Professional Documents
Culture Documents
Anthony Librizzi
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of acquainting the reader with Guns and Redemption and is proprietary to Perfect Story
Productions, PSP/Raimondi Pictures, L.P. This business plan does not constitute an offer to
sell, or a solicitation of an offer to purchase, securities. This business plan has been
submitted on a confidential basis solely for the benefit of selected, highly qualified
investors and is not for use by any other persons. By accepting delivery of this business
plan, the recipient acknowledges and agrees that: (i) in the event the recipient does not
wish to pursue this matter, the recipient will return this copy to Perfect Story Productions,
PSP/Raimondi Pictures, L.P. at the address listed below as soon as practical; (ii) the
recipient will not copy, fax, reproduce, or distribute this confidential business plan, in
whole or in part, without permission; and (iii) all of the information contained herein will be
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← © Copyright 2010 Perfect Story Productions, PSP/Raimondi Pictures, L.P.
← 3 / THE COMPANY
Perfect Story Productions, PSP/Raimondi Pictures, L.P. in association with
Shoreline Entertainment, plans to develop and produce Guns & Redemption,
a thought-provoking film that combines a Western story with the eternal
struggle of good versus evil. An independent film company, Perfect Story
Productions/Raimondi Pictures, L.P. is the General Partner of Perfect Story
Productions, PSP/Raimondi Pictures, L.P. The film’s total budget is $3.5
million. The General Partner will raise $1.5 million, while Shoreline will raise
the remaining $2 million.
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← 4 / THE FILM
Matt, a young man in the town of Redemption, sees a Stranger ride into
town. Violence soon erupts in the heretofore-peaceful town. Seeking help
from the Stranger to stop the killing, Matt has no idea how this relationship
will change his life forever.
As the sales agent for the film, the distributor licenses the film to
theatrical exhibitors
(i.e., theater owners) for domestic release and to specific if not all foreign
territories, for a percentage of the gross box office dollars. The initial release
for most feature films is U.S. theatrical (i.e., in movie theaters). For a picture
in initial release, the exhibitor, depending on the demand for the movie, will
split the revenue derived from ticket purchases (“gross box office”) with the
distributor; revenue derived from the various theater concessions remains
with the exhibitor. The percentage of box-office receipts remitted to the
distributor is known as “film rentals” and customarily diminishes during the
course of a picture’s theatrical run. Although different formulas may be used
to determine the splits from week to week, on average a distributor will be
able to retain about 50 percent of total box office, again depending on the
Film rentals become part of the “distributor’s gross,” from which all other
deals are computed. As the distributor often re-licenses the picture to
domestic ancillaries (i.e., cable, television, home video), foreign theatrical
and ancillaries, these monies all become part of the distributor’s gross and
add to the total revenue for the film in the same way as the rentals. The
distribution deal with the producer includes a negotiated percentage for each
revenue source; e.g., the producer’s share of foreign rentals may vary from
the percentage of domestic theatrical rentals. The basic elements of a film
distribution deal include the distributor’s commitment to advance funds for
distribution expenses (including multiple prints of the film and advertising),
and the percentage of the film’s income the distributor will receive for its
services. Theoretically, the distributor recoups the cost of its print and
advertising expenses from the initial revenue of the film. The distributor also
receives a percentage of the film’s income. Although distributors often
receive as much as 35 percent of the total worldwide revenue as a fee, our
agreement with Shoreline is that they will receive 20 percent of the foreign
revenue. In addition, we feel confident of making a deal with a domestic
distributor for a fee not more than 30 percent. However, the specifics of the
distribution deal and the timing of all money disbursements depend on the
agreement that is finally negotiated. The “net” that is left after the
distributor has taken all his fees and the production cost has been repaid
flows to the profit line for the producers and the investors.
RELEASE STRATEGIES
The typical method of releasing films begins with domestic theatrical,
which gives value to the various film “windows” (the period that has to pass
after a domestic theatrical release before a film can be released in other
markets). Historically, the sequencing pattern has been to license to pay-
cable program distributors, foreign theatrical, home video, television
SHORELINE ENTERTAINMENT
Shoreline Entertainment has been acquiring, producing and distributing
feature films since 1992. As the worldwide film industry continues to mature
and new formats are developed, Shoreline has moved quickly to satisfy
demand for quality movies. Presenting a library of 165 movies, Shoreline has
produced approximately three movies per year and has additionally acquired
other movies for distribution. Financing for Shoreline's movies comes from
pre-sales, equity financiers and gap financing. Managing strong bank and
bond company relationships, a versatile team of executives and a controlled
overhead, Shoreline continues to acquire and create productions of a high
caliber, designed to fill a niche in buyers ever-changing schedules. Every
movie produced or sold by Shoreline to date has been licensed
internationally and to major U.S. distributors including theatrical distributors
New Line Cinema, October Films, Lions Gate Films, and pay television
distributors HBO, Showtime, Encore and many more. Mainstream thrillers,
independent dramas as well as theatrical movies are produced. If a movie is
financially viable, has creative integrity and first class executives behind it,
Shoreline will produce, distribute and secure all or part of the movie's
financing. Excited by the possibilities in the independent film world, their
business ethic remains the same; "First class business, with first class
There has always been a market for films with well-crafted scripts and
stories strong enough to cross age groups. These dramas do not require
high-priced stars to create significant revenue flows, although having a
significant cast certainly is a plus. Their emphasis is always on sensitivity
and subtlety. While the competition for ticket sales has increased over time,
as has the number of films in release, there has always been a consistent
and growing audience seeking a meaningful and worthwhile experience.
TARGET MARKETS
Westerns:
The Western film is the most characteristically American genre, in
addition to being one of the oldest, most enduring and most flexible. This
Action/Adventure:
Of all the film genres, action/adventure remains the most popular. Film
audiences tend to enjoy identifying with the thrill of danger as well as the
exhilaration of succeeding at a difficult challenge. Often combined with
romance and comedy, well-made action/adventure films are box office
favorites. When films at the various markets (e.g., American Film Market,
Cannes, etc.) are categorized, those in the action and/or adventure genre are
the most abundant. These films can be targeted to both mature and young
cinemagoers, and are designed to have strong potential in other media,
especially DVD. While the box office for these films has usually been thought
of as being driven by young men, there is no longer a great divide between
men and women moviegoers. These films also fare well in foreign markets.
While much of the audience understands English or is used to subtitles,
Mature Audiences:
Movie attendance is not confined to the young. In 2008, the crossover
age group of 25-
39 made up 32 percent of the movie-going audience. As the population has
grown older, movie attendance among the over-40 population has also
grown, now making up 33 percent of the audience. Baby boomers in
particular are estimated at 75 million strong, with the largest household
income in the history of the United States. In surveys, this group has
responded that they go to two to three movies per week. Although often
ignored by studios trying to appeal to every moviegoer at one time, many in
the more mature age groups grew up on early Westerns and melodramas.