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Know Your Pre-Seen (KYP) This is known as Know Your Pre-seen (KYP) issued by LearnCIMA.com There are several slides included outside the pre-seen and they have been marked with an e. Key Slides are marked as K and Detailed Slides are marked as D Slides which explain the related theory areas in a given section have been marked with a RT. 2
Company Profile Name - Menteen Studios ( Menteen ), Nature of the Business - Makes feature films Inception - 1936 Founder -Monty Ment, a famous theatre impresario Dominated - the European film industry Listed Stock Exchange - Beeland Currency Adopted - B dollar (B$). 3
Feature Film Movie Stands for "Motion Pictures" while a feature film is a full length film, the minimum "full length" time varies in different parts of the world, but mostly it's around 60-80 minutes. That means, every feature film is a movie but every movie is not necessarily a feature film. Basically length is the main difference between movie and feature film. 4
Lists of Animated Feature Films 2016 5
An overview of Europe's film industry 1895- Europeans were the pioneers of the motion picture industry. Louis Le Prince became famous for his 1888 Roundhay Garden Scene,the first known celluloid film recorded. The Skladanowsky brothers from Berlin used their "Bioscop" to amaze the Wintergarten theatre audience with the first film show. 1897 - Georges Méliès built one of the first film studios in. 1900s-European film companies dominated internationally (not only the largest market share in Europe, but also in the US, reaching at times 60%). By the early 1920s - the situation had reversed, and the emerging Hollywood studios started supplying the majority of films shown in Europe 6
19th century Film History 1867-68 - Chronophotography is the first time that movement is captured in several frames of print. 1878- Using a fast-motion series of 24 cameras Eadweard Muybridge films a horse in motion, Sallie Gardner at a Gallop. 1882 - Étienne-Jules Marey develops the Chronophotographe, which can take 12 pictures per second. 1888 - In Leeds, England Louis Le Prince films Roundhay Garden Scene, believed to be the first motion picture recorded. 1890 - Monkeyshines, by William Kennedy Dickson and William Heise. Believed to be the first film shot in the United States. An experimental film made to test the original cylinder Kinetograph format. 1892 - the first public performance of a moving picture show at the Musée Grévin in Paris, the Théâtre Optique. 7
1893 - The first Kinetoscope film shown in public exhibition. 1894 - the first commercial motion picture house 1895 - First hand-colored film -Charles Francis displays the Phantascope, the first patented Film projector. -Incident at Clovelly Cottage is the first film to be made in the United Kingdom. -History of the Kinetograp, Kinetoscope, and Kinetophonograph by Antonia and William Kennedy Dickson, considered the first book of history on film, is published. [13] 1896 - The Edisonia was the first known dedicated, purpose-built motion picture theater in the world. -In The Kiss, May Irwin and John Rice re-enact the kiss from the New York stage hit The Widow Jones, the first film of a couple kissing. 1899 - The first example of object manipulation and stop-motion animation was the short film called The Humpty Dumpty Circus. -King John is the first film adaptation of the work of William Shakespeare. 8
20th century 1901 - The earliest known use of intertitles was in the British film Scrooge, or, Marley's Ghost. 1902 - Edward Raymond Turner's children and several other very short test films, the earliest known moving pictures photographed in color. 1906 - Humorous Phases of Funny Faces directed by J. Stuart Blackton is the first 2D animated film. -The Story of the Kelly Gang by Charles Tait is the first feature film to be released. 1907 - The first film reviews published, An Exciting Honeymoon and The Life of a Cowboy by Edwin S. Porter. -L'Enfant prodigue is the first feature film produced in Europe. 1909 - The first full length feature film produced in the United States, an adaptation of Victor Hugo's novel Les Misérables. 9
1915 - First display of 3D film at the Astor Theatre, New York. 1917 - The first animated feature film was El Apóstol by Quirino Cristiani. 1922 - The first colour feature film made in Hollywood, The Toll of the Sea. 1923-16 mm film is introduced by Eastman Kodak in the United States. 1927 - The Jazz Singer starring Al Jolson is the first feature film with recorded dialogue, using the Vitaphone system. The Jazz Singer is also the first musical film. -Napoleon by Abel Gance is the first film to be filmed in the widescreen format. 1928 - Lights of New York, directed by Bryan Foy is the first all talking feature film. -The Viking ithe first feature-length s film in color with sound (music and sound effects only). 1929 - The First Academy Award ceremony takes place at the Hollywood Roosevelt Hotel, Los Angeles on May 1. - Fox introduced Fox Grandeur, the first 70 mm movie format. -On with the Show is the first feature-length "talkie" (sound film with spoken dialog) in color. 10
