Business

THE BUSINESS  

We know that with a premise of sound research, financial accountability and well-defined market viability for each property, combined with a basic film financial model which is profitable – supported by our goal to serve mankind – a profitable and viable business model is possible.

Business Model:

We are unique in combining:

  • Low to mid-budget films (see below for definition)
  • The big studios financial protection strategy of using a slate of films
  • Marketing direct-to-DVD and television (bypassing the generally unprofitable theatrical release format)
  • The Christian market
  • Films with a God-centered focus

We feel this is a winning strategy for the audience, the investor and the film company.  

The film business presents a unique and often misunderstood structure. It doesn’t operate like we expect….

Each film is it’s own business entity, usually a Limited Liability Company, and because films generally have a short life span – about seven years – once the film has been made another one needs to start in order for there to be continuity of income. A film that has reached the end of it’s life span no longer generates much income. The solution is to make a slate of films, i.e., the portfolio approach. This strategy is no longer the domain of the large studios and large independents. Our investors, the company and the distributor will benefit from the safety of diversification and more even income streams as revenues from high and low-profitability films are balanced.

The portfolio, or slate-of-films strategy will:  

  • reduce risk for investors
  • increase profit potential
  • offer distributors a company identity that they can depend upon
  • take advantage of economies of scale
  • attract a base of talent; and
  • provide ongoing promotional and marketing opportunities

Definitions:

Development: the process of preparing the property for filming by:

  • acquiring the rights to the underlying story
  • supervising the writing of the script
  • attaching a director and principal cast
  • writing a budget and schedule
  • attaching a casting director

Distribution: The selling or licensing of a film into the markets where it will be seen. This includes the advertising and marketing efforts to get the units purchased.

DVD: Digital Video Discs

Low-to-mid budget Films:
Low budget films are those with budgets of $3 million and under
Mid budget films are those with budgets of $5-12 million.

Property: The story, idea, stage play, etc. and ultimately the screenplay that becomes the film.

Theatrical Release: Showing a film in theaters, with the attendant costs, which include the making of prints to send to the various theaters, as well as the advertising costs, to bring the audience in to see the film. For the average studio film this budget has now risen to up to as much as 300% of the film cost. These costs have become so exorbitant that it is highly unusual for any film to be profitable in theatrical release regardless of it being a studio or independently produced film. Thus the reason that studios see this – and independents should see this – as primarily a form of promotion for the DVD sales and not a profit center.