Productions, it is my favourite film production house in India after Red Chillies
and YRF!"
WIDESPREAD SUCCESS (2010PRESENT)
In 2010, Dharma produced two of the top ten highest-grossing Bollywood films
of the year. The fifth spot on the list was taken by Karan Johars counter-
terrorism drama My Name Is Khan (2010) starring Shah Rukh Khan and Kajol,
while the seventh spot was taken by Punit Malhotras romantic comedy I Hate
Luv Storys (2010) starring Imran Khan and Sonam Kapoor. Later that year, the
production house produced the family drama We Are Family (2010), a Hindi
remake of the Hollywood film Stepmom (1998). The film was not a major
commercial success, but received praise for the performances of the two lead
actresses Kajol and Kareena Kapoor.
The company's first film of 2012 was Karan Malhotra's Agneepath, a retelling
of Dharmas 1990 film of the same name. It featured Hrithik Roshan and Sanjay
Dutt in the roles originated by Amitabh Bachchan and Danny

Denzongpa respectively, while Priyanka Chopra and Rishi Kapoor played

principal roles not in the original film. This film emerged as much larger
commercial success than the original Agneepath. This was followed by Shakun
Batras moderately successful romantic comedy Ek Main Aur Ekk Tu (2012)
starring Imran Khan and Kareena Kapoor. After this came Karan Johars
coming-of-age comedy-drama Student of the Year (2012), which marked the
debut of its three lead actors Sidharth Malhotra, Varun Dhawan and Alia Bhatt.
Dharmas first release of 2013 was the unsuccessful teen comedy Gippi. This
was followed by Ayan Mukerjis coming-of-age romance Yeh Jawaani Hai
Deewani (2013) starring Ranbir Kapoor and Deepika Padukonein the lead roles
with Aditya Roy Kapur and Kalki Koechlin in supporting roles. The film
became a major commercial success upon its release and still ranks among
the highest-grossing Bollywood films of all-time. Dharma was also one of the
many production houses associated with the widely acclaimed drama The
Lunchbox (2013) starring Irrfan Khan, Nimrat Kaur, and Nawazuddin Siddiqui.
They finished off the year with Punit Malhotras relatively unsuccessful
romantic comedy Gori Tere Pyaar Mein (2013) starring Imran Khan and
Kareena Kapoor Khan.
In 2014, Dharma produced three commercially successful romantic comedies all

directed by first-time directors. The first was Vinil Matthewss Hasee Toh
Phasee (2014) starring Sidharth Malhotra and Parineeti Chopra, which Dharma
co-produced with Phantom Films. They then teamed with Nadiadwala Grandson
Entertainment to produce Abhishek Varmans 2 States (2014) starring Arjun
Kapoor and Alia Bhatt, a film adaptation of Chetan Bhagats novel of the same
name. After this came Shashank Khaitans Humpty Sharma Ki Dulhania (2014)
starring Varun Dhawan and Alia Bhatt. After these three romantic comedies
came Rensil D'Silva's relatively unsuccessful black comedy Ungli (2014).
In July 2015, Dharma distributed the Hindi-dubbed version of S. S. Rajamouli's

epic film Baahubali: The Beginning (2015), which was originally filmed in
Telugu and Tamil. Upon its release, the film became a major commercial and
critical success and currently ranks as one of the highest-grossing Indian films
of all-time. In August 2015, the company released Karan Malhotras Brothers,
an adaptation of the Hollywood film Warrior (2011), starring Akshay
Kumar and Sidharth Malhotra in the lead roles with Jacqueline
Fernandez and Jackie Shroff playing supporting roles. Dharma also collaborated

with Phantom Films to co-produce Vikas Bahl's romantic

comedy Shaandaar starring Shahid Kapoor and Alia Bhatt, which was released
one month later. Neither of these films fared well commercially or critically.
March 2016 saw the release of Shakun Batra's critically and commercially
successful family drama Kapoor & Sons starring Rishi Kapoor, Ratna Pathak
Shah, Rajat Kapoor, Fawad Khan, Sidharth Malhotra, and Alia Bhatt. This was
followed in September 2016 by Nitya Mehra's relatively unsuccessful romantic
drama Baar Baar Dekho, a co-production with Excel Entertainment starring
Sidharth Malhotra and Katrina Kaif. On 28th October, 2016, Karan Johar
released his directorial feature Ae Dil Hai Mushkil, starring Ranbir
Kapoor, Anushka Sharma and Aishwarya Rai Bachchan, which received mixed
to positive reviews from critics upon release and went on to become one of the
highest grossing films of the year and also one of the highest overseas grossers
for the year 2016. On 25th November, 2016, Dear Zindagi, directed by Gauri
Shinde, starring Alia Bhatt and Shah Rukh Khan was released to positive
response from critics, getting a good opening inspite of being an unconventional
slice-of-life film
EROS INTERNATIONAL
Eros International Media Ltd is an Indian motion
picture production and distribution company, based in Mumbai. Founded by
Arjan Lulla in 1977 it is considered as one of the leading production and
distribution company in India. Currently, his sons Kishore Lulla and Sunil Lulla
are handling the company.
Eros co-produces, acquires and distributes Indian language films in multiple

formats worldwide, including theatrical, television syndication and digital
platforms.
The group distribution network includes over 50 countries, with films dubbed in
over 25 languages and offices in India, UK, United States, Dubai,
Australia, Fiji and the Isle of Man. Eros has over 2,300 films in its library, plus
an additional 700 films for which the group hold digital rights only.

In 2006, Eros International Plc, the holding company of the Eros Group,
became the first Indian media company to list on the Alternative Investment
Market (AIM) of the London Stock Exchange. Subsequently, the company
delisted from AIM in November 2013 to list on the New York Stock Exchange
(NYSE:EROS).
In 2010, Eros listed its Indian subsidiary Eros International Media Limited on
the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in
India.
RAJSHRI PRODUCTIONS
Rajshri Productions Pvt. Ltd., established in 1947, is a film production
company based in Mumbai, India, and primarily involved in producing Hindi
films. This company produced several films that were critically acclaimed. The
most popular films produced by the company include Dosti (1964), Maine Pyar
Kiya (1989) and Hum Aapke Hain Kaun (1994).
HISTORY
Rajshri Productions, the film production division of Rajshri, was set up in 1962.
Its first release Aarti was critically acclaimed and was screened at international
film festivals. This was followed by Dosti, a non-star-cast film which went on to
become a mega success at the box-office. Dosti was presented the National
Award for the Best Hindi Film of the Year (1964) and also won six Filmfare
Awards.
EARLY DAYS
Rajshri Productions made several successful and critically acclaimed movies

between the 1960s and 1980s like Dosti, Uphaar, Geet Gaata Chal, Ankhiyon
Ke Jharokhon Se, Chitchor, Dulhan Wahi Jo Piya Man Bhaye and Saaransh. At
the end of the 80's, when the entire film industry was in the doldrums with the
advent of video, Rajshri gave a break to its in-house talent Sooraj R.
Barjatya who directed Maine Pyar Kiya, a musical teenage romance, which
went on to become one of Indian cinema's biggest grosser. The film won six
Filmfare awards including awards for the Best Film and the Most Sensational
Debut of the Year for the 24-year-old Salman Khan.

Salman Khan moved from strength to strength and followed up the success of
MPK with blockbusters Hum Aapke Hain Koun and Hum Saath Saath
Hain. Hum Aapke Hain Koun remains one of the biggest hit in the history of
Indian cinema, a film which instilled a new lease of life in the ailing film
industry by bringing viewers back to cinema halls. The film won the National
Award for being the most popular film providing wholesome entertainment and
also secured 8 Filmfare Awards and 6 Screen Awards, including awards for the
Best Film, Best Actress and Best Director.
2000 AND BEYOND

In the next decade, Rajshri Productions produced movies like Main Prem Ki
Diwani Hoon, Uuf Kya Jadoo Mohabbat Hai, Ek Vivah Aisa Bhi (by debutant
director Kaushik Ghatak), Isi Life Mein (by Vidhi Kasliwal), and Love U...Mr.
Kalakaar! which were not successful at the box office. However, in 2006,
Rajshri Productions released Vivah under the direction of Sooraj Barjatya,
which went on to become a blockbuster.
FOX STAR STUDIOS

Fox Star Studios is an India-based movie production and distribution company,
a joint venture between 20th Century Fox, one of the worlds largest producers
and distributors of motion pictures and STAR, Indias media and entertainment
company, both owned by Rupert Murdoch's 21st Century Fox.
Fox Star Studios works in conjunction with Fox International Productions (FIP),
the international film production arm of 20th Century Fox Film. Fox Star
Studios produces Hindi and regional language films through acquisitions, co-
productions and in-house productions for worldwide distribution.
RELIANCE ENTERTAINMENT

