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Film Production

Film, like most art forms, is essentially a creative medium but it is also a commercial venture.So, whilst we might enjoy seeing films that make us laugh, move us, scare us, completely turnour world upside down or make us consider issues that we had never before considered, at theend of the day, filmmakers are not providing us with a charitable entertainment. They are keyplayers in a fast-moving, global, commercial industry.

It is easy to assume that filmmakers, actors and directors who are well-known play the mostsignificant role in the life of a film. What should not be underestimated however, is the powerof financiers whose influence extends to the far corners of the global film industry.

The film industry exists to make money through entertaining. Finance is crucial to each stageof a film's life and will hopefully generate a profit to be reinvested in future film projects.

Production Distribution Exhibition

Exhibitor

Exhibitor

ProducerProduction Distribution Exhibitor

Production crew Company Company

Writer often formed often part of largeExhibitor

just to make multinational Exhibitor

one film conglomerate Exhibitor

CastExhibitor

Finance/Film

Fig. 1. From production to exhibition

The film that we finally see at the cinema is the result of many months, often many years, ofplanning and budgeting. Hope, frustration, disappointment, and sometimes elation are someof the emotions producers experience. The process from the original idea for a film to itsarrival in the cinema can involve hundreds of changes and hundreds of people, all of whomneed to be committed to the project if it is to succeed, the most important is the producer.

Who is the Producer?

The variety of different credits which appear at the beginning or end of a film defining theproduction personnel can be confusing producer, co-producer, associate producer, executiveproducer etc. What the differences are and how each is involved in a film can vary fromproduction to production. There are many producer titles because people have differentdefinitions of the term. For example, 'executive producer' may be little more than a courtesytitle to someone who has invested money in a film.

In the 1940's and early 1950's life was simpler and movies were less difficult to finance. Theywere usually made by big studios and the producer was really the administrative partner of the

director. Nowadays, producing almost solely consists of raising the money and overseeingexpenditure. The producer will be involved from the very beginning of the film project,overseeing the initial planning through all stages from pre-production to post production.

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Producers deal with ideas, especially raising confidence in the idea with financiers anddistributors. They commission the script, secure the finances, hire the director and areinvolved in casting, finding locations and hiring the technical crew. A producer must havelegal knowledge, creative knowledge, flair and sales skills.

A producer can either work independently, developing ideas and raising the money for a film,or can work as part of a big studio proposing projects to the studio's finance team. Theproducer's continuity is crucial to the success of the production.

Throughout film history, with rare exceptions, the best creative and profitable work done by

directors has been in collaboration with strong producers: it is an effective collaborative mixwhich has to do with personality and compatibility, as well as creativity. A strong producerwill be ambitious for a robust production and will also inspire distribution and marketingpeople to invest in a cinema release and the promotion of a film.

The producer is generally assisted by an associate producer (AP), who directly oversees thedaily concerns of shooting. In commercial film making the producer has overall responsibilityfor all aspects of production. From a distance, the film's financiers and distributors keep trackof the production of a film, and it is the producer who is responsible for communicating withthem and ensuring that the film lives up to their expectations. Any changes of story andcasting will need to be justified ensuring that all these parties maintains a confidence in the

finished film.

The best producers must have a nose for a good idea and be able to keep up with public taste.They often take financial risks and are prepared to back their hunches against the criticism ofthe cautious. They need to have either great personal charisma to win over the doubters, or anextremely good track record. Investing in film making is an uncertain venture and bankers arenever over-enthusiastic about putting their money into what seems to be a risk.

The single most important fact, perhaps, of the entire movie industry is that

nobody knows anything... Not one person in the entire motion picture field

knows for a certainty what's going to work. Every time out it's a guess and, if

you're lucky, an educated one. Two time Academy Award winning screenwriter - William Goldman

Indeed, the box-office success of a film is never certain. It is always a gamble, both for

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investors and the audience who are taking their own kind of risk; neither can be sure of theprecise nature of the final product the film!

How does a film get to the screen?

In talking about the processes at work in the life of a film, it is easy to forget that the first step

in that journey is the IDEA.

The idea can either come from a writer, a director or a producer in the form of a book, a playor an original idea for a script. Once the idea exists, then it is normally up to the producer toa) clear the screen rights for the material and b) raise the finance to make the film bypresenting a package to various potential investors.

