“Investors have sound economic reasons for not being keen on showbiz, such as the likelihood of never seeing their money. But if the authorities guarantee them a tax-break — well, sinking funds in the bottomless pit of tinsel and glamour is more fun than sinking them in the equally bottomless but thoroughly mundane pit of Revenue Canada. That’s why Canada has — or has had — a film industry of sorts. The good old days may be ending now with Bill C-10, the Conservative government’s proposed amendment to the federal Income Tax Act. This bizarre legislation, currently in its third reading before the Senate, would empower a committee of Heritage Ministry smut-hunters (OK: smut-, hate-, and violence-hunters) to deny tax credits to any completed film they find “offensive,” even one in which the government has invested up front. If this becomes law, say goodbye to Canada’s film industry. No sensible institution will offer interim financing to a film that may not qualify for tax credits once it’s completed. The frontal government giveth; the rectal government taketh away. Blessed be the government. “
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Groups representing Canada’s film and television producers are meeting government officials in Ottawa Monday to find out the rationale behind a planned overhaul of a key federal tax credit program.

Sandra Cunningham, chair of the Canadian Film and Television Production Association, says she wants federal officials to explain the motivation behind the plan.

The proposed amendment to Bill C-10 would allow the government to deny tax credits to productions deemed to have offensive content.

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An Indie film from Ireland didn’t just succeed at a box office overwhelmed by spidermen, shreks and, pirates. It earned 10,000 percent R.O.I.“This is amazing,” Glen Hansard exclaimed after he and his co-star Marketa Irglova strode onstage to pick up their Best Original Song Oscars for their haunting ballad, “Falling Slowly.” “What are we doing here? This is mad.”Mad money, it turns out. Once, an indie musical from Ireland about a street musician and the girl he falls in love with, was made on a Scotch-tape-and-spit budget of around $150,000. Yet it managed to captivate audiences, become a darling of critics, snag an Oscar—and earn an astounding 10,000 percent return on its investment, in box office gross.Full Story

FROM WSJ

Boston real-estate developer Steven Samuels’s first foray into film financing was a $500,000 investment in a Demi Moore film called “Half Light.” Before the movie was even released, his initial investment had doubled. In 2006, after wind storms on the set in Wales, the sudden departure of the film’s co-producer and a variety of other headaches, the film went directly to DVD, and Mr. Samuels took a hit.

Oscar nominees George Clooney and Tom Wilkinson in “Michael Clayton”

At that point, he seemed to be just another Hollywood sucker, not unlike many other outsiders — from wealthy individuals to hedge funds and private-equity investors — who have gambled on Hollywood and lost. But rather than pack up and go home, Mr. Samuels decided to try again, investing in three more films.

And come Sunday’s Academy Awards, one of those films — the $25 million “Michael Clayton,” nominated for Best Picture and six other honors — could pull off a surprise win and get him an Oscar statuette. The film has already grossed $47.8 million at the domestic box office, and its Oscar nominations are likely to give it a big boost on DVD.

Hollywood studios today are more dependent than ever on the kindness of strangers to finance films. Over the past few years, outsiders have poured billions of dollars into film production as the big studios have sought to minimize the considerable risk that comes with making movies. Outside financing played a big role in producing the last two Best Picture winners, “The Departed” and “Crash.”

But much of that money is seeking a piece of blockbuster franchises. The films that really need cash to get made are the smaller $10 million to $30 million films. The major studios are loath to finance them, and many wouldn’t get made without outside investment or the involvement of the major studios’ specialty labels. Two other Best Picture nominees — “There Will Be Blood” and “No Country for Old Men” — were sufficiently risky from a commercial standpoint that their costs were split between the specialty divisions of two studios, Viacom Inc.’s Paramount Vantage andWalt Disney Co.’s Miramax.

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The past year was a wobbly one for Asian film finance, with the sector making a few steps forward and taking almost as many backward.Major disappointments in the region last year included the relative sidelining of joint production venture Warner China HG, the only modest progress of sophisticated bank finance and the high-speed retreat of most venture capital in Korea.Since the “Korean Wave” started to ebb in 2005, the biggest boost to the Asian movie industry has been a belief that China is on course to become a new flood tide that will lift all boats in the region.Where the Wave energized the region through its exemplary creativity, production values and infrastructure building, China’s strongest pitch is simply scale. And in 2007, the country did just about enough to keep those dreams afloat.“Progress may not always be evident in the short term, but taking a long-term view, we see film and music in Asia growing. We are looking to step up our investments,” says Buddy Marini, managing director of Avex Asia, the movie offshoot of Japanese music and talent giant Avex.Full Story 

 Film Fund will finance the psychological thriller “Urge,” written by Guy Busick.

Story takes place in a quaint rural town, where the population is suddenly reduced to its most base violent and sexual urges after being exposed to a failed secret government experiment. A small group of locals are left unexposed and struggle to survive and uncover the truth behind the incident.

Project will be produced by Darby Parker via his Williamsburg Media Cultproduction banner. Michael Curry also will produce alongside Barbarian’s Aaron Kaufman, Ron Hartenbaum and Douglas Kuber. Benderspink’s Chris Bender, JC Spink and Jake Weiner exec produce along with Michael LaFetra and Bryan Brucks.

A director has not yet been named.

Barbarian is financing the Ashton Kutcher starrer “Spread,” which starts shooting in the coming weeks.

SOURCE: VARIETY 

The Australian government is moving to boost the country’s film and television industry beyond a “cottage industry”, saying it may help to bring its brightest stars home.

Legislation introduced today will merge three government bodies into a single agency, Screen Australia.

A separate bill will make the National Film and Sound Archive, a key manager of Australia’s cultural heritage, more independent.

Arts Minister Peter Garrett told parliament that Australia’s film and television industry punched above its weight with its award-winning productions, cast and crew.

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New York, NY Fast Capital 360, LLC, (FC360) recently acquired a $2.67M loan for a veteran Tony Award-winning costume designer’s new business venture. The designer, who wishes to keep his name out of the papers for the time being, has been recognized for his excellent work in numerous Broadway hits. He has previously worked with FC360 on expanding his studio in 2007.After the success of that financial transaction, he returned to FC360 to inquire about financing the opening of a new business. Not only were the professionals at FC360 able to obtain the  [Read more →]

This is a great article because of a tiny quote that says a lot about the nature of film financing today:”…with film financing now so complex, it was difficult to determine what films were British merely from a budget point of view.”Full Story 

Noci films says so.Read this release from Yuri Rutman’s company…Full Story