BUSINESS PLAN: NEW WORLD RISING 3D
New World Rising 3D is an adventurecomedy-fantasy hybrid genre film about the fantastic future that awaits the human race. 2
TABLE OF CONTENTS
04
FILM HIGHLIGHTS
05 42
PRODUCTION & DISTRIBUTION PROCESSES
08 28
KEY MILESTONES
09
CAST, CREW & PROFESSIONALS
18
FINANCIAL HIGHLIGHTS
A NEW CHAPTER IN FILM Registration no. 2012/189049/07
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New World Rising 3D (2013) 104 min – Adventure | Comedy | Fantasy
New World Rising 3D Tagline: It’s time to wake up. Language: English Theme: There is a purpose to life. Synopsis: James is a disillusioned journalist ready to give up on life. He finds new hope when he is offered a dream job in a foreign country. En-route to the small town where he is to be based, he is lost and stranded with his son Jim. After a desperate search for help, they stumble upon an isolated spiritual retreat, where they find themselves entangled in a showdown between the secret agents of a shadowy corporation and the enlightened vanguard of a new world order. James just wants to get his son away to safety, but he is called to choose sides and becomes the catalyst who tips the balance and makes possible an evolution in human consciousness.
When James and Jim are lost and stranded, they find assistance at a spiritual retreat where a group of outthere characters have congregated to confront their fate at the time appointed for the worlds’ end. Director: Gavin Sher Writer: Gavin Sher Producers: Maha Golestaneh, Tamryn Speirs Star: US star to be cast Principal cast: Grant Swanby, Colin Moss, Nicola Hanekom, Lee Ann Summers, Tamryn Speirs See full cast and crew on pages 8 to 14
Road-trip adventure: James, our protagonist, journeys through an unfamiliar world and gradually rediscovers his faith in life. Comedy: Our story elicits both laughter and excitement as James’ cynicism and fear are challenged by the quirky characters of Clive’s guesthouse. Fantasy: James stumbles onto a heightened reality where alternative views reign. Production budget: 10.61M ZAR (≈ $1.21M) including value added tax (VAT); The value is based on list prices but we have room to negotiate with crew and cast. Film financiers who invest in New World Rising 3D:
Audience ages: 18-65
• Profit from the fantasy genre which has proportionally high global box office takings • Profit from 3D films have a higher chance of achieving a big box office compared to 2D films
People who may like this …
Value-added benefits of 3D stereography:
Young adults | Mature couples | Conservative parents| Generation flux adults | Empty nesters | Artistic community | Globe-trotter community | Outdoors community | Stoner community | Holistic and medicinal health community | New age movement | Occupy wall street movement | Progressive movement | Zeitgeist movement
• Immerse the viewer in the adventure, live action and wildlife scenes • Capitalize on the layers of dense African foliage, e.g. flies, nats and dust buzzing around characters • Add a sense of scale and magnitude when capturing the energy of the bustling city center and beauty of the turquoise-colored sea, sweeping pine forests and majestic gardens of Cape Town
Filming location: Cape Town, South Africa
People who may like this also liked… Alice in Wonderland | Another Earth | The Big Lebowski | The Golden Child | Groundhog Day | Hope Springs | The Last Supper | Pineapple Express | Seeking a Friend at the End of the World | The Trip | The Weatherman
Trivia: The initial idea for the screenplay came to the writer/director when he was applying for the James First Shots Short Film competition to star Kevin Spacey. Our writer/director broke all the rules and lost out to Cape Town’s Allan Shelley who won with his short film Spirit of a Denture. Allan Shelley is planning to be our writer/director for our bonus features and transmedia storytelling and marketing. 4
Picture Book Media is in the development phase for New World Rising 3D.
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PRODUCTION PROCESS WHAT ARE THE KEY PHASES IN THE PRODUCTION PROCESS?
WHERE IS NEW WORLD RISING 3D IN THE PRODUCTION PROCESS?
Picture Book Media must complete a series of complex steps to develop, produce and distribute our debut feature film, New World Rising 3D (refer to Figure 1).
Picture Book Media is in the development phase of production.
Figure 1. Six Phases in the Production Process
During development, our production unit negotiates, writes and obtains financing for the film project. During pre-production, we prepare and manage key resources such as cast, crew and sets. The actual shooting and recording of the film project is production, also referred to as principal photography. The raw footage is edited and the visual effects and soundtrack are added to the film during post-production. Distribution is the process by which the film reaches the marketplace when sold to theatrical operators, broadcast networks, DVD companies, video-on-demand platforms and online content aggregators. The final phase is exhibition when the film is delivered to its target audience. For a list of key milestones to be performed during the production process for our film, refer to Table 1 on page 8. The schedule of our script can be accessed at http://issuu.com/mahagol/docs/schedule.