If the film is being made by a film studio they would already have the finance to pay for thefilm's production through other successful, profitable films they had made. In turn, profitsfrom the film would eventually go back to the film studio to finance future films. In the case

of independent film production, no such capital is available and has to be secured. Theproducer must persuade banks, investment companies and wealthy individuals to invest in afilm and try to secure a distributor's interest.

In order to do this an OUTLINE orTREATMENT (the detailed storyline withsuggestions as to casting, locations etc.) of the film will be presented to the investors. Thetreatment will run from between five to twenty-five pages. (If the director or producer arevery well-known and experienced in the film industry this stage may consist of presenting anidea without a treatment.) If the investors like the treatment they may pay for the development

of the treatment into the first draft of the script and for the PACKAGE to be put together.Banks and other investors need some assurance that there will be a return on their investmentsif they are to finance the production of the film and it is the package that fulfils this function.

Packages consist of either a treatment or draft of the script, a proposed budget, a storyboard ofsome scenes, and details of the director and any stars who have been approached and showninterest or are already secured for the film. The track record of the director of photography(DP) and composer can also be important elements of the package.

TheDEVELOPMENT stage ofa film's life is where the ideas areclarified through research, casting is

confirmed and scripts are written. In theprocess of committing ideas to paper,problems arise and initial confidencemay be lost with many scripts endingup not going any further.

For independent companies it issometimes difficult to raise money evenfor development. Instead of looking to

just one investor, it may well be necessary to seek out a number of investors. Land andFreedom (1995), a film directed by Ken Loach, was financed in the development stage by

British Screen Finance, but eventually ended up with 15 different sources of money fromEurope to make the final film.

Finally the DEAL is the agreement between the producer and the investor(s) who provides

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the finance to produce the film. The terms of the deal will vary according to both the budget'spotential income or revenue and type of film. Films are rarely financed by one single investorand it is common for films to be funded by more than one source. Most British films arecollaborations or co-financing ventures involving two or more of the following an equityinvestor, a distributor and/or a TV broadcaster (usually BBC or C4).

An equity investor puts money into a film rather like a 'loan' for a fixed period which willgain interest and has the contractual right to reclaim their initial investment plus a share of thenet profits of the film (normally in proportion to the amount invested in the film).

Putting together a deal requires trying to get all the potential investors together at the sametime, hoping that the requirements of the different investors not clash. There is no specifictime limit for putting together a deal, sometimes it can take weeks, and sometimes years. Thisis where film festivals come into the picture: providing a forum for producers with their ideasto meet up with the people with the money in the hope that a deal may be struck. Festivalssuch as Cannes are hives of activity where producers take round their film packages.

The importance of casting

The stars of a film are very important. If the audience knows and likes the star of a film, theyare more likely to want to see the film than if the star is a newcomer and unknown. Thecasting of stars is dependent upon the amount of money available in the production budget.The more famous the star(s) the larger the sum required to secure them for the project. A lotof people are also interested in those responsible for making the film e.g. producers, directorsetc.

Investors try to reduce their risk by becoming involved in decisions concerning casting and/orwho directs the film. By insisting on a particular star or director the film is given a different

status, or a wholly different artistic feel.

Q. Choose an actress from the list above. What would they bring to a role in a film?

For the investors the most important thing is that the film is given the best possible chance in the hope that they will see a good financial return when the film opens in cinemas and ifthis means pushing to have a particular star then so be it. This sort of negotiation is all to dowith making a film as 'bankable' as possible.

Remember - Film production is all about profit!

When putting together a film package questions will be raised concerning potential money-making spin-offs including merchandise that could be produced and linked-up withpromotional partners, all of which will maximise the audience awareness of the film, and, inturn, maximise the profit the film will make.

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The details within a film package do not guarantee that a film will make money, since theyare based on guess-work before the film is made, but they will give potential investorsconfidence in giving money to allow the film to be produced.

Sometimes, even though a film does not make a profit at the box office, it may make an

overall profit because of pre-sales which have been negotiated with DVD and televisioncompanies at the package stage of the production and rental deals with cinema exhibitors.

Unlike television, a film has to attract people to a cinema and/or later to a Blockbuster. Peoplehave to be persuaded to leave the house to buy a product that they have heard about. It is themarketing of the film that is essential in creating audience awareness.

