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*

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