How To Use An Escrow Account To Secure Financial Transactions On Independent Films

Today's Stage 32 Blog comes from Global Consultant, Executive Producer at Zannoni Media, and Stage 32 Thought Leader David Zannoni, based in Playa del Carmen, Mexico. There are multiple financial transactions on an independent film project, to finance, produce, and distribute the film. An example can be an investor that pays money to the production, to invest in a film, with the aim to earn the investment back and receive a return on investment and share in the film’s profits, if any. Another potential scenario is an international co-production. The co-producers from different countries jointly produce a film and each of the co-producers provides a financial contribution to cover their share of the production costs. The contributions will go towards the production account. A third example of a financial transaction is a distributor who pays a minimum guarantee for the film’s distribution rights in return for the delivery materials, in accordance with the terms and conditions as agreed between the production company and distributor in the distribution agreement. All these transactions imply a certain level of financial risk. How can the investor be sure to recover funds, if the investor pays the production company but eventually, for factors beyond the investor’s control, the film cannot be made? What occurs when one co-producer remits its part of the production budget to the production account, but the other co-producers do not comply with their part? And what happens if a film distributor pays a minimum guarantee, but delivery of film does not take place on time, or the materials are not in line with the conditions agreed in the distribution agreement? A common solution for these kinds of potential transaction-related issues is to set up a so-called escrow account. [Keep Reading Here]( Copyright © 2023 Stage 32, All rights reserved. You are receiving this email because you have an account or have participated in services at Stage32.com. We have some cool things happening on social – follow us! [Twitter]( / [Instagram]( / [Facebook]( / [Tik Tok]( [Manage your email preferences]( Community Success Stories - Look who’s on their way to an Oscar [Check out success stories from our community and see why so many industry professionals work with Stage 32 here!]( Stage 32 in the News [Variety]( / [Forbes]( / [The Wrap]( / [CNBC]( / [Entrepreneur]( Our mailing address is: Stage 32 2711 N Sepulveda Blvd.Manhattan Beach, CA 90266-2725 [Add us to your address book]( Stage 32 is the world's largest online platform connecting and educating the global entertainment industry. [Manage your email preferences]( [unsubscribe]( from receiving these types of emails or unsubscribe [here](. Join over 1 million members from around the world who use Stage 32 to network, find work and learn. Be sure to keep your profile up to date to ensure you are getting the communication you want to receive to help with your craft or career.