Hello Finance Lounge, I just put up a post on my website that I thought I'd share. There always seems to be a good deal of confusion about to whom filmmakers should go to get a film budget for their project.
There are many answers and solutions, but the bottom line as mentioned in the post, is that the film budget greatly affects film finance, clearly. What is not well understood and emphasized is that discrepancies, or not having the correct figure can adversely and dramatically affect a film finance plan.
Financiers factor in the cost of the production and build the model from there. If the budget is incorrect, too low, or too high, or god forbid changes, it can dramatically impact the funding model; even a small amount can have a substantial impact.
Obviously filmmakers should strive to make the highest production value project for the lowest cost. Getting it wrong can have major implications down the line, for funding and investor recoupment.
As always, consult a professional.
www.filmbudget.com/who-creates-the-film-budget-for-a-movie-or-tv-series/
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I've seen some confusion about this too, Jack Binder. Thanks for clearing it up.
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Thank you for sharing these great insights, Jack Binder!
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Great post Jack, agreed 100%. I've been teaching a lab around investor proposals and this has come up a few times - the budget underpins EVERYTHING as relates to the FP, recoupment values - having a realistic budget is mandatory if you want to succeed!
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Emma Louise Smith Thank you! I'm sure you know how even a modest discrepancy can be a multiplier of error down the pipeline!