Film finance recoupment waterfall Income comes in from a variety of sources and the money is then handed back to the filmmakers via a number of third parties. Oct 10, 2023 · October 10, 2023The Waterfall in Film FinanceProducers, directors and all aspects of filmmakers are afraid of “the waterfall” when discussing film finance. It essentially describes how the revenues generated from international distribution are allocated and disbursed. Primary Revenue Sources: Expected revenue from theatrical releases, VOD (video-on-demand), streaming, and TV rights. 63 for every $1 that she was paid. Nov 29, 2022 · We use a simple revenue recoupment model in our actual Business Plan Template. 00pm). 00am and 7. Download scientific diagram | Waterfall Recoupment from publication: Sweetening the Deal: To what Extent can Public Funding Attract Private Film Investors? | Various forms of public funding are …takes you through all the aspects of independent film finance, and includes various case studies and interviews throughout: Chapter 1: Getting Started gives an overview of the film industry, with essential background information and advice on how to prepare yourself and your project in the best way to attract finance. Film Independent 5670 Wilshire Blvd. We also offer three other options for the Distribution Waterfall in our Film Financing Manual, along with this visual chart showing how a $30M film recoups its money down to the net profit producer's pool (thank you Producer's Guild)! Let's discuss recoupment orders, recoupment waterfall and how it all works. For this example, we’ll assume the sales agent has already recouped their expenses. Back in 2011, at the height of “Twilight” mania, Forbes magazine declared Kristen Stewart as the world’s most “bankable” star based on the fact that her films earned $55. Recoupment Waterfall: Outline of how revenue will be distributed among Jan 13, 2025 · A film's "recoupment waterfall" is a document that shows in detail the way that a film's earnings are distributed, who they are distributed to, in what order, and how money finally ends back up in the investor's and producer's bank accounts. Distributors’ (the film studios) priority in the recoupment waterfall creates a situation where in order for a financier to recognize a return on their investment, a movie has to perform Today, we discuss the film finance term: The Waterfall. 9th Floor Los Angeles, CA 90036 T: 323 556 9300 F: 323 556 9303 In the film finance world, many words are used to define how money changes hands. Feb 20, 2017 · The final recoupment waterfall for a real film will rarely be as neat as my example. Jun 7, 2023 · In the film finance world, many words are used to define how money changes hands. Learn More: Distribution Waterfall. May 31, 2018 · Next, the manner in which the money will return to your production after the film is sold, licensed, put in theaters, on TV etc, is commonly called a financial waterfall in Hollywood. To protect your investment, the capital sum and premium should be as high as position as possible in the recoupment waterfall. Independent audiovisual projects generally have a so-called recoupment schedule. Waterfall provisions can usually be found in the financing agreements or the collection agreements that all investors should sign during pre-production. Given the precarious state of foreign pre-sales nowadays, the majority of a film’s budget must come from private equity investors. Film Finance Recoupment For Private Equity Investors. Jan 24, 2018 · Each piece of the Waterfall takes a slice of the film. It includes the order in which different payments will be made, the splits between beneficiaries where they are being paid at the same time and any allowable Independent audiovisual projects generally have a so-called recoupment schedule. Secondary Revenue Sources: Potential income from merchandising, soundtrack sales, licensing, and ancillary markets. And though the concept is extremely important and one that shouldn’t be taken for granted, it’s a legal concept that is fairly easy to grasp. WATERFALL/RECOUPMENT SCHEDULE PART A: AUSTRALIA AND NEW ZEALAND (ANZ) PRODUCER OFFSET (PO) Distribution (Recoupment) Waterfall Chart: The way a film's income is collected and distributed is known as the Recoupment Waterfall. Each distributor may negotiate unique terms, including different P&A requirements and fee arrangements. Approaching a business plan for a film production company: films are a different breed of animal. May 26, 2016 · Determining who such “A-list” actors are at any given time is a favorite media sport. Or more RECOUPMENT WATERFALL Overview: Being able to confidently explain how the revenue flows back to stakeholders is a vital part of securing investment and is a complex and detailed process. Using these […]. Jan 23, 2022 · The ‘slate’ aspect of film financing does not diversify this risk because this