The Elder Gnomes Joint Venture
http://ims-management.blogspot.com/2018/08/the-elder-gnomes-joint-venture.html
NOTE:
This is a lengthy discussion
Originally composed in MSWord.
You may find a few errors
and some format issues.
This document is included in
The Business Plan
contained on the
Industry Review DVD.
(General Information on the Joint Venture, Specifics will be posted on IMS Producing Partners)
Here is an Introduction crafted for our Producing Partners. I am posting it here for general perusal, for the purpose of gaining an understanding of the Modus Operandi. It is not intended as a solicitation. Any interest in investment in the project must take place in person or after a series of communications leading to acceptance on the part of both parties.
The specifics and contracts referred to in this document will be posted on
IMS Producing Partners, a restricted newsletter web site; for our vested partners and other business associates, to which access is by invitation only .
This document is not complete. You will find XXX at points where the material has not been reviewed.
I am posting it here as a test to transfer the material from MSWord and as a work document..
The Beginning, setting
pen to paper
The show "The
Gnomes of New Hope; Zach & Zebby's Grand Adventure” began life as an
idea of a simple marionette show designed for a street fair with interesting
story line and a fairy-tale like nature began to emerge. The New Hope Arts
Festival came to mind, but that was not to be. For the simplicity of this
concept gave way to a wide swath of characters and a larger more substantial
business endeavor.
That simple idea turned into stage musical. “The
Gnomes of New Hope” has been in development for many years, having first had
pen set to paper in 1990. It was begun after
some consideration about writing a show that was less complicated, or
controversial, than the other shows, films, or books I had previously conceived
of, or in fact, written.
The wide appeal of Gnomish culture around the world made for a
good foundation to pursue further aspects of “Gnomanity”. Not based on previously
existing ideas, but rather as a blank canvas onto which a new story concept
could be painted, within which, a society of individual Gnomish characters
could dwell. So the culture &
history of "The Gnomes of New
Hope" began to take shape in the context
of "Zach
& Zebby's Grand Adventure". The personality of the Gnomes who live within that world also
came forth in "The Gnomic Tales;
the history of Gnomanity "
Clarifying
the Concept, what kind of show?
As work progressed on writing a puppet show,
music was introduced, as a backdrop to the drama, but then the show began to
take shape as a live action children’s theatre piece. This came about, in part,
because, as the Technical Director for the New Hope Performing Arts Festival, we
were doing quite a bit of children’s theatre and a collection of fairy-tale
musicals, originally presented at Phillip's Mill.
I liked the idea of a puppet show at The Gerenser
Theatre, in New Hope, but the budget and production analysis told me that a
straight puppet show was not viable. The expenses verses the return just didn't
work. That led me to believe that other markets needed to be developed to work
in conjunction with a staged presentation.
So, the writing expanded to take into account a
broader market potential. Thinking of other forms of expression such as; live
theatre, film & television (both live & animation), parades, festivals and other markets, like publishing, garden
gnomes and toys would develop an audience and at the same time - support wide
public awareness and reduce the overall risk.
Adding
Music
As a few lyrical songs were introduced into the
show, dialogue began being replaced with lyrics and songs became the primary
method of conveying the story. I played the flute or the piano to express those
lyrics musically, but it became clear to me that this show was becoming more
complex in many ways.
I
concluded that it would be best if I partnered with another musician, one who
had a good foundation of musical theory. Besides spreading the workload, I
thought this would enhance the credibility of the work and serve to keep the
process on track, because two people working together tend to prod each other.
I felt that, introducing regimented technical
knowledge and training into the process would bring my improvisational music
into conformity so it could be reproduced, as is necessary. With that in mind, I communicated with a
number of musicians about writing the music for this show. I pursued discussing
this project with a few well-known professionals, but I came to see that having
a close proximity with a collaborator was an essential aspect of creating the
music. This meant that I needed to associate with someone who was nearby,
accessible, willing & able to be committed to the project. Such a person
needed to be a talented musician, with the right mind-set and able to be
completely focused on what needed to be done.
In 1996, I invited my friend Shawn
Rose, a pianist, to participate in this process and he said yes. Shawn & I worked together on a number of
other theatre projects including my Magnum Opus titled “I Am Alpha &
Omega”. He is a talented musician. I thought that “The Gnomes of New Hope”
might just be the right fit.
So, after a period of acclimating
ourselves to one another’s idiosyncrasies and getting my studio space set-up with
the right equipment, we settled into working on the music for this show. Once
we learned how to use the tools available to us, we consistently put an average
of 20 hrs per week, into composing and arranging a total of 70 songs, bridges,
and backgrounds for the show. We did this for 8 years. All this work on composing took place while I
was writing the lyrics to express the story that was taking shape and
conceptualizing the Libretto. I also spent time crafting the score.
