m. Anthony Librizzi - Lp - Mpd Business Strategy

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Leadership Portfolio M. Anthony Librizzi

GUNS & REDEMPTION

FILM DISTRIBUTION STRATEGY

This document and the information contained herein is provided solely for the purpose

of acquainting the reader with Guns and Redemption and is proprietary to Perfect Story

Productions, PSP/Raimondi Pictures, L.P. This business plan does not constitute an offer to

sell, or a solicitation of an offer to purchase, securities. This business plan has been

submitted on a confidential basis solely for the benefit of selected, highly qualified

investors and is not for use by any other persons. By accepting delivery of this business

plan, the recipient acknowledges and agrees that: (i) in the event the recipient does not

wish to pursue this matter, the recipient will return this copy to Perfect Story Productions,

PSP/Raimondi Pictures, L.P. at the address listed below as soon as practical; (ii) the

recipient will not copy, fax, reproduce, or distribute this confidential business plan, in

whole or in part, without permission; and (iii) all of the information contained herein will be

treated as confidential material.


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CONTROLLED COPY For Information Contact: Issue To: M. Anthony Librizzi

Issue Date: Perfect Story Productions, PSP Copy No. 1615 Greenfield Avenue STE.

#12

Los Angeles, CA. 90025 (323) 393-3127

Copyright 2010 Perfect Story Productions, PSP/Raimondi Pictures, L.P.

Copyright 2010 Perfect Story Productions, PSP/Raimondi Pictures, L.P. Page 2


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Table Of Concepts

1. MISSION

STATEMENT

. Page 3

2. EXECUTIVE

SUMMARY

Page 3

3. THE

COMPANY

. Page 4

4. THE

FILM

.. Page 4

5.

DISTRIBUTION

....... Page 4

6. THE MARKET..

.. Page 7



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7.CONCLUSION

. Page 9

1 / MISSION STATEMENT

Perfect Story Productions, PSP/Raimondi Pictures, L.P. will capitalize on

the growing entertainment market across the world through the production

and promotion of high quality entertainment. Located in Los Angeles, CA.,

the company will become highly profitable through the sale ofGuns &Redemption, in addition to revenues generated from additional profit

streams. Perfect Story Productions, PSP/Raimondi Pictures, L.P. will own and

control the master cop[ies], copyrights, and licenses of its product, which will

enable Perfect Story Productions to create immediate revenue streams while

growing its film catalog in a multi-million dollar asset.

2 / EXECUTIVE SUMMARY

Paul Raimondi, Producer/Writer/Director:

Paul Raimondi originally formed Raimondi Films for producing and

directing film documentaries. After his work was recognized with Academy

Award and Emmy nominations, Raimondi expanded the company to include

television commercials and entertainment projects. Of his first feature

project, Crosscut, the trade publication Varietywrote, In his feature debut,

director Paul Raimondi, who also co-wrote the script, shows sensitivity to



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character development and proficiency at creating suspenseful situations.

M. Anthony Librizzi, Executive Producer:

A mentee of Paul & Jane Raimondi since in 2009, M. Anthony Librizzi is the

founder of Perfect Story Productions, PSP. Prior to that, he was Managing

Partner of Synergy Media L.L.C., S3M, a boutique pubic relations firm. Librizzi

began his career with The Tavern restaurant in various training and

management positions before becoming an HRMS Project Manager at Perdue

Farms, Inc. His next position was as Regional Business Coach of YUM!

Brands, Inc., the largest quick-service restaurant group in the world, located

in Louisville, KY. After two years at YUM! Brands, Inc. he founded Perfect

Story Productions, PSP and more recently launched iBrand Entertainment,

Inc. Librizzi graduated with a B.A. in Professional Business Studies from West

Chester University and is near completion of his M.S. in Entertainment

Business at Full Sail University.

3 / THE COMPANY

Perfect Story Productions, PSP/Raimondi Pictures, L.P. in association with

Shoreline Entertainment, plans to develop and produce Guns & Redemption,a thought-provoking film that combines a Western story with the eternal

struggle of good versus evil. An independent film company, Perfect Story

Productions/Raimondi Pictures, L.P. is the General Partner of Perfect Story

Productions, PSP/Raimondi Pictures, L.P. The films total budget is $3.5

million. The General Partner will raise $1.5 million, while Shoreline will raise

the remaining $2 million.

4 / THE FILM

Matt, a young man in the town of Redemption, sees a Stranger ride into

town. Violence soon erupts in the heretofore-peaceful town. Seeking help

from the Stranger to stop the killing, Matt has no idea how this relationship

will change his life forever.



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5 / DISTRIBUTIONThe motion picture industry is highly competitive. There is an active

market for low budget motion pictures. Unlike most independent films, we

have a guarantee of distribution with our partner Shoreline Entertainment.