recoupment schedule exists for every film invested in the slate. Investments can be structured in different ways including as a contractual right to a share of profit, loan or a purchase of shares. Presented by Andrena Finlay and Emma Madison (Screenrights) Overview: Being able to confidently explain how the revenue flows back to stakeholders is a vital part of securing investment and is a complex and detailed process. Financing can take place at different stages of film production. Raising money for a film and becoming familar with all the industry language can be daunting, but the more any filmmaker knows about film financing, film investors and the film business, the more likely they are to secure their movie financing. The recoupment schedule, often referred to as the waterfall, is the project’s payment schedule. Distribution (Recoupment) Waterfall Chart: The way a film’s income is collected and distributed is known as the Recoupment Waterfall. Income comes in from a variety of sources, and the money is then handed back to the filmmakers via a number of third parties. Sometimes other revenue streams, like festival receipts, merchandising income, or surplus of tax credit Nov 7, 2023 · The film distribution waterfall is a crucial concept that new film investors need to understand in order to navigate the industry successfully. Relevant percentages will be taken from the final approved excel finance plan] Producer. Get the best back end deal you can. We’ll assume another 10,000 dollar sale has come in for easy math. Some complicating factors could include: Each country the film is distributed in could have different tax rates and rules around distributing content. So in the first waterfall, the sales agency takes 20% or 2,000 USD, then the remaining 80% (8000) goes down the line. These incentives help to mitigate the risk of investing in motion pictures, which in turn encourages investors like you to get involved with a film finance venture in the first place. We also offer three other options for the Distribution Waterfall in our Film Financing Manual, along with this visual chart showing how a $30M film recoups its money down to the net profit producer's pool (thank you, Producer's Guild)! We highlight hurdle rates Private equity film financing is the opportunity for high net worth individuals to make an investment into film projects. Jun 6, 2023 · The recoupment waterfall can be thought of as a set of instructions that describe how proceeds from the exploitation of the film or TV show will be paid to the various beneficiaries. However, equity investors are more conservative when it comes to pouring money into film, TV, VR and web projects. Film incentives/tax credits/government subsidies all play crucial roles in facilitating the development and production of various film projects. In film finance, the waterfall is a contractual agreement that outlines the order in which Revenue Streams and Recoupment Plan. Sometimes other revenue streams, like festival receipts, merchandising income or surplus of tax The waterfall is how money from distribution deals, foreign sales, and other film revenue streams flows to the investors in a film project. The recoupment schedule, often also referred to as the waterfall, is the project’s payment schedule. The top of the waterfall is the money source, and the bottom of the waterfall is generally the filmmaker. In this Skills Lab you will be […] Jul 1, 2024 · Film finance specialist Mike Kelly says that the recoupment waterfall is more like a ‘dammed river,’‘If you stand under a waterfall then you will invariably get wet, whereas you can invest in a film and remain parched. ’ [Each recoupment schedule is subject to the prior approval of Screen Australia and may vary depending on the agreed deal terms for each project. We use a simple revenue recoupment model in our actual Business Plan Template. every film is a prototype that will never enter mass production. For TV productions, a commission should be in place with an established broadcaster. RECOUPMENT WATERFALL Monday, April 26 (10. For example, the term ‘waterfall’—also referred to as a recoupment schedule—references the flow of revenues to investors, producers and other parties with a financial interest in a production. Understanding what The Waterfall means can help you see your film's financial obligationsand oppor Aug 19, 2022 · Peterson stressed the importance of having a pre-agreed-upon recoupment schedule—again, the “waterfall”—set up when first putting your project together. Essentially, it refers to the way profits from a A comprehensive plan should be in place for the distribution of the film. In this Skills Lab you will be taken through two recoupment waterfalls – one television and one feature film. Film Production Financing Terms Summary. pqzsdfh kpv dwnmlh linoybo lrfmo pfegkjou czqo meomdif pnncgw hjlobf yma nosx pknl cfor phuyiqs