International Productions Finance Model & “Lion”

International Productions are at the forefront of the Film Finance Model because many countries offer a number of attributes which make for a positive finance model in today’s highly competitive film production world.

Vendor and Labor Rates Differences

First, you have – depending on where your production actually occurs – potential lower rates for the crew, especially in countries like Romania, Bulgaria, etc.,  In addition, you have cheaper costs for many departments, including transportation, wardrobe and rentals.   For example, I know where a production shot in Istanbul and the only available accommodations for the actors were motorhomes.  The usual American trailers (homes really with bedrooms, Media stations, bathrooms, etc.,) were simply not available.

Second Currency Rates

Second, if you are financing the project in Dollars, then your production currency is probably cheaper to buy.  Simply put, consider the Big Mac Index.  With the omnipresent franchise of McDonald’s in every country, the Big Mac cost in each country is a way to compare currencies.

The Big Mac Index is an index created by The Economist based on the theory of purchasing power parity (PPP). The Big Mac Index is calculated by dividing the price of a Big Mac in one country by the price of a Big Mac in another country in their respective local currencies.

Currencies fluctuate with so many factors, such as a nation’s debt on the international markets, its financial future (Brazil, Argentina and  South Africa had considerable fluctuations) and more.

Country’s Unique Incentives

Third, a country’s unique incentives for developing the film industry are part of the equation.  They have various guidelines that require the use of Above-The-Line (actors, director, producer, etc., ) and Below-The-Line  (crew, technicians, etc.,) talent.  Furthermore, hooting must usually take place in their jurisidiction.

Here is an article at MovieMaker on “Lion”.

When international co-productions work well, one plus one can equal three. They’re a great way to combine the creative, financial and production resources of two or more countries.

We’ve been working for nearly 20 years as producers and executive producers of independent film, and in international sales, marketing and acquisitions. Our companies, Australia-and-U.K.-based See-Saw Films and Australia-based Aquarius Films, use international co-productions as a key strategy to tell great stories. We’ve produced films set and shot all over the world, with characters, writers, directors and actors from countless different countries: films like The King’s Speech, Macbeth, Life, Slow West, Mr. Holmes, Shame, Oranges and Sunshine, Disgrace, $9.99 and the upcoming How To Talk To Girls At Parties, and our TV series Top of the Lake and Banished.