CHAPTER 3
Financing Production: Studios and Networks as Venture Capitalists
Overview
This chapter will discuss how film and television projects are financed, including how the money is raised and secured and what piece of the pie parties retain for their investment. I will argue that to a large degree Hollywood studios are simply specialized venture capitalists with the return on investment (ROI) strategy premised on limited but large bets. The discussion of traditional film and TV financing is in stark contrast to original Internet production, which today remains heavily dependent on venture capital or other private backing given the nascent (though growing) video advertising market and speculative returns.
Standard Hollywood movies have become ...
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