Industry System
Industry main organs brakedown and description
Industry Main System
Audience
Viewer is the reason to make the film. For this reason we
ask:
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Does the picture bring in the viewer forward strong
emotions?
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Do the creators of this film have strong connections with
the specific audiences and theme of this story?
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Does this motion picture deserve to be made?
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Is the timing of this picture justified?
An 'A' picture for us is determined by the harmony of all
audience, visual, audio, and literary qualities focused on
the theme of the property through the characters of the
film.
Team
Friends of QSE
The team makes QSE come to life. This group is benefited by
QSE and in addition to their tasks it also functions to
create the fabric of QSE, which is an essential network of
film industry relationships based on producers trust in the
team and understanding of the industry engine.
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Partner (optional)
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UPM - Unit Production Manager
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Entertainment Law Firm and Lawyer
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Entertainment industry bank
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Completion Bond
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Publicist (find when development is fully financed)
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CFO
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Consultants
Private Investors
Private Investors are invited to invest exclusively in the development phase.
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Our projections foresee for the investor 120% return in
one year and 10% of developed pictures gross in the long
run
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Must be sophisticated investors
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Have a Limited Partner status in a Limited Partnership
(LP)
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Details available in our 504 investment memorandum
QuickSummer Entertainment, LLC
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Parent company to be registered in the US
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Production Company, which manages its development
companies as Resonance Pictures, LP
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QSE also manages its one-film producing companies as Ford
T, LLC
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Manages its Estonian affiliate Welcome Entertainment, LLC
Detailed description in the mission statement
Resonance Pictures, LP
QSE development company
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Activity is limited to 3-5 pictures
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Sells fully developed films to QSE owned one-film
producing company as Ford to Ford-T Productions.
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May work in parallel with other QSE development companies
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Develops chosen pictures according to QSE mission
statement and as set forth in our 504 investment
memorandum
Welcome Entertainment, LLC
QuickSummer Entertainment, LLC affiliate to be registered
in Estonia
Production company's co-production partner, an Estonian
producing entity, executes QSE duties in Estonia according
to contract with QSE
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Participates in producing
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Expresses interests of Estonian film industry
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Supports other international industry producers in
Estonia
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Manages QSE development financing
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Participates in QuickSummer Entertainment, LLC
net-profits
Ford -T Productions, LLC
QSE's producing company
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QSE owned and managed one-film producing company
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Separate producing entities facilitate work, distancing
QSE from responsibility derived from guild, talent and
other contracts.
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Ford -T Productions could act in parallel with several
QSE producing companies
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Production is financed with bank financing which is
collateralised by presales bankable Letters of Credit
Major Industry Organizations
For success unavoidable industries major distribution and
financing organizations with whom producer has contractual
relationships
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Distributors (10 USA Major Studios)
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Pre-buyers
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Distribution rights buyers:
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Video chains (Blockbuster)
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Foreign markets
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Television markets (networks, premium cable,
pay-per-view)
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Ancillary media windows
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Co-Production companies
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From the team: bank and completion bond company
Industry Organizations
These and some other motion picture industry organizations
are not part of QSE production team, but are vital for
pictures' success:
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Markets (AFM, Cannes, MIFED)
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Exhibitor Relations Co. (Feature Release Schedules)
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Guilds (DGA, WGA, SAG)
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Information (Nielsen EDI, Showbizdata, Eagle-i, IMDB)
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Talent information (Celebrity Services, Inc.)