From the outset, the producer must have an idea as to who the AUDIENCE of the filmwill be so that it might stand a chance of recouping all production costs and going into profit.

The financial success or failure of a film depends on the audience. It is the audience who willdecide whether the film is successful by paying for their cinema ticket at the box office.Interest in a film will escalate or wane depending on the audience's opinion. They will spreadthe word about a film and ultimately affect box-office success or failure. This is known asword of mouth and is the most important aspect of marketing a film.

Q. Think about the films you have seen recently at the cinema. Which ones wererecommended by word of mouth? Why did you go and see those particular films?

It is generally assumed that to go into profit a film has to make two and a

half times its total cost at the box office. If a film costs $60 million to make,then it will need to make $150 million at the box office and on other pre-sales (e.g. televisionand DVD) before it goes into profit. Profit is the money made through box-office takings andmerchandising spin-offs after production, marketing and distribution costs have been met.

It does not necessarily correlate that the more expensive a film is to make the more profit itwill make at the box office. The film industry has many examples of so-called 'blockbuster'films which cost millions to make and on paper look like they could not fail to make moneybut which do not attract audiences. They can be marketed but they will not 'play' at thecinema. Audiences will not want to go and see them.

Twenty years ago Who FramedRoger Rabbit? (1988) cost $50million to make and yet resulted ina $20 million loss. Similarly, asmall budget film can make money:Four Weddings and a Funeral(1994) cost $5 million to produceand made $250 million dollarsworldwide; Trainspotting (1996)which cost $3 million to producemade $100 million worldwide.

It is also important to mention that some films are never released in cinemas due to lack ofconfidence in the film gaining a profit at the box office. An expensive marketing campaignwill further drain the film's finances and a decision will be made to put the film straight toDVD, without a theatrical release at the cinema.

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Musical film Mamma Mia! has become the highest grossing movie cinema release in the UK,

beating 1997 film Titanic. Mamma Mia! has now taken just over 69m at the box office,

narrowly passing Titantic's record. (BBC News Jan 2009)

Why are films so expensive to make?

Read the credits at the end of any film, listing everyone from actors to technicians, imaginethe cost of so many people working on a film? There are overhead costs such as transport,accommodation, catering and set hire, then theres the cost of insurance if anything goeswrong. After the films been shot there is the cost of editing equipment, sound editing andfinally producing a master of the film.

A film's 'negative cost' is all the money that has to be paid out in advance relating toproduction. This includes all the expenses listed above along with interest on loans, paymentsto talent (actors and directors) and the overhead cost of studios etc. When the 'negative cost'has been paid, any money the film makes above this is known as the net profit.

Fig 2. Typical components of negative costs

Production

expenses

So how can you make a profit on a film?

The investors and often distributors come into a film project at the 'pre-sales' stage. They willmake decisions based on the strength of the package. The decision to invest in a film will bebased on the film's potential income or revenue, that is, the total profit the film can possiblymake at the box office. The film is sold to distributors' retail outlets such as DVD retail andrental, and terrestrial (BBC, ITV etc) and satellite (Sky) television. Deals are made with thesecompanies at the pre-sales stage which provides further income for the making of a film.

Fig 3. Where does the money come from? (1996)

Theatrical/cinemarelease

Television

DVD sales

Case Studies - How have four British films been funded?51


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Four Weddings and a Funeral (Mike Newell, 1994)

Budget: 2.9 million (Polygram: 2.03 million/Channel Four: 870,000)Distribution: distributed in Britain by PolygramFour Weddings and a Funeral was the most successful British film ever shown in the States

taking $50 million at the box office. It subsequently took $40 million in Britain. Totalworldwide distribution gross: $350 million. The film's success was helped by its release in theUS which built up publicity for Britain (British audiences are more likely to see a film if it hasbeen successful in the US) and publicity centred on Hugh Grant's girlfriend Elizabeth Hurley.It is worth noting that despite the profits made by Four Weddings - Polygram's film divisionstill failed to make an overall profit.

Trainspotting (Danny Boyle, 1996)

Production companies: Figment Films/Channel Four/Polygram

Distributor: Film Four Distributors LtdBudget: 1.7 millionChannel Four fully financed the 1.7 million budget of Trainspotting although pre-salesbrought in 2 million. The film benefited from a clever marketing strategy including filmtrailers featuring scenes specially made by the cast and a powerful poster campaign.

