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Macro Environment

of Sri Lankan Film

Industry

Marketing Management

Business Management (Special)

(UGU )

Group No: 04

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Group Members

SAJITHA ADIKARI HD-UGC- 102002

LALINDRA DE SILVA HD-UGC- 102016

NISAL DHARMADASA HD-UGC- 102021

AYESHA FERNANADO HD-UGC- 102027

SACHINI PERERA HD-UGC- 102067

SEWMINI RATNAYAKA HD-UGC- 102070

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Objective Outline

Executive summary………………………………………………………1

Introduction of Sri Lankan Film Industry………………………………..3

In recent years best movies……………………………………….4

Films……………………………………………………………..5

History……………………………………………………………………..6

1970‟s…………………………………………………………..….7

1980‟s- 1990………………………………………………………..8

1.0 Political Environment…………………………………………………9

1.1 Sri Lankan Political Environment……………………………10

1.2 Latest Changes in the political arena…………………………11

1.3 Opportunity‟s in the political arena…………………………..12

1.4 Threats in the political arena………………………………….13

1.5 Recommendations…………………………………………….14

1.6 images………………………………………………………….15

2.0 Economical Environment………………………………………………16

2.1 latest changes…………………………………………………..17

2.2 latest changes…………………………………………………..18

2.3 threats……………………………………………………….....19

2.4 recommendations……………………………….………………20

3.0 Socio-cultural-demographic Environment……………………………..22

3.1 people‟s views…………………………………………………….23

3.2 latest changes……………………………………………………..24

3.3 threats…………………………………………………………….25

3.4 demographical environment………………………………………26

3.5 population…………………………………………………………27

3.6 threats in demographical environment…………………………….28

4.0 Technological Environment………………………………………………29

4.1 Digitalization…………………………………………………………30

4.2 advantages…………………………………………………………31

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4.3 latest changes…………………………………………………….32

4.4 cameras,lights,grid equipment…………………………………....33

4.5 steady cams,generators,sounds………………………………….34

4.6 behind the scene…………………………………………………..35

4.7 technological threats……………………………………………..36

4.8 camera selection………………………………………………..37

4.9 rcomenations for technological factors……………………….38

5.0 Ecological Environment…………………………………………………..39

5.1 main aspects of ecology………………………………………..40

5.2 latest changes……………………………………………………41

5.3 wild screen charity…………………………………………….42

5.4 locations………………………………………………………….43

5.5 opportunity‟s in ecological factors…………………………………44

5.6 major oppurtunity‟s in wild screen……………………………….45

5.7 recommendations…………………………………………………..46

5.8greening the screen of Sri Lanka…………………………………..47-48

5.9 by greening…………………………………………………………49

6.0 Legal Environment……………………………………………………………..50

6.1 oppurtunity‟s…………………………………………………………………51

6.2 threats……………………………………………………………………52

6.3 recommendations………………………………………………………53

6.4 legal aspect in the industry…………………………………………….54

6.5 copyright assignment…………………………………………………55

6.6 music,trade marks…………………………………………………….56

6.7 working with unions…………………………………………………57-58

6.8 financing and investment issues……………………………………..59

6.9 no general solicitation, disclosure requirement……………………………..60

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6.9.1 filing……………………………………………………………61

6.9.2 business investment structure…………………………………62-63

7.0 Marketing Mix………………………………………………………….64

7.1 place,promotion…………………………………………………….65

8.0 Conclusion/poitical…………………………………………………66

8.1 economical………………………………………………………..67

8.2 socio-cultural-demographical & technological……………………68

8.3 ecological…………………………………………………………69

8.4 legal……………………………………………………………….70-71

8.5 concluding…………………………………………………………..72

9.0 remarks sheet……………………………………………………………73

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Executive Summary

The macro environment of film industry in Sri Lanka.

The macro environment consists of larger societal

forces that affect the entire microenvironment.

The six forces making up the company‟s macro

environment include political, economic, social,

technological, environment and Legal. In this

report, express these forces. Shape

opportunities and pose threats to the film

industry in Sri Lanka. And we suppose some

recommendations to those threats. The present state of Sri Lankan cinema does not

offer much hope.

The political environment consists of laws, agencies and groups. That influence or

limit marketing actions. The political environment has under some three changes that

affect marketing worldwide. Increasing legislations regulating film industry, strong

government agency enforcement, and great emphasis on ethics and socially

responsible actions.

The economic environment of film industry characterized by economic depression

how to affect to the film industry lacks of finance to make films. Today‟s squeezed

people are seeking greater satisfaction just the right combination of good quality of

the film and happiness at a fair price of ticket. Another factor is the distribution of

income also is shifting.

The Social environment is made up of institutions and forces that affect a society‟s

values, perceptions, preferences and behaviors. The environment shows trends

towards behavior of Sri Lankan and their different cultural aspects.

The demographic and economic factors are also a part of social environment that

affect the local film industry. Demographic is the study of the characteristics of

human populations. Today demographic environment shows an increasing population,

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growth in the rural population, a changing family system, and changes in the role of

women and a better-educated and whiter collar population and increasing diversity.

Those factors directly affected to the local film industry. Because of when population

is increasingly, have to build new film halls, and develop facilities in there. Moreover,

came up new generation with new ideas through films because of make a competition

with other countries and hold the audience with our film industry. As a result, film

producers are focus to main problems of society. With these changes come up more

opportunities and threats also.

Technological environment of film industry in Sri Lanka is in low position than other

countries. Film makers face to the big problem in these days. That is a less experience

of technicians and equipments. But some foreign countries help to those problems, as

an example China. „Aba‟ is a silver line to the film industry. Because they used high

technology to this film and their cost also high. The technological environment

creates both opportunities and threats.

The environmental factors has major trends and threats also. The Sri Lanka has

attractive and beautiful locations. This is a great opportunity to the Sri Lanka, because

of this is the way of go to the international market & make a competition with them.

As a result local film industry can earn lot of money through it. Most of international

film makers try to make film regarding those natural locations.

The Legal environment in which the film industry operates, In recent years in Sri

Lanka ,there have been many significant legal changes that have affected the

industry‟s behavior. The introduction of age discrimination and disability

discrimination legislation and an increase in the minimum wage are examples of

relatively recent laws that affect an industry's actions.

Finally we can review here, the marketing mix of Sri Lankan film industry .We

aspire to provide through this can passively accept the marketing environment an

uncontrollable element to which they must adopt, avoiding threats and advantage of

opportunities as arise.

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Introduction of Sri Lankan Film Industry

Sri Lankan Cinema includes films made in Sri Lanka. Beginning of the industry

that has truggled to establish since its induction in 1947 with “Kadawna Poronduwa”

produced by S.M. Nayagam of chithrakala move tone. Most of Sri Lankan film made in

Sinhalese language, the language of the majority Sinhala people.