1925 - Police Patrol is the first film to be broadcast on television by W2XCD. 1932 - The first animation to use the full, three-color Technicolor method was Flowers and Trees made by Disney Studios. - Love Me Tonight is credited as the first film to use a zoom lens. 1935 - Abel Gance is the first film to have a stereo soundtrack. -Becky Sharp, starring Miriam Hopkins, is the first feature-length film in threestrip Technicolor. 1936 - First feature-length talkie filmed in 3D, the Italian Nozze Vagabonde by Sante Bonaldo. 1937 - Disney's snow white and the seven dwarfs was the first animated full length feature film 1940 - Walt Disney's Fantasia is the first film with surround sound, using Disney's Fantasound system. 11
1953 - The Robe is the first film to be released in CinemaScope. 1960 - First time a toilet is ever recorded on camera in a major feature film is in Psycho. 1964 -First movie with African-American interracial marriage 1970 - Tiger Child, the first film in the IMAX format is made. 1971 - The first permanent IMAX theatre. 1973 - First use of 2D computer animation in a significant entertainment feature film, Westworld. 1976 - The Young Teacher is the first film to be commercially released on VHS. 1978 - Superman is the first film with a computer-generated title sequence. 1981 - Looker by is the first film to feature a CGI human character, Cindy. Also, first use of 3D shaded CGI. 1983 - Rock & Rule is the first animated film to use computer graphics. 1984 - The Sensorium is regarded the world's first 4D film. 12
1991 - Beauty and the Beast is the first animated film to have an Academy Award nomination for Best Picture. 1996 - Shinji Ra Munita is the first film to be commercially released on DVD. 1998 - Titanic by James Cameron becomes the first film to cost $200 million and to earn more than $1 billion worldwide. 21st century 2000s - First digital cinema projection in Europe by Philippe Binant with DLP CINEMA technology for the release of Toy Story 2. 2001 - Final Fantasy: The Spirits Within is the first feature film to use motion capture to create characters. 2002 - Russian Ark by Alexander Sokurov is the first feature film to be shot entirely in uncompressed high definition video.it is also the first feature film to consist of a single unedited take. 2004 - Able Edwards, the first movie with all-cgi backgrounds and live actors.the Polar Express by the first CGI movie that used motion capture for all actors. 13
Top Film And Movie Production Companies In Europe The Babelsberg Studio - Germany : Oldest large-scale film studio in the world. (covers about 26,000 square meters). Largest production company in Europe. Gaumont Film Company - France : First and oldest film company in the world, founded in 1895. Canal + Group (StudioCanal) - France : One of the biggest media groups worldwide. Pathé - France : It extends to other European countries productions but mostly operates in France. Second oldest production company in the world. Nordisk Film - Denmark : Oldest continuously active studio in the world. Third oldest film company in the world after Gaumont and Pathé. 14
The UK's Top Film Production Companies Aardman Animations Archer Street Films Bedlam Productions Between The Eyes Big Talk Productions Blueprint Pictures Cloud Eight Cowboy Films Ealing Studios DNA Films Ecosse Films Heyday Films 15
Best Movies of 2016 Zootopia Hell or High Water Moonlight Arrival The Jungle Book Finding Dory Captain America: Civil War The Witch Doctor Strange Rogue One: A Star Wars Story Deadpool Star Trek Beyond Moonlight Batman v Superman: Dawn of Justice 16
The Best European Films The Lobster (Greece) Yorgos Lanthimos Youth (Italy) Paolo Sorrentin Son of Saul (Hungary) Laszlo Nemes Victoria (Germany) Sebastian Schipper Mustang (Turkey) Denis Gamze Erguven Love (France) Gaspar Noe Rams (Iceland) Grimur Hakonarson Room (Canadian-Irish independent drama film) Julieta (Spanish film) Daniel Blake (British-French drama film) 17
Main Film Genres -Absurdist/surreal/whimsical -Adventure -Crime -Fantasy -Horror -Mystery -Philosophical -Romance -Slice of Life -Thriller -Western - Action -Comedy -Drama -Historical fiction -Magical realism -Paranoid -Political -Science fiction -Speculative -Urban 18
The Filmmaking Process 1. Development 2. Pre-production 3. Production 4. Post-production 5. Marketing and distribution 6. Exhibition 19
1.Development Major studios invest considerable time and money in the identification of potential ideas for films. The two main considerations are the potential audience for a film and the potential cost of producing it. secondary considerations - the potential merits of the film as a piece of art and the possibility of recognition in terms of prizes such as the Academy Awards (otherwise known as the Oscars). Use the comparables approach to select projects for filming. They look at the costs and revenues for similar films that have already been released in order to determine the likelihood of success. The responsibility for development lies with the producer. Menteen s executive directors make the final decision as to whether a proposal is to proceed to pre-production. 20