The music for this show has been
orchestrated for a 24-piece pit orchestra. Although all of the music is
written, more work is required for the score, lead sheets, additional
arrangements and new recording via MIDI. We already recorded most of the
orchestral music with MIDI and also brought singers in to record one lyrical
song. A number of songs have not been arranged, so there is still much to be
done.
We discontinued working together,
before we could get the Overture done. The strain was getting to us and we started
to disagree on a number of aspects. We have spoken about working on the music
again, so it is possible that we will resume.
Work on illustrating the story was
taking place at the same time as writing the Libretto, the Music and a
narrative story. It soon became clear that I needed to shift over to crafting a
Storybook, something that is essential for building an audience.
Now that Book One in the series is
finished, the remaining books will need to be conformed to the layout specs
& additional illustrations are needed to fill in the gaps.
Production Tools
In addition to the creative work of
composing, it was necessary to embark on an intensive learning process of the
computer systems and programs. It took two years to gain proficiency in the
technology for composing and arranging music.
Of course those programs have been updated and will now require
additional training.
We worked, on average, two or three
days a week, sometimes more, composing and arranging the music using these
computer systems. We have found it to be
an amazing thing to have an entire orchestra available on your desktop, thru
the use of MIDI- Musical Instrument Digital Interface. When we spoke to the president of the Bryn
Athyn Orchestra about playing our music, as he sat in the studio listening to
our work he said; "why would you want to wreck it by having an orchestra
play it?"
The music programs we used were
Reason, Digital Performer and Finale.
These programs allow the music to be applied to numerous aspects of theatre
and film production and also work in conjunction with other programs like;
Final Cut Studio, Poser and Cinema 4D, which can be used to create CGI for live
action, animated films, augmented reality and motion control for film, video, and
animatronics.
Integration of these programs with
photographic editing and publishing tools is also useful, but they also can be
applied to control systems for stage lighting & set implementation, and of
course, the puppetry used in on stage and in the Parade float. I am working to
upgrade, integrate, and learn all these systems to add new functionality in all
the production arenas of interest.
Poser, an
animation/character-modeling program has now come into the mix. Although the
version of the program I have is now outdated, I anticipate using this to aid
in illustrating the remaining books, begin our work in animation, and other
relative film and publishing applications. The goal is to integrate the
aesthetics of our watercolor techniques with the motion control of CGI
(Computer Generated Imagery). Upgrading our animation capabilities is on the
agenda.
Illustration
& Animation
Artist, Jency Latta, was employed,
for about five years, to produce the illustrations used in the Libretto, the
Storybook and many other applications including; publicity and creating
figurines & puppets. In addition we have created a line of Garden Gnomes
based on those characters. We did those illustrations using line drawings,
which were scanned and processed to become the foundation for watercolors,
which were scanned again into Photoshop, where they were then refined
sufficiently to use in the publishing layout.
Jency's work was rather sporadic due
to a combination of scheduling conflicts and lack of funds. As a result her
work was spread it out over five years. When we had enough drawings to create a
Storybook prototype, resources were shifted away from illustrating into
publishing design, layout and writing. With the publication of Book One, it is
time for us to reboot our illustration work, this time with a broader purpose,
using new tools to implement different methods to create the artwork.
Preparing the layout for publication proved to
require extensive, but necessary, effort to refine the material and produce a
final Illustrated Storybook, ready for press.
Other prototypes for an assortment of
Ancillary Market were also being developed during that time. This was in order
to expand the project across a wider swath of markets, in order to increase the
viability of the project as a whole. But doing this also served to further
delay the work of illustrating the story. Fortunately, we have enough
illustrations to produce three more books, but we need to get busy finishing
the illustrations for the whole collection.
Jency & I have discussed the work
remaining and we are both anxious to get started again. In addition to
finishing the artwork, I expect this work to set us on the path to doing the
animation that we intend produce. From
my position, I seek to secure the entire volume of funds required to keep this
work advancing to completion. Running
short before it is finished is not a good idea, because it will break the
momentum. It's happened before and I want to avoid it this time around.
The illustrations required for the
remaining collection of books amount to 348 more panels. I have already used
the existing artwork as much as I dare. Otherwise we risk redundancy. I
estimate that fees paid to the artist's will cost a minimum of $300 +/- per
panel. That includes a contingency, but not overhead or the additional prep
work to integrate it into the publishing layout. Effectively, that number
should be doubled in order to prep those panels for publication and integrate
them into the layout. So that means 348 x 600 = 209K for the remaining 3.5
books and setting the groundwork for animation.
Those numbers exactly match the cost per book thus far.
You can see from those numbers that
at a maximum net income of $10 per book, split in half for overhead, requires
sale of 12,000 books just to break even on the artwork. That doesn't mention
other line items in the budget that need to be considered. So we need to think
in terms of high volume sales for the books. Ancillary Markets, Licensing &
Options will offer for additional support, mostly dedicated to payback and opening
new arenas of production (addressed elsewhere).
