Film Budgeting

Budgeting is an important aspect of film production. During script development, filmmakers produce a rough budget to convince film producers and film studios to give them a greenlight for production. During pre-production, a more detailed film budget is produced. This document, which could be over 150 pages long, is used to secure financing. Multiple drafts of the budget may be required to whittle down costs. A budget is typically divided into four sections: above-the-line (creative talent), below-the-line (direct production costs), post-production (editing, visual effects, etc), and other (insurance, completion bond, etc). Contents 1 Elements 2 The budget as an advertising tool 3 Going over budget 4 Examples 4.1 Lara Croft Tomb Raider: The Cradle of Life 4.2 Terminator 3: Rise of the Machines  4.3 Spider-Man 2 Elements Story rights: The right to produce a film based on a play, novel, or new story. Can be paid from  15000/- to 100000/- Screenplay: An A-list screenwriter can be paid 25000/- to 50000/- to write the first three drafts of a script. Dialog writer can be paid 25000/- 50000/- Director: minimum can be paid 250000/-( daily convense extra) for one movie up to 1st release , for a minimum of ten weeks' work. Traditionally, a director's salary is about 7 percent of the final budget. Cast: An A-list actor can ask for anything from  200000/- to 700000/- (trailer, entourage, etc.). The rest of the cast, often come out much worse with many being paid the Screen Actors Guild minimum. Sometimes an actor will accept a minimal fee in exchange for a lucrative share of the profits; Production costs: The cost of shooting the film including sets, wardrobe, location filming, hotels and transportation. The most prestigious productions will often employ the most successful, and therefore most expensive, crew, with the director of photography Visual effects: if required can costs 100000/- to 200000/- Music: The top film composers can ask for a six-figure salary, so of original music, could cost  500000/- with all expenses, rights etc. The budget as an advertising tool For blockbuster movies, high budgets are advertised to imply that the film will be worth watching. On the other hand, El Mariachiwas advertised as having a shoestring budget of $7,000. El Mariachi's actual budget including the distribution costs far exceeded $7,000. (It should be noted that the festival print of El Mariachi was in fact made for $7,000 - the additional budget expenditures came when the movie was picked up for distribution by a studio.) Going over budget In the US film production system, producers are not allowed to exceed the budget. Exceptions have of course been made, one of the most notable examples being Titanic. Director James Cameron ran over budget and offered his fee to the studio. In other countries, producers who exceed their budget tend to eat the cost by receiving less of their producer's fees. While the US system is profitable and can afford to go over budget, other countries' film industries tend to be financed through government subsidies. Examples Though movie studios are reluctant to release the precise details of their movies' budgets, it has occasionally been possible to obtain (clandestinely) details of the cost of a films break down.  Lara Croft Tomb Raider: The Cradle of Life Story rights and screenplay: $4 million Producers: $4 million Director (Jan de Bont): $5 million Cast: $17.25 million Angelina Jolie: $12 million Extras: $250,000 Other (inc. Angelina's perks): $5 million Production costs: $67 million Set design and construction: $17.8 million Visual Effects: $13 million Music: $3.3 million Editing: $3 million Post Production costs: $1.5 million Total: $118 million Source: [1] http://www.edwardjayepstein.com/laracroft1.htm Terminator 3: Rise of the Machines Story rights (Carolco and Gale Anne Hurd): $14.5 million Screenplay: $5.2 million John D. Brancato & Michael Ferris: $1 million Director (Jonathan Mostow): $5 million Producers: $10 million Cast: $35 million Arnold Schwarzenegger: $29.25 million + 20% gross profits Arnold's perks: $1.5 million Rest of principal cast: $3.85 million Extras: $400,000 Production costs: $58 million Post-production costs: $4 million Visual effects: $20 million Music: $2 million Other costs: $33.6 million Total: $187.3 million Source: [2] http://www.edwardjayepstein.com/budget.htm Spider-Man 2 Story rights: $20 million Screenplay: $10 million Producers: $15 million Director (Sam Raimi): $10 million Cast: $30 million Tobey Maguire: $17 million Kirsten Dunst: $7 million Alfred Molina: $3 million Rest of cast: $3 million Production costs: $45 million Visual effects: $65 million Music: $5 million Composer (Danny Elfman): $2 million. Total: $200 million Source: [3] http://www.guardian.co.uk/film/20