1. Negotiation: Our total budget is based on the list price but our Special Purpose Corporate Vehicle (SPCV) has room to negotiate rates with talent, crew and professionals with artistic, organizational and marketing skills to produce our film and build our film’s transmedia marketing strategies. Table 3 on page 22 provides a summary of the film’s expenses. A line budget is available at
http://issuu.com/mahagol/docs/budget. 2. Scriptwriting: Gavin Sher has written the script, ensuring that it has the structural beats necessary to push our story forward. Our copywrited script can be accessed at
http://issuu.com/mahagol/docs/script. 3. Viability testing: A certified financial analyst and statistician together forecasted the expected revenues of our film and estimated the producer and film financier profits. 4. Resource gathering: Our producers are in the process of ensuring all the elements necessary for the development of a film are gathered, particularly financing. We are actively identifying, meeting and pitching our film to equity investors and applying for South African government funding. 5. Legal and contracts: With the help of an entertainment attorney as well as a legal consultant, we are developing and/or revising agreements submit to the Department of Trade and Industry (DTI), National Film and Video Foundation (NFVF) and insurance companies, contractors, talent and shareholders. These legal documents are created to establish ownership and control over our production. They are also intended to protect our company and our production from legal harm and ensure that our value network can participate in the film, without fear of a lawsuit. With the guidance of a US attorney and South African legal representative, we aim to secure our underlying rights and/or all other rights so the film project can legally move forward.
Once film financiers agree to invest more than 50% to produce our film, Picture Book Media intends to register New World Rising 3D as a SPCV in South Africa. 6
DISTRIBUTION PROCESS HOW DOES OUR COMPANY PLAN TO OBTAIN DISTRIBUTION DEALS? We are in the process of securing a distribution deal in South Africa with Indigenous Films. During pre-production, we intend to pitch to a list of foreign sales agents1 and 3D TV broadcasters2 which expect cast and partial financing to be in place. After pro-production, we plan to negotiate with foreign sales agents and/or screen our film’s final cut at film markets and festivals of Cannes, AFM and Toronto. In order to do so, capital is needed for electronic press kits, databases, market/festival entrance fees and on-site distributor meetings.
HOW DO DISTRIBUTORS PLAN THEIR RELEASE STRATEGIES? We ask ourselves the same initial questions that distributors do when evaluating a producer’s film3. 1. Global: Where will the film work? 2. Regional: How will we make it work in Europe? 3. National: How should we release it in each country? 4. Local: Are there any particular local conditions that need to be taken into account within each country?
Distributors then consider the following factors: 1. Should the film be released in this market at all?
2. 3. 4. 5. 6. 7.
How big could it be? Is the genre popular in this territory? What might it cost to achieve gross box office? Who is the target audience? What is the likely shape of the revenue flows? How have the critics in this territory reacted to the film? And the exhibitors? 8. Are there any local connections within the cast and crew that could be useful to the campaign? 9. Could the film’s running time cause any complications?
After assessing the above factors, distributors prepare a Territory Contribution Report to identify the revenue estimates for each market.
1.
2. 3.
The views of producers will be included and screenings may be held to help in assessing the film's estimated international performance. Distributors plan their detailed release campaigns well in advance. The following factors are considered when releasing a film in the US: 1. Competitors' release schedules where information is generally shared between the majors to avoid clashes wherever possible 2. The distributors' annual budget and the rest of their slate for the year seasonal positioning to take account of holiday periods, relevant awards ceremonies and other local factors
The strategy and timing of the release may also makes allowance for: 1. Time of submission for classification 2. Sub–titling and dubbing 3. Publicity screenings availability of key talent for promotional purposes 4. Availability of key media in each territory 5. Any promotional tie–ins and when the partners will be spending their money 6. Additional local factors
An important decision for distributors and producers releasing films in theaters is how many screens to open the movie on. This number depends largely on the results expected for the film but may also be influenced by the wish to attract as big an audience in the first week as possible to help the film retain its screens for subsequent weeks. For most films, almost 40% of total box office will be taken in the first week, with the majority of that arriving in the first weekend. If the film has lasted that long, takings tend to fall to about 5% of the total by the sixth week of release. Picture Book Media ideally anticipates in releasing New Earth Rising to home entertainment and 3D TV in early 2014 after theatrical screenings in early December 2013.