Libretto, Storybook,
Audio Book, Cinema
The artwork used in "The Gnomes of New Hope;
Zach & Zebby's Grand Adventure" was first applied
to the Libretto, which led to the creation of an Illustrated Storybook. A rough narrative story was written alongside
of the stage script, as a means of assuring consistency, developing character
backgrounds & motivations and understanding the history of events taking
place in the story presented on-stage.
That Narrative Story was initially
a tool for clarifying the stage show, but it grew into a refined Illustrated
Storybook. Part of that narrative was a back-story created to clarify the
character's history. From that history
came "The
Gnomic Tales".
After a while, the language structure
in the Storybook was reviewed and carefully crafted to accommodate the needs of
a read-out-loud book for story telling, primarily between parents & their
children, but also for other purposes; an Audio Book, a storytelling
presentation and narration in a theatre/concert presentation, television or
film.
An Audio Book, with sound
effects, is envisioned as companion to the Illustrated Storybooks, which Storybooks
are likewise, companions to the stage play.
The Audio Book is expected to also contain the music from the stage show.
The net result will be; a sound track,
serving as a timeline and a guide to apply the existing artwork to storyboards for
short animated films, all of which are expected to be part of the e-storybook "Gnomes in a
Gnutshell".
With Cinema in mind, we are working to set up our editing suite & storage
capabilities for the animation work we seek to do. There is a learning curve to use these new
systems, which must be considered. So, we are working to upgrade the studio's programs
and equipment to handle a much higher demand, which will inevitably be
required. However, in addition to using
this technology for the animation, we will also most certainly apply it the
illustration work of both "Zach & Zebby's Grand Adventure" and
other stories in "The Gnomic Tales".
So, upgrading our capabilities is an essential step to move forward, if
we are to continue developing the potential as an in-house operation.
We are striving to integrate our
current artwork and it’s aesthetics into the animation programs giving us much
more flexibility to create an active Gnomesphere
with the look that we seek to achieve
As the Artistic Director, of “The Gnomes of
New Hope”, from my point of view, having our animation appear as living watercolor
art is preferable to images that give a sense of "overly refined computer
generated" images. Clearly, the idea is that The Gnomes have a culture
apart from humankind. The animated film will need to subconsciously convey this
by maintaining the aesthetics of hand-painted artwork that is naturalistic,
leaning toward impressionistic without breaching abstract. This will give the
product a uniqueness that is increasing rare in the current field of animation.
It may be difficult to implement in motion because of shifting shadows, but it
will be something to experiment and hopefully succeed with. This also supports
our premise of "The Gnomeville Art & Crafts Guild".
Our discussions have led us all to
believe that pursuing this avenue of creative expression is something that we
can achieve with less resources, scheduling and personnel than mounting a full live
production onstage, which requires ongoing maintenance. The end result of
pursuing animation will be far more beneficial in terms of marketing, not only for
the stage show, but also the entire product line. This will potentially result
in increased cash flow to fund our theatrical production efforts.
Priorities;
Facilities & Equipment
Right out of the box - securing the
facilities overhead for the long term is the first priority; followed by
upgrading our production equipment.
The most basic expense for the studio
facility, without personnel, supplies or equipment, accounting only for Rent,
Taxes, Maintenance and Utilities runs between 5k & 7.5K per month. My goal
is to secure those funds, and be done with it, by selling 50% of the worldwide
rights to the project to The Elder Gnomes Joint Venture, but those funds
might be gained through Licensing or Options. All numbers referred to are Net
to IMS, meaning Federal, State and local taxes are added to the end
number. Some degree of investment funds
may satisfy that goal temporarily. (refer to
the Business Plan for details on the Elder Gnomes Joint Venture and other
funding discussions)
Image of the Mind Studios has collected
a wide array of filmmaking and theatrical production supplies, gathered since
its inception in 1977. However, technical
advances, the present digital environment, and new computer protocols of
control applied to equipment (DMX, MIDI, etc.) have caused the better part of our
film & video equipment to become outdated and basically useless for a
professional finished product in the current marketplace. There's no point in
trying to use it for anything other than tests and in-studio operations or our
museum. This applies to computers, cameras, and other equipment, which needs to
be upgraded on an ongoing basis in order to be functional in today’s media
environment. It is important that we
upgrade to current standards used by the venues in which we expect to present
and/or to create a self-contained road-worthy operation. This is an ongoing
process that needs to be funded.
Graphic programs, digital cinemas,
and exhibition mediums continually change to demand more computing power. By
the time one starts to really use the tools, they are already outdated. As our
extensive library of artwork continues to grow, it requires more processing
power, storage space, improved scanning and printing capabilities.