Reliance Entertainment (formerly known as Reliance BIG Entertainment) is

a division of the Reliance Anil Dhirubhai Ambani Group handling its media and
entertainment business, across content and distribution platforms.
The key content initiatives are across movies, music, sports, gaming, Internet &
mobile portals, leading to direct opportunities in delivery across the emerging
digital distribution platforms: digital cinema, IPTV, DTH and mobile TV.
HISTORY
RELIANCE FORAYED INTO THE LARGELY UNTAPPED VIDEO RENTAL MARKET IN
INDIA BY LAUNCHING BIGFLIX.
The company plans to launch TV Channels.
On July 15, 2009, Reliance and Steven Spielberg announced a joint

venture with funding of $825 million.
Big 92.7 FM launched a radio station in Singapore considering 8% of the

population residing there is Indian.
On April 5, 2010, Reliance acquired a 50% stake in Codemasters.
On May 28, 2010, the company achieved the first ever Bollywood cross-
over into the Hollywood box office market with the release of Kites.
Reliance co-produced director Steven Spielberg's film War Horse, which

was released worldwide on Christmas Day in 2011. Many other projects
from the director also have the company as a producer.
In January 2012, it was announced that Reliance DreamWorks movies

garnered 11 Oscar nominations.
In November 2014, the company announced plans to begin the

acquisition process of the North American and European mobile game
studios of DreamWorks Studios in early 2015.

PVR PICTURES
PVR Pictures is the film production and distribution arm of PVR Group, which
also owns PVR Cinemas, one of the largest multiplex companies in India.
HISTORY
The company has its origin is Priya Cinema in Vasant Vihar in South Delhi,
which was bought by current owner 's father in 1978, who also owned a
trucking business, Amritsar Transport Co. In 1988, Bijli took over the running
of the cinema hall, which was revamped in 1990, and its success led to the
founding PVR Cinemas.
PVR Pictures film production dbut came in 2007 with Taare Zameen
Par and Jaane Tu Ya Jaane Na. It has distributed over 200 Hollywood films,
including The Aviator, Mission: Impossible III, Kill Bill, The Hurt Locker, The
Twilight Saga and Chicago; over 100 Bollywood films, including blockbusters
such as Ghajini, Golmaal Returns, All The Best, Don', Sarkar Raj,
Omkara and nearly 25 regional films since its inception. In October 2012 the
company acquired the Indian distribution rights for the film adaption of Salman
Rushdie's Booker Prize-winning novel Midnight's Children.
Its president is Kamal Gianchandani, and its current promoters are Ajay
Bijli and Sanjeev K Bijli. Ajay Bijli is the chairman and Managing Director of
PVR Ltd while Sanjeev K. Bijli is the Joint Managing Director of PVR Ltd.

Chapter No 9
Film Funding Companies
MOVIE FUND A FILM FINANCE COMPANY
How The Movie Fund.com Can Help raise Film Finance

TheMovieFund.com is a revolutionary new film finance and investment

company that can help filmmakers take advantage of the new trend in
crowdfunding movies by linking film investors and filmmakers through a
shared passion for film. Bringing together ordinary members of the public, film
financing companies, and producers, with writers and directors, its the one-stop
shop for filmmakers to find movie investors and film financing.
One thing that many new filmmakers fail to realize is that there is a huge
investment of time, effort and energy required in the movie financing and
funding of any film. Orson Welles was once quoted as saying, I spend 5
percent of my time making movies and the other 95 percent of the time looking
for the money to make them. Well, look no further than TheMoviefund.com.
Would-be, best-selling film producers first have to get the serious, large-
scale movie investors interested in their latest films before they will be given
the funds to pay for the actual filming. To do this, they need a
plan. Filmmakers must develop the idea behind the film, create a convincing
pitch to sell the movie to those angel investors who really matter, work on
the films script to attract actors that can secure investments, create a working
storyboard to give investors a visual that allows them to envision the movie on
the big screen, consider casting ideas that will help raise film funding or limit
the budget, and scout the right locations for the film. Filmmakers need to create
a solid movie and film finance package. Without many of these details, they
may fail to come across as a serious investor who truly has the funds to invest
in movies. Yet, all this costs money.
TheMovieFund Keywords: film finance inc, watch movie online, watch movies
now, online free movies, online movie, movie showtimes, new movies
releases, movies in theater, movie release dates, movie ratings, film funding.
About Movie Funding Investing :
The Movie Fund is designed for Investing and everyone who wishes to upload
their scripts, film ideas as well as other movie related projects that require
funding. It assists the filmmakers by providing start upfunds needed for location
scouting, pre-production scripts, post-production funding, castings and budgets
for film production. When it comes to getting funds for their films, investors or

