The Rover

Dr Steve GaunsonCOMM1033, Australian Cinema,

RMIT University

The Roverinternational and/or self-sustainable?

The Rover• Budget: $12m

• Box office: – Domestic: $1,114,423– Foreign: $1,181,000

• Overall: $2,295,423

All time• 2 Australia (2008)

$37,555,757

• 29 Ned Kelly (2003) $8,365,984

• 36 Rabbit-Proof Fence (2002) $7,562,439

• 39 Kath & Kimderella (2012)$6,081,439

• 41 Chopper (2000) $5,912,119

• 42 Two Hands (1999) $5,478,485

• 45 Jindabyne (2006) $5,302,912

The problem of The Rover is the problem of audiences – or lack of…

• When it comes to Australian films – audiences don’t entirely matter…

• The industry provides producers (very) little incentive for successful box office

• Producers glean their income from within the budget – not box office success

• Bigger the budget – bigger the take-home wage

Payment system of industry

• Fees are based on % the film’s budget• Director – 3% (average)• Budget - $5m: Director - $150 000• Budget - $500000: Director - $15 000

• Not paid for contribution• No incentive for filmmakers to work with small

budgets• No incentive for successful box office

Industry – based on Perverse Incentives

• These are factors that reward individuals for taking actions that produce negative consequences.

• These include: a) Fees based on a percentage of the budget – forcing producers to

increase the budgetb) Not mandatory income reward profits for successful filmsc) Government investments that are sometimes conditional on the

attachment of marquee cast (this puts pressure on the cost line)d) Government investments are driven by the percentage of the budget –

encouraging the producer to inflate the budget

• Connolly: The industry should eliminate perverse incentive by discouraging percentage-based remuneration– Doesn’t encourage producers to work with smaller budgets

Connolly is arguing for ‘positive incentives’

• Filmmakers contribution should be based on a flat fee – regardless of the budget.

• Government funding in accordance with the producer’s track record

• This will encourage: 1. Faster turnaround between budgets2. Experienced producers to work with smaller

budgets3. Everybody working to make ‘successful’ films

Better model

• A more effective approach is to take a developed screenplay — and the proposed creative team– Calculate a budget level that could be financed

• Budgets based on what’s required to get the film made– The Rover cost $12m– WHY???

• Films should have a realistic budget goal – that justifies the final film and box office potential – Was The Rover ever going to be a box office bonanza?

The answer – involve audiences

• Hollywood – depends on good box office. – The successful of one film helps support the next

• This doesn’t apply in Australia – everybody is already paid once the film comes out– If payment was based on box office… • Audiences would matter.

The problem with The Rover – most of its problems could have been fixed

• The problem of the film – is in the screenplay

• Films should be budgeted on the screenplay and proposed creative team

• Not – stars and story: great stories and great stars don’t automatically make ‘great films’.

Films need to justify stars – and realistically budget for them

• Marquee Australian stars now expect as much as 10% of the total budget – based on the Hollywood model of payment

• The cast member is rewarded for helping attract finance with a larger fee – and rewarded for attracting an audience with a share of the film’s profit

• Question: Does the ‘star’ cast reflect the market value?

Pros and cons of seeking funding outside of Australia?

“You can’t make these $20 million movies without going overseas to get money. The Australian film industry can’t sustain that. One of the main reasons the local industry can’t sustain such a production is that it doesn’t work with the audience in mind. Filmmaking is, by its very nature, commercial, and money spent on production has to at least be attempted to be recouped. You should feel a responsibility to make that money back. You can’t make a $20 million movie and expect to recoup that money by targeting just an Australian audience”.

- Peter Spierig