I’m certainly not saying anything shockingly new when I opine that the American film industry is one of the world’s oddest industries. Rules are different here in Hollywood (not sure what the rules are for Bollywood, Nollywood and other film industries around the world - who knows, they may even be logical and practical). Here’s one of my favorites: low budget scripts are harder to sell than higher budget scripts. There’s actually a very good reason for that seemingly illogical rule, however.
You see, there are really four general kinds of costs when making a film: above the line, below the line, P&A, and distribution. Above the line means the cost of hiring directors and actors, as well as fees for producers and writers. Below the line means all the rest of the cast, from DPs to Ads, grips, best boys, lighting, sound, costumes, makeup, hair, etc. etc. P&A stands for Prints and Advertising. Prints are the physical copies of the film that you make from the original film. These are the prints that go to the theaters and are used to show the actual film at those theaters. Now one note: as theaters go from analog to digital display, the cost of prints will plummet, because instead of spending up to $2,000 for every single print (for as many as 4,000 screens), the cost will be the few cents it costs to make a DVD of the original film. Advertising is the cost of advertising your film on posters, perhaps on television or newspapers, etc. Distribution is the fee you pay to theaters or other venues to show your film.
So, why are cheap films harder to make? Well, because as it stands now, the cost of P&A are so high for even an inexpensive film, that for low budget films can create a situation where the cost of P&A far outstrips the cost of the original film. For example, Robert Rodriguez’ film “Desperado,” for example, began as a $7,000 micro budget film. The studio bought it and the had to spend $2 million on P&A, but the film didn’t do well because it had no stars in it and the production quality of course was minimal. So what seemed like a bargain, a feature film shot for $7,000, ended up losing the studio money.
Another reason is that lower budget films can’t manage the production values of more expensive films nor the name actors, so that they end up having a hard time pulling in an audience. Finally, lower budget films have a harder time attracting investors, for all the aforementioned reasons. So you may have a fine little script with a $100,000 budget for instance, and not be able to get it made because no-one wants to take a chance on it and no-one can see a way to make money off it.
Another seeming illogical rule of the American film industry is that the industry is built to discourage new talent. Now this one may actually be illogical, LOL. There’s actually a role model that Hollywood might want to look at: professional sports. Most pro sports have a farm system in place that is built to not just find talent but foster it and funnel it to the pro level. And it works incredibly well.
Hollywood has a farm system like that… kind of, consisting of the various screenwriting competitions and screenwriting schools/programs throughout the country. But Hollywood doesn’t use that system. Why aren’t the winners of the top screenwriting competition being hired or mentored by the studios and/or major production companies? Why aren’t the winning scripts being developed instead of the crap that’s being produced now? Why aren’t leading producers and studio execs visiting the film schools to scout for talent and great screenplays?
The biggest load of crap in Hollywood is that there are so few great scripts. Bullshit. The truth is that there are so few great scripts that make it through the nearly impenetrable Hollywood submission system. It’s not that they’re not out there, it’s that Hollywood won’t let them in here.
But, there is very little incentive to change - audiences still show up, even if in diminishing numbers, and the studios and distributors make up for the slightly shrinking audiences by raising prices so that every year is a record year despite the shrinking number of tickets sold. And now they have 3D which allows them to hike the prices even higher. But there is a diminishing return, and the ever increasing prices is slowly eroding the customer base even further.
We’ve seen it before: huge companies and entire industries slowly wiped out by their own inability to adapt. Netscape. Department stores like Sears and Kmart and Montgomery Ward. Hollywood would certainly be one of the biggest industries to go under, but it’s possible if they keep taking the audiences for granted and refuse to adapt to the changing times. With digital filmmaking and digital display capabilities growing world-wide (more than half of the theaters in the U.S. will be displaying film digitally by the end of 2012), and with growing streaming capabilities, it may soon be the case that the film industry goes the way of the book industry: a market flooded with cheaply made product bypassing traditional distribution channels.
We’ll see. And yes, I did go to the movies this past weekend. And as usual it was at best okay and at worst horrible. Typical Hollywood fare.
Ciao.
Rob Tobin is a produced screenwriter, published novelist (“Jo-Bri and the Two Worlds” and “God Wars: Living with Angels”, available on Amazon.com and iBookshelf), author of two screenwriting books (“The Screenwriting Formula” and “How to Write High Structure, High Concept Movies” available on Amazon.com, Barnes and Noble, Google, etc.), a former motion picture development executive and book editor, graduate of USC’s prestigious Master of Professional Writing program, husband, father, Canadian, and lives an extraordinarily happy life in Southern California. He is available for writing assignments at scripts@earthlink.net. Visit his website at robtobinwriting.com.