Given quality of the story and experience of the production team, we feel

that this film will be an attractive product in the market.

Our relationship with Shoreline Entertainment (see company description

below) guarantees that they will handle the foreign sales and make a deal

with a studio for a domestic release. Every film with which they have been

involved has acquired a strong domestic distributor and successful foreign

sales.

The motion picture industry is highly competitive, with much of a films

success often depending on the skill of its distribution strategy. There is an

active market for completed motion pictures, with virtually all the studios

and independent distributors seeking to acquire films. The filmmakers feel

that Guns and Redemption will be an attractive product in the marketplace.

As the sales agent for the film, the distributor licenses the film to

theatrical exhibitors

(i.e., theater owners) for domestic release and to specific if not all foreign

territories, for a percentage of the gross box office dollars. The initial release

for most feature films is U.S. theatrical (i.e., in movie theaters). For a picture

in initial release, the exhibitor, depending on the demand for the movie, will

split the revenue derived from ticket purchases (gross box office) with the

distributor; revenue derived from the various theater concessions remains

with the exhibitor. The percentage of box-office receipts remitted to the

distributor is known as film rentals and customarily diminishes during the

course of a pictures theatrical run. Although different formulas may be used

to determine the splits from week to week, on average a distributor will be

able to retain about 50 percent of total box office, again depending on the



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performance and demand for a particular movie. In turn, the distributor will

pay to the motion picture producer a negotiated percentage of the film

rentals less its costs for film prints and advertising.

Film rentals become part of the distributors gross, from which all other

deals are computed. As the distributor often re-licenses the picture to

domestic ancillaries (i.e., cable, television, home video), foreign theatrical

and ancillaries, these monies all become part of the distributors gross and

add to the total revenue for the film in the same way as the rentals. The

distribution deal with the producer includes a negotiated percentage for each

revenue source; e.g., the producers share of foreign rentals may vary from

the percentage of domestic theatrical rentals. The basic elements of a film

distribution deal include the distributors commitment to advance funds for

distribution expenses (including multiple prints of the film and advertising),

and the percentage of the films income the distributor will receive for its

services. Theoretically, the distributor recoups the cost of its print and

advertising expenses from the initial revenue of the film. The distributor also

receives a percentage of the films income. Although distributors often

receive as much as 35 percent of the total worldwide revenue as a fee, ouragreement with Shoreline is that they will receive 20 percent of the foreign

revenue. In addition, we feel confident of making a deal with a domestic

distributor for a fee not more than 30 percent. However, the specifics of the

distribution deal and the timing of all money disbursements depend on the

agreement that is finally negotiated. The net that is left after the

distributor has taken all his fees and the production cost has been repaid

flows to the profit line for the producers and the investors.

RELEASE STRATEGIES

The typical method of releasing films begins with domestic theatrical,

which gives value to the various film windows (the period that has to pass

after a domestic theatrical release before a film can be released in other

markets). Historically, the sequencing pattern has been to license to pay-

cable program distributors, foreign theatrical, home video, television



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networks, foreign ancillary and U.S. television syndication. As the rate of

return varies from different windows, shifts in these sequencing strategies

will occur.

Distributors plan their release schedules with certain target audiences in

mind. Given the cost of prints ($1,200 to $1,500 each), the wide release of a

film can cost well over $4 million, accompanied by an equally high

advertising program. With lower-budgeted films, distributors will often have

a platform release. In this case, the film is given a build-up by opening

initially in a few regional or limited local theaters to build positive movie

patron awareness throughout the country. The time between a limited

opening and its release in the balance of the country may be several weeks.

SHORELINE ENTERTAINMENT

Shoreline Entertainment has been acquiring, producing and distributing

feature films since 1992. As the worldwide film industry continues to mature

and new formats are developed, Shoreline has moved quickly to satisfy

demand for quality movies. Presenting a library of 165 movies, Shoreline has

produced approximately three movies per year and has additionally acquiredother movies for distribution. Financing forShoreline's movies comes from

pre-sales, equity financiers and gap financing. Managingstrong bank and

bond company relationships, a versatile team of executives and acontrolled

overhead, Shoreline continues to acquire and create productions of a high

caliber, designed to fill a niche in buyers ever-changing schedules. Every

movieproduced or sold by Shoreline to date has been licensed

internationally and to major U.S.distributors including theatrical distributors

New Line Cinema, October Films, LionsGate Films, and pay television

distributors HBO, Showtime, Encore and many more. Mainstream thrillers,

independent dramas as well as theatrical movies are produced. If amovie is

financially viable, has creative integrity and first class executives behind it,

Shoreline will produce, distribute and secure all or part of the movie's

financing. Excitedby the possibilities in the independent film world, their

business ethic remains the same;"First class business, with first class



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people."