2.Pre-production During pre-production the producer hires the director, the cinematographer, the unit production manager, the designer and key cast members. Select locations for filming and finalise key documents, such as the final script, the production schedule and the budget. Menteen s executive directors conduct a final review of the budget, along with the other key elements of the project, before production starts 21
3. Production The production phase is when the film is actually shot. The producer will take care to ensure that the project stays within budget and on schedule. Timing is important, partly because delays almost inevitably involve additional costs and partly because cinemas and other potential exhibitors will have included the film in their own schedules. 22
4. Post-production Post-production involves editing the raw footage and adding music and other elements. For example, many scenes will have been filmed more than once and a final decision has to be taken as to which version to use. There may also be decisions to make about whether to use every scene in full because a very long film may put off filmgoers. The soundtrack is mixed and added to the film at this stage. Dialogue, sound effects and music are all recorded as a number of different tracks. This assists in balancing the audio correctly, with different tracks being added at a suitable volume and properly synchronised to the images. 23
5. Marketing and distribution Aspects of marketing and distribution may run in parallel with production, post-production and even pre-production Press coverage and publicity is managed in such a way as to create interest in the film Films are generally aimed at the cinema, with the expectation that they will generate a healthy profit from box office receipts. Products are launched in order to capitalise on the publicity surrounding the film. Example; films aimed at children may be accompanied by a range of toys. The studios will generally own the rights to all images and so can charge a royalty for their use. 24
Exhibition This is the final stage, in which the film is actually shown in cinemas 25
Stages of Film Making Summary The script is written and formatted into a workable guide Development Pre-Production This is preparing for shooting the film, crew and cast are hired, Location are chosen,and the sets are built The film maker shoots the film in it s entirety Production Post Production The film is edited, Music,Sound Effects and any other effects are added. A distributor takes the film on, and it is shown to the public Distribution 26
Key Roles In Filmmaking Producer Special effects Director Editor Screen writer Composer Actors 27
Key Roles In Filmmaking The film industry has a complex network of professional guilds that protect the interests of those who work in the industry. *The Producers Guild of Beeland (PGB) lobbies for the interests of producers and requires the studios to employ its members as producers in their film projects. If a studio employed a non-member then it would face a possible boycott by all other members of the PGB and other projects could be disrupted. *To protect other professions, including the Beeland Screen Actors Guild (BSAG) and the Beeland Screenwriters Guild (BSG). 28
Real Industry Examples Producers Guild of America (PGA) is a trade organization representing television producers, film producers and New Media producers in the United States. The PGA's membership includes over 7,000 members of the producing establishment worldwide. The PGA offers several benefits to its members, including health insurance and pension benefits; seminars and mentoring programs; entrance to special screenings of movies during Academy Award season; and assistance with working conditions and screen credits. 29
Real Industry Examples The Screen Actors Guild (SAG) was an American labor union which represented over 100,000 film and television principal and background performers worldwide. On March 30, 2012, the union leadership announced that the SAG membership voted to merge with the American Federation of Television and Radio Artists (AFTRA) to create SAG-AFTRA. The Guild was founded in 1933 in an effort to eliminate exploitation of actors in Hollywood who were being forced into oppressive multi-year contracts with the major movie studios that did not include restrictions on work hours or minimum rest periods, and often had clauses that automatically renewed at the studios' discretion. 30