The need for upgraded equipment is
amplified when animation comes into the picture. So, improving our equipment to
a level that will sustain our growth and production demands, particularly the
demands of a professional endeavor such as this, is required and doing so is an
ongoing process, requiring substantial investment. With the many of the goals outlined for The
Gnomes of New Hope, this is even more important if we are to achieve success.
Writing;
Story & Music
To help you understand our writing
process, I would describe it this way: I
have created the overall storyline, the environment and the characters, which
manifest within the sequence of events.
Within the context of the environment, I write the dialogue and lyrics of
the character, which are used to tell the story.
When it comes time to add music to
the lyrics, I convey my idea of what I think a melody line ought to sound like;
by singing, or playing the flute, EWI (Electronic Wind Instrument), or the
keyboard. In the instance where the
melody line is not directly imported into Digital Performer by the keyboard or
the EWI, as in singing or playing the flute, my writing partner, Shawn, will
interpret what he hears, putting down the notes into the a MIDI file we have
set up for that song. Sometime I do it alone. Upon review, we will make adjustments
that might improve the melody line.
From there we, as collaborators, negotiate
the orchestral arrangements, counterpoints, chords and such from a sense of
what each of us would like to hear or the way we feel a particular phrase ought
to be expressed. Then the mix is
addressed to create a balance.
Sometimes we take turns in laying
down accompaniments with various instruments as impression strikes us. We try to make certain that there is
diversity in the themes and the arrangements, although there has emerged a
definitive style. The music is
primarily designed to support the action onstage (the blocking & timing of
the piece), the storyline elements, or the emotions the character needs to be
conveying. It is derived from the lyrics as they relate to the action required
on stage. The music is not a "pop
song" to which the stage action must be adapted.
Often, it happened that I would return
to writing or working on illustrations while Shawn worked on balancing out the
arrangements, setting up new files or mastering the work we already composed,
but when it came to the overall composition, neither one of us did that on our
own. For simplicity's sake, we composed
the music in C/common time, requiring review and adjustment for Key & Time
signatures.
However, since it has fallen to me to do the
Orchestral Scoring, the Lead-sheets, the Divisi, in addition to the Time &
Key Signatures, I make changes as needed to accommodate the singer’s needs,
abilities and other stage timing issues.
The Libretto
The stage play was written first. It consists
of two acts. The first act has nine scenes and the second act has eleven. The
scene numbers do not reflect the length of the scenes; rather they reflect
shifts in action, story or the sequence of events in the scene. Some scenes are
very short others a rather long, although I tried to even it out as best as
possible.
As the Libretto became refined I
included technical directions and performance instructions, such as blocking.
This was not done in an attempt to control the creative process of other
participants; it was done to comprehend the timing required for the show and
the technicalities of building and operating the show.
The creative expression of the
characters and other aspects of performance are left up to the rehearsal
process, within defined parameters (to keep the show under control). Technical
directions are suggestions offered to start the process moving, they are not
absolutely rigid (if another method proves to be better) except in the case of
event timing & operation that effects the action and progress of the show.
Being a Technical Director for
decades, and having over 350 shows under my belt, makes my commentary credible
in that regard. Stage directions for blocking and business is specific and, for
the most part I expect it to be followed, since it is critical to the timing of
the show and too much divergence therefrom will collectively destroy the
balance of the show as a whole.
Of course, there is creative latitude expected. Accommodation for that
is written into the show, sometimes in sub-plot for the actors, and in
recommendations for technical implementation. But it is important that the
Libretto be adhered to as much as possible to maintain control over the
production.
The Score, Recording Lyrical
songs
There have been numerous debates over the
Score, because there were issues with the complexity of program and the way the
transcription engine interpreted the music. I discovered a flaw in the program,
which MOTU has since corrected. So, because
of that, I have been the one tasked with all the scoring.
I have concluded that the bulk of the
score needs to be done by one person. It is too complicated to set-up and
distracting for more than one person to be involved. The job doesn't get done with
constant negotiation. Reviewing and correcting the score can take place with
multiple people, but only one person should be involved in doing the
transcription.
I am updating the workstation with
new programs to compose & score music. This includes changing the tone
generators from Reason to Mach Five, setting up the most recent version of
Digital Performer and doing this on a new processor.
Once things are up & running, and
the bulk of the scoring is reviewed and updated as necessary, I expect to burn
new music files, which may be used for both recording and presentation. A big
part of the scoring required is to review and restructuring the time
signatures.
Shawn, being a pianist, has not
wanted a piano to be part of the compositions. I capitulated in that regard,
but I now feel that was a mistake. It was a factor in failing to preserve the
melody lines and made creating piano adaptations/lead sheets more difficult.
His position was that piano reductions should not be done until the entire show
is orchestrated and arranged.
As a singer I disagree. Without a
piano to lock in the melody line, with some degree of accompanying cord
harmony, the arrangements more often than not loose control, resulting in an
overall destruction of the timing, loosing the beat for the lyrics and tends to
overwhelm the singer with confusing counterpoints.
