Movies can be funded a number of ways:
Studios - The Hollywood Studios (Universal, Paramount etc) finance the movies with their own cash, bank loans, and through investment from a number of wealthy parties, entrepreneurs or investment specialists. These types are usually multi-billionaires who may be as interested in the glamour of the movie industry as they are in the profits.
Production Companies - some production companies will front the cash to make a movie, because they either have an advanced deal or believe they will be able to sell the movie to a distributor who will take direct profits from cinema ticket sales.
Other ways include:
National Funding (The Film Council in the UK), Tax Based Incentives, Loans, Pre-Sales, as per Capitol Films, who will provide finance for a film based on the sales potential, cast and principal crew, because they will recoup their money by selling the film worldwide to cinema and DVD distributors.
Studios - The Hollywood Studios (Universal, Paramount etc) finance the movies with their own cash, bank loans, and through investment from a number of wealthy parties, entrepreneurs or investment specialists. These types are usually multi-billionaires who may be as interested in the glamour of the movie industry as they are in the profits.
Production Companies - some production companies will front the cash to make a movie, because they either have an advanced deal or believe they will be able to sell the movie to a distributor who will take direct profits from cinema ticket sales.
Other ways include:
National Funding (The Film Council in the UK), Tax Based Incentives, Loans, Pre-Sales, as per Capitol Films, who will provide finance for a film based on the sales potential, cast and principal crew, because they will recoup their money by selling the film worldwide to cinema and DVD distributors.
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