Examples of Film Director Tasks Participate in selecting cast and other creative personnel Approve rights to third parties Approve script, locations, set designs, and shooting schedules Recommend script changes Direct the film Help select the second unit director Consult with the second unit director about shooting second unit photography Review unedited footage (also known as dailies ) View the editor s assembly (also known as an editor s rough cut ) Supervise the editor s first cut Instruct editor to make changes necessary for the director s cut Prepare the director s cut Consult throughout post-production Work on the last version of the film before negative cutting and dubbing Direct dialogue replacement (also known as looping ) and narration Participates in spotting and dubbing of sound and music Participate in the rating of the film by the Motion Picture Association of America (MPAA) Participate in previews of the film before it s widely released Consult on the content of the DVD release Examples of Film Producer Tasks Development Conceive of the premise of the production Select the writer Secure the necessary rights and financing Supervise the development process Pre-Production Select the director, co-producer, cinematographer, unit production manager, production designer Select principal cast Participate in location scouting Approve the final shooting script, production schedule and budget Production Supervise daily operations of the producing team Provide on-set consultation with the director and other creative personnel Approve cost reports Post-Production and Marketing Consult with the editor, director, composer and visual effects staff Consult with creative and financial personnel Participate in marketing and distribution 31
Screenwriter The screenwriter takes either an original idea or an existing novel or play and turns it into a working script for a film Screenwriting is an art in itself and the original author of a work that is being adapted for film may not possess the necessary skills to convert a book or other text into a workable script. The original author has the right to be consulted and to review the script before filming commences in case the author believes that the changes made by the screenwriter are unacceptable. 32
World Best Film writers 33
Examples of Movies William Goldman The Princess Bride Butch Cassidy and the Sundance Kid All the President's Men Woody Allen Annie Hall Manhattan Midnight in Paris Vicky Cristina Barcelona Oliver Stone Savages Wall Street: Money Never Sleeps World Trade Center 34
Actors Leading actors are ranked according to their box office appeal. Many filmgoers are more interested in watching their favourite stars performances than in the film s story. Producers may approach specific actors during the development phase of a project because they know that the studio s senior management will be more inclined to fund a film that has a star with significant box office appeal There are agencies that supply studios with actors for relatively unimportant roles. For example, a studio may require 50 young people to act as students in a film set in a college. Actors may have to audition for more prominent roles, perhaps involving a closeup shot and some dialogue. Actors are represented by agents, who negotiate contracts in return for a percentage of their clients earnings. 35
The World s Highest-paid Actors and Actresses - 2016 36
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Composer The musical score is often a major element of the enjoyment of a film. It is often easier to have original music written for the film s soundtrack than to find existing pieces that blend in. Some composers specialise in film scores and they can command substantial fees 38
Greatest Music Composers 39
Special effects Special effects can take many forms, but essentially they involve creating an image or sound that would be either impossible or too costly to film live. For example, science fiction films often depend on special effects to portray space travel. Special effects can be less prominent, but just as vital, in other ways: a historical drama, for example, may require special effects to create the sights and sounds associated with a particular period. Special effects can also be used in less obvious ways. For example, a crowd scene that would have required thousands of extras may be created using computer-generated imagery (CGI) in which the people seen in the background of a shot are actually animations. 40
Famous Movie Scenes Before And After Special Effects 41
Famous Movie Scenes Before And After Special Effects 42
Editor The editor assembles the various shots that will be shown in the final film and puts them together in the correct sequence. The editor works closely with the director to tell the film s story to the best effect. The editor also has to consider the film s running time. The editor may also be asked to create different versions of the film to suit the local regulations and cultures in different potential markets 43
Marketing a film box office ticket sales are the most visible measure of a film s commercial success. Film marketing can involve a complex mix of elements, which can account for more than half of the film s production costs. Film studios are turning to social media as a cost-effective means of promoting films. They attempt to stimulate interest in the film by posting comments and questions on sites and encouraging potential ticket buyers to pass on comments and messages. licensing is a major source of revenue and can also be a significant basis for developing awareness 44