AV Pictures Limited, Bankside Films, Content Media Corporation, Entertainment One Films, Elephant Eye Films, Fabrication Films, Fandango Portobello, Filmbox, FilmNation Entertainment, Fortissimo Films, Galloping Films, Goalpost Film, Global Screen, HanWay, H20 Motion Pictures, Icon International, Independent, Intandem Films, Lightning Entertainment, Lionsgate, Memento Films Intl, Moviehouse Entertainment, Odin’s Eye, Pathé International, Protagonist Pictures, Salt, SC Films International, Visit Films, Wild Bunch Active 3D, Bell TV, Brava 3D, Canal Plus 3D France, Canal Plus 3D Espana, Channel 10 Israel, Chinese 3D Test Channel, Foxtel 3D, HD1, High TV 3D, n3D, nShow 3D, NTV Plus, Orbit Showtime, Rede TV!, SAT Plus, Sky 3D, Sky Perfect TV, STV HD1, Teledunya 3D, TV Azteca 3D, Viasat 3D, Zon Andrew Cripps, “Overview of International Film Markets and Theatrical Distribution”, http://www.creativeskillset.org/film/knowledge/article_5078_1.asp
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KEY MILESTONES
Table 1. Activity Projections during Six Phases in the Production Process
Year
Calendar Month Month of Operation
Start-up Prepare all Legal and business documents Register Business
2012 Aug 1
Sep 2
Oct 3
2013 Nov 4
Dec 5
Jan 6
Feb 7
Mar 8
Apr 9
May 10
X
X
X
X
X
X
X
X
Funding: Search, Meet, Negotiate, Document
X
Bank Account: Open
X
X
Completion Bond: Meet, Negotiate, Document
X X
Collection Account: Meet
X
Tax Benefits: Research, Meet,Negotiate, Document
X
Meet Entertainment Attorney
Sep 14
Oct 15
Nov 16
Dec 17
X
X
X
X
Set-up Office
X
Contract Payroll Officer
X
Retain Publicist
X
X
X
X
X
X
X
X
X
Commence Writer on Director Rewrite
X
Deliver Director Rewrite
X
Commence Writer on Talent Polish
X
X
X
X
Deliver Talent Polish
X
Actors: Select, Negotiate, Document
X
Talent: Story Meetings, Notes
X
Additional Screenplay Drafts Finalize Shooting Script
X
3D Test Shoots Shooting Draft: Breakdown, Boards Pre-production: Logistics Crew: List Production Talent
Aug 13
X
Establish Financing Plan
Pre-production: Creative Actors: List Lead Considerations
Jul 12
X
Investor Promo Materials: Prepare
Development Deliver 1st Draft
Jun 11
X
Crew: Meet, Select, Negotiate, Document 1st Pass Production Budget, Schedule
X
X
X
X
X
Location Scouting
X
Line Producer: Meet, Select, Negotiate, Document
X
Final Production Budget and Schedule
X
Acceptance of Financing Plan
X
X
Completion Bond: Set
X
Principle Photography
X
X
Post Production
X
X
X
X
X X
X X X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Ancillary Rights Development Establish Rights Plan Brand/Merchandising Partners: Meet, Select, Negotiate Soundtrack: Negotiate, Document Distribution Core Territory Distributors: Meet, Submit Major Int'l Territory Distributors: Meet, Submit
X
X
Global Distributor Creative Correlation Begins
X
Core Territory: Negotiate, Document
X
Int'l Sales Agent: Meet, Negotiate, Document
X
X
Int'l Pre-Sales: Meet, Submit
X
X
X
Int'l Pre-Sales: Negotiate, Document
X
X
X
Marketing Retail, TV, Radio, Print Promotion: Plan Niche and Social Networking: Plan
Website: Create, Install
X
X X
X X
X X
X
X
Trade Releases Consumer PR Corporate Sponsorship PR and branding
X
Other PR and Co-Promo Release Dates Int'l Rights Licensing South African Theatrical Release
X X
USA Theatrical Release
X
In't Theatrical Release Soundtrack Release
X X
Merchandising Release
X
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HOW ARE PRINCIPAL AND SUPPORTING ACTORS BEING CAST?
Picture Book Media is actively negotiating rates with talent, crew and professional service providers.
Picture Book Media is approaching a casting director to assist our team in liaising with agents/ managers of US stars to play the role of James Roberts. We are negotiating rates with acting agents of 5 South African principal actors: Grant Swanby, Colin Moss, Nicola Hanekom, Lee Anne Summers and Tamryn Speirs. We plan to conduct an online casting campaign for the actress to play Caron O’Conner. Casting for the principal and supporting roles of Jim Roberts, Gilad, Beth Roberts and Newsreader are to take place in a Cape Town studio.
HOW MANY PEOPLE WILL WORK ONSET AND OFFSET? Our production unit consists of 63 South Africans including our writer/director, executive producer and producer. An additional 28 South Africans will work as marketing, accounting and legal service professionals. Two Europeans and two Americans including a producer, a 3D stereographer, a legal consultant and a financial analyst are to be actively involved during production.
