Slate Financing Agreement
The internet portal germanfilmfinance.com aims to help national and international filmmakers acquire production financing. By combining national and regional financing components, including a Supergap loan, it is possible to finance up to 50% to 65% of the total budget of the film project. The pre-sale is based on the screenplay and casting and sells the right to distribute a film in different areas before the film is finished.  When the agreement is reached, the distributor will insist that the manufacturers provide certain elements of the content and occupancy; If a significant change is made, funding may collapse.  To obtain the «brand names» essential to draw in an international audience, distributors and sellers will often make casting proposals.  Pre-sale contracts with major actors or directors often have (at the buyer`s request) a clause on an «essential element» that allows the buyer (as in the example above) to withdraw from the contract when the star or director leaves the image and it is not possible to obtain a party tent equivalent. It is a hybrid human-artificial approach to cinematic intelligence that is also reinforcing the new wave of shale financing operations. If you read the press release announcing the new investment in QED, you will see a justification based both on market data and on a confidence in the company`s decision balance sheet. «We believe that content is gaining value around the world,» says Sasha Shapiro of Media Content Capital. «QEd`s risk mitigation approach to funding new films appeals to us.» It is also useful for Content Media Capital to become a shareholder in QED, thus ensuring a direct right of review on the financing of the content to be financed. Unlike Wall Street`s love days in Hollywood, investors now want to be more involved than writing a big blank check. So smart money is getting smarter and smarter.
Anton Capital will finance 30% of StudioCanal`s publications and provide capital to the studio to build on its multi-terrestrial distribution model. «StudioCanal has a varied and productive annual production,» explains Sébastien Raybaud, founding partner of Anton Capital. «The size of its distribution network and its reputation as a first choice meant that it was only positioned in Europe to complete this type of shale transaction. It is a true leader in the European film landscape. One of the most difficult types of film financing is private equity. These are funds invested by someone who may want to pose more risk to their asset portfolio, or someone with a strong interest in movies. Of course, there are a few steps to be covered between development financing and capital financing, with respect to the latter, any capital financing that will be discussed, whether it is private equity (individuals and/or financing groups) or debt financing (financial institutions and/or banks), will require that you have certain necessary elements on the spot before considering financing your project. These include market analysis, target group analyses, an indicative schedule and budget, and a distribution plan.  This agreement could be a model for other media to raise capital in the same way.
«We believe that the principles behind shale financing apply endlessly to many other sectors of the media industry, which is such a large and growing market around the world,» says Antons Raybaud. «Such financing is particularly appropriate for IP transactions, where hard assets are smaller and there may be a large portfolio of products.» The distribution of studio and network roles required funding for television series tailored to the multiple risks and rewards of separation. A practice known as «deficit financing» has developed consistently — an agreement in which the network pays a license to the studio that licenses the show for the right to broadcast the show, but the studio retains ownership.