In the first nine years most films were made in South

India, and followed the stands of Indian Cinema. Due to Indian style sets put up in film

studios. How ever the pioneer director Lester James Peris was the first Sinhala film director

who shot his first film completely out of the studio “Rekava” in 1956. This was screened in

Colombo and film was commended by local and international critics.

Films continued to follow formally storylines borrowed

from India up through early 60s, such as “Kulrulu Badda” and “Sande Shaya” several artistic

Sinhala films were made in late 60s. In 1963 Mr. Lester James Peris contributed development

of Sri Lankan Cinema with “Gamperaliya”. It was a turning point in Sri Lankan Cinema

doing a way with songs, dance, comic and fights. He won the grand prize (Golden Peacock)

at the International Film Festival of India 1965. Since then he had made 20 feature films

including “Nidhanaya” (1970) and “Kaliugaya” (1983). He is internationally recognized as

one of the greatest film director and considered the father of Sri Lankan Cinema. During the

1970 several talents came to the forefront while commercial Cinema continued to steal from

Indian Cinema. Another big success came with “Sath samudura” by Professor Sri

Gunasinghe supported by exquisite cinematography by Dr. D.B.Nihalsinghe. “Welikatara” by

Dr. Nihalsinghe Sri Lanka‟s first film in cinemascope ratio wide screen in 1972. Wasantha

Obesekara, Darmasena Pathiraja. Mahagama Sekara and Sumithra Peris are other major

directors who stepped forward during this time.

Deceased Mr. Joe Abeywickrama was one of the best actors in Sri Lankan Cinema

industry. He was named as the “Best Asian Actor” at the Singapore International Film

Festival in 1999 for the film of “Pura Handa Kaluwara” He captured our hearts and minds

diverse role such as “Vannihami” in “Pura Handa Karuwala”. Mrs. Malani Fonseka is the one

of best actress in Sri Lankan Cinema industry. She has received the “Silver Peacock Award”

in Indian International Film Festival in 2009 and the “Best Actress Award” in Levante

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International Film Festival, Italy in 2010 for the role of “Sandhya Rani” of the film “Akasa

Kusum”

In recent years few best movies made in Cinema industry. The film

producers such as Tissa Abesekara. Prasanna Vithanage, Vimukthi Jayasundara and Asoka

Hadagama were become the leader in the industry and they have attempted to breathe new

life in to the industry. Mean while SFC (State Film Corporations) established a unique credit

scheme for film production. Loans were given on the basis of a script evaluation. Recently

releases classical films like “Sooriya Arana, Samanalatatu, Era Handa Yata, Saroja,

Sinhavalokanaya, Abha, Akasa Kusum” and commercial films like “Asai Man Piyabanna,

Challengers, Adaraneeya Wassanaya, Hiripoda Wassa” have attracted Sri Lankans to

Cinemas.

1. Sooriya Arana Film: Directed by Somarathna Dissanayake.

“Best Film Award” of Presidential Film Awards

Festival 2005 in Sri Lanka

2. Samanalatatu Film: Directed by Somarathna Dissanayake

“Hadurmete Gold Award” for the best children‟s

feature film at the Seventh International Film

Festival in Tunisia 2006.

“Best Film Award” of Mexico International Film

Festival 2005

“Humanitas Camera Award” & “Jury Mention

Award” of Rimouski International Film Festival

(Canada) 2005

3. Ira Handa Yata Film: Directed by Bennett Rathnayake

This film nominated for the best performing film

in Asia category at the 23th Singapore

International Film Festival.

“Special Jury Awards” of Los Angeles

International Film Festival 2010

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4. Saroja Film: Directed by Somarathne Dissanayake

“Best Asian Film” of Dhaka International Film

Festival in Bangladesh.

“Bronze Award” of Houston‟s World fest Film

Festival

“Best Film of the year” of Singapore International

Film Festival.

5. Sinhawalokanaya Film: Directed by Suneth Malinga Lokuhewa

This film won the 4 awards by the Asian Film &

Drama Foundation Presents Film Awards

Ceremony at Southern California.

6. Abha Film: by Jakson Anthony

The Silver Gavel Award (ABA) at the American

Bar Association in 2009

Abha is the first Sri Lanka to be finished via

digital intermediate technology.

7. Akasa Kusum Film: Directed by Prasanna Vithanage

“Silver Peacock Award”(Best Actress) of Indian

International Film Festival

“Best Actress Award” of Levante International

Film Festival Italy 2010

“Jury Special Mention Award” of Vesoul Asian

Film Festival France

“Best Asian Film Award” of Granada

Cinesdelsur Film Festival Spain 2011

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History of Sri Lankan Film Industry

The first film to be screened in Sri Lanka (called Ceylon up till 1972) was a silent

newsreel shown to Boer prisoners of war in 1901. The first cinema hall was opened

in Colombo in 1903. The Colombo Cinema Society, thought to be the first Film

Society in Asia, was started in 1945. There was no „long period of silent‟ as such in

the history of Sri Lankan film making Kadawunu Poronduwa (Broken Promise),

made in 1947 with Sinhalese language dialogue, is accepted as the first Sri Lankan

film. It was produced by S.M.Nayagam for Chitrakala Movie tone in South India.

After its release, more Sinhala films were produced in South Indian studios, using

actors and actresses shipped over from Ceylon. These films, produced by Indian

directors and technicians, were really South Indian in attitude, formation and

presentation. Many were direct copies of South Indian films in both storyline and

acting styles. The three major commercial production and distribution companies,

Ceylon Theatres, Ceylon Studios and Ceylon Entertainments began to have a

virtual monopoly of the cinema industry in Ceylon by the late 1940‟s. The

audiences for imported Tamil and Hindi films move faster than for Sinhala films.

With the granting of independence to Ceylon in 1948 and the emergence

of nationalism, efforts were made to redeem the Sinhala film from

Indian influences. Sirisena Wimalaweera, who opened his Navajeevana

Film Studios in 1951 and produced a film - Podi Putha (Younger Son)

in 1955, is credited with giving birth to the indigenous cinema of Sri

Lanka. The Government Film Unit (GFU) was established in 1948 to

produce newsreels and documentaries to educate the people on their

newly won independence. Noted for its „creative treatment of actuality‟

and high filmmaking standards, many GFU films won international

awards.

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In 1970, the Sri Lanka Freedom Party (SLFP) led coalition of socialist

parties, which advocated centralized planning was swept into power. The

film industry was nationalized under the monopolistic control of the State

Film Corporation (now called the National Film Corporation – NFC). Its

initial aim of protecting, preserving and developing an indigenous Sri

Lankan film industry was achieved with the fostering of creative and

quality film making practices in its first fifteen years. But by the end of the

1980‟s, its broader, long-term aspirations and expectations were not been

fulfilled.

