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INDEX

SL.NO DESCRIPTION P.NO

1 Introduction 2

2 Mission 3

3 Our Core Values 3

4 Market Potential 4

5 Production Materials 5

6 Production Pipeline 10

7 Basis and presumption of the project 10

8 Financial aspects - Fixed capital 11

9 Financial aspects - Fixed capital 11

10 Recurring expenditure 12

11 Working capital assessments 14

12 Other financial aspects 14

13 Profitability Statement 17

14 Conclusion 18

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1. INTRODUCTION:

The movie industry consists of various establishments whose major engagements are the marketing and
circulation of audiovisual pieces to TV networks and movie theaters. In addition, the movie industry can
market these works to stores. The film industry is made up of the commercial and technological
filmmaking companies. These film industry companies may include production, screenwriting, film
studios, and cinematography, among other endeavors.
The biggest motion picture studios are typically a part of larger media institutions. Though the majority of
companies take part in both the production and distribution of movies, some companies are only involved
as distributors. Due to the great expense required to produce a movie, the making of a film usually has to
be done in conjunction with an already established production company. However, the production of
independent films has begun to evolve with the advent of more affordable equipment and more
sophisticated consumer technology.
In the movie and film industry, movie rentals, broadcasting, and licensing rights all provide sources of
revenue. Companies may also retail merchandise, or make a profit through the licensure of brand names
to other manufacturers. Previously released movie and film material is distributed through many sources,
including theaters, television, the internet, and others. In order to show a movie in a theater, that theater
must acquire the right to use that movie. They are given the license for a film for a certain location and
specific duration of time. For movie theaters who have obtained the rights to show a film in their
establishment, a profit is made through ticket sales, as well as snack and beverage retail. Some facilities
may rent out unused space, and have an arcade area as well. Those who pay to advertise on-screen also
contribute to a theater’s revenue.

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2. MISSION:

We are Lumiere Productions and we create films that inspire action. We move your audience to action
with inspirational films and digital marketing tactics that communicate your mission, vision, and services
that embody our shared values of Impact, Beauty, Innovation, Wholeness, and Overcoming
Adversity. We do this because we want to move people emotionally and to move them to answer a call to
action. What action do you want to inspire?

3. OUR CORE VALUES:

Impact - The impact that is being had on everyone from an individual to our planet.

Beauty - The beauty that we create and what we see in the natural world.

Innovation - The ideas and inventions that are creating a new and better future.

Wholeness - Hearts, minds, souls, and bodies that are healthy.

Overcoming Adversity - The driving force that pushes us forward even when the odds are stacked
against us.

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4. MARKET POTENTIAL
The global film and video market reached a value of nearly $234.9 billion in 2020, having increased at a
compound annual growth rate (CAGR) of 2.4% since 2015. The market is expected to reach $318.2
billion by 2025, and $410.6 billion by 2030.
Growth in the historic period resulted from increased numbers of television channels, increasing internet
penetration, increase in TME mergers, growth in world population, and strong economic growth in
emerging markets. Factors that negatively affected growth in the historic period were regulations, and
movie piracy.
Going forward, rising demand for video content, advances in technology, digitization, and increase in
mobile video viewing will drive the growth. Factors that could hinder the growth of the film and video
market in the future include coronavirus pandemic, changing customer demands, and decrease in theatre
attendance.
The film and video market is segmented by type into film and video production, film and video
distribution, post-production services, film and video theatres, and other film and video industries. The
film and video production market was the largest segment of the film and video market segmented by
type, accounting for 63.8% of the total in 2020. Post-production services is expected to be the fastest
growing segment in the film and video market segmented by type, going forward, at a CAGR of 8.2%
during 2020-2025.

Market-trend-based strategies for the film and video market include utilizing autonomous drones for
filmmaking, investing in motion capture technologies, using virtual production techniques, utilizing 4K
camera technology, and adopting big data technologies. Player-adopted strategies in the film and video
market include expanding through innovative and effective business models, and expanding through
strategic acquisition of emerging and established companies. The COVID-19 pandemic has increased
short-term potential growth opportunities for the film and video industry.To take advantage of the
opportunities, the publisher recommends the film and video market companies to focus on using
autonomous drones, using of motion capture technology to reduce production costs, expand in emerging
markets, market based pricing, offer flexible pricing, investing in creating websites, leveraging social
media and offering services based on consumer preferences.

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5. PRODUCT MATERIALS:

5.1 RED CAMERA

RED (Red Digital Cinema Camera Company) is the leading manufacturer of professional digital cinema
cameras. Red cameras have been well known for their ability to shoot in higher frame rates since the Red
One. Sony, Panasonic, and Canon are really just catching up to Red with their higher frame rate
capabilities because the quality of the slow-motion footage from any Red camera is fantastic. The
company's headquarters are in Irvine, California, with studios in Hollywood, California.

