Mary Aloe – Aloe Entertainment

Mary Aloe – Aloe Entertainment

Aloe Entertainment Blog Presents Mary Aloe Talking About P & A in the Digital Arena

“The digital media arena has changed movie marketing and distribution,” Mary Aloe began in today’s discussion with the Aloe Entertainment team. Marketing and distribution is generally categorized in budgets as P & A (prints and advertising). Mary Aloe continued, “Just a few years ago, P&A was marked at 70% of the budget of the movie. Today, it can be even more.” An Aloe Entertainment team member piped in, “But isn’t digital media making it cheaper on the prints end?” This is in reference to not having to print on film versus creating a digital or DVD to the exhibitors. “That may be true, but marketing expenses are growing at a higher rate than the supposed savings on celluloid,” Mary Aloe retorted.

 
TV advertising is expensive, but throws the widest net. Mary Aloe explained the the team at Aloe Entertainment that a spot could run $60K a half minute. “If you advertise on a popular show, that’s million of eyeballs seeing your movie ad, it could cost 300K – 400K for 30 seconds,” Mary Aloe added. “How about the Super Bowl?’, asked one of the Aloe Entertainment team. The advertising rates are notoriously expensive for a Super Bowl timed commercial. “Oh, now your talking $700K into a million dollars or so,” explained Mary Aloe. The movie ARGO took advantage of those football viewers in the Fall of 2012 with great results but at a cost of a half of a million dollars every 30 second spot aired.
 
“And you may think it is easy to advertise or blog on social media, but to do so for a film is as time consuming and expensive as it has been before the internet,” advised Mary Aloe to her team at Aloe Entertainment. “Yeah, I guess you still have to hire someone to create the campaign and place the ads on sites, an Aloe Entertainment developer added. Mary Aloe continued, “You have to get more and more inventive about how you reach consumers, as today’s moviegoers are very savvy and new ways of appealing to them are a constant creative and time-consuming expense.” The Aloe Entertainment team continues to become savvy in watching the social media trends and the analytics of what sites will pay off in the niche that each Aloe Entertainment film produced by Mary Aloe will best fit in its marketing patchwork.

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Mary Aloe on the Prequel and the Sequel: an Aloe Entertainment Blog

Mary Aloe stepped into the development room at Aloe Entertainment asking, “Prequel or sequel, which are top grossing?” One of the Aloe Entertainment team piped up, “JURASSIC WORLD, sequel.” “Not yet,” Mary Aloe replied, “still FURIOUS 7. How about prequel?” Another Aloe Entertainment development team member jumps in, “SKYFALL…no, wait that’s a sequel of a re-boot or a remake.” “It’s STAR WARS 1 – PHANTOM MENACE.” The discussion Mary Aloe and the Aloe Entertainment team began is about prequels and sequels and how well they are doing, some of which are the top grossing movies of all time. “JURASSIC WORLD has hit some milestones and may become one of the top ten, but for now it’s about #21,” continued Mary Aloe to her team at Aloe Entertainment.

Mary Aloe asked one of the Aloe Entertainment team to bring up a top-grossing film chart. Mary Aloe continued, “As of today, for the top grossing films of all time, the top ten include six sequels, and the top twenty includes a prequel and six more sequels. In that mix are a reboot and remake or two, as well”. Mary Aloe and the Aloe Entertainment team keep abreast of what franchises are doing well and which might be ready for a reboot. Having worked on a sequel and in pre-production on a prequel (of one of the 100 top  grossing films of all time), the Aloe Entertainment team keeps their eyes open for an opportunity to bring to Mary Aloe another prequel or sequel idea. In 2015, 29 movies will be sequels and 1 a prequel. In 2016, 25 releases will be sequels. 

“And more are in the pipeline,” continued Mary Aloe, “and notice that they are not just thrillers, super heroes, or horror franchises.” It was pointed out to the Aloe Entertainment team that TOY STORY, SHREK, FROZEN, DESPICABLE ME, THE FOCKERS, ALVIN AND THE CHIPMUNKS, NIGHT AT THE MUSEUM, MADEA, and many other comedies have done well in sequel or prequel land; many of which are continuing.  “SHREK 2 and TOY STORY 3 are in the top twenty of all time,” Mary Aloe pointed out. “Let’s not lose track of a good story and fine actors and crew when developing any of these, Mary Aloe concluded. The Aloe Entertainment team may connect themselves with other prequels or sequels. Marketing traction and the continuation of loved characters and actors can be a shoe-in. But maker beware, a rehash will go straight to VOD. Remember LEGALLY BLONDE II or SPEED II? Duds. “Quality film-making should never be put aside for a possible buck,” Mary Aloe concluded, leaving the Aloe Entertainment team to their work.