Film promotion Techniques In theaters Trailers- screen in theatres before movie showings. Generally they tell the story of the movie in a highly condensed fashion compressing maximum appeal into two and half minutes. Film posters Slideshows - stills, trivia, and trivia games from the film, shown between movie show times. Standees (freestanding paperboard life-size images of figures from the film). Cardboard 3D displays, sometimes producing sound. 45
Television and radio Hollywood movie distributors spend about $4 billion a year to buy paid advertising (30-second TV commercials, newspaper ads, etc.) and over half that total is placed on broadcast and cable TV, which are the main vehicles for advertising movies to audiences. Product placement: paid active or passive insertion (as on-set posters, and action figures) of film brand in drama or sitcom shows, or as passing mentions in dialogue. For example, 20th Century Fox commissioned an I, Robotthemed motorcycle, featured on two episodes (2:17, 2:18) of American Chopper. Advance trailers, longer previews, or behind-the-scenes footage on rental videos and DVDs 46
Internet Virtual relationship hyperlink marketing, wherein a major search engine (like Yahoo's main page) offers articles seemingly presenting interesting news related items Creation of standalone studio-sponsored per-film websites such as "examplethe-movie.com Online digital film screeners: These digital film screeners have the benefit of letting you send individual copies of your film or a promo to the press, sales agents, distributors etc Viral marketing: free distribution of trailers on movie-oriented websites and video user-generated-content websites, and rapid dissemination of links to this content by email and blogs Creation of Internet Marketing campaign using Paid Advertisement and Social Media Marketing 47
Print Paid advertisement in newspapers, magazines, and inserts in books. Cross-promotion of original book or novelization, including special printings, or new cover jackets ("Now a major motion picture.") Comic special editions or special episodes Merchandising Paid co-branding (Eragon in American Chopper-two episodes), or co-advertising (Aston Martin and James Bond films) of a product with the film Promotional giveaways: branded drink cups, toys, or food combinations at fast food chains 48
'One Weekend in Moscow Cost and Revenue Revenue in Breesland - B$505m Total box office revenues - B$1,337m Production Cost - B$264 m Marketing Cost - B$180 m 49
Typical cost breakdown for a major box office movie The film industry splits the cost of making a film between production and marketing costs. The production costs of producing Menteen s recent film One Weekend in Moscow 30% Out of the total cost 50
'One Weekend in Moscow' -production costs The actors fees included B$22m paid to the lead actor and B$8m paid to his co-star 51
One Weekend in Moscow' -marketing The cost of appearances comprised the total cost of arranging for the film s stars to attend premieres in several of the countries in which the film was shown 52
One Weekend in Moscow Revenue One Weekend in Moscow generated B$505m of box office revenues in Beeland. Total box office revenues of B$1,337m. 53
Distribution Menteen has its own distribution company. Menteen Distribution is a whollyowned subsidiary that acts as an intermediary between the film studio and the cinema chains that show its films. The distribution company s role commences with securing interest from the cinemas, usually by arranging industry screenings so that cinema chains buyers can gauge likely audience interest for themselves. The distribution company is responsible for negotiating a profit share with the cinema. Normally, an agreed sum is set aside for the cinema running costs and any ticket revenues over that amount is shared between the cinema and the distribution company in an agreed proportion. The distribution company normally has the right to audit ticket sales to ensure that the cinemas are not understating profits. 54
The distribution company is responsible for the logistics of ensuring that the cinemas have sufficient prints of the film to enable them to keep up with the agreed schedule of showings. Although films are increasingly being distributed electronically, with many cinemas being equipped with digital projectors that can project digital copies and studios are pushing cinema owners to install this technology because of the significant costs associated with printing and distributing film. The distribution company will monitor cinema showings to ensure that the cinemas are offering the agreed numbers of seats and viewing times and handles the process of seeking a rating from the regulator in each country in which the film will be shown. 55