filmmaker has to typically submit their short description of film or project to the
site. The site already holds several registered investors who can access the
submitted project and allocate funds accordingly. In this way, the filmmakers
are contacted directly by the investors by cutting down the middleman. There
are numerous non-profit organizations available, which focus on assisting
independent filmmakers to get funds to finance as well as distribute their films.
Being a filmmaker, you can easily do investing in movies by getting funding

from the online websites. There are many kinds of movie funding options
available such as pre-sales, equity, crowdfunding, tax incentives, gap, private
equity and so on. While raising capital to the film project, there are plenty of
elements to consider such as talent, creativity, timeline and many others.
Therefore get some basic funds for investing in movie production that you
create. Other benefit behind investing in movies is that you will get high returns
on investment as well. When comparing with other websites that offer
funding, The Movie Fund seems to be the best choice to get funding and also
ideas to develop your script. investing-in-movies.
Seeking Assistance Of Film Investor:
The Movie Fund offers one-stop solution for a number of filmmakers by

holding a big network of industry professionals who are willing to offer
wonderful advice regarding all characteristics of film making process. Films are
usually considered as high-risk investment because it involves tax credits,
genres, film budgets, and distribution output and producer track records.
However, it is iniquitous to create a film without much investment. By getting
assistance from The Movie Fund, you can obtain the golden opportunity to meet
the movie stars along with that you can attend international premieres as well as
after-show partiers. Since, the Investing can get support in terms of tax
incentives, film contracts and legal fees for investors.
Benefits Offered By Movie Funding Option:
The financial environment of film production is undergoing massive changes

these days due to the advancement of technologies that has greatly modified the
filmmaking process. The independent film investors can get training and
understand about filmmaking process easily through online site. Media and
entertainment industry is considered to be the biggest industries in the globe.
Due to the opportunities and lifestyle thrown open due the developments in

technology, the worldwide filmmaking industry is also attaining higher heights.

In todays life, most of the business is concentrating on filmmaking process and
they are in need of funds to complete their film production without hassle. The
Movie Fund acts a wonderful source for funding films of distinct concepts with
numerous investment prototypes so as to spend in the film project.
FILMMAKER & FILM INVESTORS RESOURCES
TheMovieFund is also an extensive resource for filmmakers. The company

provides a resource centre to download; film investment contracts, film
investment agreements & have templates for film Investor contracts for a single
purpose entity (SPE). We provide weekly updates, documents and film
investor and investment news via our investor blog covering all aspects of;
investing in independent films, investing in movies and finance films. The blog
also provides our filmmakers with independent film financiers blogs; movies on
finance articles and an overview on Prescience film finance, papers on Indie
film financing and film equity financing. Our film Investor blog also covers
International movie funds like the Aegis film fund to International production
tax breaks providing the best film finance advice for movies in pre-production
and development stages.
Film investors can read entertainment news on large scale movie slate
investments and opportunities on multi-award worthy independent film
investment opportunities and everything you need to know to invest in movies
and investing in films. Whether you need to finance a Movie; find a Movie on
finance, access our Film investors directory to help finance movies or find film
financiers to make a movie investment..The Company has an extensive
database of independent film investors & film funding companies for movie
investing and private equity film financing. TheMovieFund is here to help.
ALCON ENTERTAINMENT- A FILM FINANCE

