![]() The scope of its ambition is reflected in the amount earmarked for the industry, and by the involvement of various key government departments - such as the Ministry of Economy - which film professionals have wanted for a long time. The plan aims to support film and TV production, digital platforms, video games, animation and special effects. Although indie producers are sceptical of how much they will benefit from it (see page 22), it affirms how important the country’s audiovisual sector is viewed by the government. In March, the government unveiled a $1.9bn (€1.6bn) investment plan for the local film industry from 2021-25 to increase production, attract international investment and talent, and strengthen the presence of Spanish productions in the international market. There is also a local production boom thanks to the US streamers and pay-TV giants drawn by the relative cost savings, wealth of talent and locations and the potential of the global Spanish-speaking market (see page 18). The government moved quickly in May 2020 to enhance the financial incentive designed to attract international productions to shoot in Spain (see page 28) and the country’s chameleon-like locations have heard the call of “action” ever since. The Spanish film industry is emerging from the difficulties of the past year in good shape, with new films involving the likes of Pedro Almodovar, Penelope Cruz, Antonio Banderas and Javier Bardem in the works, and a generation of exciting filmmaking talent beginning to break through. Pedro Almodóvar (right) filming ‘Madres Paralelas’ with Penélope Cruz (left) Know what you and your property are worth ahead of time and fight to get the largest back end you actually can, but don’t overshoot.Source: El Deseo D.A. This can all be difficult to interpret, which is why most people in the industry have agents, managers, and lawyers to help them make executive business decisions. ![]() Contract AgreementsĪlong with these are adjusted gross profit agreements where the studio or producer is able to put a limit on what they can receive. If the property is valuable the author of the source material should fight to get gross profit points, hopefully over five percent. This is the kind of thing that people participating will always try to get, but anybody investing in it should and will fight vigorously. This is an even better deal because, naturally, the sum will always be more. Some people even attempt to get “gross profit points,” which is a percentage off the total gross and not just the net amount the film makes after it breaks even. This can be counteracted by the studio who may offer a much larger salary to reduce the number of net points the individual will receive. This is risky, which is why it is only usually done in cases of comic book movies, trusted franchises, or other ensured successes. In this case they make take an amount that is far below their standard for a large number of net points. This is usually the case when an actor, director, or source material provider is certain that the film in question will make a lot of money initially. Many people often opt to take a larger share of the back end in replacement of a larger salary during negotiations. Now we take the specified percentage points, sometimes called net points, and take that out of the remaining monetary sum. This total is just checked after the majority of the box office money has come in and then all of the other costs are subtracted from it. This can be anywhere from a couple to more than ten percent of the total gross after the film covers production and promotional costs, which is called the net gross. The back end is a way for the author of the source material, or anybody else participating who may be eligible, to get some “profit participation.” This means that they are then paid some of the profit the film makes after it breaks even. ![]() What Is a "Back End" in Film Financing & Movie Production Net Points ![]()
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