How Does the System Work?

Recently, someone asked me how the system works. What they were referring to is how Hollywood and the entertainment industry functions. To narrow it down further, how do I get a job in the business? How do I get my movie made? And how do I get a distribution deal? Those are basic questions that everyone trying to break into Hollywood and the entertainment industry struggles with. Is there a system? If I know the system, will it lead to my success in the industry?

First of all, there is no one-stop place that can tell you how the system works or how the entertainment system functions. But, thanks to the internet, blogs and social networking, there is an abundance of information available. It just means that you might have to dig in order to find useful information that’s applicable to your situation. Here are five things that I have learned about the entertainment industry and Hollywood throughout the last few years.

First, Hollywood and filmmaking are businesses. Second, Hollywood is about marketing. Third, first make the film then make the deal. Fourth, you have to start at the bottom. Fifth, talent is not a guarantee of success.

Let’s start with filmmaking is a business. I’m sure this is not a revolutionary concept to most of you. That’s why they call it show business. There’s no show without the business. To understand the system is to understand how movies are made, financed and distributed. One of the best resources I have found for practical information is a book written by Dov S-S Simens, From Reel to Deal. Simens’ book is worth its weight in gold. It’s primarily written for anybody who is interested in learning what it takes to create a successful independent film. You won’t find a lot of creative, artistic or cinematic concepts in this book, but you will a find common sense approach to filmmaking. Simens is a Hollywood insider who understands how the system works.

Second, Hollywood is about marketing. For every dollar Hollywood spends on producing a movie, they will spend 51 to 57 cents to market the film. What that should tell you is that a significant amount of the people who work in the entertainment industry do not make movies, but they are involved in the business and marketing side of filmmaking and media making. So if you want to understand how the system works, you must first understand how films are marketed. That requires you to read the trades such as The Hollywood Reporter and Box-Office Mojo. These are good resources that analyze box-office results and trends that are occurring in the industry. Know what’s hot and what’s not. If you want to find out how the system works, you will have to do your homework. The more you do your research, the clearer the patterns become visible.

Third, first make the film then make the deal. I used to think that Hollywood worked like this: Make the deal or, in other words, get your distribution lined up. Find your money and then make the film. Guess what? The system does not work that way. Most want-to-be filmmakers never make their film because they are trying to make the deal first. Dov S-S Simens’ book goes into great detail about how to make the film first and what’s required for first-time filmmakers to make the deal.

Fourth, you have to start at the bottom. Once in a while, you will hear about an incredible success story in which a recent film school graduate gets a three-picture development deal from a major studio. Sure, somebody does win the Lotto. But it’s usually a one in a billion shot. Nobody gets to make a $30 million film in their first outing. Here’s the truth about the system. Make a $20,000 digital feature, then make a $200,000 low-budget movie, and then make a $2 million art house film. And, if you have been successful in these projects, perhaps you will get the opportunity to make a studio feature. Start at the bottom and work your way up. In order to get to the next level, you must at least break even or return a profit to your investors. Otherwise, they will not continue to finance your next project. In reality, most filmmakers make their first film by raising money from their friends and family. But that can take you only so far. At some point, you have to be successful in returning an investment. That’s how the system works.

A few months back, I had a first-time filmmaker send me a script and perspective for an $800,000 budget feature. I seriously doubt they have any hope of ever raising that kind of money. It’s a simple formula. Start at the bottom and work your way up.

Recently, a friend completed a full-length feature with only a $2,000 budget. He shot his film in eight days with limited locations, actors and resources. He was able to get all of the equipment, crew and talent to donate their services. If he had to pay for everything out-of-pocket, his expenses would have been $50,000 to $75,000. But, thanks to his entrepreneur spirit and ingenuity, he found a way to get it done.

Here’s how it works. Most people write a script and then try to raise the money necessary to turn the screenplay into a movie. But the smart money is to start with what you have. If you have $2,000 or $5,000 or $100,000, write a story that fits your budget. That’s exactly what my friend did. I have a post on my blog about low-budget filmmaking concepts. You can find the formula that explains this concept and how it works.

Fifth, talent is not a guarantee of success. Most people in Hollywood are extremely talented. Likewise, most people in Hollywood are extremely unemployed. Talent can take you only so far. It might get you in the door, but it’s no guarantee it will keep you there. I have written an article on my blog on what it takes to work in this industry. The article will provide you with the insight and formula that can help guide you in your career development.

I wish I can tell you that if you went to film school you would receive all of the inside information about how the system works. Chances are you’ll get a good education on cinematic theory but not on practical business knowledge. There are two primary systems, the studio system and the independent model. More than likely, in the beginning you will work in the independent model. As time goes on, you will work in both the independent and studio systems.