6 / THE MARKET

The independent market continues to prosper. The filmmakers are in the

unusual position of having a mainstream film that fits the movie-going tastes

of worldwide audiences. The strategy of making films in well-established

genres has been shown time and time again to be an effective one. There

has always been a market for films with well-crafted, story-driven scripts that

are strong enough to cross genre boundaries. As an independent, the

Partnership can distinguish itself by making an original, distinctive film that

is entertaining and uniquely interesting.

The independent market continues to prosper. The strategy of making

films in well-established genres has been shown time and time again to be

an effective one. Although there is no boilerplate for making a successful

film, the films probability of success is increased with a strong story, and

then the right elements the right director and cast and other creative

people involved. Being able to green light our own product, with the support

of investors, allows the filmmakers to attract the appropriate talent to makethe film a success and distinguish it in the marketplace.

There has always been a market for films with well-crafted scripts and

stories strong enough to cross age groups. These dramas do not require

high-priced stars to create significant revenue flows, although having a

significant cast certainly is a plus. Their emphasis is always on sensitivity

and subtlety. While the competition for ticket sales has increased over time,

as has the number of films in release, there has always been a consistent

and growing audience seeking a meaningful and worthwhile experience.

TARGET MARKETS

Westerns:

The Western film is the most characteristically American genre, in

addition to being one of the oldest, most enduring and most flexible. This



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indigenous American art form easily is brought forward from the frontier

West to the 21st century. Silverado, Unforgiven and Dances With Wolves are

credited with helping to usher in the return of the Western, with more recent

titles including John Sayles Lone Star, Shanghai Noon, Open Range, Hidalgo,

Cold Mountain, The Alamo and The Missing. Film studios, publishers and

other consumer content providers have seen a return to American values

among their customers. Well-known film critic Leonard Maltin says that there

is a huge audience for everything Western, particularly on cable TV. It's a

staple that people keep coming back to. HBO has the tremendously

successful series Deadwood, set in the Dakota Territory of 1876. In addition,

the USA network premiered the series Peacemakers starring Tom Berenger

as a federal marshal in the Old West of 1882. The massive audience round

up by Monte Walsh, the made-for-cable Western movie produced by and

starring Tom Selleck for TNT, has energized other production companies.

Monte Walsh not only had an audience of more than 7 million but also

dispelled the conventional wisdom that only old people watch Westerns by

finishing as the second highest-rated original movie in cable among adults

18-49 for the first quarter, with 2.3 million viewers. The bottom line is that

audiences of all ages enjoy Westerns.

Action/Adventure:

Of all the film genres, action/adventure remains the most popular. Film

audiences tend to enjoy identifying with the thrill of danger as well as the

exhilaration of succeeding at a difficult challenge. Often combined with

romance and comedy, well-made action/adventure films are box office

favorites. When films at the various markets (e.g., American Film Market,

Cannes, etc.) are categorized, those in the action and/or adventure genre are

the most abundant. These films can be targeted to both mature and young

cinemagoers, and are designed to have strong potential in other media,

especially DVD. While the box office for these films has usually been thought

of as being driven by young men, there is no longer a great divide between

men and women moviegoers. These films also fare well in foreign markets.

While much of the audience understands English or is used to subtitles,



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action reaches across the language barrier.

Mature Audiences:

Movie attendance is not confined to the young. In 2008, the crossover

age group of 25-

39 made up 32 percent of the movie-going audience. As the population has

grown older, movie attendance among the over-40 population has also

grown, now making up 33 percent of the audience. Baby boomers in

particular are estimated at 75 million strong, with the largest household

income in the history of the United States. In surveys, this group has

responded that they go to two to three movies per week. Although often

ignored by studios trying to appeal to every moviegoer at one time, many in

the more mature age groups grew up on early Westerns and melodramas.

Teenagers and Young Adults:

We feel that we will also meet the challenge of making a film with enough

familiar elements to attract a sizeable audience among the over 40 million

16-to-24-year-olds in the general population. They make up an important

movie-going block. The MPAAs U.S. Economic Report for 2008 identifiesthem as 36 percent of the total audience. By having a film that also appeals

to the above-30 audience, we have the ability to create the ideal mass

market for a film.

7 /CONCLUSION

Perfect Story Productions, PSP/Raimondi Pictures is a company that plans

to develop and produce the film Guns and Redemption at a budget of $3.5

million. The Companys objectives are to:



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Develop and produce a film that has both domestic and foreign

appeal.

Maintain strong management control over production to obtain the

best quality.

Maintain totally independent production financing in order to make

the best possible deals with distributors, thereby maximizing

returns to the investors.


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