International markets will drive global box office to $25 billion in 2010. That’s double the 1995 total. Source: Screen Finance

North American box office revenue alone has climbed 59% from a yearly $4.8 billion in 1991 to $7.66 billion in 2000. Source: the Motion Picture Association

Dynamic growth of international film markets increases opportunity while reducing risk. Today’s movies often realize 50% of their revenues from distribution in foreign markets. These emerging markets have fueled increased production and a proliferation of independent film production companies. Independent films are no longer reliant on the US theatrical release to cover most of the production costs. More than ever before, today’s films are able to exploit distribution opportunities in many international markets increasing earning potential while reducing risk to investors.
Ancillary markets and new technologies revolutionize profit potential. Over the last decade, ancillary markets have grown by over 30%. The home video market alone has grown over 200%. The combined worldwide filmed entertainment market will achieve sales of $118.9 billion in 2009, a 7.1% compound annual growth rate (CAGR). Source: Price Waterhouse Cooper.

Sales of independent films to cable and network TV are rapidly on the rise. New distribution methods such as satellite and cable plus emerging digital markets like online video rentals are accelerating demand for all films presenting huge growth opportunities over the next ten years. The pioneering developments in High Definition and Internet based TV promise even greater opportunities for growth.

Distribution

A film’s success is dependent on the quality of its distribution strategy. BEP is in the process of meeting with distributors for release of this film. The management team is committed to making this film attractive in theatrical and other markets, both domestic and foreign.

Investment Opportunity and Financial Highlights

The management team of BEP is seeking an equity investment of approximately $9.5 million for the development and production of The Best of Enemies.  Typically it requires 3 times box office to break even on a film.  It is industry established that 40-50% of box office revenue goes to the theater owners and 35-40% of the remaining box office revenue goes to distributors. Investors are typically paid back first after these expenses although some talent may receive compensation based on what is called “first dollar gross participation” revenue.