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THEUNIVERSITYOFTEXASATLOSANGELES

ENTERTAINMENTINDUSTRY–THEBIGPICTURE

COM324-1RTF347C

INSTRUCTOR:STUARTG.POLLOKPhone:3238423842Email:______________

UTLACENTER,BURBANK,CALIFORNIASemesterCreditHours:3

OfficeHoursWednesdays6:30-7:00PMandByAppointment

FALL2017CourseOverviewThisclassisanoverviewofthebusinessoffilmandmediafocusedonpast,presentandemergingpracticesfrombothamajormotionpicturestudioandindependentfilmperspectiveconcentratingontheeconomicsandbusinessmodels–“followthemoney”-thatdriveshowbusinessaswellasexposuretothecriticalpracticalexpertiserequiredtosatisfythemulti-faceteddemandsofproducingcontentintheever-changingmedialandscape.Thedisruptinginfluenceoftechnologicaladvances,changingconsumerhabitsandtheriseof‘international’willbeanalyzedaswellasthetensionsbetweencontent/distribution,business/creative,andrisk/reward,tonamebutafewparadigms,thatareatthecoreofunderstandingtheeternalbeatingheartoftheentertainmentindustry.Theclassisstructuredintwohalves,withthe‘eco-systems’featuredinthefirsthalfoftheSemesterleadingtothemid-termexamfollowedbythepracticalitiesofproducingleadinguptothefinalexam.Informationwillbepresentedinclassfromyourinstructor,handouts,readingassignmentsandindustryprofessionals.LearningObjectives

1. Analyzetherevenuestructureformajormotionpicturestudiofilms2. Analyzetherevenuestructureforindependentfilms3. Monitoremergingdisruptionfactorswithinthefilmindustry4. Identifyrecurringthemes,businessmodelsandtheroleoftechnologyinfilm5. Identify,manageandpresentfinancing,recoupment,collateral,and

‘comparables’analysissolutionsforindividualproductions6. Createandpresentabusinesscaseforaselectedentertainmentproperty

Assignments

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PertheCanvassyllabusdatesyoucaninstantlyaccess,youwillfindwrittenassignmentsareduetobepostedontoCanvasnolaterthanthecommencementofthenextclasssession(e.g.:anassignmentassignedonWednesday,itwouldbeduethefollowingWednesday.)Pleasedonotsubmitprintedmaterialunlessrequested.EmailALLwrittenassignments(double-spaced)to___________.Include“TheBigPictureAssignment”inthesubjectline.Makesureyournameappearsonthetitleofthedocumentandthecalendardateoftheassignmentonthepaperitself,notjustonthecoveringletter.Extensionswillbedifficulttocomeby.However,ifextenuatingcircumstancesarise,likeadeathinthefamilyoryourownillness,pleasenotifymeviatextoremailbeforethedeadlinesothatthemattermaybediscussed.SpecialGuestSpeakersIndustryprofessionalswillbescheduledtooffertheirinsightsandpersonalexperiences.Owingtounpredictableschedules,theremaybelastminutechangeswhichwillbecommunicatedtoallstudentsviatheclassFacebookpageandemail.Youwillbeexpectedtoresearchthespeakers,companies,andtheirworkaheadoftimetoaskthemquestionsinclassoronlocationINADDITIONtotheassignedquestionsyouwillbepostingonCanvas.Thiswillbepartofyourgrade.Thisisauniqueopportunityforyoutospeakdirectlywithprofessionals.ThesevisitsarehighlyvaluableandyouwillbeexpectedtoparticipateintheQ&Aforeachspeaker.Absences/TardySeeabovein“Assignments.”Allowplentyoftimeforyourcommute,asL.A.trafficisbothcongestedandunpredictable.Ifyouhavealegitimateschedulingproblem(thisdoesNOTincludebusinesslunches,familyvisitsandscreenings!)Pleasecontactmepriortoclassviaemail,text,oraphonecalltotheoffice([323-512-9200]).EveryOn-Timeclassattendancewillfullycounttowardsyoursemesterattendancegrade,howevereachinstanceofbeingTARDYwithoutanypriorapprovalwillresultonyouonlyreceiving80%ofthatevening’sclassattendancecreditandanABSENCEwillresultin0%creditforthatevening’sclassattendancecreditunlessdiscussedwithmepriortotheclassdate.EarlyexitswillhavethesameeffectasaTARDY.CRITICALNOTE:AtNOtimemayyourinternshipbeusedasanexcuseforbeinglateormissingclass.Yourinternshiphostshouldaccommodateyourneedtofulfillyourpunctualclassroomattendance.Itisyourresponsibilitytocommunicateyourscheduleaheadoftimewithyourhostsotheycanhelpyoumakethishappen.