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MPAA (Motion Picture Association of America)
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NATO (National Association of Theater Owners)
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Print Media (Variety, Hollywood Reporter, Video Store
Magazine)
Industry Presale System
Issuing Bank
Foreign Distributors Bank
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Pays the agreed pre-purchase amount to producer's bank
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Pays according to Notice of Assignment & Lab Release
Letter
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NA attachments line out the payment conditions X, Y, Z
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Issues the Letter of Credit
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L.O.C is only as good as its attachments X (NA), Y
(Arbitration Award), Z (ND) are - can deny payment
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They need to let producer know when they have given draw
down request - Notice of Presentation to the Beneficiary
Bank
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Hopefully there is an L.A.L and the film is deposited in
the lab and viewed prior to payment
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Needs to receive: 4 Certificates of Origin, 4 Cert. of
Authorship, and Spotting and Dialogue Lists in the
Presentation Package
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L.O.C. is issued when contracting bank signs, and
finalized at least during the commencement of
pre-production when the completion bond has locked in
QSE Bank - Production Co. Bank
Recipient of the L.O.C. and the beneficiary
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Loans the money for the producer according to L.O.C.
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Works with the producer to perfect the L.O.C. verbiage
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Gets the payment from Issuing Bank upon delivery of the
film
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Needs a Bank Memorandum Package from the producer
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Completion Bond documents
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List of talent attached (director, principal actors,
DP)
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Top sheet and budget
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Script breakdowns and production boards with
screenplay
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Domestic theatrical distributor acceptance (may be
verbal)
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Some additional items
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Financing is available after pre-production, so producer
needs to get some advances from the pre-sold foreign
distributors or engage in minimal gap financing to get
through pre-production.
Major Studio
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Studio would rather distribute then produce, 9 out of 10
pictures are independently produced not in-house
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Has up to 10-1 credit lain with its bank
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Most sophisticated distributor there is
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Enjoys working with professionals (our team)
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Must be involved starting with picture development
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Production Company should negotiate with studio for P&A -
# of prints & TV-ad time by reach and frequency
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Approach first the only right studio for each picture
For producer major studio is a distributor of domestic
theatrical and partial video rights. Because they have a
pipeline of output deals with the members of NATO and with
television networks, they need product to fill these 'put'
contracts.
Completion Bond
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If there is bank involved, then completion bond is
necessary
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Only guarantees to bank and studio that delivery of picture
occurs
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To access cash for production from the bank the loan is
secured by the bonded film - this is not insurance policy
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Bonding company checks if contractible talent is
trustworthy available and capable, if production don't
get rained out in location, if picture will come in with
projected budget, etc.
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If producing co. fails, will take over, or soft-takeover
the picture
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Wants delivery to the bank to be Notice of Delivery (ND)
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Cost for service is 3-6% of negative cost - 50% of it
usually refundable after delivery occurs.
The system of bank, studio, completion bond, and production
company are intertwined, they are one system bypassing the
pictures produced on spec and for film festivals.
Pre-buyer
Foreign distribution companies which would also buy the
film after its production for about 50% more.
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Pre-buyer is ever interested in the Major Studio pictures
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A certain star would make a picture easier to sell in
some region
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Pre-buying companies are made to compete with each other
prior to agreeing on the Letter of Credit by their local
media
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Pays the minimum guarantee of the advance on delivery
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Can object to payment if Notice of Delivery is permitting
the technical inspection when Lab Access Letter is
attached
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Notice of Assignment (NA) arrives from the licensor bank
to licensor (producer) who forwards it to licensee
(pre-buyer), who must sign or there is no film
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Pre-buyer payment transfer is made through intermediary
bank in Hungary, or producer has to have a Gross Up
clause in the presale contract
QuickSummer - Production Co.
Producer is to do the tough job of making the production
happen, keeping all parties happy and is taking the biggest
risks:
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Producer is responsible to check the L.O.C., as any other
documentation with lawyer and prove its authenticity and
block it if is fraud
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Make sure the L.O.C. document states 3-10 days before
payment for you to run to the lab with the Lab Access
Letter
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Make sure the Arbitration Award is attached to have check
mate with the L.O.C.
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Negotiates deals up front and masters the documents as
Long Form shortly thereafter
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For physical delivery you need Inner Positive, or Inner
Negative, Optical Sound Track, and Music and Effects
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