THANKS FOR PERUSING THIS FILMPROFIT SAMPLE: BUSINESS PLANNING

Facts, not hype, drive us, and drive our work for you. We can do it all for you, or just do the heavy lifting. We analyze your project, position it, and turn around a business plan that shows you and your project in a professional and success-oriented light. We treat every film, every client in the way that is best for their project and for their team. We focus on how to bring out the best in every project we take on. Our Strength is in helping you (and your investors and buyers) understand: The markets Audiences and their attitudes The key decisions that will affect you and your project's future The key risks and your mitigation strategies The team The financial prospects in real world analysis

WHAT WE PROVIDE YOU:

The outline below lists the contents of an average business plan. It does not apply to all plans, as the elements of each plan are custom designed to best promote the strengths of an individual film. Each film company and project brings a different set of talents, strengths and weaknesses to the table, and thus each plan has an individual set of emphases. We can handle producing your business plan for emerging or developing distribution company multi-project production company project development company single film project of any size film funds and more. For more information, get a written quote from our key analyst. Contact us by phone [(800)-474-3060], or use our contact or project submission page.

INTRODUCTION
Introduces the objectives of your project, and establishes the framework for the market. 1. Mission Statement For Your Movie 2. Executive Summary 3. Motion Picture Market Statistics Overview 4. Domestic Markets Growth 5. The Birth Of An Independent Film 6. The Rise Of Independent Filmmaking

THE PRODUCT
Introduces investors to your film, and then outlines the progression of a hypothetical independent film. Outlines a distribution and a festival strategy custom designed for your film. 1. Synopsis Of Your Movie

Business Plan

2. The Process Of An Independent Film: From An Idea To The Theaters A. The Steps Of The Process, From Conception Through Post-production 3. Gaining Distribution For Your Movie A. Distribution Strategy B. Target Domestic Distributors C. Target International Distributors 4. Festival Strategy (if any)

ACCESSING THE AUDIENCE FOR YOUR MOVIE

Analyzes movie audience demographics. Identifies and focuses upon your film's target audience, as determined through analysis of your project, whether it is an Art House super-indie, a familyoriented animation, a rough and tumble action picture, or what have you 1. Movie Audience Demographics A. Analysis of Target Audience B. Why This Audience? C. Movie-going Habits and Interests D. General Consumer Habits Potential Crossover Audience Please SEE our Audience Samples at www.filmprofit.com for more.

EXHIBITS
Contains all relevant attachments including biographies, supporting letters, and relevant articles. Also contains financial analysis of pictures comparable to your project, and financial projections for your film. Management Biographies Producer Writer Director Director Of Photography Production Team And Advisors Producer Casting Director

COMPARABLE PICTURES REPORT

The Comparable Pictures Reports delve into the costs and incomes from all of the key global markets, domestic Box Office, Home Entertainment (DVD) and Ancillaries (including TV), along with foreign Box Office, Home Entertainment (DVD), and Ancillaries (including TV). It includes line item notes for each market item estimated. Please SEE our Comparable Pictures Samples at www.filmprofit.com for more.

PROJECTIONS OF POTENTIAL INCOME

Projections of Potential Income is a custom report that analyzes all the market incomes and their costs and fee structures for your specific film. It includes detailed calculations of the elements of domestic Box Office, Cable TV, Network, Music and Merchandise, VOD, and Internet as well as DVD, and in the foreign markets the fees and incomes for Box Office, DVD and Ancillaries (including TV). There are

Filmprofit, LLC PO Box 14128 Portland, OR 97293-0128, PH: 310 593 4616 Confidential, Copyright 2008, Filmprofit, LLC

Business Plan

extensive line item notes relating to your specific project and laying out our assumptions on each market, including discussion of market parameters where appropriate. Please SEE our Projections of Potential Income Samples at www.filmprofit.com for more.

THE STATE OF MOTION PICTURE MARKETS

The State of the Film Markets Report is approximately 40 pages that discusses the business of the business of film, market by market. It covers the current conditions and deal landscapes of Box Office (including digital exhibition, etc.), Home Entertainment, Television markets, Video On Demand, The Internet, and the Foreign markets for films. Describes the current state of the global film market. Details the individual income streams available to your film, and what factors determine your film's potential revenue. 1. Domestic Primary Markets A. Domestic Theatrical Exhibition B. Ancillary Markets C. Home Video a. DVD As A Growth Factor In Home Video b. Revenue Sharing In Home Video c. Pay Per View Impact on Home Video D. Pay and Free Television E. Free Television F. Pay Per View/VOD 2. Foreign Markets

FROM CONCEPT TO SCREEN

From Concept to Screen walks the reader step by step through the life of a film, from its inception through its production, including various development and financing approaches, all the way to its release.