As a Producer I also disagree. Piano
reductions are needed for lead sheets to present to, not only, singers, who
have been absolute in needing a piano Lead Sheet, before being willing to
attempt to sing the songs, but are also required for other presentations needed
for planning the production.
Our disagreement was sufficient to
cause us to stop working together, because it was non-productive and redundant.
As much as I hate to say it, Shawn refused to preserve the Melody lines in a
separate track. The numbers that were arranged by Shawn, while I was writing
the Libretto and Narrative story, reflect that.
There are timing and counterpoint
issues in the arrangements where the melody line was broken up and not
preserved. So I am reviewing the material to restore the melody lines and
create a piano adaptation of each song, which are then used to the create the
Lead Sheets.
Divisi tracks are based on a cord
structure that needs to be reviewed. I am not certain how things will go when I
begin scoring again with the new programs, but that work can't take place until
either; the Storybooks produce enough cash flow to buy me that freedom, or,
significant investment funds become available.
In the past, I have strongly promoted the idea
that Shawn be the conductor of the orchestra, however he is not interested in
doing that. So I do need to find a maestro, who is willing to consult with me
on the score.
I have discussed this with a few
people, including, the conductors of the Bryn Athyn Orchestra and the Bucks
County Orchestra, the previous conductor of the Bryn Athyn Choir, as well as
the present Choir Director. So far the circumstances have not been right to
advance with that. For Bucks County, it is only a matter of money.
We are discussing recording a few of
the primary solo songs. My plan is to first do the solos, then move to the
duets and so on. We've talked about gathering a group of singers to sing two of
the critical choral songs. I hope that we might be able to complete the scoring
for those songs and move forward with that.
At one time, we made arrangements
with a recording studio, but that studio shut down before we could get it done.
So now, I feel that recording will be contingent upon setting up a sound stage
at the studio, because having that capability readily available is required for
many aspects of this show, including; filming puppetry, orchestral & acting
rehearsals and recording the many songs in this show.
Style?
There has been much debate - over
what may or may not be accepted by an audience? … Over previous styles of
musical theatre… Over what an arrangement needs to be to convey the lyrics
clearly… or... Whether or not we should try to make a song that might be a
popular number and will get airplay on the radio?
Basically, we’ve settled in to
letting the music be what it is, which is what it needs to be for the show, and
not letting previous successful work, created by other people, or expectations
of what it might become in the future, impose any preconceptions on the
process. Much of the music is
unconventional in its approach; and some of it is quite unique. We believe this
is a good thing.
We have come to realize that the
creation of music is a result of creative forces that are in large part, beyond
our control. We seem to be merely a tool
for the expression of the muse, which apparently has found an outlet in our
partnership. The music, which has been
created for The Gnomes of New Hope, amazingly, is in large part, a
surprise. Often, when a particular
arrangement falls into place, we are very surprised at how it managed to
happen, but I have to say, we find ourselves quite pleased as well.
So it is that - this music is very different from what one might expect
for musical theatre, based on previously produced work. We understand that all profoundly classic
material has pushed the boundaries of the expected status quo, so it is our
hope that the unique nature of the music we have created, along with the story
of course, will work to great advantage in making “The Gnomes of New Hope” a
very enthralling and popular presentation.
Beyond Theatre
“The Gnomes of New Hope” has a very
broad appeal in numerous ancillary markets. An ancillary market is "any
marketplace" such as cinema, television, concert theme park presentations,
or any number retail merchandizing opportunities. Retail merchandizing may include items such
as toys, stationary, clothing or any other product that is based on the graphic
designs or story elements.
The Ancillary markets are the
foundations of additional income that will support the project and provide the
investors with a good return on their investment.
Accessing the broader markets in a
concerted effort will open more opportunities and provide publicity support to
& from each market simultaneously.
However, use of the Core Creative
Materials in advertising, runs the risk of destroying its uniqueness and value,
by pitching something "human", when one premise of The Gnomes of New
Hope is separation from human society. There is one area where this may not
apply. Arts & Crafts, in general, could fit the theme through "The
Gnomeville Arts & Crafts Guild".
Basically, any advertising needs to
be restricted to ancillary products that adhere to the theme and are offered in
support of the project. Third party applications like, a car or a restaurant
for example, would not be appropriate. So this kind of advertising should be
eliminated from the business plan as a consideration.
The Business
of Producing Theatre;
Just as there are different types and
venues of theatre, there are numerous methods of producing works for the
theatre, some more successful than others. Many people have an understanding of
theatre as a high-risk endeavor, and so it is, if it is not approached properly
and methodically.
Knowledge of the ins and outs of
producing a work for the stage, as well as an awareness of the idiosyncrasies and
the particular mindset of the people who are involved in theatre, is required.
Without this the risk of failure is increased.
