Filmmakers Glossary of Film Business Terminology.
A colleague of mine asked me if I had a glossary on film financing terms in the same way I wrote one for film distribution (which you can check out here.) Since I didn’t have one, I thought I’d write one. After I wrote it, it was too long for a single post, so now it’s two. This one is on general terms, next week we’ll talk about film investment terms. As part of the website port, I’m re-titling the first part to a general film business glossary of terms, to lower confusion on sharing it. It’s got the same terms and the same URL, just a different title.
Capital
While many types exist, it most commonly refers to money.
Financing
Financing is the act of providing funds to grow or create a business or particular part of a business. Financing is more commonly used when referring to for-profit enterprises, although it can be used in both for profit and non-profit enterprises.
Funding
Funding is money provided to a business or non-profit for a particular purpose. While both for-profit and non-profit organizations can use the term, it’s more commonly used in non-profit media that the term financing is.
Revenue
Money that comes into an organization from providing shrives or selling/licensing goods. Money from Distribution is revenue, whereas money from investors is financing, and donors tend to provide funding more than financing, although both terms could apply.
Equity
A percentage ownership in a company, project, or asset. While it’s generally best to make sure all equity investors are paid back, so long as you’ve acted truthfully and fulfilled all your obligations it’s generally not something that you will forfeit your house over. Stocks are the most common form of equity, although films tend not to be able to issue stocks for complicated regulatory reasons and the fact that films are generally considered a high-risk investment.
Donation
Money that is given in support of an organization, project, or cause without the expectation of repayment or an ownership stake in the organization. Perks or gifts may be an obligation of the arrangement.
Debt
A loan that must be paid back. Generally with interest.
Deferral
A payment put off to the future. Deferrals generally have a trigger as to when the payment will be due.
“Soft Money"
In General, this refers to money you don’t have to pay back, or sometimes money paid back by design. In the world of independent film, it’s most commonly used for donations and deferrals, tax incentives, and occasionally product placement. It can have other meanings depending on the context though.
Investor
Someone who has provided funding to your company, generally in the form of liquid capital (or money.)
Stakeholder
Someone with a significant stake in the outcome of an organization or project. These can be investors, distributors, recognizable name talent, or high-level crew.
Donor
Someone who has donated to your cause, project, or organization.
Patron
Similar to donors, and can refer to high-level donors or financial backers on the website Patreon. For examples of patrons, see below. you can be a patron for me and support the creation of content just like this by clicking below.
Non-Profit Organizations (NPO)
An organization dedicated to providing a good or service to a particular cause without the intent to profit from their actions, in the same way, a small business or corporation would. This designation often comes with significant tax benefits in the United States.
501c3
The most common type of non-profit entity file is to take advantage of non-profit tax exempt status in the US.
Non-Government Organization (NGO)
Similar to a non-profit, generally larger in scope. Also, something of an antiquated term.
Foundation
An organization providing funding to causes, organizations and projects without a promise of repayment or ownership. Generally, these organizations will only provide funding to non profit organizations. Exceptions exist.
Grantor
An organization that funds other organizations and projects in the form of grants. Generally, these organizations are also foundations, but not necessarily.
Fiscal Sponsorship
A process through which a for-profit organization can fundraise with the same tax-exempt status as a 501c3. In broad strokes, an accredited 501c3 takes in money on behalf of a for-profit company and then pays that money out less a fee. Not all 501c3 organizations can act as a fiscal sponsor.
Investment
Capital that has been or will be contributed to an organization in exchange for an equity stake, although it can also be structured as debt or promissory note.
Investment Deck (Often simply “Deck”)
A document providing a snapshot of the business of your project. I recommend a 12-slide version, which can be found outlined in this blog or made from a template in the resources section of my site, linked below.
Related: Free Film Business Resource Package
Look Book
A creative snapshot of your project with a bit of business in it as well. NOT THE SAME AS A DECK. There isn’t as much structure to this. Check out the blog on that one below.
Related: How to make a look book
Audience Analysis
One of 3 generally expected ways to project revenue for a film. This one is based around understanding the spending power of your audience and creating a market share analysis based on that. I don’t yet have a blog on this one, but I will be dropping two videos about it later this month on my youtube channel. Subscribe so you don’t miss them.
Competitive Analysis
One of 3 ways to project revenue for an independent film. This method involves taking 20 films of a similar genre, attachments, and Intellectual property status and doing a lot of math to get the estimates you need.
Sales Agency Estimates
One of 3 ways to project revenue for an independent film. These are high and low estimates given to you by a sales agent. They are often inflated.
Related: How to project Revenue for your Independent Film
Calendar Year
12 months beginning January 1 and ending December 31. What we generally think of as, you know, a year.
Fiscal year
The year observed by businesses. While each organization can specify its fiscal year, the term generally means October 1 to September 30 as that’s what many government organizations and large banks use. Many educational institutions tie their fiscal year to the school year, and most small businesses have their fiscal year match the calendar year as it’s easier to keep up with on limited staff.
Film Distribution
The act of making a film available to the end user in a given territory or platform.
International Sales
The act of selling a film to distributors around the world.
Related: What's the difference between a sales agent and distributor?
Bonus! Some common general use Acronyms
YOY
Year over Year. Commonly used in metrics for tracking marketing engagement or financial performance on a year-to-year basis.
YTD
Year to Date. Commonly used in conjunction with Year over year metrics or to measure other things like revenue or profit/loss metrics.
MTD
Month to Date. Commonly used when comparing monthly revenue to measure sales performance. Due to the standard reporting cycles for distributors, you probably won’t see this much unless you self-distribute.
OOO
Out of Office. It generally means the person can’t currently be reached.
EOD
End of Day. Refers to the close of business that day, and generally means 5 PM on that particular day for whatever the time zone of the person using the term is working in.
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