The 5 Stages of Production:The 5 Stages of Production:Stage 1 - DevelopmentStage 1 - Development

Created by John GraceFilm Instructor and I.A.T.S.E. MemberDATA Charter HS, Albuquerque, NM

Offered under a Creative Commons License

The 5 Stages of ProductionThe 5 Stages of Production

• Development

• Preproduction

• Production

• Post Production

• Distribution

The 5 Stages of ProductionThe 5 Stages of Production

• Development

• Preproduction

• Production

• Post Production

• Distribution

• Development

DevelopmentDevelopment

DevelopmentDevelopment

• Development starts with a PropertyProperty. A property is a ScreenplayScreenplay, a TreatmentTreatment or a SynopsisSynopsis of a Story ConceptStory Concept. Screenplay (90 to 120 Pages) Treatment (10 to 30 Pages) Synopsis (1 to 5 Pages)

• When a ProducerProducer locates a Property he wants to produce, he OptionsOptions it. An Option is an exclusive right to market a project.

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• To Option a Property, the Producer pays the Screenwriter an agreed amount of money to own the ConceptConcept for a specific amount of time. This can vary from $1 to thousands of dollars for a 1-2 year option.

• If the Producer secures the funding to produce the film, the Producer will Exercise his OptionExercise his Option by paying the writer for the script according to WGA GuidelinesWGA Guidelines.

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• Writer’s Guild of America (WGA) Guidelines:

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• The preceding excerpt of the WGA guidelines are taken from their website: http://www.wga.org/uploadedFiles/writers_resources/contracts/min2011.pdf

• The range is based on the relative budget of the film, the experience of the writer and the Writer’s Agent’sWriter’s Agent’s ability to negotiate.

• Well-known writers often make hundreds of thousands to millions of dollars for a single original screenplay.

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• Development can be an expensive process and producers often look for Investors to provide Development FundsDevelopment Funds in exchange for a fixed percentage of ownership in the Project.

• This early money is very speculative but holds the potential for greater return.

• The industry term for any investment is “OPM” or Other People’s MoneyOther People’s Money.

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• The Producer pays the writer or hires another writer to write or Re-writeRe-write the Screenplay.

• The next step in Development is locating a DirectorDirector who matches the film’s Genre and who might provide a Letter of Interest Letter of Interest or a Letter of Intent Letter of Intent for the project.

• In addition, the Producer tries to secure Letters of Interest or Intent from ActorsActors.

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• A Letter of Intent - often referred to as “Play or PayPlay or Pay” deal is a legally binding commitment to participate in a film project

• A Letter of Interest is not legally binding and usually says something like “X is willing to play the part of Y in film Z if his schedule allows and if the money is right.”

• The Letter of Intent is the only option that has any real value to savvy InvestorsInvestors.

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• The bigger the names Attached to the project, the more attractive the investment and the more money that will need to be raised to get the Project off the ground.

• This can be a very time consuming part of the project with attached names changing for many months to several years.

• During the Option period, the Producer creates a PackagePackage to help sell the film.

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• Investment Packages range from 10 to 40 pages and often include a Synopsis and/or a Story Treatment, a Preliminary BudgetPreliminary Budget, Profit ProjectionsProfit Projections, Appendices Appendices with information on similar films and short Bio’sBio’s of the Director, Actors and Producer.

• Packages are often extremely polished presentations containing professionally produced charts and artwork.

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• Film Package or Investment Investment ProspectusProspectus

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• Next, based on the attachments, the Producer creates a Preliminary BudgetPreliminary Budget to show the investors what the film will cost.

• Also included in the Package are Profit Profit ProjectionsProjections of what the film might make in both domestic and foreign sales.

• Profit Projections are mathematical calculations of what similar films might have made if they had your director/actors.

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• Film Budget Film Budget Top Sheet Top Sheet

A Top Sheet is a one-page overview of the Budget.

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• …or very specific based on the actual preliminary budget.

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• The final element in most Packages are short biographies of the Director, the Actors and the Producers who are Attached to the Project.

• Once the Producer has secured the Investment Capital to produce the film, the project moves into Pre-Production.

• Following is a link to a well-done package: http://www.slideshare.net/DanielElder/a-house-divided-prospectus-29813460

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