Some even argue that the total monopoly of the film industry by the NFC,

especially over distribution, hastened the decline in Sri Lankan cinema.

The 1970‟s was an important decade of experimentation, of serious

writing and debate about film as having a pleasant appearance form and

industry, and a period of learning from the European and Japanese avant-

garde. New trends developed, and many writers and directors who

understood the creative possibilities of the cinematic language emerged to

make significant films. Among the directors were Mahagama Sekera,

Ranjit Lal, D.B. Nihalsinghe and Dharmasena Pathiraja. The latter‟s

ground breaking „alternative‟ filmmaking techniques coupled with his

style of „social realism‟ introduced the concept of „Third Cinema‟ to Sri

Lankan audiences, seen in films like Ahas Gauwa (1974) andBambaru

Avith (1978). The 1970‟s also saw the debut of filmmakers who are today

considered major directors in the Sri Lankan cinema – such as H.D.

Premaratne (Sikuruliya /1975), Vasantha Obeysekera (Wesgaththo /1970)

and Sumithra Peries (Gehenu Lamai /1978).

Sumithra Peries went on to make films considered to be pioneering for

their positive portrayal and strong characterization of women.

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While the established directors continued with their creative work in the

1980‟s, this decade also saw the emergence of two other directors of

quality – Dharmasiri Bandaranaike and Tissa Abeysekera. The

latter‟s Viragaya (1987) was arguably the film of the decade. The late

1980‟s and the 1990‟s saw the decline of the Sri Lankan film industry

mainly due to the production of too many poor quality films and the

restrictive distribution policies of the NFC. Investment in film

production fell and technicians and artistes moved into the making a

large profit world of television drama. However, a few younger

filmmakers of talent emerged in the 1990‟s such as Prasanna Vithanage,

Sudath Devapriya, Boodie Keerthisena, Jackson Anthony, Mohan Niyaz,

Linton Semage, Asoka Handagama, Udayakantha Warnasuiya and

Somaratne Dissanayake. Of these Prasanna Vithanage has received the

most international critical acclaim with his award winning films Pavuru

Wallalu(Walls Within/1997) and Purahanda Kaluwara (Death on a Full

Moon Day/1997). By January 2000, the film industry was liberalized

with the ceasing of the NFC monopoly. The NFC retained its regulatory

functions however. Various tax incentives for producers were introduced

and the importation and distribution of foreign films opened up to the

private sector. With the NFC now playing a more pro-active and

competitive role among other film industry players, a bright future for

the Sri Lankan cinema.

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Political Analysis of the Film Industry in Sri Lanka

Political environment/factors

Marketing decisions are strongly affected by developments in the political environment. The

Political environment consists of laws, government agencies and pressure groups that

influence or limit various organizations and individuals in a given society. On account of

ever-increasing globalization, companies are now affected by the sociopolitical environment

of not only their own country but also other countries with which they have important trading

relations. Marketers must keenly follow the changing sociopolitical environment of the world

in order to seek out opportunities and to address potential threats.

These refer to government policy such as the degree of intervention in the economy. What

goods and services does a government want to provide? To what extent does it believe in

subsidising firms? What are its priorities in terms of business support? Political decisions can

impact on many vital areas for business such as the education of the workforce, the health of

the nation and the quality of the infrastructure of the economy such as the road and rail

system.

Political environment in the Sri Lankan context

The political environment is considerably stabilized and Sri Lanka is united under one

Government after a span of 25 years. A stabilized political system is good news for all

industries as they are more confident about planning long term strategies. Political stability is

one of the fundamental aspects for any industry‟s success and growth.

With the end of terrorism in Sri Lanka, the North and East areas opened up. The government

should take action to build cinema halls to help develop the industry for the Tamil

community. This is a new audience which Sri Lankan Tamil directors can make films for.

Thus, the government should take initiative to develop the industry in the North.

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With the positive economic growth (8%) in the country there is clear potential for the film

industry to grow and prosper. But, it is hard to achieve its potential without funding and

support from the political arena.

When you take the political scenario that is associated with the film industry, people within

the industry say there has not been significant intervention or any significant politician for

that matter who have done anything for the silver screen for its 64 year history in the island.

Some people who come through the film industry as celebrities has used that popularity to

enter politics. People like Gamini Fonseka who had an immaculate personality in the silver

screen at one time said that he want enter politics then entered, went on to become the

speaker of the parliament and then had a sad exit.

Not many politicians like the cinema industry. But there are some who use the industry as a

tool for their personal gain and advantage. Actors through their attraction climb on to stages

try to win people‟s hearts and through that try to achieve their political agendas.

The governance of the film industry in Sri Lanka is done by the Film Corporation. The film

industry‟s governing body‟s top management is appointed by the government. Then there is

also the Board of Control for Films Screening as well. Any film to be screened in the country

has to get the prior approval of this board in order to screen their movie.

Actors such as Tenyson Cooray, Ranjan Ramanayake through their

funny, jovial acting have tried to point at different aspects of the

countries political activities, good as well as the bad. Parliament

Jokes, King Hunther are some of the manifestos that the general

public liked a lot. In screening such movies there are both the pros

and cons. In a way it is also publicly humiliating the politician‟s as

well the parliament where laws are regulated and decisions are made on behalf of the people

of the country.

Producers, Directors and the people involved in the industry say that the government has to

give out loans, release the burden of taxes and create policies that are relevant to the

betterment of the industry. They also said that the industry is in need of state of the art

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studios, Cinema villages, facilities to store filmotography archives and storage facilities for

films.

In the old days, distribution of films was done by

the Tamils. Later it was taken over by the

government to break the monopoly. However, due

to corruption and mismanagement the government

had to give back to the private sector. And

currently film distribution in Sri Lanka is done by four companies.

Latest changes in The Political Environment of Sri Lankan Film industry

Compared to the era of terrorism Sri Lanka experienced a couple of years ago, the

current political environment is highly positive to the film industry because, people

are in a positive mindset to go and enjoy a film. Also foreign productions are willing

to shoot in Sri Lanka because they now have no fears of terrorism.

According to an idea of his

Excellency the president Mr Mahinda

Rajapakshe the 1st

ever fully fledged Tele-

Cinema Village in Sri lanka was created

and opened recently.

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Business typhoon Mr. Jayantha Dharmadhasa appointed as the Chairman of the

National Film Corporation.

Opportunities in the Political Environment of Sri Lankan Film industry

The opportunities in the industry are immense. Through proper political backing and

governance, the industry could anticipate a boom.

Sri Lanka has many undiscovered beautiful locations and these can be marketed for

foreign productions.

It is also advantageous for foreign films to shoot in Sri Lanka because it is less costly.

However, if Sri Lanka intends to earn an income and learn through foreign

productions, it is the government‟s responsibility to see that Sri Lanka maintains a

good global reputation by maintaining a stabilized political environment.