FIG 5.1

5.2 STABILISATION EQUIPMENTS

A camera stabilizer is a mountable rig that works to avoid any unwanted movement and maintain
smooth footage during operation. Stabilizers often need to be properly balanced – and can incorporate
gimbals to keep footage from shaking, some of which are electronically powered by brushless motors for
precise adjustments. Camera stabilizers are all based on your camera weight. So while the different types
of stabilizers will often be created for heavier cameras, there are also professional options built for lighter
cameras.

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Types of Camera Stabilizers:

5.2.1 Handheld Stabilizers

A handheld stabilizer is a stabilizer that doesn’t use a vest or 3-Axis gimbal to create extra stability. These
are normally the less expensive options that rely heavily on the operator.


FIG 5.2

The stabilizer in the picture above is actually created for heavier cameras when compared to the other
Glidecam handheld stabilizers.

5.2.2 3-AXIS GIMBALS

A gimbal is simply a pivoting mount which allows an object to rotate around a single axis. They are often used on
ships for navigation devices, or to keep things stable while the boat shakes in the water.
A 3-axis gimbal is a camera stabilizer that makes automatic adjustments based on gravity in order to give
stable footage. Motorized options help make adjustments, but require charge time and batteries.
As mentioned before, some of the most popular stabilizer options are battery-powered motorized 3-axis
gimbals, such as the DJI Ronin M. These stabilizers can take 15 minutes to mount and balance, with some
of the more advanced stabilizers boasting an electronic auto-balance feature.

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FIG 5.2
You can also adjust the motor stiffness in some stabilizers, allowing more control over your operation.
This is particularly helpful when switching to a different camera.

5.2.3 VEST STABILIZER SYSTEMS

A vest system is a stabilizer that combines a vest attachment, springs, iso-elastic arms, multi-axis gimbal,
and weighted sled. The most well-known versions of this being the Tiffen Steadicam. These stabilizers
are more often used with high-end cinema cameras and depending on their support range can have trouble
balancing cameras that are too lightweight.

The key to effectively using a vest stabilizing system, or any weight based stabilizer is transferring the
centre of gravity from the camera to the “sled” (weighted plate).

When the vest systems are mounted with professional cameras (camera battery, monitor, lens, etc) they
can be as heavy as 60 lbs, but this weight is distributed evenly across your torso, allowing the operator to
move with relative ease.

FIG 5.3

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Many of these stabilizers do not require batteries to operate, as they are purely mechanical, but the
physical stress can force your operator to take breaks while one set. Here is a helpful video from Bart
Johnson Productions where they test a DJI Ronin M (motorized 3-axis gimbal) vs the Tiffen Steadicam
(vest stabilizer system).

5.3 CRANES
In filmmaking and video production, a crane shot is a shot taken by a camera on a moving crane or jib.
Most cranes accommodate both the camera and an operator, but some can be moved by remote control.
Camera cranes go back to the dawn of movie-making, and were frequently used in silent films to enhance
the epic nature of large sets and massive crowds. Another use is to move up and away from the actors, a
common way of ending a movie. Crane shots are often found in what are supposed to be emotional or
suspenseful scenes.

FIG 5.4

5.4 CINEMATIC DRONES

Cinema FPV is high-speed drone cinematography delivered in a small package with extremely high
precision. It offers Directors and Cinematographers a new, unique camera perspective that is not
deliverable with any other camera platform.

5.4.1 DJI DIGITAL FPV SYSTEM

The DJI Digital FPV System was designed for the drone racing industry. It consists of the DJI FPV Air
Unit Module, DJI FPV Camera, DJI FPV Goggles, and DJI FPV Remote Controller, all of which are
packed with powerful features and serve a significant role in the development of our HD Low Latency

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FPV system. We have redefined drone racing, delivering lower latency rates, stunning HD resolution,
and, most importantly, an unforgettable FPV flying experience.

FIG 5.3
5.5 GREEN SCREEN
The technology of using a green screen has been around since the 19th century. Entertainment and
Hollywood have become legendary for using this art of illusion. The name green screen was adopted
simply because there’s a large green screen on the set. The colour green was chosen as one of the least
colours worn by personalities or images used for display. The technique uses layers of images.
The background layer is the transparent green screen. The foreground is the final displayed image. The
screen is placed behind the image to be displayed. Studio green backdrops are used to completely
surround the object to create a floating effect.