The Full Monty (Peter Cattaneo, 1997)

Production companies: Twentieth Century Fox/Channel FourBudget: 2.2 millionDistributor: Twentieth Century FoxThe Full Monty took 120 million at the box office worldwide and was more successful thanJurassic Park in the UK. Fox spent a large amount promoting the UK release (initially850,000) and to ensure good 'word of mouth' invited over 100,000 people to previewscreenings before its official release date. Channel Four were initially involved in thedevelopment of The Full Monty but did not continue their financial support for the film andtherefore did not reap the rewards from its success.

East is East (Damien O'Donnell, 1999)

Production companies: Assassin Films/FilmFour/BBC (fully financed by FilmFour with the

support of the MEDIA programme)Budget: 2.4mDistribution: Film Four DistributorsBox office gross (UK): 7.25m. The response to this film surpassed expectations and thenumber of prints in circulation increased from 79 to 246 in the first few weeks. It took over 1million in its first weekend and by the middle of 2000 had taken 10m in British and foreignmarkets. FilmFour eventually funded the film and their gain was the BBC's loss. Audienceenjoyment was supplemented by critical approval represented by the award for best film at the27th Evening Standard British Film Awards although disappointment was expressed at East isEast's failure to win any BAFTAs.

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What happens next?

Once the deal has been done the making of the film begins. The film production process isdivided into three stages:

1) Pre-production - planning, budgeting, scheduling, casting

2) Production - filming3) Post Production - film editing, sound editing, soundtrack

1. Pre-Production (Research & Planning)

Pre-production in film making is office based involving a team which includes the producer,director, assistants and administrative staff. This is the first stage in a film's life and can takeanything from six months to two years and involves planning and scheduling the shooting of afilm. Shooting a film is extremely expensive involving actors, technicians and equipment. It isat the pre-production stage that decisions are made, and potential problems are solved to

ensure that the shooting schedule is adhered to and runs as smoothly as possible.

What happens to the script?

During pre-production the script is broken down into scenes and storyboarded and a shootingschedule prepared. For the sake of economy all scenes on one set or location will be filmed atthe same time, out of sequence. If a film begins and ends in New York, but the bulk of thestory is in London, then the New York scenes will be shot at the same time. A continuityperson or script supervisor will keep detailed notes about the actors' hairstyles, costumes andprops etc. checking that they look the same in scenes that are supposed to be close together,and yet are shot weeks apart. For actors and actresses this means having to keep 'in character'

and maintain the appropriate emotional attitude in scenes which are shot out of sequence.

The producer works with the director to bring the screenplay to life. Working relationshipsvary depending on personalities but broadly speaking the producer is responsible for the costsof the production and aspects of planning, and the director is responsible for making artisticdecisions. The artistic decisions and the cost of the production are inseparable. This meansthat the producer and director work closely together making combined decisions about theemployment of staff, casting, design, lighting and locations.

The script is the essential element for decisions being made as it dictates casting of characters,locations to be used plus design issues, such as lighting, camerawork, costume and set

requirements.

The film is interpreted in drawings on the storyboard which will then be used during theproduction of the film. The producer and director will brief the location manager, director ofphotography, casting director, set and costume designer, and any other personnel that the filmrequires such as the musical director, the special effects unit, choreographer and stunt co-ordinator etc.

Everyone in production receives a copy of the final version of the script. There can be anynumber of revisions and rewrites to the script, firstly by the scriptwriter(s), by the director,lead actors and sometimes the producer. These alterations can be continual throughout theproduction stage. The production manager ensures everyone has the corrected, current scriptto work from, sometimes updated on a daily basis.

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Budgeting

The cost of production will have been estimated at the deal stage of raising finance; however,the true cost of a production becomes apparent as filming progresses and the budgetbreakdown becomes more precise.

The budget of a film production is divided into above-the-line and below-the-linecosts.

Above-the-line costs include:

fees for the producer, director and stars/actors, and technician costs known before

the shooting begins. Above-the-line costs are fixed and will not change during

the production process.

Below-the-linecosts include:

any other expenditure, including film stock, equipment hire, hotel costs, food,

scenery, costumes, properties etc. Below-the-line costs are changeable.