Filmprofit, LLC PO Box 14128 Portland, OR 97293-0128, PH: 310 593 4616 Confidential, Copyright 2008, Filmprofit, LLC

Business Plan

PAGE SAMPLES FOLLOW

PLEASE NOTE: The following pages are centered on helping you understand the look and feel and the general quality of our work. They are not trying to provide you with a specific or deep look into the information we bring to bear for your own project. That said, the pages here were ripped right from actual plans. Sometimes, producers looking at a sample that might have been built from an older version of a document will speculate that our data is not fresh. But you should understand that we are constantly updating all of our reports, and trying to provide each of our clients with the most recent insight applicable to the markets and to their projects. Still, at times, a three-year-old insight that really drills down on a topic is much more valuable than a six-month-old insight that just skitters across the top of an issue. I hope that this sample is helpful in your deliberations. Jeffrey Hardy

Filmprofit, LLC PO Box 14128 Portland, OR 97293-0128, PH: 310 593 4616 Confidential, Copyright 2008, Filmprofit, LLC

Business Plan

F OREIGN /D OMESTIC S PLIT 2007 B OX O FFICE I NCOME

FOR

US M AJOR S TUDIO M OVIES

Domestic 36%

Foreign 64%

Source: MPAA

G LOBAL B OX O FFICE I NCOME

$30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 2001

FOR

US M OVIES

FROM THE

M AJOR S TUDIOS , 2007

2002

2003

2004

2005

2006

2007

Note: This chart is in billions.

Source: MPAA

The market segments of foreign income to U.S. productions break down as outlined in the chart below. As opposed to North America, where the lions share of income is from home video, overseas income had traditionally been tilted toward the television markets, including satellite and terrestrial (over the airwaves). But these value segments have been in real flux, due to the roller coaster effect in advertising-based businesses (such as TV, which is increasingly being hit by online advertising growth, among other factors) and due to the meteoric rise of DVD, which is now reaching the position of a mature market. Overseas television now accounts for less than ##% of all-world sales, while international home entertainment accounts for more than ##% of all-world sales. And with Video On Demand technologies positioned as the next big thing, we will see a re-alignment of consumer attention, while also seeing a widened global growth in filmed entertainment. With Video On Demand, Mobile delivery systems, and other new technologies, it is anticipated that emerging countries will play a more and more significant part ###
Filmprofit, LLC PO Box 14128 Portland, OR 97293-0128, PH: 310 593 4616 Confidential, Copyright 2008, Filmprofit, LLC

Business Plan

H ISTORY

OF

A VERAGE U.S. T ICKET P RICES

Year
2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1990 1985 1981 1971 1963

% Price Change
$6.88 $6.55 $6.41 $6.21 $6.03 $5.80 $5.65 $5.39 $5.06 $4.69 $4.59 $4.42 $4.22 $3.55 $2.78 $1.65 $0.86 5% 2% 3% 3% 4% 3% 5% 7% 8% 2% 4% 5% 19% 28% 68% 92%

33yearperiod
Source: National Association of Theater Owners

DOMESTIC BOX OFFICE There was a drop in 2005s domestic box office that caused many to predict that it was the beginning of the end for theatrical film release. If that trend is afoot, the 2006 and 2007 rise again in box office are not yet proof of it. Still, we should be mindful that a year with soft (read unexciting) films could bring us another 2005. We are all also aware that there is no constant and forever guarantee of rise in ticket sales. (please SEE the following table, Domestic Box Office Receipts for Recent Years). It is clear that the box office can shift from year to year, and it is also clear that a single year downturn does not signify a structural change ### There are other important elements, however, to be considered, and understanding that we are at the edge of a wave of technological change will make any producer stronger in their business dealings. This change includes a leveling (and even a retreating) of the growth of DVD, and a consumer re-positioning of their attention that will shift the income streams to films. A nimble entrepreneur will look at every channel for marketing their film to the public, whether the film is a small specialty movie with lots of Return On Investment (ROI) possibility, or a studio film seeking blockbuster potential.

Filmprofit, LLC PO Box 14128 Portland, OR 97293-0128, PH: 310 593 4616 Confidential, Copyright 2008, Filmprofit, LLC

Business Plan

D OMESTIC B OX O FFICE R ECEIPTS FOR R ECENT Y EARS :

$12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00

Note: This chart is in billions.

The preceding figures make clear the viability of movies as an important consumer choice for entertainment on a North American basis, with independently produced films as a significant method of delivery. According to all sources of information, home video economics have now doubled domestic theatrical economics ###
M OVIE A TTENDANCE
OF

H OUSEHOLDS W ITH AND W ITHOUT C HILDREN , 2007 2007 Family Makeup of Frequent Moviegoers

30% 25% 20% 15% 10% 5% 0% W/Kids Under 17 22%

26% 18%

W/Teens 12-17

No Kids
Source: MPAA

NOTE: The percentages shown in this 2007 bar chart are not to be added together in pursuit of 100%, but each of the bars is indicative of the percentage of its age range that are Frequent Moviegoers. In the families with teens category, we see that Frequent Moviegoers represent a bigger share than in households with kids any age, or households without kids at all.

Frequent Moviegoers = One movie seen in a theater each month Occasional Moviegoers = One movie seen in a theater every 2 to 6 months Infrequent Moviegoers = Two or less movies seen in a year ###

Filmprofit, LLC PO Box 14128 Portland, OR 97293-0128, PH: 310 593 4616 Confidential, Copyright 2008, Filmprofit, LLC

Business Plan

Filmprofit, LLC PO Box 14128 Portland, OR 97293-0128, PH: 310 593 4616 Confidential, Copyright 2008, Filmprofit, LLC