| The film business, and we're not only talking about Hollywood, has become an international success story, with substantive returns on modest budgets. While Hollywood has been able to best capitalize on the world market due to their massive economic resources and well developed distribution system, however, it is not alone in raking in the big bucks. |
| Independent producers of small and low budget films have also been smart to catch on to this money-making trend and are making small but entertaining films, focusing on human stories with a lot of humor that translates well cross all boundaries and cultures. |
| One only has to look at the success of The Full Monty, a quirky but very funny look at unemployment in a small British town, to know that there is tremendous potential for making money in producing small and low budget films. The Full Monty was made for two to three million dollars, which is small change compared to Hollywood, but went on to gross more than $150 million dollars world-wide. |
| The Full Monty, like a number of small, independent films that went onto gross $50 million or more world-wide may be a luck of the draw, but even when you take small modestly priced films (between $200,000 to $500,000 or $ million), they have a great potential to return at least two or three times their initial investment. |
| THE MARKET |
| We believe our movies are films that will find markets in theatrical release and do very well in the Pay-TV market. Combined with the help from CRTC programming regulations, because of our all-Canadian content, and with efficient production spending, our films will bring a fair profit to our investors. |
| Predicting the actual returns for any film is extremely difficult and MMM Film Finance does not claim to be able to predict what the box office returns or video rental/ sales figures will be. However, we are extremely confident that with the large numbers of dollars being pumped through the box office of North America and a strong video market for our films world-wide, they will be profitable. |
| The icing on the cake comes from television sales of our product. CRTC regulations require that Canadian broadcasters have a certain percentage of their programming be of Canadian content and in many cases these quotas are not being met. A whole host of pay and public stations across North America all need Canadian-made films to fill their programming slots and prices range into the hundreds of thousand. With satellite TV on the rise in Canada, more stations will require even more Canadian. We can fill that void with our product and increase our profits. |
| MARKET BREAKDOWN |
| The orderly exploitation of films produced by BSMP would involve the following markets (percentages are approximate but based on current industry averages): |
| 1 |
Theatrical Exhibition (US and Canada) |
28% |
| 2 |
Theatrical Exhibition (Foreign) |
15% |
| 3 |
Pay-TV (US and Canada)
This category includes Satellite TV and Pay-per-View |
8% |
| 4 |
Home Video (US and Canada) |
24% |
| 5 |
Home Video (Foreign) |
6% |
| 6 |
Canada and U.S. Television Syndication |
2% |
| 7 |
Foreign Television |
2% |
| 8 |
Other (This category includes In-flight and institutional releases.) |
2% |
|