So how do you prepare now and learn about the system? First, you need some training. Whether that’s film school or some type of film academy, it’s essential that you get some professional, competent training. I suggest further that you get some practical work experience in your home town. If you want to direct, start directing now. If you want to produce, start producing now. If you want to be a cinematographer start doing it now. Odds are you will have to put in a lot of hours with little or no pay to learn the business. Eventually, if you are serious about learning the system and working in the industry, you will have to go to Los Angeles. That’s what everyone inside the industry has told me if you want to work full-time in the business. Contrary to what other’s may tell you, the industry still takes place in Los Angeles.

But, don’t ever think about going to Hollywood without proper preparation. Otherwise, no one is going to take you seriously. I’m assuming that most of you who read my blog are Christians and perhaps consider yourselves media missionaries. I suggest you follow Hollywoodconnect.com. They provide good intelligence and resources about job prospects, where to live, support groups, and further training in Hollywood. They also conduct quarterly orientation sessions for newcomers to the industry. This is a great opportunity for you to connect with working professionals in the industry. They suggest that before you think about coming to Los Angeles to live and work, you first should plan a vision tour. In other words, go out to Los Angeles for a week, attend the orientation session and meet some people. I recommend that you meet with several of the ministry leaders which you will find on the Hollywood Connect website. I am convinced that within a week you will have more than enough information to decide if you have been called to Hollywood. You will also have a better understanding of how the system works.

And, finally, industry insiders say that there are three primary ways that you can break into Hollywood and the entertainment industry. First, become an entrepreneur and make your own movies. If you can raise your own money, write your story, direct your film and produce it as well, you are on your way. Many well-known filmmakers who work in Hollywood have followed this pattern. One example is the Jay and Mark Duplass, who have made a number of successful low-budget independent films including Baghead, which helped their career. They have gone from a $15,000 budget to their current movie Cyrus, which has a budget of $7 million. Of course, not everybody can write, direct and produce their own material. So the following next two options may be your best choice.

Second is through the internship program. If you are in the right school or program with the right connections, you can very well be at the front of the class. It takes about three internships to get your first real job in the industry. The Los Angeles Film Study Center has over a 70% placement of its graduates within the industry. They are obviously connected. They have a relationship with practically every major studio and production company in Los Angeles. Before you decide which program or college to enroll in, take a hard look at the internship program and the connections that your school or program offers.

The third way to break into Hollywood and the entertainment industry is through the role of the production assistant. Find out who hires the crews, which are the production managers, unit managers, and the director of production. Get to know these people and build relationships. Obviously, this means you are starting at the bottom, but that’s the way the system works. If you can be the best production assistant possible, then chances are you will be rehired for the next project. Go beyond the call of duty and become a problem solver. Then the next time you might actually move up to being the assistant to the production manager. And then you may become the second assistant director on the next project.

Not everybody who works in Hollywood or the entertainment industry fits conveniently into the above categories. You’ll find that many people have a somewhat unconventional story on how they broke into the business. One example is Ralph Winter, a well-known producer for films such as Star Trek, X-men and Wolverine. Winter did not go to college to pursue a career in film. He has a degree in history. Winter worked for a department store producing educational and training videos. With that type of background, it would seem that he would be an unlikely candidate to become a major Hollywood producer. So how did he do it?

There are three concepts that Winter followed. First is the rule of proximity, which is being in the right place at right time. You can’t learn this in a textbook. Some people just have a knack for seeing opportunities. In Winter’s case, he worked in Los Angeles near the industry. That’s a huge advantage. Second, as they say in this business, it’s not what you know but who you know. Ralph Winter had a friend who worked at Paramount Studios. When a job opened in the editing department, he recommended that Ralph pursue the opportunity. With his help, Winter got the job. The truth is people like to work with people they know and trust. Third is the rule of leverage. It’s a long way from the editing department to being a producer who makes movies with over a $100 million budget. I’ve heard Winter talk often about leverage. When you have something that somebody needs, and they have something that can help you, you work together to achieve the results that both parties want. Doing so helps you to move forward. By using leverage, Winter eventually made his move and became a producer on the Paramount lot. It’s a very unorthodox story.

The bottom line is Winter applied all three principles to turn his story into a success story. He worked in industrial video making training videos. There are thousands of people across the country who do that job every day. Many of those people could be in Ralph Winter’s shoes today. Sure, Ralph’s talented, but there are talented people everywhere. But in Winter’s case, he was in the right place at the right time, which gave him an incredible opportunity. This is how the system works. Sometimes it makes sense and sometimes it doesn’t. The best advice is to give yourself the best opportunity you can. Have a plan and be in a position that when the opportunity arises you can step into it. Don’t make the fatal error of being complacent or just trying to slide by. You need to be proactive and seize the moment.