In a Gnutshell; it is the duty of the production team to guide the
personnel, and the resources made available to them, from various sources in
the production process along the most efficient and productive pathway to
success. That path is often not a direct route, but it can be more direct with
careful preparation.
This process must take place with a
deep dedication to the Integrity of the Core Creative Materials and look to
examine all the avenues by which that core material can be exploited in the
marketplace; to the benefit and profit of all those involved. It is important
to have a perspective and sensitivity to (and of) the various components
involved and to be able to prioritize them properly, in the context of the
overall objectives, at all times remaining true to the integrity of the Core
Creative Materials.
As in any business, there are
specific parameters by which that business must be conducted in order for it to
succeed. Those parameters are dictated by the acquisition and distribution of
resources, the establishment & scheduling of realistic goals, and the
employment of appropriately talented personnel who are capable of implementing
those goals in an orderly fashion, so as to manifest success. But those
parameters are also, to some degree, dictated by pre-established methodology,
particularly in the entertainment industry where all the components are
dictated by union regulations and by other regulatory agencies.
Some divergence from those dictates can
occur, but ultimately too much divergence will be a stumbling block to
advancing the project for a variety of reasons.
Development
Up until this point, I have
structured a methodology that is founded mostly on in-house studio operations
that can advance without conforming to external dictates. It is intended to
build the intangible value of the intellectual property and bring it to the
brink of tangibility. That has been the case for numerous projects, including
The Gnomes of New Hope. But that methodology
is mostly for the Development process and will need to change, when any
production advances into Pre-production, which includes the intention to pursue
First Class or First Run Production Union based Activities.
There are production activities that
can take place under the premise of Development. Non-union venues such as
little theatre, festival, and parade presentations are a few. Preparing
components of the Ancillary markets also falls under Development. But with all of these activities, the objective
is to move into the upper levels of Production management, which involve
increased costs, scheduling, purchasing, personnel and vendor management,
marketing, distribution, and finance management as it pertains to investment,
banking, taxation and regulatory agencies. So with advancement into production
comes advancement of the complexities.
An Abstract on the Transition from
Development to First Class Production
There is a level of external dictate
that is within the capabilities of the present modus operandi, but that level
will quickly be surpassed, based on the presumption that what has been
developed thus far may find the substantial success intended. Taking that into
account, the production must engage an array of external dictates, which extend
well beyond just fulfilling Union Rules.
Therefore, adding known & unknown external
dictates, to the current internal methodology, risks overwhelming tangible
existing resources and impairing the intangible assets present in the project.
This is a condition that must be avoided.
The purpose of establishing the Elder
Gnomes Joint Venture Board of Directors is not only to implement a funding
operation but also to create an upper level management structure capable of
operating within and addressing the industry standards both domestically and
internationally and to keep the oversight self-contained as best as possible.
The Business Plan outlines the
transfer to The Elder Gnomes Joint Venture all of the worldwide rights to
exploit every aspect of the Core Creative Materials. That transfer is
contingent upon a fully vested board being in place and no rights are
transferred until that occurs. There are limitations upon the actions that the
board of directors can take in regard to selling or transferring ownership of the
Core Creative Materials. those details are specified in the Joint Venture
Agreement.
Under the management of the Elder
Gnomes Joint Venture, the details of which are in part, the duties of that
board to clarify, specify, and implement, The Gnomes of New Hope will proceed
to fulfillment.
Those activities cannot take place
under the current business model, because it cannot accommodate the level of
Production Management that is required. The current Modus Operandi for Image of
the Mind Studios is to remain in the arena of Development, with a level
production activities that are related thereto; to, create, define and
highlight the core material to be used in more active and higher level of
production.
Production Management is intended to
take place either under the proposed Plan or another organization's purview,
contingent upon purchasing those rights. In that regard, all numbers quoted in
the IMS Business Plan refer to Net Income received by IMS.
I prefer to see the Elder Gnomes
Joint Venture established and staffed with Vested Board Members, who will then
supervise all operations. But this is contingent upon satisfaction of
obligations incurred to bring the project the project to the table, which are
represented in the purchase price of the stock.
Advancing
into Industry Dictates: regulatory agencies, unions
Those Industry dictates referred to, represent
a level operation, First Class/First Run Production that must be entered into
at the appropriate time, because this is required to achieve the level of success
this project is intended to achieve.
But there are numerous non-union
venues where this project can gain success and those venues need to be
addressed to the degree that they can be merged with Industry union dictates,
so that there is a mutual exchange of support in terms of resources and public
awareness. This is almost automatic as a
production advances, but in some instances there is conflict between what is
considered amateur and what is considered professional. Balancing those
interests for a developing project is part of the Production Management plan.
In some instances, non-union work needs to be duplicated by union employees.
Clearly, the Industry dictates
referred to, encompass the larger markets that we seek to broach, so it is
desirable, indeed essential, to advance to that level.
