Film Budgets | The Current State of Affairs

Film budgets are in a state of flux as is traditional within the entertainment industry. The costs of film and tv production varies greatly depending on the challenges faced by the entertainment business at any given time. Currently, there is pressure on film and television production to reign in the excessive costs of the last few years. As legacy film and tv companies challenged the streaming giants, budgets exploded. As Wall Street intervened, the pressure has grown the reduce the losses that corporate parents are facing in working to compete in the streaming model business. We are updating our clients with a view to the expenditures which are always required to ensure a safe working environment for film and television production crews, staff, talent and all those involved in bringing productions to screen, while always aiming for the highest production value, for the lowest cost.

Challenges When Creating Film Budgets

Film budgets had increased for several reasons. Due to the costs of the pandemic related expenses for one, and currently as a result of the Hollywood union talent strikes which resulted in increased labor contract agreements and costs. Indie film budgets have consistently seen pressure towards reduced budget levels due to international film finance, distribution models, and film market requirements. Pre-sales film financing methods likewise have forced filmmakers to keep their indie film budgets at the lowest level possible to realize their vision and to return profits to investors.

The Rise of Streaming Content

The expanding streaming universe conversely has seen great growth in production allocations and costs. Competition for high-end television content for the streaming platforms and the talent to perform in these productions has increased the requirement for funding resources to support the increased production value required by streaming platforms. However, as Wall Street pressures have forced the streamers to demonstrate profits, companies like Netflix have looked to reign in their film budgets.

Indie Film Budgets

Indie Film Budgets have been going down continuously over the past several years in accordance with international and domestic film finance markets. Foreign pre-sale financing became more difficult to rely upon as a significant and reliable source of film funding.

When Can Film Budgets Increase?

However, the exception is always the rule in filmmaking, and indie films with the right talent attached (actors, director) are able to command and support a higher budget in alignment with the independent film market sector.

Film Tax Credits & Production Incentives

Film tax credits and incentives are up as competition drives more U.S. States and international country locations to enter the film tax credits market. Worldwide jurisdictions now fully see the value to their economies of a reliable and lucrative film tax incentives program.

Production Centers Worldwide Film Tax Incentives

Production Centers with strong, reliable film tax credit programs are thriving within the industry sectors of high-end television and movie production. States like Georgia have exponentially expanded production with a great deal of work from TV and indie film. Likewise the United Kingdom has seen inward investment of over £4.3 billion due to their dependable film tax credit program and skilled workforce.

How Reliability of Film Tax Programs Matters

Louisiana, which chose to cut back on their film tax incentives, demonstrates the fluidity of location based filmmaking choices. This pushed the industry away (film finance detests a vacuum) and onto different locations to expend their film budgets. Atlanta is now a booming shooting locale for television, big budget movie production and low budget filmmaking as well, mainly due to their dedication to the entertainment sector.

Film Budget Levels in Constant Flux

Film financiers’ $30 Million films are being cut to $20 Million and twenty million dollar movie budgets are being cut to ten million or less. Three million is the new eight million even as gargantuan film budgets rise to exponential heights of $100 Million, $200 Million and $300 Million for tentpole, 3D, computer generated imagery (CGI) VFX films.

Accuracy in Film Budgeting is More Important Than Ever

Accuracy becomes even more critical as a film budget is reduced in order to maintain quality at a reduced rate. Movie budgets must provide the same precision and onscreen production value in order to deliver at these reduced film costs. Filmbudget.com provides this most critical part of a film finance plan.

What are Film Budgets?

Film Budgets are the financial backbone of a movie or television program. They present the Line Producer a roadmap to making your film. With quality movie budgets in hand the film producer can present their script to financiers in order for them to invest and make the film. A detailed movie budget is essential. The accuracy must be undertaken by a seasoned and experienced Line Producer or Unit Production Manager. Off the shelf, quick budgets will not stand up to any film investment test. The work is detailed and must be done by a qualified movie producer. For an immediate quote on our Film Budget, Film Finance Plan, and Producer Consulting Services Contact us via our Contact Page Movie Budgets list all costs in the film. Everything that is in the allowable spend is included. From grips, electricians, to stars, assistants, screening rooms, to food and explosions… You name it, every single movie expense is in the budget. Filmbudget.com is the go-to place for quality film budgets, schedules and breakdowns for your project. For 25 years we have been providing top quality production knowledge to film and television projects while creating world class feature films and tv programming. Get your film into production with a real, custom movie budget created by an experienced professional. We will provide a fast quote on your project goals, enabling you to be Camera & Finance Ready. Producer Jack Binder has been creating film and television productions for over 25 years. Binder’s list of producer credits can be found at our About page