The UK and US are both large markets for films and their ratings are as follows: These ratings can have a significant impact on revenues because they have the potential to limit audiences. -Example: US box office revenues are generally 12% lower if the regulator applies an R rating instead of a PG-13. It is not uncommon for studios to edit films at this stage in order to remove scenes that are causing the regulator concern. For example, violent scenes may be edited to make them less graphic in the hope that the regulator may respond by reducing the rating 56
Film Language Menteen s films are made in English. It releases foreign language versions so that it can extend the potential audience. The two main ways to do this are by dubbing and subtitling. Dubbing involves translating the script into another language and having actors who are native speakers record their lines in an audio studio. The film s soundtrack is then remixed with the original English dialogue removed and replaced.it is a time-consuming process. Most of Menteen s films are dubbed into German, Italian, French and Spanish. Subtitling leaves the original English dialogue unchanged but adds a written translation of what is being said across the bottom of the screen. Audience members have to read the translation while they watch the action. Menteen generally produces subtitled versions in 8 to 12 languages 57
Other forms of Distribution Studios often license their films to airlines, which use them as inflight entertainment on long-haul flights. -Passengers have individual touchscreens that are either built into the back of the seat in front of them or unfold from the arm rests of their seats. -These screens are wired to a computer which permits passengers to select from a library of dozens of films, as well as television and audio programmes. -The airlines pay a licence fee to show a mixture of new films and older classics. 58
Ways of continue to make money from films after they have reached the end of their cinema runs: Satellite and cable television companies pay to broadcast movies on their networks, either as part of their subscribers viewing package or on a payper-view basis. Studios release films on DVDs for home viewing. Finally, films are broadcast on national television channels. Again the studio receives a fee for the licence to broadcast. 59
Physical and technological safeguards in place to enable the studios to control the distribution of films in different countries: The copies of films for cinema projection are carefully controlled and accounted for at all times. Digital films are often distributed on encrypted disk packs that are also carefully accounted for. Satellite and cable television broadcasts are generally restricted to a specific country through encryption of the broadcast signal. If a viewer from another country could access the signal it would be unintelligible because the decryption codes are country-specific. DVDs have regional codes, which mean that a DVD for viewing in, say, the US will not play on a DVD player or computer drive that is locked to play, say, European disks. National television broadcasts are generally too low-powered to be received far beyond their intended national borders. 60
Market Share for Each Distributor 1995-2016 61
Film financing The production of One Weekend in Moscow (OWM) 62
Menteen created two companies to organise this project, 1.OWM Finance 2.OWM Production. OWM Finance was a funding vehicle. Menteen paid cash for 60% of the company s equity and an outside investor paid cash for the remaining 40%. Menteen also established OWM Production as a wholly owned subsidiary. OWM Finance paid OWM Production the cost price of creating the film, ownership of which remained with OWM Finance. Once the film was completed, Menteen Distribution handled the distribution and remitted the net proceeds to OWM Finance. Those proceeds were used to pay dividends to Menteen and the external investor. 63
Five Main Methods Of Financing The Production Of A Film: Government grants; Tax incentives and shelters; Private equity and hedge funds Debt finance; and Equity finance. 64
Government grants -A number of governments run programs to subsidise the cost of producing films. For instance, until it was abolished in March 2011, in the UK the UK Film Council provided ational Lottery funding to producers, as long as certain conditions were met. Tax incentives Some U.S. states and Canadian provinces have between 15% and 70% tax or cash incentives for labor, production costs or services on bona fide film/television/pcgame expenditures. German tax shelters-a relatively new tactic for raising finance is through German tax shelters. The tax law of Germany allows investors to take an instant tax deduction even on non-german productions and even if the film has not yet gone into production British tax shelters - Now, the same copyright can be sold again to a British company and a further $10 million could be raised, but UK law insists that part of the film is shot in Britain and that the production employs a fair proportion of British actors and crew. This explains why many American films like to shoot at Britain's major film studios like Pinewood and Shepperton and why a film such as Basic Instinct 2 relocated its action from New York to London 65