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THE PRINCIPAL CAST TBA: Jim Roberts
TBA4: James Roberts
James (35-45) is a journalist embittered by cynicism and broken by the loss of his wife. He’s convinced that life will never be good again. In fighting for his son. James rediscovers his strength and finds new faith in life.
Colin Moss: Sean O’Conner Sean (37) is a psychopathic agent working for the Finis Corporation. He is charged with gaining control of Clive’s drug and suppressing any awareness of its existence.
TBA: Caron O’Conner Caron (early 20’s) is a Finis Agent who poses as Sean’s younger sister. She’s a shadowy siren who will defy her employers and risk her life to save Jim
4.
Grant Swanby: Clive Haylett Clive (40) is an organic chemist and recluse genius who has engineered a pharmaceutical drug that rapidly accelerates growth in human consciousness.
Jim (15) sees the
world very
differently from his dad and they are often at odds. Jim is discovering the balance between independence and trust in his father’s guidance.
Nicola Hanekom: Anke
Lee Anne Summers: Paula
Anke (mid 30’s) is Paula’s friend and close colleague. She’s hungry for some magic in her life and has gravitated to Maya who she believes is an enlightened being capable of guiding her spiritual evolution.
Tamryn Speirs: Maya Maya (35) is a
spiritualist and medium who is working with spirits and angelic beings to lead the world in a new direction.
Paula (mid 30s) is desperate for love. She has a rotten history with men, but nevertheless remains a hopeless romantic. When things get serious with Sean, who she thinks may just be The One, Paula is forced to choose between her burgeoning relationship with him and her friendship with Anke.
TBA: Gilad Gilad (mid 30’s) a longtime friend and spiritual mentor to Clive. He returns to the house changed after spending 40 days fasting in the wilderness. In the end, he is the catalyst for a cosmic change.
Our wish list of US male stars include, but are not limited to, Bill Hader, Donal Logue, Edward Norton, Ioan Gruffudd, John Cusack, Kevin Spacey, Michael Shannon, Paul Giamatti, Paul Rudd, Peter Facinelli, Philip Seymour Hoffman and Sam Rockwell.
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CREATIVE TEAM & PRODUCERS Writer/ Creative Director
Story Boarder
Gavin Sher is the scriptwriter of New World Rising 3D. It will also be his directorial debut, making him responsible for the quality of storytelling and shooting of the film.
He draws the visual layout of the story events as they are to be seen through the camera lens.
Executive Producer
Producer
Producer Maha Golestaneh brings in the necessary attachments such as attorneys, accountants, insurers, collection agents, marketing team, distributors, postproduction team and 3D camera crew to make the film project less risky. She ensures that the finances for the project are in place.
Donyale MacKrill offers expertise in 3D filming and scriptwriting, relationships with the production crew and other resources to the production.
Tamryn Speirs is responsible for the quality control of production and offers expertise, relationships with actors and arts department to the production.
THE PRODUCTION CREW! Line Producer
Unit Production Manager She circulates the final shooting script and schedules; anticipates the problems that may arise; and finishes the business affairs that were set in motion when the film started.
2nd Assistant Director She creates the daily call sheets from the production schedule. She also serves as a backstage manager, liaising with the actors.
She handles the logistics, the scheduling of the shoot, the allocation of the production’s budget, the hiring of the crew and the equipment rentals.
1st Assistant Director Hofmeyr Scoltz schedules the dayto-day life of the actors and manages of the operation of the set.
Production Assistant
Script Supervisor She accounts for
every take and angle that the camera assumes and ensures wardrobe, props, hair and make-up to match up.
She reports to the 1st Assistant Director.
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THE CAMERA CREW Stereographer
Director of Photography
3DS Digital Workflow Supervisor
Manoel Ferreira controls and captures the picture with innovation and creativity. He is responsible for the visuals recorded by the filmmaking team.
Reg Sanders works with the writer to construct a depth-script; the DOP to make informed decisions about cameras, lens, rigs; the director to make informed decisions about blocking and framing; post-production crew to develop a post pipeline.
Wezley Ferreira supervises and manages the 3DS workflow; ensures the 3D film is shot in budget and on time; solves problems and manages crises onset and in postproduction.
Convergence Puller He adjusts the convergence distance in real time during moving shots and controls the more important function of interaxial distance.
3D VTO Technician He plays back the 3D footage for the director and production team and layers the onset VFX for real-time playback.
Focus Puller
Rig Technician He is responsible for maintaining image sharpness on whatever subject or action is being filmed.