With the positive

economic growth

(8%) in the country,

there is clear potential

for the film industry to

grow and prosper.

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To manifest to the whole world at large that the fabrications of Sri lanka‟s war crimes

are a false thing and that social life inside the country and human right‟s violation‟s

are at a low percentage.

Threats in Political Environment of Sri Lankan Film industry

And when you take the treats there aren‟t as such specific instances where you could pin

point but you can‟t say no as well. The treats are minimal as long as you keep everyone

satisfied.

Politics should not interfere with the screening of films. For example, some movies

which are done by people related to politics, screen their films without giving

consideration to the lineup of films. Directors and producers can be discouraged by

such acts of political powers. Thus government should see that the industry is a fair

ground which neither favors the powerful nor discourage other players in the industry.

On the other hand, it was clear that new comers are at lost of how to enter the

industry.

May talented young directors, scriptwriters, actors are kept out of the industry because

they are unaware of the procedure of the film industry.

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Recommendations of the Political Environment of Sri Lankan Film industry

Recommendations are not enough if there‟s no good political influence to the betterment of

the film industry of this country. Experience experts and intellectuals may recommend certain

things but until its put into practice it‟s all useless.

The film industry is not seen as a real profession in Sri Lanka, because there is hardly

any professional encouragement with regard to acting, direction, camera etc.

Government should create policies to encourage youngsters interested in the industry

by introducing filming industry aspects in university courses etc.

Thus it has been established that the industry

needs a museum, a film institute and many

more other things that are relevant to the

educational aspects of to develop the industry

more professionally.

Using political connections to produce films locally as well as globally.

E.g.-: getting permission for certain shooting locations.

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Through foreign ministry and ambassador connections marketing and showcasing

made in Sri Lanka films which depicts the rich history and grander of the

island,culture,social life style,scenaries around the country etc…through this the

country could attract tourist,foregin exchange flows into the country and it manifestos

the real picture inside the country , because its done in a diplomatic way. By this

there‟s more recognition from foreigners.

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Economic Environment of film Industry in Sri Lanka

Economic Environment-Definition

Markets require buying power as well as people. The economic environment consists

of factors that affect consumer purchasing power and spending patterns. Marketers must pay

close attention to major trends and consumer spending patterns both across and within their

world market.

A study of economies can describe all aspects of a country‟s economy. Such as how

country uses in it. As an example how much time labors devote to work and leisure. The

outcome of investing in industries, the effect of tax on a population and why business

succeeded or fail.

Economic Environment of Sri Lankan film industry

When look at the Sri Lankan film industry, that there are influencing external environment

changes within the industry. We can identify economic threats and opportunities to the film

industry over here. The future development of the film industry in Sri Lanka depends entirely

on the production of movies that can shatter box office records and make more than 150

percent profit. The hackneyed, outdated policy of giving loans to produce trashy Sinhala

films will never bring any profitability to NFC.

Latest changes in Economic Environment of Sri Lankan Film industry

Opportunities came with IIFA in Sri Lanka

IIFA will also create many economic benefits such as attracting an increased

amount of foreign exchange and new business ventures. Sri Lanka has the

opportunity to promote tourism with the support of the Indian actors, who have a

large network of fans all over the world.

The country has much potential for investment opportunities in cinema and a

cinema producing destination are one of the major benefits that the country could

gain by hosting IIFA in Colombo.

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The SLTPB (Sri Lanka Tourism Promotion Board ) has estimated to generate Rs

4, 025 million (US$ 70 million) from hosting this internationally recognized

event. During June 3 to 5 there will be many avenues to build business contacts,

which leads to trade and investment. IIFA will also support the two countries to

strengthen their business relations and friendship.

The Sri Lankan enterprises can be the progenitor to take our cinema to

international heights and that is why the President has formulated tax benefits to

elevate the national cinema to enter into the global film market.

When an enterprise invests on the production of movies that have magical qualities to

dazzle the global audience with their magnificent and spectacular attractions which

will enthrall, engross, excite and mystify the audience all over the world

simultaneously, the investor will be earning more than 150 percent profit. The

following privileges will accrue to the entrepreneur when he invests on the production

of specific movies which have the international appeal:

* The facility of tax relief available for national film production which costs rupees 35

million and above.

* The proposed movies will give more than 100 percent profit when it is exhibited in

the film circuits in Sri Lanka.

* It will give a minimum of US Dollars one and a half million from its sales in the

worldwide market place.

* It will open the most powerful and pervading opportunity to advertise specific

products and the corporate brand name of the enterprise in the all encompassing

marketing strategy to be implemented for the exhibition of a movie which will cover

the entire Sri Lanka. It will enhance and expand the sales of product by leaps and

bounds when the corporate sector invests in the production of movies.

* Unlike any other business venture, production of movies is the one and only

investment opportunity that will not only recoup the entire investment with more than

100 percent profit within one year from the date of release.

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* More than what the investor gains in prestige for his name with fame and the

enormous publicity, this is the only area of business activity where he will get

tremendous honor, goodwill and respect of millions of people as the investor is

focused on public limelight.

“I personally feel that if the state is more forcefully and positively involved, the Sri

Lankan sign in the world cinema can be easily established”

- President Mahinda Rajapaks.

The country with the restoration of peace

Sri Lanka being selected to host the upcoming International Indian Film Academy

(IIFA) awards is one of the major successes of the country with the restoration of peace.

India, with the world‟s largest film industry, produces over 1,000 films per annum. This

would be an excellent opportunity for Sri Lanka to promote its tourism at an optimal

level.

At present our film industry produce around 25 movies a year than past 10 years.

With the thundering success of ‘Aba’

The Sinhala film audience will not be the same again.

In order to make money it is primarily essential for the

NFC itself to produce its in-house movies that are

refreshing, attractive and stunningly entertaining.

Threats in Economic Environment of Sri

Lankan Film industry

All of these factors threat to the local film industry

Suffering from a lack of finances

Sri Lankan cinema is quite productive. Filmmakers like Asoka Handagama and

Prasanna Vithanage the third generation. They're courageous, creative and have

amazing talent. But all of film makers suffering from a lack of finances.. As a result

can‟t think what our next films will be because if you don't have any kind of finance,

it means you can't think about anything.

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National Film Corporation did not funded continually

Film makers even begin to conceive a new film. Two years ago, the National Film

Corporation funded 40 productions but did not continue the following year because

they said, "No, we don't have money and we didn't recover the money we had spent."

Independent ventures have no chances

The state can't come up with money to finance films, especially for this younger

generation, and then there is no hope.

Sri Lanka, films don't travel much.

Film meant family entertainment but now, because of this economic depression, the

whole family can't go to the cinema since it will cost a lot of money.

Destroyed theaters during the war

In 1983, during the anti-Tamil riots, Sinhala hooligans driven by other interested

parties, including powerful sections of the government, set fire to about 50 theatres all

over. And during the war, theatres in Jaffna and the northern peninsula were destroyed.

