Joint ventures

Get out (2017)

• Director: Jordan Peele
• Stars: Daniel Kaluuya, Allison Williams
• Production companies: Blumhouse, QC, Monkeypaw
• Distributed by Universal
• Budget: $4.5 million
• Box office: $255.4 million

Monkeypaw productions

• Founded in 2012 
• Founded by Jordan peele, who is a director and producer.
• It was initially for the comedy series, Key and Peele.

Blumhouse productions

• Founded 2000
• Produces low budget horror films such as:
• Insidious
• The Purge
• Happy Death day
• Paranormal Activity
• Sinister 

First look deal

A first look deal is any contract containing a clause granting pre-emption right, right of first refusal, or right of first offer to another party, who then is given the first opportunity to buy outright, co-own, invest in, license, etc. something that is newly coming into existence or on the market for the first time or after an absence, such as intellectual property (manuscript, musical composition, invention, artwork, business idea, etc.) or real property (real estate).

Advantages and disadvantages of a joint venture

Advantages

• Will bring in a mass audience as the loyal consumers of both companies are likely to be combined.
• There will be a higher budget as they can both put money towards the funds. 
• One company may specialise in certain areas of production that the other company does not.
• Joint ownership could be an advantage as they are able to share ideas that could better the product.
• If the product fails, they can share the debt.
• A company may already own resources, such as high quality video cameras, which means they can be accessed easily. 

Disadvantages

• Both companies will have joint ownership over the product, which means that the companies will not be able to have complete creative expression.
• Profit will be split. 
• Work and resources may not be allocated equally

Explain why an independent company often works with other companies as part of a joint venture. Use examples to support your answer. (4)

Point Example Point Example

An independent company often works with other companies as part of a joint venture as it is likely to bring in a mass audience, as the loyal consumers of both companies are likely to combine. For example, Blumhouse, Monkeypaw and QC all were part of making the film 'Get Out', and the fact they earned $255.4 million at the box office, suggests that this was successful. 

Another reason as to why an independent company often works with other companies as part of a joint venture is due to funding; as both companies are able to contribute towards the project, the budget is likely to be higher. For example, Blumhouse, Monkeypaw and QC integrated to increase the budget of the film Get Out, and it had a budget of 4.5 million.

Mention diversification, personnel?

Explain 2 disadvantages of being an independent company. Use examples to support. 

1. (3) One disadvantage of being an independent company is that the products budget will be fairly low. This is a disadvantage as they will not be able to use high quality resources and materials. For example, in 'Bait', he only had the funds to use a 16mm Bolex, that the director had to hold during filming. Therefore it would be advantageous to take part in a joint venture as both companies can contribute to the budget, which means they can gain access to high quality resources and materials. 

2. (3) Another disadvantage of being an independent company is that they do not have other subsidiaries. So to promote their products, they cannot maximise reach without support from a larger companies. For example, this is why blank was taken over by blank.