Buy Motion Picture Rights

The terms and provisions for the sequel rights for one or more studios’ entire production:

- We would also like to have information about the willingness of production companies to sell sequel rights at a pre-negotiated price.

Films are an insight into human imagination, and each unique film offers the audience a chance to experience worlds that would never exist. While literature also appeals to human imagination, adding a visual element never fails to enhance the experience for audiences to encompass the storytelling of directors, screenwriters, cinematographers, and even film producers.

1.) What is the American Studio System? Please give four examples of how the system worked in films we have watched in class.  Be specific.

Arundel Partners wants to buy the rights to produce the sequels in advance rather than negotiating on a film-by-film basis because otherwise, the studios will have an informational advantage. Later on in the production process, studios will have a greater idea of the quality of the film, making them less likely to sell the rights to more profitable sequels. Advanced rights to the entire portfolio of films mitigates this informational asymmetry and creates an options-pricing model for Arundel. There is value in Arundel’s right to forgo production of the sequel if they discover that the original is a flop. If Arundel chooses to forgo producing a sequel, in this model they are now only taking a $2M loss. To the movie studios, Arundel’s proposal creates great value. By offering the cash for all movies in advance, Arundel is providing upfront financing to the cash-hungry studios, allowing them the resources to pursue other projects, especially big budget blockbusters that have substantial negative costs. The guaranteed profit of the sequel rights fees abolishes some risk for the studios, even though it eliminates their potential upside. By purchasing the rights to an entire portfolio of films from the studios, it also serves Arundel to diversify away the risks of individual films, much like investing in diversified funds of market indexes.

In addition, once production started, the studio would inevitably form an opinion about the movie and the likeliness that a sequel would be possible. This would put Arundel at a disadvantage, because they would then have to negotiate the price for sequel rights on each film produced, while knowing much less than the production studio about the film.

Hundreds of movies are released every year. Filmmakers try to create the next jaw-dropping movie that audiences will stand in line for hours and pay top dollar to see. The key to success is finding ideas that appeal to a mass audience. Viewers are the lifeline of any production company so making something for everyone is a savvy business move for the film industry. To cover all bases, there are over fourteen different genres of movies. Film making is not a solo effort. It is a collaboration between the actors, directors, producers and other key contributors. This combined effort or mise-en-scene includes all the elements of the film to include actors, backdrops, costumes, props and lighting used to meet the director’s vision

1. Arundel has an interesting idea to buy rights to movie sequels. Their theory is that they can make a profit by securing sequel rights and providing seed capital to films even before production starts, thus avoiding the asymmetric information problem that would arise as the film progresses and the studio gains more and more inside information about the film's prospects. Buying rights in advance allows Arundel to buy rights to the sequels of eventually successful movies much more cheaply than after their success is proved, and also eliminates any potential bidding wars that may arise for sequel rights to successful films. Furthermore, securing a (relatively) inexpensive option to potentially tremendously

Producers have financial and administrative control over the making of movies, plays, and TV shows. Producers hire directors, principal members of the cast, and negotiate contracts with artistic personnel, often in accordance with collective bargaining agreement (“Actors, Directors, and Producers” 180). Together with the

I agree with you that the system is flawed and full of legal red tape, but that ultimately it is up to the artist to make sure he/she is not getting rubbed of what they should be paid. Hollywood is never going to give up their end of making money no matter how deceptive some of the polices may seem. I liked your example of Forrest Gump and how Tom Hanks as an artist took it upon himself, although I am sure it was his agent, to get the most money from the project. As the novelist and screenwriter should have made sure their contracts were in their best interest as well. Do you think being an artist of any sort, it is up to you to know all the ins and outs or should you make sure you have an honest and trustworthy agent that will do this for

Due to production costs and financial restrictions, the director and screenplay writer can never fully reproduce an entire literary work into a screen

With the purchase of sequel rights, what Arundel is achieving is to have a call option on the revenue that each movie brings. This helps to remove the uncertainty and risks associated with producing a movie, especially with regard to moviegoers’ taste. With the sequel right, Arundel will only exercise this option to produce a sequel if the first movie proved to be popular and the sequel is hence predicted to bring in profits. This provides downside protection, as huge losses (due to high production costs) associated with a failed movie will be avoided.

After one has proved the “Chain of Title,” then one can get insurance and distribution, and begin to create the story synopsis. When creating the screenplay, there is a very specific format used for writing a screenplay. Format is regulated by tradition not law; 3 acts, pages 30 and 60 have plot reversals or plot points, 102-120 pages, 12 point font, and finally 3 hole punch, but only use two “brads.” There are many tools, tips and books available to help a person while writing a screenplay. The software Final Draft automatically puts a written screenplay into the correct format. Also, books such as Story by Robert McKee and The Foundations of Screenwriting by Syd Field are wonderful books to read on how to set up the proper screenplay format. Like always, it is a good idea to keep a story file or notebook of all the ideas and stories a person has written. After all that, a person needs to copyright ones work. There are two ways of copyrighting. One way is by using the Common-Law Copyright which means a person mails a copy to ones self via registered or certified mail. The second way is the WGA registration which a free form from WGA. After the copyright, a contract is made based on payment, contingent payment, credit, how many rewrites, and set visits. Next an agent is hired who is managed by the state as well as a manager who is not regulated by the state and a lawyer. A person wants to always hire

One of the first conventions of a science fiction film is that the story must simultaneously exist in two worlds: one that is understandable to us or is like our own, and another

The Australian film industry is currently in a point of crisis due to the lack of audiences attending Australian films, hence creating a decline in the revenue received towards our national industry. However, this is not due to the lack of creative talent, it is rather the many underlying issues that don?t allow the Australian public with the awareness and accessibility of these films. These problems are within the distribution, marketing and funding of these Australian films, allowing the national Australian community to not seek for films made by people within their nation due to negative pre-conceived notions and the convenience of going to see a Hollywood Blockbuster. These issues are seen through the poor release of both critically received films, Jennifer Kent?s The Babadook (2014) and Hugh Sullivan?s The Infinite Man (2014), both not gaining a wide audience. Through these issues within the industry, Australian filmmakers have not been able to create the revenue needed for these films to branch out to be easily attained by the public.