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EntertainmentIndustry.name
The economic life of a feature film may last for decades, but generally the bulk of the revenues will be earned over the first three-year period. Often, investors and producers see their first profits when a film is acquired by — or a contract is negotiated with — a distribution company.
Shine, Sling Blade, and The Spitfire Grill were all financed by independent sources and secured $10 million each through their initial distribution contracts.
Shine had a direct cost of $4.5 million and received $10 million in domestic and international advance.
Sling Blade had a direct cost of $1 million and was acquired by Miramax for a $10 million guarantee.
The Spitfire Grill cost $6.1 million (including deferred compensation) and was acquired by Castlerock for a $10 million advance.
Miramax paid $5 million for Swingers (which had a budget of $250,000). $750,000 of that amount went to pay off deferments while another $1 million was paid in commissions to agencies, leaving about $3 million for producers and equity investors.
The Blair Witch Project, while undeniably an anomaly, is worth mentioning as it seems to be the pie-in-the-sky lottery benchmark by which popular culture gauges film investing. The production company received $1.2 million from Haxan Films as an advance on a film that cost less than $350,000. (The final profit figures are astronomical and are listed below at the bottom of theatrical distribution).
Notes:
1. The Los Angeles Times (3/4/97).
2. The Hollywood Reporter (11/4/96).
3. The Hollywood Reporter (1/29/96).
4. According to many in-depth interviews with Director, Doug Liman chronicled by Louise Levinson in her book Filmmakers & Financing.
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