FIG 5.4


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6. PRODUCTION PIPELINE:

FIG 6.1: Production Pipeline

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7. BASIS AND PRESUMPTION OF THE PROJECT:

 The process of manufacture of the video/film is on the basis of location and time of which it
should be filmed.
 Labor and wages mentioned in profile areas per prevailing local rates.
 Interest rate at 12.5% considered in the project

 The Promoter contribution will be 10% of the total project cost.

9. PRODUCTION CAPACITY PER ANNUM:

Quantity: 1-2 number of big budget video project per month 20-24 number of projects per annum
(310 days)

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10.FINANCIAL ASPECTS
10.1. FIXED CAPITAL:

SL.NO DESCRIPTION QUANTITY RATE

1 CAMERAS 4 19,81,800
2 DRONE 1 1,60,000
3 FPV 1 1,34,000
4 CRANE 1 7,20,000
5 GIMBAL 2 1,52,000
6 LENSES 10 7,00,000
7 LIGHTINGS 5 1,30,000
8 OTHER EQUIPMENTS (PC, GREEN SCREEN, 5,00,000
SOFTWARES)
TOTAL(A) 44,77,800/-

10.2. RECURRING EXPENDITURES

Salaries & Wages per Month:

S.NO DESIGNATION NO SALARY AMOUNT(RS)

1 Chief Executive Officer (CEO) 1
1,50,000 1,50,000
2 Chief Operating Officer (COO) 1
1,15,000 1,15,000
3 Chief Technical Officer (CTO) 1
1,25,000 1,25,000
4 Chief Recruitment Officer (CRO) 1
1,10,000 1,10,000
5 Chief Financial Officer (CFO) 1
1,00,000 1,00,000
6 Production cum Marketing 1
1,00,000 1,00,000
Manager (Proprietor)
7 Workers 5 15,000 75,000
8 Editors 2 20,000 40,000

9 VFX Artists 4 30,000 1,20,000

10 Office Assistant 1 8,000 8,000

TOTAL(B) 9,43,000

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Other Expenses per Month:

S.NO DESCRIPTION AMOUNT(RS)
1 Rent 12,000
2 Marketing expenses & Advertisement 15,000
3 Postage and stationery 800
4 Repairs and maintenance 6,000
5 Traveling and transportation 16,000
6 Insurance 25,000
7 Telephone, Mobile & Internet 3,500
8 Packing Materials 8,000
TOTAL(C) 86,300

RECURRING EXPENDITURE PER MONTH:

A + B + C = RS 55,07,100/-

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WORKING CAPITAL ASSESSMENT

S.NO DESCRIPTION AMOUNT (Rs)

1 Product Material (Initial

investment) 44,77,800

2 Work in progress 10,00,000

(Required for one month)

TOTAL 3,04,77,800
Say 3,05,00,000

TOTAL PROJECT COST

Equipment 44,77,800

Working capital 10,00,000

Total 54,77,800

MEANS OF FINANCE

Total Project cost 54,77,800

Promoter contribution 10% 5,47,000

Total 60,24,800

Finance required from the Bank 60,24,800/-

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COST OF PRODUCTION PER ANNUM

S.NO DESCRIPTION AMOUNT(RS)

1 Total recurring cost 55,07,100
2 Interest on Bank Loan @12.5% 3,62,750

3 Total Depreciation on Equipments @15% 1,60,000

4 Total Depreciation on furniture’s and 30,000

other equipment’s @ 20%

TOTAL 60,59,850/-

TURNOVER PER ANNUM

By sale of 6 production of average 80,00,000 in a year = 4,80,00,000

PROFIT PER ANNUM

Turnover - Cost of Production

4,80,00,000 – 60,59,850

= 4,19,40,150

% of profit on sales = PROFIT/ANNUM

X 100
TURNOVER/ANNUM

4,19,40,150
X 100
4,80,00,000

= 87.37%

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RATE OF RETURN

PROFIT/ANNUM * 100
TOTAL CAPITAL INVESTMENT

= 4,19,40,150 * 100
44,77,800

= 93.6%

BREAK EVEN ANALYSIS

Fixed expenditure per annum

Interest on Loan 3,62,750

Total Depreciation 1,60,000

40% of salary and wages 3,77,200

40% of other expenses & Utilities 34,520

Total 9,34,470

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CONCLUSION

The report first focuses on enhancing the basic knowledge of the entrepreneur about the making
of a film. The report then helps an entrepreneur identify the target client group of its product. It
further helps in making sound investment decision. Report includes graphical representation and
forecasts of key data discussed in the above-mentioned segment. It further explicates the growth
potential of the company.

The report includes other market data like key players in the Industry segment along with their
contact information and recent developments. It includes crucial information like raw material
requirements, list of equipments and manufacturing process of a film. Core project financials like
working space, costs involved in setting up of project, working capital requirements, projected
revenue and profit are further listed in the report.

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