He is responsible for the flawless technical operation of the 3D rig.
3D Digital Imaging Technician He is responsible for 3D camera setup, the look of the playback, transcoding offline VFX and dailies and synching sound.
Data Wrangler
Wilhelm Raabie manages the transfer of digital footage from camera to RAID drives while quality checking the footage and later archiving all footage to LTO.
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THE GRIPS CREW! Key Grip
Dolly Grip He is responsible for assisting the key grip.
Brett Lamerton is responsible for the safety and support of the camera team.
THE LIGHTING & ELECTRICAL CREW! Gaffer
Lighting Best Boy He is head of the lighting department.
Sparks They are skilled at working with power sources on location.
He assists the grip in lighting locations.
MUSIC & MUSIC Composer/Sound Designer
Murray Anderson of Milestone Studios composes and clears rights of the music tracks and manipulates the audio to create a desired effect or mood.
Boom Operator
Sound Mixer Heinrich Kapp records all sound recording on set.
He holds the boom close to the actors or action.
CASTING TEAM Casting Director for US Star She finds the US star and liaises with his agent and attorneys.
In Studio Casting Director Tamryn Speirs finds the actors, liaises with the talent agents for schedules, shooting dates and rates.
Online Casting Director Maha Golestaneh finds the two principal actors during our initial social media campaign to build buzz for the film.
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ART DEPARTMENT Production Designer
James Mader designs the look of the exterior and interior spaces.
Art Personal Assistant
Donavon Oostendorp helps the production designer.
Art Department Coordinator
She ensures artists have access to the wardrobe and the all props and dressings are onset.
Property Master/ Buyer
Makeup Artist
She purchases, acquires and manufactures props and is also responsible for their use on set.
Hair Stylist Assistant She is responsible for make-up and special effects.
She is responsible for look and continuity of actors’ hair.
Firearms Safety Coordinator/ Weapons Master
Andrew Germishuys oversees all aspects of the production where guns are utilized; maintains control of any weapon props; is present whenever a scene with a weapon is shot; and ensures no harm is done to the crew, cast and property.
LOCATION & TRANSPORT Location Manager
Drivers He manages the
locations for the film.
Caterer They drive the artists, directors, producers and/or crew to and from the film location.
Bryon de Carvalho of She Sha Film Food and his staff are responsible for catering of the meals of cast and crew.
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MISCELLANEOUS PRODUCTION CREW! Trainee Paramedic
Security Team
She is an ambulance service healthcare professional who deals with an accident or medical emergency onset.
Runner They check the premises and guard on several occasions throughout each shift. They are fully uniformed and carry security services equipment.
George Krokos helps things run smoothly onset and provides a range of support in every area of production.
POST PRODUCTION TEAM 3D Online Editor and Grader
Offline Editor
Tim Goodwin assembles the 3D footage and prepares the editor’s cut of the film. He digitally adds working titles and effects.
Stefan Nel needs to achieve international standards in conformity, 3D convergence, color grading and finishing.
Post-Production Specialists
Jossi Afargan and Ray Brown are responsible for the visual effects, credit sequences along with titling, compositing and rotoscoping.
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DISTRIBUTORS South African Distributors Helen Kuun and
Indigenous Films plans to negotiate best prices and release dates with theatre owners and ensure our film reaches its target audience with a custom-made advertising and PR strategies.
TRANSMEDIA MARKETING TEAM & PUBLICISTS Transmedia Campaign Consultant
Transmedia, Promos and Bonus Features Creative Team
Astrid Ascar is to develop a comprehensive transmedia storytelling plan, working alongside our distributors and supervising the transmedia marketing team.
Transmedia Content Developer Afsana Khan is to
develop and edit content on our website, blogs and social media platforms.
Graphic Designer He creates the
Allen Shelley of
graphics and
Benchfilms is to
illustrations for websites and transmedia campaign.
develop, produce and edit our short films and promos for our transmedia campaign and film footage for bonus features.
Publicists
Web Developer Douw Jordaan develops and maintains the Picture Book Media website, New World Rising 3D website and other related portals for our transmedia campaign.
In collaboration with
the producers
marketing team and distributors, publicists schedule and oversee press, releases, packets and screenings and the electronic press kit to maximize audience numbers.
Unit Still Photographer Garth Meyer creates
the still photographic images intended for marketing and publicity of the film.
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PROFESSIONAL SERVICES TEAM Accounting/ Payroll Supervisor Michael Rushby of his team at Galbraith and Rushby manages our film’s funds, handle taxes and supervises payroll.