So now we have a very limited number of cinemas and that's not enough. But even

within Sri Lanka, films don't travel much.

There no restored print film center in Sri Lanka

Sri Lankan film industry wants to preserve films and find some finances to get them

restored. If it be failure to do this that will be a great disaster of film industry.

Most of Local films were not exposed internationally.

Because of hasn‟t money for subtitling. The other thing was haven‟t any kind of

international connections .that‟s the reason why local films didn't get proper exposure

internationally. Unfortunately, the SIFF screenings were in BETA format and were very

bad copies. Sri Lankan film producers did not have a single reprint of a film.

As an example: Sri Lankan Director Dharmasena Pathiraja said,

when I went to UCLA in Los Angeles in 1994 and screened On the Run, the audience

there was surprised at its style. The professor of film and television studies asked me,

"Why didn't you send out this film at the time you produced it?" I said the simple answer

was I didn't have money for subtitling.

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Government following tuff rules and regulations to Film industry

The producers earn income of the film, when it came to the theaters but they have to paid

48%of it to the government .As a result there income is not enough to cover their cost.

Have to pay lot of money to foreign actors

Domestic film makers who use foreign actors in a lead role will have to pay 250,000 rupees

(2,400 dollars) for every picture made. A foreign star in a supporting role will cost 150,000

rupees (1,400 dollars), under the move aimed mainly at imports from India which is the

world‟s biggest producer of movies. As a result it will be affected to the film industry

Most of people not really interested to watching local movies. Because of it‟s not

exceed their satisfaction.

As an example: Quality is not enough

Comparing with Hollywood and Bollywood movie standards.

Producers should be paid advertising expenses for a film. Its cost is high.

There no film academy‟s in Sri Lanka. As a result talented and experience actors not

enough to the film industry.

Wasting lot of money to unbeneficial things.

As an example: Ranminithanna-Sri Lanka has more beautiful locations. And

Ranminithanna situated at Hambanthota.

Recommendations of Economic Environment of Sri Lankan Film industry

With very little effort, we can make significant improvements in the way we use resources

while we reduce our waste. And to our surprise we have realized, whilst we make these

improvements, we are going to save money.

Try to restored prints of films will be available for one day. And get support of the

Asian Film Centre, because of this one behind in this venture, wants to preserve these

films and planning to find some finances to get them restored.

Scholarships to young filmmakers who have studied cinema at foreign

institutions

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The Sri Lankan film industry has potentials. “Though there is no functioning film institute

and no proper technical support available in Sri Lanka, young filmmakers who have studied

cinema at foreign institutions, are winning awards at prestigious international film festivals

like Cannes and Toronto. As a result Sri Lankan film industry can earn more profits through

it.

Most of film theaters were destroyed and closed during the war and contemporary

issues last years. Now it‟s time to repair it, develop facilities and open to the Sri

Lankan audience. Provide special offers to them.

As an example:

Offering free tickets for special events-1st

October Special

offers for school children‟s to watch children‟s movies.

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Socio-Cultural-Demographic Environment of film

Industry in Sri Lanka

Cultural Environment-Definition

The Cultural environment is made up of institutions and other forces that affect a society‟s

basic values, perceptions, preferences, and behaviors. People grow up in a particular society

that shapes their basic beliefs and values. They absorb a world view that defines their

relationships with others. The following cultural characteristics can affect marketing decision

making.

Persistence of cultural Values :

People in a given society hold many beliefs and

values. Their core beliefs and values have a high

degree of persistence.

Shift in secondary cultural values:

Although core values are fairly persistence,

cultural shifts do take place, but much more

slowly.

People‟s views of themselves:

People vary in their emphasis on serving

themselves versus serving others. Some people

seek personal pleasure, wanting fun, change and

escape. Others seek self-realization through

religion, reaction or the avid pursuit of careers

or other life goals. People use products, brands

and services that match their views of

themselves.

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People‟s views of others:

In past decades, observes have noted several

shifts in people‟s attitude towards others.

People‟s views of organizations:

Many people today see work not as a source of

satisfaction but as a required chore to earn

money to enjoy their non-work hours.

People‟s views of society:

People vary in their attitudes toward their

society. People‟s orientation to their society

influences their consumption patterns and

attitudes toward the marketplace.

People‟s view of nature:

People vary in their attitudes toward the natural

world.

People‟s view of the universe:

People vary in their beliefs about the origin of

the universe and their place in it.

Cultural environment in Local film industry

Lester James Peries has been credited with the establishment of an indigenous Sinhala

cinema coinciding with Sri Lanka's political, social and Cultural Revolution during the mid-

1950s.

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Latest changes in Cultural Environment of Sri Lankan Film industry

Cultural change in third generation

The overarching influence of great film makers such as Lester James Peris,

Satyajit Ray, Kurosawa and pioneer filmmakers of the European schools

such as Krzystof Kielowski and Andrei Tarkovsky on prassana‟s

application of media, particularly, in a Sri Lankan context tackling

sensitive social issues at micro and macro levels, earned his films

worldwide acclaim and making them truly cultural ambassadors in the

international arena.

As an example: Looking at his corpus of cinema commencing with Sisila Gini

Gani (Ice of fire), to Akasa Kusum, one does observe his signature diction and the

humanist approach towards the subject.

Review of the darkest periods in the contemporary history of Sri Lanka

The significant characteristics of Prassanna vithannage application of

cinema is his awareness of the contemporary issues and the sensitive

way in which he deals with case. His films dealing with the conflict

such as Purahanda Kaluwara and Ira Madiyama (August Sun)

cinematically codifies one of the darkest periods in the contemporary

history of Sri Lanka.

The situation is fast deteriorating. The main thing is this ethnic war, which

has been around for decades.

Some movies stand out as one of the highest grossing movies in the history

of Sri Lankan cinema:

The uninterrupted flow of the movie perseveres with the differences in

the attitudes of the two; the monk and the Huntsman. “Suriya Arana” movie

ends with the unification of the two sides; the hunter who hoists his own

petard by losing his leg, gives his son to the Buddhist order. This movie

captures a beautiful theme nourished by the Buddhist teachings. An emotional

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tug of war is put forth by this colorful production. This movie stands out as

one of the highest grossing movies in the history of Sri Lankan cinema. It has

left its signature in the minds of the audience.

Threats in Cultural Environment of Sri Lankan Film industry

The situation is fast deteriorating. The main thing is this ethnic war, which

has been around for decades. The government has money for its own

survival. Prices are going up steeply by the day and the suffering of

people, so they have enough resources to spend on cultural activities. The

other thing is, the cost of making a film today is very high. Not a single

film can recover the costs and if one cannot recover the costs one will be

in bad shape.