Private investors - One of the hardest types of film financing pieces to obtain is private investor funds. These are funds invested by an individual who is looking to possibly add more risk to his investment portfolio, or a high-net-worth individual with a keen interest in films. Debt finance Pre-sales Pre-sales is, based on the script and cast, selling the right to distribute a film in different territories before the film is completed. Television pre-sales - Although it is more usual for a producer to sell the TV rights of this film after it has been made, it is sometimes possible to sell the rights in advance and use the money to pay for the production. In some cases the television station will be a subsidiary of the movie studio's parent company. Negative pickup deal - A negative pickup deal is a contract entered into by an independent producer and a movie studio wherein the studio agrees to purchase the movie from the producer at a given date and for a fixed sum. Until then, the financing is up to the producer, who must pay any additional costs if the film goes over-budget. 66
Gap/supergap financing - In motion pictures, gap/supergap financing is a form of mezzanine debt financing where the producer wishes to complete their film finance package by procuring a loan that is secured against the film's unsold territories and rights. Most gap financiers will only lend against the value of unsold foreign (non-north American) rights, as domestic (North American: USA & Canadian) rights are seen as a "performance" risk, as opposed to more quantifiable risk that is the foreign market Crowdfunding-With a rising popularity of online crowdfunding more and more films are getting financed directly by their consumers this way. The crowdfunding platforms Kickstarter and IndieGoGo have their own categories dedicated to films. Crowdfunding films gives the consumer a voice in what films are being produced, allow for riskier, more socially relevant, more innovative, less profit-oriented independent films with smaller and marginal target audiences that can't be found in mainstream cinema and lower the entry-barrier to new filmmakers.crowdfunded films include Iron Sky, Kung Fury, Veronica Mars, Code 8, Star Trek: Renegades, Manthan and Anomalisa. 67
Preventing Movie Piracy The movie industry has a problem. According to the Motion Picture Association of America (MPAA), Hollywood loses billions of dollars a year on illegally sold copies of movies. The losses are impossible to calculate accurately, of course, since it s unclear how many of the people who download copies over the Internet or pay a few dollars for a pirated DVD would have paid $9 to $20 for a theatre ticket or legal DVD. Nonetheless, studios and theatre owners are eager to find ways of safeguarding their intellectual property. Standardize International/Regional Releases Lawsuits Make an Effort to Actively Engage Your Community 68
The Pirateeye Anti-piracy Solution PirateEye presents to professional pirates, the technology also deters the very real impact of social piracy the casual recording, storage, sharing, and uploading of clips and entire films to the Internet by casual copiers. Key features of the PirateEye solution include: Patented design automatically detects any digital recording devices in a theatrical exhibition, movie, play, concert, or other presentation Real-time, remote monitoring by our Network Operations Center High-resolution forensic image capture even in extremely low light conditions Remote notification of camcording by email or mobile phone alerts, including forensic images, date/time stamp, cinema, screen, and seat location Ability to be permanently installed by mounting the PirateEye device above the cinema screen or used in portable operations mounted below the exhibition screen or stage Automatic start and stop based Copyright on 2017 screen LearnCIMA.com, illumination All Rights Reserved 69
Menteen s Board of Directors Executive Directors Stephen Callaghan Non-Executive Directors Alexi Ukachi Isabel Anderson Anton Chan Nimrod Hernando Leonard Marshall Ella Lavizani Howell Carson Eugene Banerjee 70
Executive Directors Stephen Callaghan Stephen has served on our board since 1994 and has been Chief Executive Officer (CEO) since 2013. Stephen is a financial specialist who previously worked for a major hedge fund. Isabel Anderson Isabel has been Finance Director since 2014. She is a professionally qualified accountant Her previous experience included several years working within the television industry. Anton Chan Anton has been Director of Distribution since 2009. He joined Menteen from a major competitor. 71
Ella Lavizani Ella is a qualified lawyer who has been a director of Menteen since 2007. Eugene Banerjee Eugene has joined the board this year. Eugene has enjoyed a highly successful career in the film industry and is a well-known and respected script writer. 72