Financial Analyst
Collection Account Manager Willemijn Mc Nally
Erwin Lubbers
of Fintage House
valuated the financial performance of Picture Book Media, supervised the sales projections model for New World Rising 3D and advices on investment opportunities and risks.
collects the worldwide revenues of the film in a collection account and distributes the revenues to all parties with financial interest to the film.
Completion Bond Guarantor Paul Raleigh of Etana
Insurance team provide a guarantee of completion to our financiers.
Legal Representative Andrew Hewitt offers professional legal advice and ensures Picture Book Media complies with the South African and international contract, copywrite and employment laws.
Legal Consultant Samantha Horwitz
assists in negotiations and drawing up production agreements, financial contracts and chain of title documents.
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Picture Book Media endeavors to secure production, postproduction and marketing financing from US and South African equity film financiers. We intend to raise additional funds from corporations and the South African government. 18
FINANCIAL HIGHLIGHTS HOW DO WE PLAN TO RAISE CAPITAL AND OBTAIN REBATES?
The DTI reimburses our SPCV in separate installments once it reaches 5 milestones:
The production budget of the film is10.61M ZAR (≈ $1.21M) but our goal is to raise 15.26M ZAR (≈ $1.75M) in order to produce and promote New World Rising 3D.
1. 20% payment on confirmation of the completion bond 2. 20% payment on start of principle photography 3. 20% payment on completion of principle photography 4. 20% payment on start of post production “picture lock” 5. 20% payment on completion of film at a standard suitable for exhibition and complete auditors statement
To reach our financial goal, we have identified four sources of capital and grants. 1. Executive producers and angel investors: We aim to collect 15.74M ZAR (≈ $1.70M) from investors and film financiers. We are pitching to US and South African executive producers who have built solid relationships with high-net worth individuals and angel networks, who may each invest between 218,000 ZAR (≈ $25,000) and 4.36M ZAR (≈ $500,000). Our company’s investor information pack, script, detailed schedule and line budget will be disseminated along with a non-disclosure agreement to be signed by investors. 2. South African National Film and Video Foundation (NFVF): We are submitting an application to the NFVF and strive to obtain a 1M ZAR (≈ $115,000) production grant. 3. Corporate sponsorship: We anticipate to obtain corporate sponsorship of least 100,000 ZAR (≈ $11,500). We may place their products in our film, build brand alliances and/or cross-promote our brands with commercial product tie-ins. We are targeting 3 tiers of corporates: 1st tier: Sony/ Samsung; 2nd tier: Budget/Avis; Verve/Diablo; 3rd tier: Cape Union Mart/North Face/ K-Way. 4. Small Enterprise Development Agency (SEDA): As a SEDA qualified startup, Picture Book Media plans to take advantage of funds available towards professional services for our SPCV.
On behalf of our SPCV, Picture Book Media will apply for production incentive rebates. We expect to qualify for a DTI film incentive rebate of 3.35M ZAR (≈ $383,000), assuming 75% of our production and post-production budget is approved as a Qualifying South African Production Expenditure (QSAPE)5.
Etana Insurance is expected to insure New World Rising 3D at a 3.0% fee of our production budget. We anticipate to receive a DTI rebate towards half our cost of a completion bond6. The rebate is estimated at 148,000 ZAR (≈ $17,000). Our SPCV aims to claim back 14% VAT charged by South African production equipment rental agencies, crew and cast. Our SPCV will claim back the VAT of 1.10M ZAR (≈ $114,000). On the condition that the DTI rebates are granted and VAT charges refunded, our SPCV will return all of these funds to film financiers as part of their total return on their investment.
HOW WAS THE PRODUCERS’ SHARE ESTIMATED FOR THE FILM? Distributors are often charged with the task of estimating the revenue streams of films they agree to sell. Since our holding company plans to sign distributor agreements after all parties are satisfied, we built our own sales projection model. Picture Book Media made use of film financing literature7 and the guidance of a financial analyst to ensure our model’s findings were reliable. Several steps were carried out to predict our film’s financial performance. We identified films which were comparable in terms of theme, story, genre and target audience8. continued on page 20
5.
To qualify as a QSAPE, South African citizens must own the majority of intellectual property. In addition, the top credits of director, writer, producer, crew and talent must go to South African citizens. If the participation of foreigners is required, NFVF must provisionally approve our SPCV as a qualifying South African production. 6. To qualify for a completion bond rebate, our SPCV’s production budget must be below 10M ZAR (≈ $1.15M) excluding VAT. 7. Louise Levison, Filmmakers and Financing: Business Plans for Independents, 6th edition, 1-288. 8. Another Earth, Hope Springs, Pineapple Express, Seeking a Friend at the End of the World, The Trip and The Weatherman were 2D comparables. Cave of Forgotten Dreams, Jackass, Saw 3D, Sea Rex and Shark Night were 3D comparables.
