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Fitch Assigns Final Ratings to BXHPP 2021-FILM

(fitchratings.com)

Fitch Ratings has assigned the following final rating and Rating Outlook to BXHPP Trust 2021-FILM Commercial Mortgage Pass-Through Certificates, Series 2021-FILM:

By: Fitchratings

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Financing Of The Film Industry In Nigeria

(mondaq.com)

In 2016, the Nigerian Film Industry was recognised as the largest film producer in the world with an estimated contribution of 2.3% (NGN239 billion) to the nation’s Gross Domestic Product (GDP).¹ Despite the contribution made by the industry towards the growth of the Nigerian economy, the industry is plagued by several challenges, one of which is, finance. The Nigerian film industry (Nollywood) frequently encounters funding and financing problems.²

In simple terms, financing is defined as the capitalisation of or the act of raising capitals. There are several mechanisms for financing the film industry in Nigeria. Some of these mechanisms shall be analysed subsequently:

1. Government and private institutions’ grants/ loans: This is the most relied form of funding for the film industry. A grant is an award, usually a financial award by one entity to an individual or a company to facilitate a goal or incentivize performance. While a loan is an amount given by an entity to an individual or a company. The difference between a grant and a loan is that a grant is usually not repayable while a loan is usually repayable with specified conditions. The Government and private institutions usually provide grants or loans to filmmakers. In 2021, the Minister of Information announced that the Central Bank of Nigeria in collaboration with the Banker’s Committee initiated a plan to grant an access N500m loan with 9% interest rate to support the entertainment industry. The Bank of Industry also established the Nollyfund in 2015. This fund was established to provide capital by way of a loan to Nigeria’s leading movie producers.³
2. Private equity: This is another funding mechanism that may be adopted by the film industry. Private equity has the potential of playing a significant role in bridging the funding gaps encountered by filmmakers. Private Equity is a form of equity financing. It is a capital acquisition mechanism in which a firm invest funds in a film company with the intention of owning a stake in the company or in the return of the company. Usually, angel investors or venture capital funds invest their funds in support of a project which they believe would earn returns. The viability of the project and other risk analysis considerations are the major considerations investors consider before investing. An equity finance is not required to be repaid as opposed to a debt financing. Instead, the equity investor usually recoups his investment from the profits of the venture by owning a stake in the company. Although, private equity investment is usually common with technology startup financing, however, the Nigerian film industry may consider adopting this financing measure for financial bankable and viable projects.

By: Peace Adeleye

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NEW YORK PROVIDES GUIDANCE ON REMOTE WORK AND QUALIFIED EXPENSES

(kpmfilm.com)

New York State has recently provided guidance concerning remote work that was done outside of New York during the period of March 7, 2020 through June 25, 2021. The new legislation states that remote work that would have otherwise been performed in-state is considered to have been earned in New York. The Empire State Development office has further confirmed that this legislation applies to the film tax credit as well.

Therefore, remote work performed out of state is considered qualified for the tax credit for this time period. These labor costs can be counted as qualified expenses, and will count toward the 75% requirement.

Businesses and productions must certify that they maintained their business in New York during the period in which they claim.

By: Kpmfilm

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Mogul Productions and Bungalow Media to Decentralize Hollywood

(finance.yahoo.com)

Mogul Productions, the decentralized film financing (DeFiFi) and movie-based NFT platform, today announced their partnership with Bungalow Media. Bungalow will work together with Mogul to finance content and engage fans using blockchain technology.

Bungalow Media will be using their extensive network within Hollywood to procure and submit high quality, commercially viable film projects to Mogul’s platform. Films submitted to Mogul will be evaluated for placement into Mogul’s Showcase, where STARS token holders can vote to determine what projects receive funding, while earning unique rewards and experiences through the platform.

Bungalow Media is led by Phillip B. Goldfine, Academy Award winning producer of the documentary The Lady in Number 6: Music Saved My Life, and Emmy-winning writer of El Vacilon. He is joined at the helm by Kevin Weisberg, Executive Producer of River Runs Red and the upcoming All I Want for Christmas.

“We’re ecstatic to be at the forefront of this groundbreaking evolution marrying blockchain technology with the film industry,” said Goldfine. “Decentralization and the democratization of film is one of the biggest advancements Hollywood has seen in decades, and Bungalow Media is excited to produce the films that will reap these rewards!”

“Mogul is excited to welcome Bungalow Media to Mogul’s list of partners”, said Lisa Sun, President of Mogul Productions. “Mogul is creating a two-sided marketplace for entertainment-based blockchain content; onboarding esteemed groups like Bungalow, who have an incredible amount of relationships and high quality content, will help us to continue offering top tier opportunities for Mogul users.”

By: Accesswire

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Netflix Wins Big as California Doles Out Record $139 Million in Film Credits

(variety.com)

Netflix was the big winner as the California Film Commission awarded a record-setting $138.8 million in film tax credits on Monday.

The streaming service got $43.3 million for three projects, including $18.5 million for the Zack Snyder sci-fi epic “Rebel Moon.” Its other winning projects are “Beverly Hills Cop 4,” which was awarded $15.8 million, and an untitled feature with Jonah Hill, which got $9 million.

The $138.8 million total shattered the previous record for single round of film subsidies, which was $109 million awarded in August 2016. The commission increased the amount this round due to a sizable rollover of unused credits from previous rounds. Many projects were either canceled or relocated due to the pandemic.

Aside from Netflix, NBCUniversal and Sony also cleaned up this time around, getting $31.1 million and $28.1 million in credits, respectively.

Hill and Kenya Barris are two of the winners among talent this round. They are teaming on the untitled feature from Netflix. Hill also stars in “Dixon,” a Sony film that will get $14.6 million in credits, while Barris is producing a reboot of “White Men Can’t Jump,” from Disney, which will nab $6.5 million in credits.

“Being from California, it’s important for me to support my home state whenever I get the chance,” Hill said in a statement supplied by the film commission. “We are so thankful for The California Tax credit because it will allow me to utilize the amazing crew members and locations offered here at home for my next two projects.”

Gov. Gavin Newsom signed a two-year, $180 million expansion of the TV side of the credit in July, which will bump the program up to $420 million a year. That expansion does not apply to this round of credits.

Industry figures had warned state lawmakers that the TV credit was becoming a victim of its own success, and had lured so many shows from other states that it could not afford to subsidize all of them in later seasons. The industry groups argued there was a $150 million “shortfall” in the program, which helped make the case for the temporary expansion of the TV credit.

Newsom also signed into law a new $150 million credit to incentivize the construction of soundstages, which will apply to either film or TV projects.

Before the program expanded in 2015, the film commission would give out $100 million to film and TV projects in an annual lottery. Under the current system, projects are ranked based on their job creation metrics. The 23 projects awarded this round account for $678 million in “qualified” spending on below-the-line jobs and payments to in-state vendors.

By: Gene Maddaus

Continue Reading at variety.com