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Film budgeting refers to the process by which a line producer, unit production manager, or filmmaker prepares a budget for a film production. This document, which could be over 150 pages long, is used to secure financing for and lead to pre-production and production of the film. 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.) Film financing can be acquired from a private investor, sponsor, product placement, film studio, entertainment company, and/or out-of-pocket funds.
For blockbuster movies, high budgets are advertised to imply the film will be worth watching. On the other hand, El Mariachi was advertised as having a shoestring budget of $7,000, though the actual budget, including the distribution costs, far exceeded that figure. The film's festival print was in fact made for $7,000; additional budget expenditures accrued when the movie was picked up for distribution by a studio.
In the US film production system, producers are typically not allowed to exceed the initial budget. Exceptions have of course been made, one of the most notable examples being Titanic (1997). Director James Cameron ran aground with the budget and offered his fee back 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.
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 films' breakdowns. For an example of a budget for a $2 million independent feature, see Planning the Low-Budget Film by Robert Latham Brown (ISBN 0-9768178-0-2).
Total: $74,243,106 [5]
Total: $118 million[6]
Total: $187.3 million[7]
Total: $200 million[8]
The Los Angeles Times presented an extensive special report, dissecting the budget of the 2005 film Sahara. The documents had become public domain after a lawsuit involving the film.[9]
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