19
SALES FORECAST Films which were screened in theaters to more than one regional territory and had production budgets of less than $30M were selected. Films which lost money in the box office were included in our analysis to provide a realistic picture of our projected outcomes. Our sales figures were based on revenue streams of theatrical box office; DVD sales and rentals; network TV rights sales and ancillaries for both US and foreign markets. Given that theatrical data is readily available online, we made basic assumptions to estimate other revenue streams9. The share of box office revenue was 40%; DVD rentals was 20%; DVD sales was 30%; TV revenue was 5% and ancillaries was 5%. Distributor fees and marketing costs were deducted from the gross revenue of producers of comparable films to calculate their net revenues. Cinema operators charge a 60% fee to producers then theatrical distributors impose a 20% commission fee. Retailers and DVD stores impose a 52% manufacturing and distribution fee for DVD sales and rentals and 19% for overhead and advertising. Broadcasters charge a 5% fee and so do ancillaries10. We then deducted residual payments11 from the overall net revenues of producers of comparable films. We then computed a multiplier by dividing the overall net revenues of producers for comparable films by their respective production budgets. The minimum, median and maximum values of the multiplier were derived for these comparable films. We obtained the low, moderate and high worldwide net producers revenues of our film by multiplying our film’s production budget by the multiplier. 2D and 3D versions of comparable films were calculated separately. Table 2 on page 20 presents the low, moderate and high net revenue estimates for both versions of the film by territory12. 9. 10. 11. 12. 13. 14.
To arrive at our producers share of worldwide net revenues, we combined the median values of the worldwide net producers revenues of 2D and 3D versions of our film13. To obtain the total expected revenue of our film, we summed together the producers share of our worldwide net revenues with other possible sources of revenue, i.e. grants, rebates and sponsorship.
HOW WILL ALL PARTIES RECEIVE THEIR SHARES OF REVENUE? Our SPCV intends to appoint Fintage House14 to receive, allocate and disburse the worldwide gross revenues of the film to the parties and beneficiaries on the basis of an inter-party agreement. The money remaining after the sales agents, distributors and broadcasters have taken their fees and have been repaid their expenses will be paid directly to the collection account. To administer this service, our SPCV is charged a fee of 1% from our producers share of worldwide net revenues. All remaining money in the collection account will be distributed to shareholders including film financiers and Picture Book Media. In addition, the collection account manager is expected to send regular financial reports to all parties.
HOW WAS PROFIT ESTIMATED? We calculated gross profit as the difference between the film’s total expected revenue and its expenses. Up to 70% of our gross profits are to be returned to film financiers as their net profit. The remaining gross profits are to flow back to Picture Book Media. Table 3 on page 21 shows the expected net profit earnings of our film financiers: 26.55M ZAR (≈ $3.04M). We anticipate to breakeven after 18 to 24 months of our film’s global distribution.
Percentages were obtained from Nash Information Services to compute the share of revenues from traditional distribution streams, distribution and residual fees and charges. Ancillary revenue often comes from airlines, armed forces and prisons along with merchandizing and soundtrack opportunities. A residual payment is a made to actors for subsequent showings or screenings of the feature film. Countries with less than $10,000 in median sales were grouped together under their respective regional territories. South Africa is our home country; therefore, we expect it to have much higher revenues. Median values were used because our holding company has limited established relationships with global sales agents. Fintage House (http://www.fintagehouse.com) is a collection account management service with over 25 years of experience in the entertainment business.
