I LOVE our economic situation!!!!!
October 25, 2008
For Filmmakers there is some hope in the economic turmoil that we are experiencing. Yesterday the UK announced a drop in Gross domestic product of 0.5 percent from the second quarter, the first contraction in 16 years. Why is this a good thing? Well in many ways is it not. However, if you a British and have a film to sell internationally, you’ll have a big smile.My first movie, Fakers, cost a total, all in, of just under a million pounds. After the Sale and Lease back of the movie, which accounted for 20% of my budget, and the investors utilizing a tax deferment credit called the Enterprise Investment Scheme which yielded them around 40% of their original investment; this leaves a break even point for the film of around £480,000. But what does that have to do with GDP????
All films are sold in dollars! Yep, that is right. So for the past few years in order to break even I’ve had to recoup $960,000 on sales. But with the announcement that the UK will be the first to officially hit a recession, the exchange rate has shifted dramatically. So now I only have to sell the film for $748,800. And our expected sales doesn’t change. I’m currently waiting on around $150,000 of income on the movie and I am very very pleased I wasn’t paid it two months ago.
So, if you’ve got a film and (at least this week) you are British, the down turn is great! But what about other filmmakers? I believe you are in luck too! What do people do when they can’t afford expensive sports tickets, holidays, nice meals out? They go to the movies! So, hopefully we’ll be seeing an increase in global ticket sales. England is one of the only countries that has seen an increase in movie theatre attendance in recent years. Every other territory outside of the Asian markets are falling - so this could be a real boost for filmmakers. We just have to hope that the studios, who are now owned by huge conglomerates who are really struggling, will not hold the studios back from meeting the demand.
Always look for the silver lining. 
“What do people do when they can’t afford expensive sports tickets, holidays, nice meals out? They go to the movies!”
very true. I think that there’s been a HUGE increase in box office earnings this year (with The Dark Knight, Beverly Hills Chihuahua, High school Musical 3) and now insiders are predicting huge sales for the new “Twilight” movie.
People are depressed and want something to make them smile, laugh and give them something to hope for.
Anyway, I didnt know that this bad economic slump could be good for British films. I actually thought it would be really bad for British filmmakers.
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Silver lining. Thanks for pointing that out. I hope this can help UK filmmakers and talent.
re: Punk Gurl - I think the indie film industry has hit a rock bottom period. So there is only one way left to go… (that’s why reading Richard Jane’s post is great. We have to start looking at the positives and taking advantage.)
For more searching for silver lining - hope ya’ll are reading Ted Hope’s new blog: http://trulyfreefilm.blogspot.com/
(for perspective on his blog - read his speech here: http://letsmakebetterfilms.blogspot.com/2008/09/film-independents-filmmaker-forums.html)