The Sri Lankan audience for locally made films not that much. But it's

highly competitive because society has changed rapidly over the last two

decades. This did not lead to improved standards in the arts and culture but

it did pave the way for other social changes. In 1971 had a youth uprising

and people were scared to even go out of their houses.

Short Film culture

In the context of Sri-Lankan cinema, this remembrance of the short

film could easily be related to its history. Here, the short film has retained its

status only as an exercise for the film-makers who rose to fame with the

feature film. Dr.Lester James Peries, the realist film-maker, began his career,

first, creating a short film titled “Soliloquy”. Another towering figure in

country‟s cinema, Dr. Dharmasena Pathiraja, also created a short film titled

“Enemies” as his first cinematic experience. The Sate Film Corporation ,

which was established in the 1971, made the first-hand experience of the

short-film making a policy for the aspiring feature film makers by requiring

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aspiring cinema-artists to make a short film prior to debut as a feature film-

maker, and making them entitled to receive public funded production credit.

However, problem was not that one made a short film before his long-length

film, but the abandonment of the short-film as cinematic-medium thereafter by

Anton Wicremesinghe after 1979 by making public funds available to

"anyone" with disastrous results.

This tradition of short film-making has not persisted longer, in the Sri Lankan

context. So, as a distinct form of art, the short film has not been appreciated

much and the obsession with the feature film has overshadowed its identity.

Therefore, culture of short film has not gained ground so far. The short-film

has remained a tendril.

Demographic Environment of film Industry in Sri Lanka

Demographic Environment

Demographic environment is the study of human population in terms of size, density,

location, age, gender, race, occupation and other statistics. The demographic environment is

of major interest to marketers. Because it involves people and people make up markets.

Changes in the world demographic environment have major implications for business. Now

let see this environment how to affect to the local film industry.

Latest changes in Demographic Environment in Sri Lankan film industry

Increasing population in Sri Lanka affect to increase film halls in island wide-

nearest 170

Sri Lankan population increasing in year to year. As an example after year 2005,

film halls in Sri Lanka nearly 78, but now it‟s nearly 170.

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The demographic environment itself is affected by changes in the mix of age groups

in the population.

Last ten years the population becomes older; this will lead to rising demand for

“elders‟ only films” producing.

A similar fall in demand for Sinhala children‟s movies by younger people than

other productions.

Most of films making regarding to the youth generations.

Now a day‟s populations of woman are increasing continuously. As a result most

of film making regarding to their natural life .And troubles of they face in this

society. As an example: Prostitution, Abortions, Immigrations and etc.

Different Price of tickets on people’s income

Audience income is different. So they can buy tickets on their budget.

As an example: ODC-250/=, Gallery-150/=, Balcony-300/=.

Film making for different nationals in the country.

As an example: screening of Tamil language films

Develop different facilities in film halls.

Most of film halls try to provide different facilities to their customers. Because of

people has different backgrounds and status. It‟s different from region to region.

As an example:

Cinemax Cinema in Ja-Ela is one of top end movie cinemas

that are operated by EAP films and Theaters outside

Colombo and it is one of the most sought after cinemas by

the patrons living outside Colombo. At present it screens

most of the top end movies including English, Sinhala, and

Hindi language movies.

Facilities

Car Parking

Snack Shop

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Liberty Cinema, owned and manage by EAP Films &

theaters private Limited, it has for a long period of time

being the one of the top end movie entertainment centers in

Colombo, Sri Lanka. Liberty Cinema is known for its

screening of top end English, Sinhala and Hindi Movies.

The cinema currently screens four movies per day.

Film makers produce different type of films. As a result they think creatively.

As an example:

Elders only films making for Adult

Kid‟s movies for Children

Family movies

Romantic films

Comedy, Action movies and ect.

Most of Sri Lankan film producers try to make 3D animation films for kids. They try to

catch children‟s.

Threats in Demographic Environment of Sri Lankan Film industry

Most of people move to watch Hollywood, Bollywood and Kollywood films because of

their technology is superb and quality is excellent. When they compare with international

and local films, our industry positioned in down. That why most of people don‟t like to

watch local films. That is a big disaster to the local film industry.

Tamil people in this country

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Technological Environment of film Industry in Sri Lanka

Technological Environment

TECHNOLOGY REVOLUTIONIZING THE MOVIE INDUSTRY

The technological environment includes forces that create new technologies, creating

new product and market opportunities.

1). Technology is perhaps the most dramatic force shaping our destiny.

2). New technologies create new markets and opportunities.

3). the following trends are worth watching:

Faster pace of technological change. Products are being

technologically outdated at a rapid pace.

There seems to be almost unlimited opportunities being developed

daily. Consider the expanding fields of health care, the space shuttle,

robotics, and biogenetic industries.

The challenge is not only technical but also commercial--to make

practical, affordable versions of products.

Increased regulation. Marketers should be aware of the regulations

concerning product safety, individual privacy, and other areas that affect

technological changes. They must also be alert to any possible negative

aspects of an innovation that might harm users or arouse opposition.

New technology creates new markets and opportunities. However, every new

technology replaces an older technology. As an example, CDs hurt phonograph

records, and digital photography hurt the film business.

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Technological environment of Film industry -Digitization

The progression of film toward a more fully digital medium seems obvious.

Audio production, postproduction and exhibition continue to be largely digital. Visual

effects, titles and editing are almost predominantly handled at the computer desktop.

Filmless DLP projection systems have proven successful in theaters. Home video

continues its progression towards DVD and Internet-delivered film content. As a

result, the only major analog component of the filmmaking process is the actual

shooting of the film. It is not inconceivable that the film technology of tomorrow will

be fully digital.

Latest changes in Technological Environment of Sri Lankan Film industry

Digital Cinema

Film has come a long way since the Lumiere Brothers projected a

moving train on to a Paris silver screen in December 1895. Sound came

to movies with the famous line 'you aren‟t heard nothing yet' in the

1920s. 'The Lights of New York' glistened in color in the 1930s. In

1977, 'Star Wars' was waged with surround sound.

All this time, though, film remained just that - film, a strip of celluloid with pictures and

sound. Now, the 'digital revolution' is threatening to send film to the dustbin of history. The

age of 'filmless film' has arrived.

Like other segments of the entertainment industry, film could not resist the invasion of digital

technology. Filmmakers have been using digital cameras and editing suites for years. Now

they have taken the ultimate step of replacing film itself with digital media.

Filmmakers have been using digital cameras and editing suites for years. Now they have

taken the ultimate step of replacing film itself with digital media.

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Theatres around the world are installing digital projectors, which use high-definition

digitally-encoded discs instead of celluloid. This technology used in Sri Lankan film industry

also.

The advantages are obvious:

Picture quality is superb; there is no loss of quality even if the film is played 1,000

times.

Digital media are highly portable; distribution costs are minimal because digital

copies cost much less than film reels to print.

