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The Business of Media Distribution, 2nd Edition by Jeff Ulin

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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; with the advent of online leaders ...

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