As you settle into yourseatat the theater and immerse yourself in the conjuring trick of a major motion picture , it ’s easy to leave that film is about much more than glitz and glamour . At its core , filmmaking is a serious business , one that represents a stupendous $ 30 billion yearly diligence in the U.S. alone [ source : Reuters ] . Like any line , the pic industry runs on money , with many top films priced in excess of $ 200 million .
To keep runway of expense during the making of a movie , Hollywood accountantsdivide expenses into two basic categories , distinguished by where they go in the daybook books . Above - the - line price let in some major expense , including cast salaries and the film director ’s cut . While these physical body tend to get all the attention , the actual monetary value of making a movie are below the line .
Below - the - line expenses – so - name because they were traditionally listed beneath a thick black line used to single out them from above - the - descent cost in account statement text file – include well-nigh all the costs of motion-picture show yield , include salaries for the absolute majority of the people involved . require some seriously elaborate sets for a sci - fi picture show ? You ’ll ascertain the costs of these set below the line . Looking to purchase some fancy stop costumes for a Jane Austen film or develop a Golden Retriever to act in a lighthearted crony comedy ? let in these expenses below the line , or risk facing your accountant ’s anger .
Looking to learn more about below the line expenses ? Read on for more information about Hollywood budgeting basics .
What Falls Below the Line
Perhaps the easiest way to define below - the - line expense is to focus on what ’s not included in the category . Most expenses related to creative talent , such as actor salaries and the price of directors and producers , descend firmly above the ancestry . Any fees associated with screenwriting or secure the rightfulness to a screenplay are also above the line . Once these costs are out of the way , virtually every other dollar pass reach a movie is accounted for below the line of credit .
So what kind of spending is included in below the course expenses ? Start with pay . Other than the millions paid to the casting , about every salary in the budget fall below the business line . This let in the cost of any assistant directors , art and special effects folk , coif designers , lighting technicians , cameramen , sound the great unwashed and costume bunch . Wardrobe , hair and makeup cost also belong to this category , as do any monetary value associated with " perfunctory gift , " or extras .
Beyond remuneration , below - the - line costs also admit the costs of product . This could let in money spent on sets and props , euphony licensing and composition fee , trailer , workmanship overhaul , packaging , travel and insurance . Basically , any money that is n’t going to an actor , producer , director or screenwriter can be categorized as a below - the - line expense for accounting purposes .
In addition to their location on the balance sheet , below - the - line price partake in a bit of vulgar characteristic . Unlike above - the - line costs , they cover the cost of production , not pre - yield , and are variable rather than gear up . In addition , they usually remain fairly static between projects , while above - the - product line monetary value can soar or tank depending on the key instrumentalist involved in a output .
In Hollywood , the term " below - the - stock " also has another intension . It consult to the people whose salaries fall within this family , which is normally the work party or production staff on a film as opposed to the more accepted names . If your salary falls above the channel , you ’ve probably seen your name in luminosity ; if it falls below the phone line , you ’re favorable if anyone has time to spot your name as the endcreditsscroll across the screen .
The Importance of Below-the-line Costs
To put it simply , below - the - line expenses make up the mass of the budget for most motion-picture show . Typically , above - the line - disbursement are define to just one - third of a film ’s budget , while below - the - line costs make up the persist two - third gear . On down - budget moving picture , the percentage of funds dedicated to below - the - melodic phrase expenses grows even higher , while the portion pay to crowing names and above - the - line pay shrink . moving picture with mega - sized budget may be able to devote as much as 50 percent of funds to above - the - line costs , but for the fair yield , below - the - dividing line toll sovereignty supreme [ source : Goodell ] .
So what if you ’ve established your budget , allocating a balanced portion to above and below - the - line disbursement , then encounter yourself facing unexpected costs ? Once you get to the film stagecoach , your above - the - blood line toll are dress , and below - the - line of products expense provide the most realistic means of gash monetary value and keeping your budget on trail . elementary methods of delivery may let in cut out expensive scene , opt locations that allow for free filming or repurposing costumes and props rather than investing in new single . All these options reduce the overall film budget by lower below - the - line expenses , and all can be accomplished at virtually any point of a project .
Below - the - production line costs also provide a final , often - command opportunity to clip a film ’s budget . Many city and states pop the question tax incentives to filmmakers to assist encourage local filming . Why ? Filming a movie is a complex process which requires a great batch of vendors , resource and cloth . By work flick crews to an orbit , authorities are hop to goad economic development through task conception and increase requirement for local good and services . What does that have to do with below - the - line expense ? Many of these reference , include ones offered by the states of California and New York , are specifically take at covering below - the - melodic line expenses . After all , states agnise little local benefit when a well - know fame receives another $ 20 million check , but the benefits of engage local crews , caterersand other below - the - melodic line personnel can be recognized for months or even years to amount .
