Sunset’s successful model
Sunset’s content criteria is based on original great stories, branded entertainment, high profitability combined with elements that drive critical acclaim, thus protecting and maximizing its investment partners opportunities while adding an on-going valuation to Sunset.
Sunset Pictures mitigates investment risk via Sunset’s in place pre-existing contracts with all the Unions, Guilds and by utilizing various tax rebates, subsidies, and International pre-sales, substantially reducing production costs by 30 to 50 percent. Sunset’s successful model is driven by properly executed productions, long established relationships and fine tuned strategic distribution mechanisms and direct to consumer core audience marketing campaigns. In addition, Sunset has the ability to provide a portion or all of the P&A (“Prints and Advertising”) costs necessary to cost effectively drive distribution and maximize revenue returns while controlling marketing spend and monitoring revenue accountability. Sunset has consulted and Executive Produced overseeing the funding, production and distribution of numerous high profile films.
Protecting the Investment
Sunset has established relationships and partnerships with some of the most highly respected and long-standing iconic companies in the industry, including 20th Century Fox, Warner Brothers, Lions Gate Films, Image Entertainment, Concord Music Group and Universal Music.
Protecting the Revenues
To minimize foreign tax withholdings and to take advantage of favorable tax treaties, Sunset Pictures utilizes a well-established third party “collection agent” such as Fintage House (www.fintagehouse.com) or Pueblo Film Group (www.pueblofilm.com). Both of these entities have global experience in servicing and licensing for the film industry in the capacity as agent for the collection of revenues. These transparent entities work closely with the major accounting firms. For example, Pueblo works with Ernst & Young (primarily to provide the most updated worldwide tax rates and structures). These agents have developed secure systems including pledging specifically designated bank accounts and setting-up irrevocable authority agreements (Sweep Letters) so that their banks guarantee a 100% secure, timely and clean cash flow. Thus, the distribution of revenues are competently collected, assuring proper and timely transparent disbursement of profits. Both of these companies have been utilized and approved by the major financing Banks in the United States as well as by major US law firms, completion bonds and producers. As a result, these companies are ideal entities to collect and distribute the film’s revenues.
In the US, many states have implemented their own tax incentives which have made independent film productions accessible and cost effective. Motion picture incentives can directly reduce the actual cost of a motion picture and can be in the form of a direct investment, rebate or credit. As a result, a popular form of risk mitigation is producing motion pictures which qualify for tax incentives, subsidies and/or rebates.
Content Selection and Creative Integrity is one of the most important elements in the decision process to produce a movie. By focusing the investment analysis on story content, Creative Integrity and commercial merits of a project, relying on professional high profile creative personnel for excellence in execution, focusing both grass roots and traditional marketing on branded entertainment, and by targeting core audiences to each Movie release Sunset increases the likelihood that the motion picture will be a commercial and financial success.