I was reading this post from Deadline Hollywood today that predicts that the U.S. box office receipts will only account for 30% of the total worldwide box office receipts by 2014. That’s an amazing number. Why? Because it will most likely change the way films are developed. If you’ve already noticed that there are more and more films out there that require less dialogue (think all of the comic book films and “Transformers”) it’s probably because the studios are looking to appeal to the world wide market more than before.
On Friday I was at an event put on by The Incentives Office where I was on one of two panels. The first panel focused on financing issues. There were a few interesting comments that came up over and over. #1 – There are very few financing options out there that will allow for a financing business plan that revolves around distribution through film festivals. #2 – You must bring 30% equity to the project BEFORE you start seeking out film financing. #3 – Branded Entertainment is coming in an even bigger way (think P&G and Wal Mart TV films) and #4 – International Co-Productions will increase (Dreamworks’ new financing is coming from India).
In general everyone was optimistic on the financing panel but they said the key to success is to stay up on the constantly changing universe of film financing.
-Vince
