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Development

The development stage contains both general and specific components. Each film studio has a yearly retreat where their top creative executives meet and interact on a variety of areas and topics they wish to explore through collaborations with producers and screenwriters, and then ultimately, directors, actors, and actresses. They choose trending topics from the media and real life, as well as many other sources, to determine their yearly agenda. For example, in a year when action is popular, they may wish to explore that topic in one or more movies. Sometimes, they purchase the rights to articles, bestselling novels, plays, the remaking of older films, stories with some basis in real life through a person or event, a video game, fairy tale, comic book, graphic novel. Likewise, research through surveys may inform their decisions. They may have had blockbusters from their previous year and wish to explore a sequel. They will additionally acquire a completed and independently financed and produced film. Such notable examples are Little Miss Sunshine, The English Patient, and Roma.

Studios hold general meetings with producers and screenwriters about original story ideas. "In my decade working as a writer, I knew of only a few that were sold and fewer that made it to the screen," relays writer Wayne Powers. Alan Watt, writer-director and Founder of The LA Writer's Lab confirmed that completed original screenplays, referred to as "specs", make big news when they sell, but these make up a very small portion of movies that are ultimately given the green light to be produced by the president of a studio.

The executives return from the retreat with fairly well-established instructions. They spread these concepts through the industry community, especially to producers they have deals with (traditional studios will have those producers in offices on their lots). Also, agents for screenwriters are made aware. This results in a pairing of producers with writers, where they develop a "take", a basic story idea that utilizes the concept given by studio executives. Often it is a competition with several pairings meeting with studio executives and "pitching" their "take". Very few writing jobs are from original ideas brought to studios by producers or writers. Perhaps one movie a year will be a "spec" script that was purchased.

Once the producer and writer have sold their approach to the desired subject matter, they begin to work. However, many writers and producers usually pass before a particular concept is realized in a way that is awarded a green light to production. Production of Unforgiven, which earned Oscars for its Director/Star Clint Eastwood, as well as its screenwriter, David Webb Peoples, required fifteen years. Powers related that The Italian Job took approximately eight years from concept to screen, which, as Powers added, "is average." And most concepts turned into paid screenplays wind up gathering dust on some executive's shelf, never to see production.

Writers have different styles and creative processes; some have stronger track records than others. Because of this, how the development process proceeds from there and how much detail a writer returns to the studio to divulge before beginning writing can vary greatly. Screenwriters are often protected by the union, the Writers Guild of America, or WGA. The WGA allows a screenwriter to contract for One Draft, One Revision, and One Polish. Bob Eisle, Writer and Member of the Guild Board, states, "Additional writing requires an extension of contracts and payment for additional work". They are paid 80% of their fee after the First Draft. Preliminary discussions are minimal with studio executives but might be quite detailed with the producer.

Next, a screenwriter writes a screenplay over a period of several months, or however long it takes. Deadlines are in their contracts but there is no pressure to adhere to them. Again, every writer's process and speed vary. The screenwriter may rewrite the script several times to improve dramatization, clarity, structure, characters, dialogue, and overall style.

Script Coverage, a freelance job held by recent university graduates, does not feed scripts into the system that are ready for production nor already produced. "Coverage" is a way for young screenwriters to be read and their ideas might make their way up to an executive or famous producer and result in "meet and greets" where relations with up-and-comers can be formed. But it has not historically yielded ideas studios pursue into production.

The studio is the film distributor who at an early stage attempts to choose a slate of concepts that are likely to have market appeal and find potential financial success. Hollywood distributors consider factors such as the film genre, the target audience and assumed audience, the historical success of similar films, the actors who might appear in the film, and potential directors. All these factors imply a certain appeal of the film to a possible audience. Not all films make a profit from the theatrical release alone, however, the studio mainly targets the opening weekend and the second weekend to make most domestic profits. Occasionally, a film called a "word of mouth film" does not market strongly but its success spreads by word of mouth. It slowly gains its audience. These are special circumstances and these films may remain in theaters for 5 months while a typical film run is closer to 5 weekends. Further earnings result from pay television purchases, foreign market purchases and DVD sales to establish worldwide distribution gross of a film.

Once a screenplay is "green-lit", directors and actors are attached and the film proceeds into the pre-production stage, although sometimes development and pre-production stages will overlap. Projects which fail to obtain a green light may have protracted difficulties in making the transition to pre-production and enter a phase referred to as developmental hell for extended period of time or until developmental turnaround.

Analogous to almost any business venture, financing of a film project deals with the study of filmmaking as the management and procurement of investments. It includes the dynamics of assets that are required to fund the filmmaking and liabilities incurred during the filmmaking over the time period from early development through the management of profits and losses after distribution under conditions of different degrees of uncertainty and risk. The practical aspects of filmmaking finance can also be defined as the science of the money management of all phases involved in filmmaking. Film finance aims to price assets based on their risk level and their expected rate of return based upon anticipated profits and protection against losses.