Sri Lankan movie industry should take the cue from India and go digital to keep costs

down and improve overall quality to give moviegoers a better deal.

Sri Lankan movie industry take the cue from India

Sri Lankan movie industry take the support from India and go digital to keep costs

down and improve overall quality to give moviegoers a better deal. Because of

lower costs and higher quality alone can justify the shift to digital cinema.

Blair Witch Project

Prior to shooting, the director and cinematographer must make a technical

decision concerning what film stock to use. The film stock will have a significant

effect on the look and feel of the film. Blair witch project combined video and

grainy 16-mm film to create a realistic, low-budget look. A more traditional

approach is to shoot in the Super 35-mm format to reduce grain and capture

superior contrast ratios. Lower budget films and documentaries might be shot on

Super 16-mm film.

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Using 3D Technology

Today Sri Lankan film producers try to make competition with Hollywood and

Bollywood films. And try to attractive local

audience.

As an example: Ran kewita.

Trends in technology of format and Film Stock, Cameras and Lenses, Lighting, Sound,

Editing and Visual Effects, Cameras, Audio

Camera technology is that of the “filmless” camera. High-definition cameras

are being tested that record images either or digital videodisks (DVDs) or

directly to

hard drivers. The use of such cameras would allow for instantaneous review

and preliminary editing of material while

eliminating film and developing costs.

The technology of a feature film centers on the screen format, Sri Lankan film

industry start to non definition television (non-HDTV) which is the same

aspect ratio as traditional television screens.

As an example:

High Definition (HD) technology has been

used for the production of the film.

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Cameras

Most feature films produced in Sri Lanka are shot on 35mm Cinemascope. Almost

all commercials are produced on 35mm standard formats if not on Video.

Unfortunately Cameras and Lenses are not available off the shelf – like in

America or Europe. Individual equipment suppliers in Sri Lanka have a basic

Camera set-up with Camera body, 5 or 6 standard Prime

Lenses , a couple of Zooms, standard filters in each

Camera Package. There is a wide selection of Arriflex IIIs

and Arriflex 435s and Arriflex 535s available from India

(some 435 owners have now upgraded to Ultra Primes in

India).

Lights

There are a couple of rental houses in Colombo – Sri Lanka that work

predominantly for foreign crews filming in Sri Lanka.

There is a selection of HMIs – PARS, FLICKER FREE

AND NORMAL – 16, 12, and 8 KWs from India. 6KWs

and below plenty – though Pars & Flicker frees are limited. TUNGSTEN LIGHTS

– 10KWs, 5KWs and below – plenty KINOFLOS.

Grip Equipment

High end Grip packages are usually hired from India. Grip packages come with

crew. In terms of equipment from India, there are Akela Cranes, Panther Dollies,

Elemak Cranes, and Phoenix Crane with hot heads and Jimmy Jibs with hot heads.

There are also Giraffe Cranes and a Super Panther is available.

Sri Lanka is also equipped with most of the above equipment. Hiring locally

would reduce the overall cost on project.

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Steady-Cams & Operators

There are a handful of Steady-cam Operators in Mumbai

and Chennai (India).So Sri Lankan film artists hiring these

equipments from India.

Generators

Plenty of ordinary generators up to 125KVA. Silent /limped generators up to

125KVA.Now Sri Lankan film artists use this for increased their quality of the

movie.

Sound

Plenty of Nagras, also quite a few Data with good

microphones are available. There are a handful of highly

recommended Sound recordists with international

exposure working with foreign film crews coming to Sri

Lanka as well as live broadcasters like CNN, BBC etc.

Opportunities in Technological Environment of Sri Lankan Film industry

Get support from our neighbor country of India

Theatres around the world are installing digital projectors, which use high-definition

digitally-encoded discs instead of celluloid and Sri Lanka also can use this

technology, lower costs and higher quality alone can justify the shift to digital cinema.

Film producers and theatres in neighboring India are turning to digital cinema to

revive the fortunes of their movie industry, so we can learn and hire their experience.

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The key players on the production team are hired for their expertise in

the technical craft of film making. As a result film

producers can achieve their goal.

During the preproduction stages of a feature film, the

screenwriter, director, production designer, and

cinematographer may have widely differing visions

concerning the ultimate look and sound of the film. Each

scene has a series of variables that must be addressed prior to setup and shooting.

Decisions about the technology that is to be used during the principles shooting

will affect what the audience ultimately sees at the multiplex. Through the director

is responsible for the finished product, the key players on the production team are

hired for their expertise in the technical craft of film making.

Aba’ aims international heights from technology

Having seen the trailer, the officials from China who came to Sri Lanka

recently were highly

impressed with the film‟.

The delegation was on a

mission to share their

knowledge and technology

with Sri Lanka.

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Threats in Technological Environment of Sri Lankan Film industry

Most of Sri Lankan Films were not exposed

internationally.

UCLA in Los Angeles in 1994 and screened “On the Run”,

the audience there was surprised at its style. But Sri Lankan

artists haven‟t money for subtitling.

The other thing was they haven‟t any kind of international connections. That's the

reason why their films didn't get proper exposure internationally.

Coming up bad copies to the market

Unfortunately, the SIFF screenings were in BETA format and were very bad

copies. They have not a single reprint of a film.

Theatres around the country and world also are installing digital projectors, which

use high-definition digitally-encoded discs instead of celluloid. The downside of

this Digital prints are a pirates' dream because illegal copies can be made easily if

they hack the studios' encryption codes.

digital cinema at home at near-identical resolution

The availability of true high-definition formats like VHS D-Theatre (in the US) and

Blue-Ray Disc, the successor to DVD, (in Japan) means that viewers can

experience digital cinema at home at near-identical resolution. It is only a matter of

time before these formats go on sale around the world.

There are movies on demand over cable TV, compressed digital films, and

DVDs in the mail.

It‟s been a long time that movies were just available in theaters, but now there are

movies on demand over cable TV, compressed digital films, and DVDs in the

mail. Technology has changed how one watches movies and can even change

what we watch. The effects of computer technology on film making and sales of

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movies are indeed notable because renting or buying a DVD is now fading with

technology hinting at an even greater transformation.

New digital cameras can capture sharper, clearer footage, and technology

has made special effects increasingly impressive.

Digital technology has also become cheaper and more accessible. The

transformation is at least as sweeping as the introduction of sound or color in the

early 20th

century, and it is changing both the business and art form of cinema. In

October of 2003, Disney and Twentieth Century Fox jointly set up a company

website to expand the scope of its services to the home audience via high-speed

broadband internet access and computer data equipment. This in essence, means

that the “home cinema” movie theater image would be more perfect than the

online music market.

