Dictionary of Film Finance and Distribution: A Guide for Independent Filmmakers

For independent filmmakers navigating the often-opaque world of film finance and distribution, John Cones' Dictionary of Film Finance and Distribution offers an indispensable resource. Written particularly for independent filmmakers researching production, distribution, and financing, it defines those thorny legal and financial terms that often elude novice filmmakers and impede their attempts to secure financing and distribution. The entries provide commentary on approaches to film finance and distribution, definitions of production and post-production technical terms, definitions of unique film-industry practices and procedures in a variety of areas, and an extensive cross-referencing of terms. Cones offers advice as well as definitions.

   "This dictionary's harrowing journey through the depths of studio 'creative accounting' is both revealing and frightening -- a must read for all filmmakers".
   -- Richard F. Brophy, producer

This unique guide addresses a critical void in existing film literature, moving beyond technical and creative aspects to illuminate the complex business side of the movie industry. Cones’ primary goal is to empower independent producers and filmmakers, helping to level the playing field when negotiating with powerful studios and theater chains, which typically employ legions of legal and financial experts.

The book provides more than just definitions; it offers an analytical perspective on why the industry is dominated by major studio/distributors and why independents frequently find themselves at a disadvantage. Readers gain insight into crucial concepts like "inferior bargaining position" and "leverage," backed by information drawn from industry seminars, trade articles, lawsuits, and conversations with hundreds of independent producers. A unique feature is the comprehensive list of "337 Business Practices of the Major Studio/Distributors," cataloging terms that reveal the inner workings and sometimes controversial tactics of industry giants. From understanding "creative accounting" and "advertising overhead" to identifying "block booking" or "tying arrangements," filmmakers can learn to spot and counter practices that often diminish their share of profits.

Dictionary of Film Finance and Distribution systematically breaks down the entire motion picture production cycle, from "Acquisition" and "Development" through "Packaging," "Production Financing," "Pre-Production," "Principal Photography," "Post-Production," and "Delivery." Each stage is associated with key terms, ensuring a holistic understanding of the filmmaking journey. Beyond production, the book details the diverse "Sources of Revenue," including U.S. and foreign theatrical distribution, new technologies, home video rights, domestic and foreign TV syndication, non-theatrical distribution, and internet/broadband markets. Understanding how terms like "gross floor," "net profits," and "talent participations" are contractually defined becomes paramount, as the book highlights the subjectivity often present in such agreements.

Cones, a practicing securities/entertainment attorney, equips readers with the knowledge to approach contractual agreements with clarity. He explains the nuances of "adhesion contracts," "best efforts clauses," and the significance of objective "delivery requirements." Aspiring and established filmmakers alike will find practical guidance on marketing strategies, from deciphering "blurbs" and "promotional tie-ins" to understanding the impact of "buzz" and "hype" on a film's success. This guide is not just a dictionary; it’s a strategic companion for anyone determined to succeed in the business of independent cinema.

The goal of this book is to level the playing field a bit when it comes to negotiating the financing and distribution of films. The large film studios and theater chains employ attorneys and others who are experts in negotiating film contracts, and there are many significant barriers to entry in this industry. The information contained in this volume should prove invaluable to all those concerned at one time or another with film finance and distribution, including attorneys, distributors, executive producers, producers, associate producers, studio executives, screen writers and directors seeking to independently produce a special project, exhibitors, broker/dealers, money finders, motion picture accountants/auditors, investors, profit participants, federal and state government officials and film students. Most independent film-makers and producers have limited knowledge of the law, in part because the film schools and universities that educated them stress the technical, creative or production side of film-making, not the business side. One consequence of this disparity is that independent film-makers and producers are usually at a disadvantage when it comes to negotiating the financing and distribution of a film. The terms and phrases defined and discussed in this dictionary are those of feature film finance and distribution, including film production, marketing, accounting, insurance, securities, legal structures (e.g., corporate, limited partnership and limited liability company financing vehicles), and general financial arenas. All of the principal forms of feature film finance are covered, including studio/distributors, production companies, lending institutions, co-financing, pre-sales, grants, foreign and passive investor financing involving the sale of a security. Why would a book on film finance also discuss distribution? Film finance cannot be adequately explained if no provision is made for how invested money may or may not return to financiers and/or investors (i.e., the financial side of distribution). The feature film industry has a history of anti-competitive practices, and distribution is often at the center of these problems. This book fills a critical gap in the literature of the motion picture industry. As with many industries, the U.S. film industry has developed some unique terminology to describe certain concepts associated with film industry activities. The terms and phrases defined and discussed in this dictionary are those of feature film finance and film distribution, along with numerous other related terms from the production, marketing, music, legal, accounting, insurance, securities (including corporate, limited partnership and limited liability company financing vehicles) and general financial arenas. Some additional terms and phrases are included, not because they commonly appear in film finance or movie distribution agreements but because they are essential to a well-rounded understanding of the industry and environment in which such film finance and distribution agreements are negotiated. Still other terms were selected and included by the author because they may aid in the understanding of additional terms in this dictionary. In many instances, the definitions also show how the defined term or phrase is specifically used in the film industry and with respect to additional terms, certain entries contain a comment from the author which is clearly biased in favor of the independent producer.