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RecommendedIndustryLinksDeadlineHollywoodhttp://www.deadline.comVarietyhttp://www.variety.comHollywoodReporterhttp://www.hollywoodreporter.comTheWraphttp://www.thewrap.comImdbpro.comhttp://www.imdbpro.comBoxOfficeMojohttp://www.Boxofficemojo.comTheNumbershttp://www.the-numbers.comRecommendedIndustryBookstoresSAMUELFRENCH:7623SunsetBlvd.,L.AWRITERSSTORE:2040WestwoodBlvd,WestL.A.ClassroomEtiquettePolicyTheuseofcellphones,textmessagingandallformsofoutside-communicationduringclasshoursarenotacceptableandwillnotbetolerated.Laptops(withoutwifi),however,AREanacceptableformofnote-takinginthisclass.NOWORKINGONOUTSIDECLASSASSISGNMENTSORSOCIALNETWORKINGDURINGCLASSTIME.LearningOutcomes Assessment %ofGradeDesign,produce,explain,andapplykeywords/conceptsrelatedtobusinessofentertainment

FinalExam Paper20%Presentation20%

Critiqueandexplainaprofessionalbusinessandcareer

Mid-Term Paper10%Presentation10%

Understand,explainandcreatematerials

ClassAssignments 20%

Engageincriticaldialogueandcollaborativeknowledge-building

AttendanceandIn-classparticipation

Attendance10%In-class10%

TotalCourseGradeis100%andpresentationanddeliveryofFinalProjectismandatory.LetterGrade

Range

A 100%to94.0% A- <94.0%to90.0%

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LetterGrade

Range

B+ <90.0%o87.0% B <87.0%to84.0% B- <84.0%to80.0% C+ <80.0%to77.0% C <77.0%to74.0% C- <74.0%to70.0% D+ <70.0%to67.0% D <67.0%to64.0% D- <64.0%to61.0% F <61.0%to0.0% ServicesforStudentswithDisabilitiesStudentswithadocumenteddisabilitymayrequestappropriateacademicaccommodationsfromtheDivisionofDiversityandCommunityEngagement,ServicesforStudentswithDisabilities,512-471-6259(voice)or512-410-6644(videophone).Pleaseinformmewithinthefirstthreeweeksofclassifyouhaveaphysical,learning,sensory,orpsychologicaldisabilityandneedaccommodationtotakepartinortocompletetherequiredworkforthiscourse.UniversityEmailNotificationPolicy:AllstudentsshouldbecomefamiliarwiththeUniversity’sofficialemailstudentnotificationpolicy.Itisthestudent’sresponsibilitytokeeptheUniversityinformedastochangesinhisorheremailaddress.StudentsareexpectedtocheckemailonafrequentandregularbasisinordertostaycurrentwithUniversity-relatedcommunications,recognizingthatcertaincommunicationsmaybetime-critical.Itisrecommendedthatemailbecheckeddaily,butataminimum,twiceperweek.Thecompletetextofthispolicyandinstructionsforupdatingyoure-mailaddressareavailableathttps://cio.utexas.edu/policies/university-electronic-mail-student-notification-policy.Inthiscourse,emailwillbeusedasameansofcommunicationwithstudents.Youwillberesponsibleforcheckingyouremailregularlyforclassworkandannouncements.ReligiousHolidays:Religiousholydayssometimesconflictwithclassandexaminationschedules.Ifyoumissanassignmentorotherprojectduetothe

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observanceofareligiousholydayyouwillbegivenanopportunitytocompletetheworkmissedwithinareasonabletimeaftertheabsence.ItisthepolicyoftheUniversityofTexasatAustinthatyoumustnotifyyourinstructoratleastfourteendayspriortotheclassesscheduledondatesyouwillbeabsenttoobserveareligiousholyday.TheUniversityofTexasHonorCode:ThecorevaluesofTheUniversityofTexasatAustinarelearning,discovery,freedom,leadership,individualopportunity,andresponsibility.EachmemberoftheUniversityisexpectedtoupholdthesevaluesthroughintegrity,honesty,trust,fairness,andrespecttowardpeersandcommunity.ScholasticDishonesty:TheUniversitydefinesacademicdishonestyascheating,plagiarism,unauthorizedcollaboration,falsifyingacademicrecords,andanyactdesignedtoavoidparticipatinghonestlyinthelearningprocess.Scholasticdishonestyalsoincludes,butisnotlimitedto,providingfalseormisleadinginformationtoreceiveapostponementoranextensiononatest,quiz,orotherassignment,andsubmissionofessentiallythesamewrittenassignmentfortwocourseswithoutthepriorpermissionoftheinstructor.Byacceptingthissyllabus,youhaveagreedtotheseguidelinesandmustadheretothem.Scholasticdishonestydamagesboththestudent’slearningexperienceandreadinessforthefuturedemandsofawork-career.StudentswhoviolateUniversityrulesonscholasticdishonestyaresubjecttodisciplinarypenalties,includingthepossibilityoffailureinthecourseand/ordismissalfromtheUniversity.Moreinformationonstudentconductandacademicintegrityisavailableathttp://deanofstudents.utexas.edu/conduct/academicintegrity.php.WEEKLYSCHEDULE(SubjecttoChange)CLASS#1:INTRODUCTIONS/STATEOFTHEINDUSTRY/CLASSMETHODOLOGY(Wed.Aug23)