20
SALES ESTIMATES
Africa
Latin America
Australasia
Europe
Table 2. Projected Sales Figures for New World Rising 3D
Territory Worldwide USA and Canada Austria France Germany Greece Italy Netherlands Poland Portugal Russia Spain Sweden Switzerland Ukraine United Kingdom Other Eastern European Countries Other Western European countries Australia Hong Kong Japan Malaysia New Zealand Singapore South Korea Taiwan Vietnam Other Australasia countries Argentina Bolivia Brazil Chile Colombia Mexico Other Latin American countries Turkey United Arab Emirates Other African countries
Low $879,918 $473,322 $6,157 $13,886 $17,854 $5,219 $24,241 $10,656 $6,260 $4,464 $44,361 $17,526 $9,836 --$74,249 $8,332 $7,173 $69,215 $7,577 --$18,775 $3,445 -$4,533 -$421 $9,769 -$17,856 --$8,811 $3,161 $7,402 $3,526 $1,891
2D Film Moderate $3,876,983 $2,085,490 $27,129 $61,181 $78,667 $22,993 $106,809 $46,953 $27,582 $19,669 $195,459 $77,221 $43,336 --$327,146 $36,713 $31,608 $304,965 $33,385 --$82,724 $15,178 -$19,974 -$1,854 $43,041 -$78,674 --$38,823 $13,926 $32,615 $15,535 $8,333
High $11,878,754 $6,389,768 $83,120 $187,453 $241,028 $70,450 $327,255 $143,860 $84,510 $60,265 $598,869 $236,599 $132,778 --$1,002,347 $112,487 $96,846 $934,388 $102,290 --$253,459 $46,504 -$61,198 -$5,678 $131,874 -$241,051 --$118,950 $42,667 $99,930 $47,598 $25,532
Low $1,699,886 $805,884 $52,619 $43,776 $74,659 -$32,010 $15,521 $15,787 $5,144 $112,683 $34,557 $9,643 $6,773 $7,826 $101,966 $44,245 $18,379 $50,735 $10,541 $43,962 $35,166 $10,170 $2,028 $12,426 $2,594 $4,524 $5,559 $16,909 $1,309 $12,721 $4,016 $7,403 $10,904 $27,517 $23,796 $10,709 $25,425
3D Film Moderate $6,221,823 $2,949,864 $192,607 $160,238 $273,284 -$117,171 $56,814 $57,788 $18,828 $412,466 $126,494 $35,299 $24,792 $28,645 $373,236 $161,951 $67,276 $185,709 $38,584 $160,918 $128,721 $37,228 $7,425 $45,486 $9,495 $16,104 $20,346 $61,895 $4,791 $46,565 $14,701 $27,100 $39,913 $100,722 $87,101 $39,200 $93,066
High $10,183,646 $4,827,479 $315,202 $262,230 $447,231 -$191,751 $92,977 $94,571 $30,812 $675,004 $207,009 $57,767 $40,573 $46,877 $610,804 $265,050 $110,097 $303,915 $63,142 $263,344 $210,653 $60,923 $12,151 $74,438 $15,538 $27,925 $33,296 $101,291 $7,840 $76,204 $24,058 $44,349 $65,318 $164,832 $142,542 $64,151 $152,302
21
PROFIT ESTIMATES Table 3. Profit Estimates for New World Rising 3D
Rands (ZAR)
Dollars ($)
Grand Total Revenue Producers Share of Worldwide Net Revenues DTI Production Rebate NFVF VAT Refunds DTI Completion Bond Rebate Sponsorship
53,195,696 47,519,687
6,090,018 5,440,210
3,326,067 1,000,000 1,102,351 147,591 100,000
380,779 114,483 126,200.80 16,897 11,448
Grand Total Expenses Story and script Producers and director American star South African cast Total Above-The-Line Production crew Camera crew Grip, lighting and electrical crew Sound crew 3D Camera package Lighting package Grips package Sound package Art department Locations and transport Miscellaneous Professional Services 10% Contingency Completion bond Total Production Music Editing and finishing Total Post Production Marketing Publicity Distribution Exhibition Creative planning Logistical planning Collection accountmanager Overhead costs Total Other
15,260,571 83,911 715,200 1,310,235 525,100
1,747,080 9,606 81,878 150,000 60,115
2,634,446 611,344 898,352 365,702
301,600 69,989 102,846 41,867
127,224 2,249,797
14,565 257,564
400,900 175,885 306,984 369,000 1,070,569 121,500
45,896 20,136 35,145 42,244 122,562 13,910
327,313 950,070 295,181 10,904,267 696,990 1,583,823
37,472 108,767 33,793 1,248,356 79,794 181,321
2,280,813 480,008
261,115 54,953
107,745 74,010 136,198
12,335 8,473 15,592
106,800 489,657 470,377 210,696 2,075,491
12,227 56,058 53,850 24,121 237,609
37,935,125 26,554,588 11,380,538
4,342,938 3,040,056 1,302,881
74.01% 20.28%
74.01% 20.28%
Gross Producers Profit Net Film Financiers’ Profit Picture Book Media’s Profit ROI to Film Financiers, Total Period ROI to Film Financiers, Annual
22
Director of Development
Picture Book Media welcomes executive producers and equity investors to contact the management team to learn more about New World Rising 3D.
Gavin Sher
gavin@picturebookmedia.com +27-(0)82-395-9685
Director of Production Tamryn Speirs
tamryn@picturebookmedia.com +27-(0)82-880-7718
Director of Distribution Maha Golestaneh
maha@picturebookmedia.com +27-(0)21-462-0497 +27-(0)78-824-6870
Â
Picture Book Media invites you to download our comprehensive investors information pack at http://issuu.com/mahagol/docs/investorpack and visit our website at http://www.picturebookmedia.com. 23
A NEW CHAPTER IN FILM Registration no. 2012/189049/07