COMPANY
Los Angeles-based Alcon Entertainment develops, finances and produces

feature films for broad and diverse audiences.
The Company was born out of a business plan written by co-founders and co-
CEOs Broderick Johnson and Andrew Kosove for FEDEX Founder, Chairman
and CEO Frederick W. Smith, who ultimately agreed to personally finance the
Company, which was officially incorporated in January of 1997.
To this day, that plan's fundamental concept remains the core principal of
Alcon's business philosophy in that the Company integrates the optimal
incentives and fiscal accountability of independent filmmaking with the
principal assets of a major studio alliance.
Alcon is an independent film company in the truest sense given that the
Company secures its financial resources independently, thus enabling it to focus
on and produce economical, cost-effective content, while offering filmmakers
and creative talent a streamlined, non-bureaucratic environment in which to
work. Early in its history, Alcon established a long-term distribution
arrangement with Warner Bros. Under the terms of the deal, Warner Bros
distributes the films Alcon finances and produces while the two companies
work closely in the marketing of the films.
Alcon offers the considerable advantages of a truly "independent" film

environment while concurrently capitalizing on the most important attribute
offered by a major studio, namely: access to a powerful, worldwide distribution
pipeline. This dynamic combination has allowed Alcon to consistently minimize
costs, remain nimble, streamlined, and "filmmaker friendly," while at the same
time maximizing each of its films' revenues through Warner Brothers'
distribution mechanism. Most crucially, Alcon Entertainment determines its
own destiny by retaining ownership of the films it finances/produces.
Today, Alcon Entertainment is one of the most enduring, well-respected

independent film companies in the world. It controls a 20-title library and has
generated over $2 billion in revenues throughout its history. The list of
successful films the Company has financed, and/or produced span multiple
genres from family classics such as MY DOG SKIP and the recent hit
DOLPHIN TALE to thrillers such as INSOMNIA (director Christopher Nolan's

first studio distributed film) and THE BOOK OF ELI, starring Denzel
Washington, to dramas such as the Academy Award nominated THE BLIND
SIDE, which is the highest grossing sports-themed film in history.
Alcon has expanded beyond its core activities of film finance and production
into the related businesses of television, talent management and music. Sharon
Hall, a highly respected television executive who was previously head of drama
at Sony Television, is President of the newly formed Alcon Television. The
Company also formed Alcon Management Enterprises (AME), a holding
company for as many as six or seven talent management companies that Alcon
may acquire in the future. The first acquisition under the AME banner was
Madhouse Entertainment, run by partners Robyn Meisinger and Adam
Kolbrenner. Madhouse is a successful boutique literary management firm
representing over 50 film and television writers. Alcon Sleeping Giant (ASG)
Music Group is a joint venture designed to integrate the combined companies'
music enterprises into a new music model for the modern business of film,
television and commercial media production. As part of ASG's unique services
model, the company will provide revolutionary solutions for music supervisors,
film companies, television companies, brands, gaming and commercial media
companies by utilizing an in-house and global network of top talent for music
and song creation, production, composition, licensing, promotion, distribution
and label services. Michael Hodges will serve as Co-CEO of ASG with Alcon
COO Scott Parish.
For those interested in Greek mythology, Alcon was a companion of Hercules

and an archer who never missed his target. Johnson and Kosove decided on the
name for Alcon Entertainment while perusing a book entitled "Obscure Greek
Heroes."
VIACOM 18 MOTION PICTURES

Viacom 18 Motion Pictures
Type Public
Industry Film
Headquarters Mumbai, India[1]

Key people Ajit_Andhare, [COO]
Parent Viacom 18
(Viacom, Inc./Network 18)
Website www.viacom18movies.com
Viacom 18 Motion Pictures, a part of Viacom 18 (a Viacom and Network

18 joint venture) based in Mumbai, is one of the first studio model based motion
picture business in India, with an operation that involves acquisition,
production, syndication, marketing and worldwide distribution of full-length
feature films.
UTV MOTION PICTURES
UTV Motion Pictures
Industry Film production, film distribution
Founded 2004; 12 years ago
Founder Ronnie Screwvala
Defunct September 1, 2016
Key people M. Saravanan (Managing Director)
Products Films
Owner The Walt Disney Company