Non-Executive Directors Alexi Ukachi Alexi has been Menteen s chairman since 2009. He is well known in the industry for his innovative work with computer generated imaging. Nimrod Hernando Nimrod has been a non-executive director since 2014. He also runs a charitable arts foundation. 73
Leonard Marshall Leonard joined Menteen s board this year as a non-executive director following his retirement from partnership in a leading law firm. Howell Carson Howell has been a Non-Executive Director since 2012. He had a successful career as a film director and joined Menteen s board after retiring from film making. 74
Menteen s annual report Analysis 2016 2015 B $ Mn B $ Mn Change Revenue 2,611 2,804-6.88% Expenses Direct operating expenses (1,417) (1,477) -4.06% Distribution and marketing (644) (689) -6.53% Administration (236) (241) -2.07% Depreciation and amortisation (8) (8) 0.00% Total expenses (2,305) (2,415) -4.55% Operating profit 306 389-21.34% 2016 2015 B $ Mn B $ Mn Change Non-current assets Investment in films 1,429 1,276 11.99% Property, plant and equipment 28 23 21.74% Goodwill 330 330 0.00% 1,787 1,629 9.70% Current assets Receivables 874 867 0.81% Bank 98 94 4.26% 972 961 1.14% Total assets 2,759 2,590 6.53% Equity & Liabilities Equity shares 800 800 0.00% Retained earnings 400 297 34.68% 1,200 1,097 9.39% Finance costs (40) (48) -16.67% PBT 266 341-21.99% Tax (34) (36.00) -5.56% PAT 232 305-23.93% Loans 350 340 2.94% Payables 311 306 1.63% Film obligations & production loans 620 584 6.16% Deferred revenue 278 263 5.70% 1,559 1,493 4.42% 75 2,759 2,590 6.53%
Ratio Analysis.. 2016 2015 Profitability ROE 19.33% 27.80% ROCE 19.74% 27.07% Gross Profit 45.73% 47.33% Net profit 8.89% 10.88% Efficiency asset Turnover 0.95 1.08 Fixed Asset Turn over Ratio 1.46 1.72 Liquidity Current 0.80 0.83 Cash 0.08 0.08 Gearing Gearing 22.58% 24% D:E 29.17% 31% Interest Cover 8 8 Investors' ratios DPO 55.60% Retention 44.40% Growth 8.58% 76
Risk analysis Foreign exchange risk Menteen carries out business in various countries, resulting in exposure to movements in foreign currency exchange rates when translating into the B$. We use forward contracts to hedge this risk. Interest rate risk Menteen s interest expense is exposed to movements in interest rates. We do not hedge this risk. Business risk There is a risk that with the closure of cinemas due to the popularity of downloading films, people are waiting for DVDs or downloads to become available, films will lose money at the box offices. 77
Financial risk It is becoming harder to get external funding to make new films, it may result in us being unable to make so many films every year. Overrunning is a major risk as most films are behind schedule. The costs are considerable when films overrun. Market risk Shares move in reaction to Box Office figures, if our box office takings fall so does our share price 78
SWOT Analysis 79
Press coverage 1930 1940 : Going to the cinema was the main form of entertainment in Beeland. 1960 : As people began to have televisions in their homes cinema attendance started to fall sharply. 1970-1980 : the growth the video rental saw cinema attendance fall further, to a low point.renting a film on video was much cheaper than visiting the cinema. Later : Cinema attendances have recovered, Visiting the cinema can provide a welcome break from emails and other interruptions and improvements in technology, such as 3D screens, mean that the visual impact of a film can be much greater in a cinema than at home. 80
THE SHOWBIZ MAGAZINE DECEMBER 2016 The star business - who s rising high and who s plummeting back to earth? Box office results, both here in Beeland and internationally. We looked at the average box office takings of all the actor s work over the last 5 years, and applied a penalty percentage if they hadn t appeared in anything for the last year. Public opinion. We showed members of the film-going public photos of actors. If the actor wasn t identified correctly, a penalty percentage was applied. If they were recognised, we asked if the public liked them or not. Social media. We looked at number of mentions of each star every day on Twitter over the last 6 months. Expert views. We averaged the ratings given by professional film critics to the actor s work over the last 5 years and asked a secret jury of insiders whether or not they would hire this actor. We gave a lot of weight to that the right actor in a starring role can just about guarantee box office success. And finally awards. Oscars, National Film Awards, BAFTAs 81
After all that hard work, here you are the 10 most bankable stars to watch out for in 2017: Justin Fletcher Harsh Jab Stan Kowalski. Gino DeLuca.. Missy Cochrane Ken Scott Ming Fletcher Daryl Foggarty Lee Carlisle Tony Adams 82
THE SHOWBIZ MAGAZINE JANUARY 2017 83
List of most expensive films 84
Book-to-Film Adaptations 85
Books into Movies 2016 86
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