Things can happen on a film which might require more money to be spent on

that particular area of the budget, for instance, part of the script re-written to

accommodate a role being enlarged. This money will then have to be found from

another part of the budget or re-negotiations begin with the investors or new

money found elsewhere.

Shooting Schedule

Once a film has been budgeted and the producer has contracted the stars and some of thetechnical personnel, the film will have to be 'scheduled'. A schedule is basically a timetablefor the shooting of a film.

A film is rarely shot in the order that we, the cinema goers, finally see it. Restrictions on whenpeople and locations are available mean that the film's shooting has to be carried out aroundparticular availabilities. Only so many scenes can be shot in one day. On a good day's shoot,possibly five minutes of usable film will be shot. With only one film unit, a full-length featurefilm could take anything up to six or seven weeks to shoot.

2. Production (Filming)

Production is the actual shooting of the film where everyone is involved; the stars, producer,director, an army of technicians, other cast, production personnel, make-up and wardrobepeople, set designers and electricians not to mention the caterers. The numerous credits atthe end of each film gives you a good example of who works on a film and their importance.

The most expensive part of film making is the production which is labour intensive, withequipment and travel being part of the budget costs. Meticulous planning in pre-productionwill help to ensure that potential problems will have been addressed, making sure the oftentight filming schedule runs smoothly.

To make sure the production stays within the planned schedule, daily 'call/ schedule sheets'are produced and distributed to all members of the cast and crew. These detail the shootingschedule for the following day including scenes to be shot, the actors required, start times and

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contact numbers etc.

What actually happens on a shoot and how many takes are needed is impossible to define inany individual film: there are so many variables that depend on individual temperament,styles of working, planning and organisational skills that each film production is verydifferent.

The shooting schedule of each individual film varies according to the film's length,availability of stars, and if the film is being shot simultaneously in more than one country.Filming is the most exacting part of this creative and energetic industry. Everyone on the setwants the filming to go well, from the stars down to the caterers hope for the 'right' weathercondition on location shoots to complete the filming schedule on time.

PostProduction (Sound & Film Editing)

The process of editing includes the selection and shaping of shots, the arrangement of shots,scenes and sequences and special effects, the mixing of all soundtracks and the matching ofthe soundtrack to the images.

Once the day's film rushes have been approved they are transported to the post productionfacility house where they are viewed and logged by an assistant editor. The process oflogging, which involves writing a brief description of each shot, is fundamental for thesystematic editing process. The editor then assembles the footage from the shooting script,joining the best takes into a 'rough assembly' which the director and producer view andcomment on. This is tightened up into a 'rough cut' and then into a 'finished edit' or 'fine cut'where gradually the film starts to take shape. During the shooting of most films, editingbegins during production, with the editor and the director conferring about the rushes and

tentatively putting together a rough assembly.

Recent developments in digital technology are having a profound effect on the skills of theeditor and the process of editing. Computerised editing allows for greater flexibility, speedand accuracy, and gives the editor the chance to try out a variety of sequences and be creativeby 'mixing' shots whilst doing away with the need for the traditional 'cut' of a film print.

Since the mid 1990sComputer technology hasbeen capable of creatingstunts which would either

have be too expensive or toodangerous to be attemptedpreviously. For example,Pierce Brosnan in Dante'sPeak (1997) runs in front ofa mass of lava from anerupting volcano. Theburning mass of lava wascomputer generated andadded at a later stage ofproduction.

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The sound editor puts the sound onto the film and assembles different soundtracks, soundeffects and music. During the shooting of the film the sound is recorded separately. The filmand sound tape have lip-synchronisation. If there are alterations needed to the timbre orrecording levels of the dialogue, the actors are recalled at the editing stage to re-record ordub their lines. This happens in a small studio while they are watching the correspondingpiece of finished film.

The sound effects on a film are carried out by sound effects specialists. These skilled artistswork in small studios, and whilst watching the film will create appropriate sound effects forthe film. Their skills lie in using weird and wonderful methods of simulating particularsounds, for example, breaking ice cold celery in water which sounds like a leg breaking!More common sound effects can be obtained from a sound effects library.

Why is the composition of a sound track so important?

