Last week, CBS sprouted a new division called CBS Films. CBS is part of Viacom, which also own Paramount. However CBS said they didn't care that they are 'competing' with sister company Paramount, because they are going after the 'mid size' market rather than the BIG BUDGET market that Paramount plays in. Mid-size market technically means films budgeted between $10 million and $50 million. This mid-size arena has become somewhat of a 'sweet spot' for Production Companies because budgets are still at a level where if things go reasonable well, they can still make a profit.

One of the caveats of the CBS Films deal is that they have guaranteed output for their films on sister network Showtime. And due to that output deal, they can always be guaranteed a certain amount of revenue for their films on the U.S broadcast distribution front. With that output deal in place, it makes it a heck of a lot easier to risk a $10 million plus budget when they know they'll get X-amount from Showtime when the film is done and delivered. Doesn't that sound like a sweet deal to you?

In fact, all the Major Studios build output deals into their financial models. One reason the mini-majors are able to acquire indie films at the prices they do, is because of their broadcast output deals. And the boutique theatrical companies can't compete with this.

So all this led me in two directions for this week...

One is I wanted to address all the filmmaker/entrepreneurs out there and create a checklist for Starting A Production Company. I've been hearing a lot of buzz about this lately on the Film Specific message boards, and I realize that a lot of you are wanting to start a proper company, and actually raise financing for a slate of films. More power to you! I think it's a fabulous idea and I want to support your efforts. So have a look at this checklist, and then meet me on the FS Message Boards with any lingering questions:

http://www.filmspecific.com/members/597.cfm

Second, is I wanted to delve deeper into Output Deals in our Advanced Topics Library. Reason being is that for those of you who have any kind of track record, getting some output deals in place could be a next logical step for you and your company. And boy does it help matters when you're trying to raise financing for your projects! To learn more about Output Deals and how to get them, check out my Advanced Audio Pods here:

http://www.filmspecific.com/members/596.cfm

Also, I want to congratulate FS Member Michael, from Supersonic Entertainment for being one of the top 20 finalists in the Avid Perfect Pitch contest! His pitch was chosen from over 100 submissions...way to go Michael! Don't forget us little people when your career sky-rockets, ok?

And in case I left out a detail or two, just let me know if you have any questions.

Alright everyone, have a fantastic week and I'll speak to you again soon!

To your success, Stacey* "You are currently a subscriber to our Free Distribution Tips newsletter. To access some of the links in this email, you must be a Film Specific member. If you're not a member yet, you can upgrade to full membership status today by going here: http://www.filmspecific.com/public/10.cfm"