Parent UTV Software Communications
Website www.utvgroup.com/motion-pictures.html
UTV Motion Pictures was a film unit of UTV Software Communications, a

subsidiary of The Walt Disney Company.
UTV Motion Pictures have formed one of the leading film studios in India. The
Studios activities span across creative development, production, marketing,
distribution, licensing, merchandising and syndication of films in India and
worldwide.
UTV Motion Pictures as a dominant player in the Indian film industry has been
in the forefront of bringing Indian films to a global audience and the last decade
in Indian cinema has seen UTV Motion Pictures delivering some of the most
iconic films. UTV Motion Pictures' films have also been selected to represent
India at the Academy awards; films were Rang De
Basanti (2006), Harishchandrachi Factory (2009) Peepli Live (2010)
and Barfi! (2012). In 2011, UTV Motion Pictures also became one of the few
studios to successfully venture into South Indian cinema. UTV Motion Pictures
has a library of over 70 films including Hindi, Regional, Animation and
International Productions, which have been showcased in over 50 festivals
across 28 countries, receiving almost 250 awards in the last 7 years. On
September 1, 2016, Disney Indiaannounced that it was ending film production
in the Indian film industry thus putting UTV into an uncertain future with the
current head of the studio reportedly leaving immediately.
YASH RAJ FILMS
Yash Raj Films Private Limited

Type Private
Industry Entertainment
Founded Mumbai, Maharashtra in

1970
Founder Yash Chopra
Headquarters Mumbai, India
Key people Aditya

Chopra (Chairman) Pamela
Chopra, Uday Chopra
Products Films
Music
Owner Aditya Chopra
Subsidiaries
Yash Raj Films
International
Yash Raj Films USA,

inc.
Y-Films
YRF Television

YRF Entertainment
Website www.yashrajfilms.com
Yash Raj Films (YRF) is an Indian entertainment company established by Yash

Chopra, an Indian film director and producer who was considered an
entertainment mogul in India. His son Aditya Chopra also produces films under
this banner.
INITIAL YEARS
Yash Chopra started out as an assistant to his elder brother, B.R.Chopra, and
went on to direct five films for his brothers banner - B.R.Films - each of which
proved to be a significant milestone in his development as a director. These
were Dhool Ka Phool (1959), Dharmputra (1961), Waqt (1965), Ittefaq (1969)
and Aadmi Aur Insaan(1969). He has wielded the baton, additionally, for 4 films
made by other film companies -Joshila (1973), Deewaar (1975), Trishul (1978)
and Parampara (1993).
Out of the films 52 produced by YRF till 2012, Yash Chopra directed only 13
films.
Darr (1993), Dil To Pagal Hai (1997), Veer-Zaara (2004) and Jab Tak Hai
Jaan (2012) were his latter movies and all of them featured Shah Rukh Khan.
Khan has played the lead role in nine movies produced by Yash Raj Films and
remains their most illustrious collaborator, most of them directed by Yash
Chopra or his son Aditya Chopra.
THE CORPORATION OF YASH RAJ FILMS
Yash Raj Films has launched its own music label called Yash Raj Music and
produces DVDs, videos and VCDs under the Yash Raj Films Home
Entertainment label. YRF Home Entertainment has acquired the rights for
classic films created by Raj Kapoor and his production company R.K. Films, as
well as B.R. Chopra and his production company B.R. Films. In 2006, Yash Raj
Films unveiled its new film studio. Since 2007, it has sold its music in digital
format through the site along with DVDs and audio CDs. It has also started

selling its music on iTunes. In May 2007, it linked with The Walt Disney
Company to co-produce animated movies in India.
In 2004, the Hollywood Reporter placed Yash Raj Films at number 27 in a

survey of the "Biggest Film Distribution Houses" in the world; it is India's
biggest production company as of 2006. Yash Raj Films has launched its own
merchandise label called YRF Merchandise which offers a range of products
embellished with pictures and posters from Yash Raj Films like Rab Ne Bana Di
Jodi, Band Baaja Baraat.
SUBSIDIARIES OF YRF
YRF Entertainment
Yash Raj Music
Yash Raj Home Video
YRF Television
Yash Raj Films International
YRF Store
Y-Films, a production house created in April 2011 to provide a platform

for young talent and innovative marketing.
Yomics
Diva'ni, India's first Bollywood inspired fashion label
OFFICES
In India, YRF has additional offices

in Delhi, Jalandhar, Jaipur, Amravati, Indore, Bangalore, Secunderabad, Kolkat
a, Chennai and Cochin. There are also offices in the United Kingdom,
the United States, and the United Arab Emirates.

