Film Financing Overview

Summary

This practice note provides an overview of film financing. It covers the customary ways in which motion pictures are financed, including studio financing, pre-sale bank loans, tax and in-kind incentives, and public and private offerings. The private placements section includes discussion of exemptions for intrastate offerings (17 C.F.R. § 230.147), Regulation D, Blue Sky Laws, and 504 (17 C.F.R. § 230.504) and 506 (17 C.F.R. § 230.506) offerings. Completion bonds, pay or play provisions, and crowdfunding are also explained. The note concludes with steps counsel can take to protect the interest of clients investing in motion pictures and the role of security interests in the context of film financing.