• Introductions• CurrentStateofthefilmandmediaindustry• ClassMethodology:

o HowHollywoodWorks+Economicso StudiocfIndependentcfDisruptors/digitalcfTVo RoleofTechnologyo Paradigms:

§ Business/Creative§ Content/Distribution§ Risk/Reward-‘FollowTheMoney’

o Learningthelanguageofsavvy

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• ThePlayers:o Talent:Writers(WGA);Directors(DGA);Actors(SAG-AFTRA);IATSE;

Teamsterso Producers–whatisaproducer?o Representatives:Lawyers;Agents;Managers;Publicistso Studiosandmini-majors;IndieDistributors;Disruptorso Indieplayers:SalesAgents;Buyer’sReps;CollectionAgents;

CompletionBondcompanies;Insurerso ‘Independent’FilmFinanciers;Banks;Bankequivalents;Private

Equity;Brands;Crowdfunding

ClassAssignment:Theclasswillbedividedintogroupsandeachgroupwillberequiredtoprovidetwobrief(1pageeach)papersinbulletpointformat,ANDtopresentthepapersinpersonatClass#2toyourclassmates,focusedon:

(i) ThehistoryofcinemaintheU.S.foreachdecadesince1900(eachgroupwillbeassignedonedecade);AND

(ii) Thenotablefilmhighlightsofoneinternationalterritory(eachgroupwillbeassignedonecountry).

Eachpaperwillfocusonthecreative(films/filmmakers),businessandtechnologicaldevelopments.ReadingAssignment:‘TheBigPicture’byEdwardJayEpstein,pages3to125.CLASS#2:AHISTORYOFHOLLYWOOD(Wed,Aug30)

• PresentationofClassAssignments• AHistoryoftheU.S.Industry:

o Creatorso ContractSystemo EraofLiberalization

ClassAssignment:ReviewandbefamiliarwiththeassignedhandoutstudiofilmfinancingmodelhandoutforparticipationinClass#3.CLASS#3:HOWTHEMAJORMOTIONPICTURESYSTEMWORKS(Thur.Sep7–classpushedonedayduetoLaborDayholiday)GUESTSPEAKER:TBD

• HowTheStudioSystemWorkso WhatisaStudioFilm?o Distributors,Banks&IPownerso RelationshipwithExhibitors

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o FilmmakerRelationshipso FinancingRelationshipso LittleYes/BigYes

• ‘FollowtheMoney’–TheDomesticEconomics:

o ReleaseWindowso FilmRentalso Costsoff-the-tops(1-7)o P&Ao DistributionFeeo HomeEntertainmento PayTelevisiono Cable/FreeTelevisiono Syndicationo Libraryo OtherRevenues

§ Merchandising§ ThemeParks§ Retail

• InternationalReleaseo Day-&-Dateo Major/MinorTerritorieso ReleaseWindowso Piracyterritorieso China

ClassAssignment:Prepareapaper/modelthatestimates,andshowsthecalculations,ofthetotalnetrevenuesdomesticallyforanymoviereleasedtheatricallybyamajormotionpicturestudiointhelastfiveyearsthatgarneredmorethan$10mindomesticboxoffice.Bepreparedtopresentanddiscussyourpaper/modelinClass#4.A1-pageSummaryoftheGuestSpeaker’sinsights.ReadingAssignment:ReviewandbefamiliarwiththeassignedindependentfilmfinancingmodelhandoutforparticipationinClass#4.CLASS#4HOWTHEINDEPENDENTSYSTEMWORKS(Wed,Sep13)GUESTSPEAKER:TBD

• DiscussionofClass#3AssignmentPapers/Models• HowtheIndependentSystemWorks

o Whatisanindependentfilm?o Markets(cf.festivals)o Sales/International

§ SAA(NOAs)

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§ DomesticRepresentation§ Co-Productions

o FinancePlans§ Equity§ Mezzanine§ Senior=Collateral

o RecoupmentPlans§ Waterfalls

o ‘Comparables’AnalysisClassAssignment.PrepareONEofeitheraFinancePlan,RecoupmentPlanorComparablesAnalysisforanindependentfilmprojectofyourchoosingsoldinthelastfiveyearsbyaprominentsalesagent.BepreparedtopresentanddiscussyourworkinClass#5.A1-pageSummaryoftheGuestSpeaker’sinsights.ClassReading.Handout‘FinalTopTenProductionIncentiveStates2015-2016.’CLASS#5:PRODUCTIONINCENTIVES(Wed.Sep20)GUESTSPEAKER:TBD