The composer is responsiblefor writing the music for the

film the soundtrack andwill become fully involved inthe post production stage. Themusic adds mood andatmosphere to a film, and thecomposer, after talks with thedirector and producer, willwatch the completed film andsynchronise the music withthe editing. Although music isoften thought of as incidentalto the action, it plays animportant part in helping tocreate the overall 'feel' of thefilm. For instance, the 'Bond'

theme written by Monty Norman, which is instantly recognisable, runs through all the JamesBond movies.

A good soundtrack often becomes famous in its own right. Indeed, there are some films forwhich the driving force is the music, not the plot. Those responsible for marketing films at thedistribution stage have been quick to catch on to the selling power of a good soundtrack, and

most films now have an accompanying CD and download. The involvement of a well-knownband will help in getting air time on radio stations and, therefore, additional publicity.

Examples of particularly successful soundtracks include: The Piano (1993), composed byMichael Nyman, Four Weddings and a Funeral (1994) with the soundtrack featuring Love IsAll Around sung by Wet Wet Wet; the soundtrack compilation album for Baz Luhrmann'sMoulin Rouge (2001) and the soundtrack to Quentin Tarantinos films.

Q. Can you think of any more recent film soundtracks that have proved popular withaudiences?

What happens at the end of the production process?

The film is finally finished off, colour graded and copies made in a laboratory; it is these filmprints that will be shown in cinemas. The producer hands the film over to the distributor to

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target an audience. In raising the money for the film the producer will have estimated thepotential income that the film could make through various pre-sales outlets and box-officetakings. The distributor's marketing campaign will heighten awareness of the film and,ultimately, it will be the cinema-going audience who will decide whether the film issuccessful or not.

Production Case Study Lionsgate Entertainment

By the 2005, having swallowed up ArtisanEntertainment, the producers of The BlairWitch Project, Lionsgate Entertainmentwas the last big independent productionstudio in Hollywood to remain free of anyownership links to the major studios.

Lionsgates film release strategy had much

in common with a previous company, NewLine cinema, before itwas bought up by amajor studio in 1996.

Lionsgate found great success releasing a line of horror films that became popular sequelfranchises and solid sources of revenue on DVD when sold to their core 16-25 cinema,predominantly male audience. Examples included Saw I-VII (starting in 2004) and Hostel(2005 & 2007).

Underlying the central activities of Lionsgate was a more diversified operation that sought tocreate some of the security achieved by the Hollywood majors. They also combined this

horror success with other releases including more sophisticated indie/art house offerings suchas Girl with a Pearl Earring (2003) and the Best-Film-Oscar-winning Crash (2004).

Founded in Vancouver in 1997, Lionsgate was the product of a former investment broker,who aimed to create a smaller-scale Canadian answer to Hollywood. It was born through theconvergence of a number of existing companies, very much as it was to continue to developup to and including the purchase of Artisan. The main initial components were Cinepix,Canada's second-largest domestic film distributor, North Shore Studios, the country's largeststudio facility, and Mandalay Television.

Its status as a company with major independent ambition was confirmed in 2000 with its $50million takeover of Los Angeles-based producer/distributor Trimark Pictures. One of the mainattractions was Trimark's library of 650 (mainly horror) films which were a useful source of

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DVD revenue.

Resources of this kind were also at the heart of Lionsgate subsequent purchase of Artisan for$160 million. Artisan had a more substantial library, some 6700 features, including filmsranging from Terminator 2: Judgment Day (1991) and Basic Instinct (1992) to ReservoirDogs (1991) and It's a Wonderful Life (1947).

Artisans back catalogue was a valuable asset, areliable source of revenue against which productionor distribution finance could be gained, precisely thekind of resource that helps to give stability to theoperations of the major Hollywood studios. Artisanalso provided Lionsgate with its Family HomeDivision, another lucrative catalogue that includedrights to well known children's DVD franchises suchas Barbie, Hot Wheels, Clifford the Big Red Dogand the Care Bears.

Lionsgates takeover activities also gave it an important stake in the development of newforms of distribution to the home market via the Internet. Its acquisition of Trimark made itmajority owner of Cinemallow, one of the pioneers of online video-on-demand, to which themajor studios signed up in 2006 for new services such as permanent legal downloading andthe burning of films to DVD.

Q. How has Lionsgate attempted to survive in the cut-throat world of film production?

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