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Mary Aloe Speaks to the Aloe Entertainment Team About the Chinese Film Market

Mary Aloe and the Aloe Entertainment team were discussing the Chinese Film Market yesterday. Mary Aloe spoke on the opportunities there, “We have been seeing much interest from Chinese investors on movie projects, but not very many checks being written.” An Aloe Entertainment team member inquired about a Chinese investor someday buying into or owning a Hollywood studio. Mary Aloe offered this, “I wouldn’t be surprised considering the money that is flowing there and the love of Hollywood blockbusters in China. “Mary Aloe continued, “There are a lot of eyeballs itching to see the latest from Hollywood and a collaboration with those in their own country would just sweeten the desire to see such movies.” The Aloe Entertainment team should stay aware of this coming trend.

“There are four companies that are a major influence in the Chinese market,” Mary Aloe continued. An Aloe Entertainment team member jumped in, “Are you talking about Wanda, Alibaba, Baidu, and Tencent?” Mary Aloe praised her team and added, “Yes, between the four of them they act as financiers, producers or exhibitors of the movies, ticket vendors, promotional partners, marketing conduits, online video platform and social media forces.” The Aloe Entertainment team got on Google to research the financials and discovered that there is already $5B invested in U.S. companies including AMC Theatres, STX Entertainment, and Lionsgate. Mary Aloe and the Aloe Entertainment team are keeping their eyes open for a slate of movies that could bring in Chinese investment. 
 
Mary Aloe asked, “Who knows about yen vs. dollar and the stats on Chinese tickets sales?” An Aloe Entertainment team member spoke up, “Well, it is the largest international market for Hollywood. Last year was way over $4 billion in ticket sales.” “There’s over a billion people there and almost 24,000 screens,” another Aloe Entertainment team member piped in. Mary Aloe pointed out that while there is a lot of money in China, they are very smart business people and it is not an open checkbook. The Yuan seems to be rising in the exchange rate, and that’s good,’ said Mary Aloe. But she warned the Aloe Entertainment team to keep a close watch on the Chinese companies and their deals with Hollywood, “It might be something the Aloe Entertainment team can cash in on both financially and creatively,” concluded Mary Aloe. Either way, the Chinese market is a major force to be reckoned with and considered.
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Mary Aloe updates the Aloe Entertainment team on 2015 California Film Tax Incentives

Independent productions, like those produced by Mary Aloe and the Aloe Entertainment team, have gotten a boost from the State of California and the City of Los Angeles to stay in town to make their movies and be able to go home after a long shoot day. Though the date for TV projects has passed, July 13 – 25, 2015 is the application window for independent projects and non-independent feature films. “Since this was originally announced last August, production is still down by 3%, but the new funds are just becoming available,” says Mary Aloe, “and my team at Aloe Entertainment have kept that in mind as we work on our roster of projects.”

Jumping onto Google, a member of the Aloe Entertainment team told Mary Aloe about the parameters of the bill signed by the Governor last year. “It triples the tax credit program and is a great benefit for below-the-line workers.” According to www.film.ca.gov:
  • $48.3 million in tax credits available for Feature Films
  • $6.9 million in credits available for Independent Projects*

ELIGIBLE FOR 20% TAX CREDIT (plus 5% Uplift*)

  • Feature Films: $1 million minimum budget; credit allocation applies only to the first $100 million in qualified expenditures.
  • Movies-of-the-Week and Miniseries: $500,000 minimum budget
  • New television Series for any distribution outlet; $1 million minimum budget per episode (at least 40 minutes per episode, scripted only)
  • TV Pilots: $1 million minimum budget (at least 40 minutes)

ELIGIBLE FOR 25% TAX CREDIT (max credit is 25%, uplifts do not apply)

  • Independent Projects: $1 million minimum budget; credits apply only to the first $10 million of qualified expenditures. (Only independent projects may sell their tax credits.)
  •  Relocating TV Series, any episode length, that filmed its most recent season outside California; $1 million minimum budget. (Additional seasons are eligible for 20%.)

5% CREDIT UPLIFT

  • Filming outside the Los Angeles 30-mile zone + 5%
  • Music Scoring and music track recording expenditures + 5%
  • Visual Effects expenditures (minimum spend required) + 5%

*Note: The above uplifts cannot be combined. The maximum credit a production can earn is 25%. 

“Many states are finding that the tax credits don’t work for them on a job increase aggregate,” Mary Aloe pointed out to the Aloe Entertainment team. “States such as Massachusetts, Michigan, New Mexico, and North Carolina have scaled back their incentives.” This is good news for California and Los Angeles. The industry loves the work and especially loves being able to go home to their family at night.The Aloe Entertainment team looks forward to keeping an eye out for the best way to serve their projects and employees, as well as being good stewards to their hometown and state. “It was smart of California to boost these incentives now,” stated Mary Aloe as the phone started ringing again and discussion ended.

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