Investor FAQs

What is the overall status of the Film Industry?
Historically, the motion picture industry has not been adversely affected by depressed economic conditions. With technology and global economic expansion, the foreign, DVD, TV and cable markets are growing more rapidly than anticipated.

How can independent films compete with Studios and corporate money?
With huge spending for blockbusters, marketing and stars, the feature film industry thrives on being big: big budgets and big deals with big salaries, and big overhead. The GOOD NEWS: The rise in competitive, big budget productions and distribution deals, even among smaller productions companies, create a demand in the markets for smaller more affordable films - theatrical, TV, DVD, and outlets worldwide. Providence develops and helps finance lower budget, less expensive, and more cost-effective films, films that buyers need to fill these growing markets.

What are the facts behind the infamous HOLLYWOOD creative accounting?
Studios and their competing production companies spend so much on overhead and advertising that "expenses" make it almost impossible for key investors to profit. This has been referred to as the film industry's "black hole." Providence asserts discrete accounting control to ensure transparency throughout the process and the prompt and appropriate distribution of revenues.

How does Providence Productions distinguish its business from studio accounting?
With each project, a separate production company is established in the form of a new partnership with Providence as managing partner. Each production has an accountant or business manager approved by the investors.

What is the most important element to making a successful film?
The best films succeed in their concept and an experienced production team geared for staying on budget while inspiring and impacting as many people as possible.

How can an Indy film compete with the blockbuster mentality?
Story driven films do not rely on excessive violence, overpaid stars, or special affects to appeal to audiences. The better the story, the better the script development, the stronger the interest from talent, the bigger the potential.

What does it take to make a profit on independent films?
Filmmakers and investors who turn to a reliable production company or an experienced feature film producer have the best chance of getting solid distribution thus turning a profit. Tax incentives and soft money help.

Do you you need to have distribution in place for success?
Not if you define success as turning a profit. Independent films produced and distributed effectively via foreign markets and TV and DVD sales can succeed without costly U.S. theatrical releases.

What are the advantages of going digital?
Digital filmmaking is cost efficient. Tape is considerably cheaper than film, productions smaller, post faster, and the director can use more footage to guarantee the best performance. It's the future.

What if I am interested in investing...will I be an Executive Producer of my own film?
If you are a qualified investor you are entitled to a credited Executive Producer, possibly a company credit, and even appear in your own movie!

 


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