But in this instance, financially
doing so requires more than just recoupment, it requires a significant advance
against sales, because production management will be effected by capitulation
to those Industry dictates. Individuals or organization that are regularly
engaged in that level of activity should implement such capitulation. But, by
so doing, management moves outside of IMS, and as such requires the advance
against sales.
My approach to personally gaining
this advance is; to form The Elder Gnomes Joint Venture and, by filling the
Board positions in the Joint Venture, turn over all rights & management of
the Core Creative Materials, both Domestically and Internationally in all
markets to the Joint Venture in exchange for purchase of 49% of the available
shares. Thereby, essentially paying me for the creating and developing the project and thus transferring all business of the Core Creative Materials over to a management group, of which I am a part, but no longer carrying sole responsibility for the future of the project. Discussion on this subject takes place in numerous blogs, but is
relegated to IMS Producing Partners and the IMS Virtual Studio. I address this
in further detail in The Business Plan.
Other Options
But also, other options exist, at all levels of management to achieve these benefits for the IMS Producing Partners and myself.
Admittedly, I want this to happen because I have other significant work, that I am obliged to do and that I want to do (in particular writing an Opera as well as completing other creative works).
Ongoing management activities required to maximize the potential and implement the higher degree of success that this project is intended and designed to achieve are prohibitive from allowing me to pursue these other objectives. Other organizations are already in a position to implement this upper management and it may be best if that were the case. However, implementation of the Elder Gnomes Joint Venture, IMS Management Incorporated, and The Gnomes of New Hope Productions, if done properly, will give me the freedom I seek by passing on the responsibilities of production onto a team, establish an operation that is carefully crafted to apply to any production, not only The Gnomes of New Hope, and put Image of the Mind Studios in a position to be sold when I am too old to contend with it and can no longer be involved. That being said; the ultimate sale of the entire operation is a long term objective and setting that up to take place needs to be done.
In any event, I continue to advance this project toward its ultimate success, based on the resources available to me.
Union or non-union? History, Production Management, Ancillary Income, other thoughts
In times past, producers have taken
advantage of people who have been enamored with the theatre and have taken
money for productions, which have failed, not entirely because the production
was bad, so much as the management of the production was not carefully planned
out or implemented with a sense of responsibility.
Partially as a result of exploitative
behaviors by producers in history, engaging in excessively high-risk
activities, dealing dishonestly, or taking advantage of people being
“star-struck” with the theatre, unions were formed to address the issues of
numerous groups of people who work in the professional theatre, as a means to
protect their interests.
The burgeoning marketplace has also
brought new issues into the mix, which can make managing these elements
complex, if not difficult. It is an
unfortunate reality that the cost of producing theatre has increased greatly
over the years, but it is also true that the expanding markets have brought
with them increasing opportunities to create income for the theatre. It is a
delicate balance to manage the expenses and income, particularly because; in
today’s world of producing theatre there are many more up-front costs such as
to security bonds, health insurance, IRA contributions, to name a few, and
other expenses pertaining to management of personnel.
These expenses can be expected when a production moves into the
realm of employing union personnel, as they are terms in the union contracts,
but they should also be considered when using non-union personnel as well. These costs are the second level of
expenditures, which will be required of the investor’s funds, when addressing
the expansion of personnel. Of course,
the first level would be the initial compensation. But included in these costs
are the management expenses of dispersing and overseeing the funds as
well.
Recoupment of these expenses should
be considered a priority in establishing a Modus Operandi, because a healthy
management structure must be maintained. So it is that, these personnel and
other substantial production expenses, need to be properly considered in
developing and capitalizing the budget, before the project can actually move
into production. I mention this because, in the excitement to see a show
mounted, these realities are often overlooked, when considering investment
and/or the costs of mounting a production.
In essence it should be realized that sufficient funds to operate
a fully staffed show for a month should be raised and held in escrow, not only
because bonds are required, but because it is advisable to have a buffer to
accommodate unforeseen circumstances across a wide swath of production
activities. Those production funds held in escrow are in addition to the
expenses incurred for creation and acquisition of hard assets and categories
identified as both "above-the-line" & "below-the-line"
(Defined more clearly in the budget).
Theatrical operating expenses (after the show opens) should be
derived solely from the box office, but ancillary markets can provide capital
influx to pre-production, can contribute to full capitalization, and be
utilized for recoupment. In the event of Licensing performance rights, Ancillary Markets are not included unless they are paid for in advance and the fees are on a per market basis.
Ancillary Income cannot be used to support ongoing operating
expenses of any kind, since the merits of the show must be able to do that. It
may, however, be used for the creation and acquisition of tangible hard assets
(sets, costumes, equipment, etc), in which event dissolution of those assets is
utilized to satisfy; firstly- outstanding hard asset debts and then secondly-
recoupment obligations to the investors. Ancillary Income can be used to negate
bond obligations to the investors or to rebuild bond funds that have been
accessed.
