Lucia what an
incredible dream
to dream
Group 10
People - Pawan Kumar
● Pawan Kumar was born on October 29, 1982, in the small town of Anantpur in the state of Andhra Pradesh, India
● Dropped out of telecommunications engineering from college after two years to join the city’s English theatre circuit
● Assisted director Yograj Bhat on his Manasaare and Pancharangi that Kumar was able to pick up the nuances of the Kannada
language
● Kumar is a film actor, director, and writer in the Kannada film industry
● His directorial debut, LifeuIshtene, was well received in the Kannada film circuit
● Kumar’s style of filmmaking and the themes he chose for his projects were fresh and slightly unusual for Kannada films
● In September of 2011, Kumar began to share the script of his dream project “Lucia”
● By 21 February, 2012, he had made no headway with the project, with no funding from traditional sources, producers, or actors
attached to the film
● Frustrated by the rejection for his dream project Lucia he wrote a blog “Making enemies” which receives massive support
● Three days after writing ‘Making Enemies’, he decided to proceed with the project
2
Thinking Outside the box
(● Opportunity ) media-working outside the mainstream
2010-Realising the power of online
● Untapped talent- accessible through online processes
● Idea of “crowdfunding” for making the movie- through platforms like Wishberry,
Funduzz, Start51.com etc
○ Charge 10% of the money raised
○ Some charge 15% if firm fails to meet targets
● Full length feature film- using not big star but new talented actors
● Appropriate cost estimate of film project - $100,000
● Estimated revenue collection - $200,000
(ticket sales, advertisements, satellite sales etc.)
3
The Plan ( Deal )
● Decided to shoot for $100,000 by 9 June 2012(a 100 day period)
● Options in favour of both Kumar and investors:
○ Investors could receive:
■ A complete film copy in HD quality-can be played unlimited times
■ Exclusive downloadable documentary on making of film
■ Link- to earn business by sharing on media platforms
○ Raise money through audience: by pre-selling DVDs, sound tracks, movie tickets
■ Problem- To decide prices for pre-selling
■ SEBI restrictions - funds for project can’t be solicited unless restricted to 50 investors
○ Whether to share revenue or profits with the investors
4
Context- Indian Film Industry
● Indian film industry is the largest producer of films in the world
● In terms of budget size, regional films including Kannada are categorized into small-budget ($400,000-500,0000), medium-
budget ($0.8-2 miilion) and big-budget (above $2 million) movies
● The major sources of funds for the film industry have been the distributors, music companies, and financiers
● Life cycle of film investment is 2-3 years ; “18-18 model”.
● On an average, the producers expect an internal rate of return of 40-50 percent
● In 2012, investments in cinema have given a 35% return
● Big-budget films depend on their star cast and marketing popularity, small-budget film with smaller marketing budgets rely on
word-of-mouth publicity to gain popularity.
● Small and medium budget films achieve their sales over an extended period as opposed to big-budget films that recover about 50
percent of their box office collections in the first weekend of release
5
Recommendation
● Pawan should go for crowdfunding as that is his last resort to produce Lucia
● Investing in film is a risky business no investor will provide funds just for the sake of art
● To ensure that Lucia’s investor get at least their investment back, follow reward-based strategy and profit sharing
● Profit share would ensure that Pawan doesn’t have to pay the investors in the worst case of losses if Lucia is not a hit
● Should raise $100,000 by selling 5,000 tickets at $25 a ticket
● Additional funding can be raised by selling the satellite and the music rights to companies
● ROI for investors could be 40-50% profit share and profit share based on the views on the links shared by them (this is
based on the projected estimation that the film would gross $200,000 in revenue, also standard Kannada films gives the
producer a 40-50% return on their investment)
● Investors would be interested because of the potential gains in the future
● If Lucia is successful, Pawan could pitch bigger investors for the risky projects in future
6
Thank you