• DiscussionofClass#4AssignmentFP,RPorCompAnalysis• TopLocations• InternationalLocations• ATLcf.BTL• Caps/Minimums• Rebatescf.Credits• Discounting

ClassAssignment.SelectapropertythatyouwishtobethesubjectofyourFinalProject.Youarefreetochooseyourproperty,preferablyinfilm,anditmaybestudioorindieofanygenre,budget,rating,etc.A1-pageSummaryoftheGuestSpeaker’sinsights.CLASS#6:HOWTHETELEVISIONSYSTEMWORKS(Wed.Sep27)GUESTSPEAKER:TBD

• PitchyourchosenFinalProjecttotheclass.• TheTVsystem

o HowtheTVSystemWorks§ NetworkCycle§ CableCycle§ Co-Productions§ Syndicated

ClassAssignment.A1-pageSummaryoftheGuestSpeaker’sinsights.Prepareforyourmid-Term.

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CLASS#7:MID-TERMEXAM(Wed.Oct4)Interviewanotedmediaexecutive;writeapaperofnolessthan2pagesandverballypresenttoyourclassmatesinpersonthesummaryofthatindividual’spersonalandstrategicbusinessplanbehindtheircareerandtheirbusiness[Alternative:Prepareananalysisofwhattypeoffilm(studio/indie,genre,budget,rating,location,releasestrategy)youwouldmakeifyouwishedtomaximizereturnsoncapitalandverballypresentyouranalysistoyourclassmatesinpersonwiththeassistanceofwhatevermaterialsyouhaveprepared.]CLASS#8PRODUCING-DEVELOPMENT(Wed.Oct11)GUESTSPEAKER:TBD(Producing)

• HowItWorks• Pitching/Selling• IP/UnderlyingRights/©• OptionAgreements• WriterAgreements(Work-for-hire)• LifeStoryRights/PublicDomain• InvasionofPiracy/Defamation• Clearances• E&O• MusicRights• DevelopmentInvestmentDealStructures

ClassAssignment.A1-pageSummaryoftheGuestSpeaker’sinsights.CLASS#9:PRODUCING–PRODUCTION(Wed.Oct.18)GUESTSPEAKER-TBD(Legal)

• Packaging/Castingo DomesticRepping

• DirectorAgreements• ActorAgreements• ProducerAgreements• ProfitParticipations• GuildAgreements• FinancingAgreements

ReadingAssignment.Reviewandbefamiliarwiththehandoutscript,budgetandschedule.A1-pageSummaryoftheGuestSpeaker’sinsights.

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CLASS#10:PRODUCING–PHYSICALPRODUCTION(Wed.Oct.25)GUESTSPEAKER:TBD(lineproducer)

• Budgeting/Schedulingo Breakdowno ShootingDayso CashFlowScheduleo Locations/SoundStageo Night/Day

ClassAssignment.PrepareatopsheetbudgetinMovieMagicBudgetingsoftwareforyourFinalProject.A1-pageSummaryoftheGuestSpeaker’sinsights.CLASS#11PRODUCING–POSTPRODUCTION(Thur.Nov.2–ClasspushedonedayduetoHalloween)GUESTSPEAKER:PaulLeonardandANOtherTBD[tocome]CLASS#12MARKETING(Wed.Nov.8)GUESTSPEAKER:TBD• Marketing/Audience

o BigIdea/HighConcepto TraditionalvsDigital

§ NetworkMedia§ SocialMedia

o Ratingo Genreo Demographics

AssignedReading.GenderInequalityin500PopularFilmsbyStacySmith.EUDigitalSingleMarketDirective+Portability.[China]CLASS#13FUTURETRENDS(Wed.Nov.15)GUESTSPEAKER:TBD• Diversity• DigitalSingleMarket• Disruptors:Amazon/Netflix• Analytics:Slated/CinelyticsClassAssignment.A1-pageSummaryoftheGuestSpeaker’sinsights.

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CLASS#14GUESTSPEAKER(Wed.Nov.22)GUESTSPEAKER:TBD–TheJoysandChallengesofProducingCLASS#15:FINALPROJECTREPORTS/PRESENTATIONS(Thur.Nov30–ClasspushedonedayduetoGoodbyeDinner)• FinalProjectPresentationDue(anyformat)• FinalProjectpresentationinpersontotheclassofacompletedevelopment,

production,finance,recoupment,budget&schedule,sales,marketing&distributionpresentationprimarilyfromabusinessperspectiveforyourselectedFinalProject

SuggestedReading[tocome.]