Ancillary Markets, as they relate to production are primarily for public awareness (through merchandising), marketing (when it is
shared across markets) and recoupment of investor’s funds.
Under the current modus operandi, Ancillary Income can contribute
to pre-production, but it cannot be applied as working capital for production.
It can be set aside and contribute to full capitalization, based on the budget
funded by Ancillary Income, but production cannot proceed based on Ancillary Income. The standing modus
operandi for Ancillary income is that it can be attributed to payback of
investment money, but not for direct application of working capital.
If the
Elder Gnomes Joint Venture chooses to use Ancillary Income for production
expenses, then that will be their decision, presuming that a consistent flow of Ancillary Income is in place.. If Ancillary Income is provided for
tangible assets, then that money is recouped first, before any other investment
monies returned. Those funds being recouped by the Joint Venture as Front
Money.
Ground Level Support
To effect this recoupment, implementing a presence in the retail
marketplace should be the first and most important source of income. Therefore any income from the Ancillary Markets needs to firmly established and only a percentage of that income attributed to production, based not on future income, but based on income already received.
NOTES on the Approach (under construction)
The approach that we are
taking with “The Gnomes of New Hope” and Image of the Mind Studios is that of a
long-term relationship. Producing a work
of quality and endurance in the theatre requires a great deal of foresight,
commitment and tenacity. You will be
able to see the extent of the potential for “The Gnomes of New Hope” when you
review the Production Approach Summary, which is a document that outlines what
the production is and how we proceed
The development of this show has already taken
over twenty years. As the producer of this show, my philosophy is that we are
to progress thru stages of development & production and strive for success
at each step along the way. Only after the
smaller successes take place, are we able to move forward into greater
complexity. Only after we thoroughly refine and develop our raw materials, our
potential markets & products and convey with certainty our method of
operation and understand our responsibilities to our partners in this production,
do we have the right to ask people to contribute financially to what we are
doing and hence share in the benefits of our successes.
The size of the markets for a product such as this is potentially
very large. That being the case, proper management of the product, which spans
a wide range of variations on the theme, is essential to achieving the fullest
possible saturation of the assorted markets in which this project can be
exploited. Proper implementation and
dissemination of the product in the marketplace is critical to gaining not
only, this saturation, but also a sustained viability. Achieving this balance between implementation
and maintenance of the markets will only be able to take place if the management
team of people responsible for this is carefully selected for their knowledge
of the markets and their dedication to achieving the goals set forth for the
production. This is an essential element in being able to provide the level of
success that we seek to find for all of our partners in this production.
Careful assembly of the staff for operating this production is,
without a doubt the first responsibility of the producer and this can only be
achieved by defining the goals on a step-by-step basis. Part of being able to do this, assemble a
staff, is raising the funds necessary to pay people to implement the
step-by-step plan. The most immediate goal would be to have the successes of
this step-by-step plan provide for the needs of the production. Only in this way can the production move forward
and pay for itself as it goes. If this is achieved, the risk to the investor is
reduced. This is part of the sub-category design in the budget.
When the costs of a production exceed the ability of that
production to pay for itself, as it is produced, then capital for production
is provided by investors under the terms of various types of Agreements. If a
production is capitalized in this way, the principle and the profits can only
be returned when the final production is ready for presentation before the
public and put into a position to be sold to the viewing public, Thus creating income to be distributed in accordance with the contracted obligations of disbursement.
Under certain conditions, the licensing of
ancillary markets can absorb the larger part of these costs and hence the
production can avoid a portion of investment capital being used. To do this as
a means of financing the production would be the goal (presuming the management remains internal or the Ancillary Markets are otherwise paid for), but even with this as a
goal, investment capital will be required for certain preparatory expenses, and
so Front Money is sought to cover the establishing costs of putting together a
production team and a financing package.
Sometimes, depending on the marketability of the ancillary products, or the
amount of the licensing fees, the Ancillary Licensing Capital can return the
principle Front Money to the Investor, leaving the return on that money to the
profit distributions. (refer to the terms of the Front Money Agreement)
In lieu of the Licensing Fees and Ancillary Market Implementation providing all the production funds, there remain the vehicles of a Joint
Venture, a Closely Held Corporation and a Limited Partnership. A Limited Partnership would be the last
method of financing, because that involves a public offering and has quite
specific Security Exchange Commission rules, which must be followed. The
details of those rules are not required for this discussion, because
implementation of those rules is further down the road, if that is the path that
must be taken to finance this production. Discussion on that subject will
follow in due course.
Further discussions of production finance & management will be offered in the future. The specific and more detailed terms of The Business Plan and these other points will be posted in IMS Producing Partners. If you are an Industry Professional interested in this project, please request access to that site.
Sincerely,
Arthur
Greisiger
Artistic Director/Proprietor
Image of the Mind Studios