Chapter No 10
CONCLUSION:
LEARNINGS FROM THE ABOVE PROJECT:
From the above project we can conclude that-
Media & Entertainment (M&E) Industry is one of the largest industries in
the world. Due to the lifestyle and the opportunities thrown open by the
advancements in technology, the Global Media & Entertainment Industry
today has everything going for it.
In this 21st century, the major business centers of filmmaking are

concentrated in United States, India and China. Hollywood Film Industry
has had a profound effect on cinema across the world since the early 20th
century. Hollywood has an overwhelming domination among the top
grosser worldwide almost all of the top 50 movies are made in
Hollywood.
The Indian film industry is the 2nd largest in the world, with more than
1,000 films produced every year in more than 20 languages, and 3.3
billion tickets sold annually. "Mumbai-based Bollywood film industry
could be an alternative worth considering for prospective film investor,
with middle class growing by 40 million a year." (CNBC Special Report)
The Indian M&E industry was valued at US$16.3 billion in 2010. The
industry is forecast to flourish at a compound annual growth rate (CAGR)
of 12% to reach a worth of US$25.8 billion by 2014. In 2011, it was

valued at US$18.3 billion. (E&Y Report)
Globally, film funds are a major source of funding films with various
investment prototypes to invest in a film project. However, in India, the
dawn of film funds is at an infant stage, though the banks ventured into
film financing more than a decade ago.
Nowadays, increasingly films in India are being financed by organized

sources (comprising APO funds, institutional / bank loans, private
equity / venture capital from institutions & private sources directly or
through investment vehicles & companies).
Chapter No 11
BIBLIOGRAPHY AND WEBLIOGRAPHY
Books Referred:
The Art of Film Funding
Film Financing Handbook
Websites Referred:
www.wikipedia.com
www.filmfed.com
www.quora.com
www.moviefund.com


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PRAHLADRAI DALMIA LIONS COLLEGE OF COMMERCE AND ECONOMICS

FILM FINANCING Page 1

Introduction to film financing

protection was developed by Geneva Media Holdings, LLC (originally as risk

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analysts compare draft scripts to those of previously released movies in an effort

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There are five main methods of financing the production of a film:

2. tax incentives and shelters;

3. private equity and hedge funds

4. debt finance; and

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be offered for off-season, low-income area, or family entertainment projects

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Admission rate above Rs.2/- 70%

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Uttar Pradesh - 60% (likely to be 30% soon)

Types of Film Financing

WHY DON'T PRIVATE EQUITY FIRMS ACTIVELY INVEST IN FILMS,

Relativity Media is an example of a financial player that has attempted to play

WHAT IS A HEDGE FUND?

Second, as a result of being relatively unregulated, hedge funds can invest in a

Additionally, many hedge funds invest in derivatives, which are contracts to

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The popularity of these alternative investment vehicleswhich were first

Get comprehensive and up-to-date information on 6100 + Hedge Funds, Funds

Also known as slate financing deals.

more risk to his investment portfolio, or a high-net-worth individual with a keen

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film. This is commonly referred to as "factoring paper". Most major North

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Product placement financing

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A feature film that has expectations of reaching millions of viewers attracts

In many cases no payment is made for product exposure and no promise of

One of the earliest examples is The Garage, a Buster Keaton/"Fatty"

Another early example occurs in Horse Feathers (1932), wherein Thelma

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Cheerios and Coca-Cola had product placement in the Andrew Lloyd

The conspicuous display of Studebaker motor vehicles in the television

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War bonds are theoretically a form of crowdfunding military conflicts. London's

Crowdfunding gained traction after the launch of ArtistShare, in

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platforms founding. It was later controlled by a German company and

War bonds are theoretically a form of crowdfunding military conflicts. London's

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Crowdfunding gained traction after the launch of ArtistShare, in

1. Rewards crowdfunding: entrepreneurs presell a product or service to

2. Equity crowdfunding: the backer receives shares of a company, usually in

Reward-based crowdfunding has been used for a wide range of purposes,

Many characteristics of rewards-based crowdfunding, also called non-equity

Equity crowdfunding is the collective effort of individuals to support efforts

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SOFTWARE VALUE TOKEN

Another kind of crowdfunding is to raise funds for a project where a digital or

Debt-based crowdfunding (also known as "peer to peer", "P2P", "marketplace

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unaccredited investors to invest directly in private businesses through regulated

Litigation crowdfunding allows plaintiffs or defendants to reach out to hundreds

Charity donation-based crowdfunding is the collective effort of individuals to

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