Unit 1 - A1- Funding

Funding

There are many different ways in which you can fund  a film. There are many different sources which can all contribute to the funding of a film. The 5 main sources of funding are listed below. 

• Crowd sourcing

• Personal investment

•  Advertising

• License Fee

• Product placement 

Crowd sourcing: This is a source which is funded by the audience. This means that the audience contribute to the making of the film. Crowd sourcing has no limit on how much the audience wants to contribute towards producing a film. Examples of crowd sourcing would be websites such as Kick starter, Facebook, Twitter. Social websites like facebook&twitter tend to advertise crowd sourcing whereas websites such as kick starter you can directly make a contribution. Advantages of crowd sourcing is that the people that give the contribution get a great deal of personal satisfaction. They will as if they have a big part to play in the production depending on how much they give. A disadvantage of crowd sourcing is that there is poor management. It is difficult to communicate with crowd members as there are many contributions to go through. 

Personal investment:  This is a source in which you fund the film yourself. An investment would mean that you put money on the line for this film in hope that you receive more afterwards. Examples of films that have been produced from personal investments would be Paranormal Activity, Grease, The devil inside. There are many benefits to a personal investment. One of the advantages of a personal investment is that the investor will be the executive producer which means that you can be the star of the show. It also means that you get to call the shots during the film.  One disadvantage of a personal investment is that there is potential chance of losing a lot of money. If the film isn't successful, the investment goes to waste.

Advertising: This is a source in which you use television to fund your film. This is done by asking channels if they would promote their film in between adverts. Examples of advertising would be Film 4, Itv, Itv 2. An advantage for these institutions would be that they receive a tun of money to show these adverts. A disadvantage of advertising would be that it just adds to costs which are already extremely high. 

License Fee: This is a source in which you pay money to certain institutions so that they can produce for you. An example of an institution would be the BBC. They get given money by the audience. They then use this money to produce new channels. An advantage of license fee is that it allows institutions such as BBC to create new channels which keep the audience intrigued and excited. Another advantage of license fee is that revenue is generated. A disadvantage of license fee is that it creates unnecessary competition. Along with competition comes stress. 

Product Placement: