You have already started developing several elements of your project. Your initial idea is gaining structure, and you might even start planning how to obtain the respective resources needed, discuss it with possible partners and approach talents. The concept is the first moment where core artistic elements are defined and it will set the basis for the movie or television series. This is the moment to define the architecture where the artistic, logistical, legal and financial aspects will be further refined. In other words, it is time to define the business model.
The business model
One of the elements that often receives less attention in the conceptualization, and in audiovisual projects in general, is the formulation and definition of the project’s business model. The business model explains how your project brings value and ultimately what the reasons are behind undertaking your project the way you are proposing to achieve the ultimate goal: the content. For that reason, the different elements of the concept need to be in line with the business model. Think of the business model as the logic behind the infinite number of decisions that a filmmaker needs to take during the project.
Remember, as you move toward production, many aspects that go beyond the artistic choices become crucial for your project to become a reality. When presenting your project to partners and investors, core elements of your business plan will help you to “sell” your project.
In some cases, a business plan essential is needed for further analysis. A business plan essentials is a formal document that outlines the objectives, structure and feasibility of your project and it can be a powerful tool for convincing others to support you. In this document, the details of the business model (listed below) should be included together with an executive summary, a company overview and the content overview. The goal is to appeal to the business sense of people. Especially when combined with good research, this shows your competence to steer the project.
Below are the main elements to define your business model:
Value proposition and purpose: what is the purpose of your content – the message that it will convey and who it is aimed at? This will help you clearly define the value that your content will offer, including the features that make your movie or television series unique and why it may be attractive to your target audience. Ensure that the quality of your project is in line with your goals and expectations, in both technical and creative terms. A list of crew positions that have been set or are proposed with information about them could be important in showing value.
Market segment and target audience: assess who your potential viewers are and how they would access the content. Identify and segment your audience to adapt your business model to their needs and preferences, or to those of your potential investors and distributors. Reflect upon current and future industry trends, comparable performances for the genre you are proposing and creative elements of your project that respond to the market and audience.
Sources of revenue: how much revenue do you need? How much are you investing in the project, including money, time, staff and any other necessary resources? The moment when the resources are needed is an important factor and a cash flow chart showing how much is needed at each stage might provide a better view of the project needs. For investors, make the economic viability of the project clear at all phases and the return on investment (ROI) expected when the final product is being marketed.
Budget: calculate the costs associated with the production, distribution and marketing of your movie or television series. Be sure to take into account all costs in order to establish a price that enables you to deliver the project and, of course, make a profit on it. Check your budget against your revenue expectations and the cash flow chart. Those estimates should be in line with the chosen business model or the commercial possibilities presented by the project. For example, if a government grant is available but will only be transferred during the postproduction phase, this should be taken into account in the budget and cash flow chart.
Distribution channels: determine how you will reach your audience, whether through streaming platforms, cinemas, television, live events, festivals or other distribution channels. Choose the most appropriate channels for your project. Research what each of them require and the coproduction or financing opportunities that could be useful for the movie or television series.
Marketing and promotion strategies: planning how to raise awareness of your project and how to attract and retain your audience are important elements. Options such as digital marketing, public relations, social media and partnerships with other talent should be considered and reflected in your strategy.
A robust business model adapted to the characteristics of your movie or television series will be laying the foundations for its financial viability and success in the market. It is not rare for there to be cases where the producer will be faced with the need to adapt or change the concept/project or business model in order to comply with a financing opportunity, financer requirement or market opportunity. Language, genre, distribution channel and even business model are frequently revisited before a concept becomes reality and receives the green light.
IP in the business model
Your concept or project will tell a story. You need to be able to tell that story in your film or series. This means that you need to own the IP rights necessary to include some materials, adapt other materials and, ultimately, own the final product without any legal gap. This is further detailed in the guide on IP clearance mentioned earlier. For example, if your project is an adaptation of a book, your project will only be viable if you own the rights to adapt that book.
Besides being a core element in assessing the viability of the project, IP also impacts budget, planning and distribution. Taking music as one example, the use of any music will need to be licensed with the respective time and money necessary. How you use that music (for exam, can you use it in the promotional materials?) is also a factor. In many cases, producers will need to find alternatives and it can take a long time before the final authorization for the lawful use of content is finally in place.
On the other hand, while a project might use content protected and owned by third parties, IP is also fundamental for the filmmaker involved in creation and production. The producer should ensure that the necessary steps are in place to own the final product and that it can be distributed without incurring in any infringement. In most cases, this is also a contractual obligation assumed with partners, investors and distributors. This includes, for example, agreements with scriptwriters that worked on the script even in its initial phase.
As the project evolves, more details could be annexed to the business plan. Here are some of the common elements (information and not necessarily documents) related to IP that could be annexed to the business plan in order to prove the legal viability of the project:
Title report: a search for all prior uses of the same title used in films, televisions shows or another multimedia project that could be relevant.
Copyright search report: any existing works (books, films, etc.) that have similarities with your project.
Chain-of-title documents: this is a crucial aspect in IP clearance as explained in the IP clearance guide mentioned previously. These documents are an indication that you own the materials that are part of your project so far. Probably the most important at conceptualization stage would be the screenplay, storyboard, images and any material that was adapted into your project (news articles, book, etc.) and promotional materials (trailer, images, etc.).
Copyright registration: if you registered any element such as the screenplay, also indicate that.
Agreements for music in the film: if you secured any license to use music in the film you can also indicate that.