Jun 01
SYNDICATED PRODUCTION BUDGET by Corie Henson  |  Posted in Articles  |  on Fri, Jun 1, 2012

Sa horseracing ko unang narinig ang tinatawag na syndication. My father, who was a horse trainer, explained that syndication is simply a form of partnership in horse ownership. It is a common practice in the USA and Australia.

The mechanics of horse syndication is simple. The partners will each invest an equal amount. When the horse wins, the 4 partners get an equal share of the profit. The partners also share in the losses.

This is a good idea if applied in the movie industry. Especially in this digital age, hindi kailangan ang napakalaking capital dahil movie-making has become cheaper. In fact, karamihan ng indie movies ay less than a million pesos ang investment.

In the USA, the syndication of movie production is not yet popular. But in stage plays in Broadway, it is already the norm. Ang production budget na $5 million ay nahahati nila sa maraming investors for a minimum of $50,000 share.

Plays in Broadway is good business especially that most plays earn lately. Ito ang dahilan kung bakit maraming investors sa mga stage plays. But lately, perhaps due to difficulty in getting big investors, theater producers have started to tap small time investors.

For a thousand dollars, one can be a part of the theater production as an investor or shareholder. According to some insiders, the main intent of a shareholder is not the profit but the mere participation.

A good example of this type of syndication in Broadway is the revival of Godspell. Nakakagulat malaman na puwede kang maging shareholder sa halagang $1,000 lamang. Dahil maliit na puhunan kaya marami ang prospect na mag-join.

It’s no joke to gather 700 people in producing a stage play. Pero sa mga small time Americans ay big deal ito dahil ang isang shareholder ay may mga benefits. Una na rito ay ang updates ng development ng theater production.

Bukod sa discount ng ticket price, ang isang shareholder ay entitled din sa mga suggestion. Sa periodic meetings (via internet) ay may partici-pation din ang shareholders. This gives an average man to be a part of the production.

Sabi nga sa New York Times, “The People of Godspell contributed about 55 percent of the show’s $5 million Broadway capitalization.” Halos kalahati ng puhunan ay galing sa mga investors na $1,000 lang ang share.

Kung nagagawa ang syndicated stage play production budget, maaari rin siguro ang syndication sa movie production. According to the economy of scale, the more shareholders, the smaller the capital outlay.

Let’s take the indie movies as a prototype. Majority of indie movies are funded by one or several investors. Normally, the project is spearheaded by the director or the scriptwriter. Syempre malapit sa producers ang director o scriptwriter.

But how to start a project when there is a shortage of funds? Ang first step siguro ay lapitan ang mga connections like friends, relatives, associates and acquaintances. Ang target sa investor ay yung may inclination sa movies.


Yasmien Kurdi with her fans. An investor can be part of the movie as an observer with a direct access to the stars of the movie.

For a movie with a budget of P1 million, the funding can be divided into as many as 100 investors. That means 100 people times 10,000 pesos capital is equal to P1,000,000. Sino ang gustong maging producer sa halagang ten thousand pesos?

Siguro ay marami ang magtataas ng kamay considering that P10,000 is not a big amount. At malamang na ang unang pakay ng mga investors ay ang mapasali o magkaroon ng munting papel sa production.

Dahil dito, magkakaroon ng chance ang mga aspiring actors and actresses. Although there’s no guarantee that they would pass the audition, it is already an advantage to secure a direct contact with the director.

Some fans can also have the opportunity of seeing their idols in person. Syempre hindi naman lahat ng investors ay mabibigyan ng pagkakataon pero ikatutuwa ng ilang investors na maimbita sa shooting.

Para naman sa mga mahilig magsulat, baka maging part sila ng creative department. Puwede rin silang maging PA (Production Assistant) sa shooting para makatulong sa revisions ng dialogue.

Napakaraming klase ng investors ang puwedeng mahatak. Bukod sa mga mahilig sa showbiz ay nariyan din ang mga businessmen. Puwede ring grupo like mga teachers o mga pulis o kahit mga mayayamang estudyante.

Puwede ring hatakin ang mga tao sa industry na tema ng movie. Halimbawa ang movie ay tungkol sa kuwento ng sabong, mga sabungero ang target investors nito. At kung isang lugar naman ay maaaring makakuha ng investors sa lugar na iyun.


The author with the horse Lady Pegasus owned by Don Antonio Floirendo. Photo taken during the shooting of LARGAAA in San Lazaro racetrack.

Ayon sa ilang nakausap ko sa movie industry, exciting ang syndication sa movie production. Basta tama lang ang promotion ng syndication ay tiyak na maraming makukuhang investors.

At siguradong mauuso ang syndication kung ang mga syndicated movie productions ay kikita at magiging blockbuster pa sa takilya.

Ang huling tanong ay ito – sino ang magpapaumpisa ng syndicated funding sa movie production?

Para sa mga komento, puwede kayong mag-email sa corzhens@yahoo.com


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