Film Financing.

The producer (studio or production company) has to get all the funding for the production before the filming starts. There is always the problem of not knowing whether or not the film will make money - whether it will a success or a failure.

The Government sometimes provide grants for productions, they sometimes have schemes designed to encourage creativity and develop new talent.

A film production can benefit a country by:

• employment opportunities - in the production, catering, accomatation, transport etc.
• develops culture
• advertises the area/location to an international audience - promotes tourism. For example, the Twilight series increased the amount of tourists visiting Forks, where the book/film is set and filmed, considerably.

The UK Film Council used to offer subsidies to filmmakers in the UK meeting a certain criteria. The National Lottery also offers subsidies and grants to UK-based filmmakers. 

The UK introduced the Producers' Tax Credit in 2007 to encourage film producers to film in the UK. This helped bring large scale productions to the UK. For example, The Dark Knight was filmed at Pinewood and Shepperton studios.

Pre-sales involves the producter selling the rights to distributors of the film before it is made, which is the most common method of film financing. In order to secure their investment, distributors expect certain elements that will guarantee success. For example, certain famous actors/ directors/ storyline etc. Pre-sales are usually done by region e.g. Europe, North America. They can also be made of DVD and TV distribution rights which is likely to be the case if the movie studio distributing the film is part of the same conglomerate as a TV station e.g. Horizonal Intergration. This also stops piracy.