Major issue of camera selection and lens choice

Camera selection may appear to be difficult procedure; however the choice that are

available to filmmakers are somewhat limited. There are only a handful of

professional camera makers. The cinematographer looks at what cameras are

available. The ultimately decision will be made based primarily on the

cinematographer‟s experience and preference. With camera and format in mind, lens

choice is the next major issue.

Movie theaters would not exist where virtual reality is the predominant means,

and theater owners might not survive the DirecTV and the internet waves.

The jump in DVD sales by online streaming was affecting not just the DVD

companies but another impact was the extra pressure that was put on studios to get

their films on demand, sooner at the expense of movie theaters. The studios

pointed out that most of the films earned maximum profits in the first few weeks

of release. Leading film makers also opined that theaters are “the most optimum

and profitable exhibition area” of the art form. The impact of technology on film

making and how films may be viewed in future is perhaps more dramatic than the

change witnessed in improving the audience experience.

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Most of local audience not likes to watch Sri Lankan movies because of

quality are not good and they not satisfied because of they

try to compare with

international films.

The lack of facilities and

technology

„Sarasavi‟ studio which is in dire straits and showed them the

problems about the lack of facilities and technology. But having

seen certain scenes of 'Aba', Chinese official complained that we were making films

with international standards while complaining about the poor facilities‟.

Recommendations of Technological Environment of Sri Lankan Film industry

Provide better education about how to use technology in a film. So local film

industry can get better output .This can be start from universities.

Sri Lankan government should provide loans to import these technical

equipments. Because of these equipments are very expensively .as result films

makers can make profits over through their films.

Hiring equipments from other countries in agreements. Because they might be

increase their rental fee for hiring very often. When we hiring under these

limitations its benefit to us because of low cost.

Introducing new technologies to the local producers, through promotions and

conferences. Because of most of film producers don‟t know how to use these

for their production .sometimes they use expensive equipments but it‟s not

fulfill their expectations. As a solution of new technology for low cost and can

get good quality.

Get experience of working with experts. Given scholarships to working with

Hollywood and Bollywood film making teams. And they can share their

knowledge with who work in local film industry.

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Natural Environment of film Industry in Sri Lanka

Natural Environment-Definition

The natural Environment involves the natural resources that are needed as inputs by

marketers or that are affected by marketing activities. Some parts of the world are rich in

natural resources. Industries cluster in a region based on the availability of natural

resources.

Natural Environment of film Industry in Sri Lanka

Sri Lanka offers wide variety of locations, the cultural heritage the diverse people and the

scenic beauty, draws Film makers to shoot in Sri Lanka and above all the Sri Lankan

Hospitality.

Naturalists say Sri Lanka is one of the easiest places in the world to spot whales

because whales come very close to the shore.

Sri Lanka has many natural locations,

Such as,

Natural beaches

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Water falls

Mountains & plains

Rural village

Rivers

Wild life

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Sky scrapers

Latest changes in Natural Environment of Sri Lankan Film industry

Wild Screen visit from Sri Lanka

Some of the most prominent

wildlife and environmental

filmmakers are returning home

after a hugely successful

educational outreach trip to India

and Sri Lanka, organized by UK

based conservation charity

Windscreen.

Supported by the British Council, the Wild screen India and Sri Lanka Film Festival

attracted 1,000s of delegates, with its programmed of award-winning film screenings

and master classes, touring six cities across the countries in a bid to reach, engage and

inspire new audiences to the wonders of the natural world.

This latest trip marks the third time Wild screen has visited India and Sri Lanka, with

previous programmes having taken place in 2007 and 2009.

The 2011 Wild screen India and Sri Lanka Film Festival was held in the Indian cities of

Bhubaneswar, Delhi, Hyderabad, Kolkata and Pune; and in Sri Lanka‟s capital

Colombo.

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What is the wild screen Charity?

The Wild screen charity, which sits at the heart of the international natural history media

industry, works globally to promote an appreciation of biodiversity and nature through

the power of wildlife imagery. The Wild screen Festival in the UK has been the world‟s

finest platform to exchange ideas, share best practice and provide training to wildlife and

environmental filmmakers for almost thirty years. And it is through this work that Wild

screen has helped nurture and shape natural history filmmaking as we know it today.

Passionate about conservation communications, Wild screen Outreach encompasses

local, regional and national initiatives – a particular focus for this work is in developing

countries, where pressure on the environment is most critical.

Foreign films used many Sri Lankan locations

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Ex:

Location Films

Kandy locations Indian Jones and the temple of doom

Colombo locations Emden men, Midnights children, Mother Teresa,

Gall locations Emden men, Ghosts can‟t do it

Dikwella location Emden men

Peradeniya The second jungle book

Piliyandala Water

Sri Lankan Film producers also make more films regarding these natural locations.

Most of local films use these natural locations. As a

result Sri Lanka famous in the world.

Ex: Sooriya arana Sinhala movie,

Sooriya arana is a 2004 drama film from Sri Lanka, Directed by

Somarathne Dissanayaka. Sooriya Arana film winner of 10

presidential film awards.

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Opportunities of Local Film Industry regarding to natural environment

Movie makers eye Sri Lankan locations Highlights

Sri Lankan film producers can produce a film in low cost budget. Because of they

don‟t want to go abroad to find suitable locations for their movies and they can catch

the foreign market also.

As an example: Sri Lankan films got many foreign awards.

Alimankada film participated Shanghai film festival 2010

Malani Fonseka participated 18th

Brisbane international film festival. She nominated

for the international critics fipresci award

Akasa Ksum got Jury award, ( Asian film festival in France)

Many international production companies come to film here because of our natural

environment. As a result Sri Lanka

can earn more profits through it.

The environment is one of our

unique selling points. It‟s

simple: good environmental

management has positive effects on the environment and for our industry.

The beauty of our country captured on film is big business. Many international

production companies come to film here because of our natural environment. Tourists

are inspired to visit Sri Lanka by what they see in our country.

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Major opportunity of wild screen came to here.

As a result:

They provide a two day programme in each

city saw a variety of master classes and

workshops being delivered into many

aspects of wildlife and environmental

filmmaking, from industry trends and the art

of storytelling, to managing production,

script writing and career guidance.

“Wild screen was delighted to have the opportunity to again partner with the

British Council, to enable our return to India and Sri Lanka. And their aim

with this programme is to encourage local involvement in wildlife and

environmental filmmaking and to connect local practitioners with the UK

and international industry. This is a best opportunity to Sri Lankan go to

international market.

“By bringing some of the world‟s most prestigious industry experts in the

field of natural history filmmaking to India and Sri Lanka, Wild screen can

further its reach and help aspiring filmmakers in regions most affected and

under threat from environmental issues.

Threats in natural Environment of Sri Lankan Film industry

Movie makers do not care about natural environment

This is a high impact industry where there is a perception that film makers don‟t care

about the environment. In fact, they do care – they are talented professionals with a

passion for their craft and a natural affinity for matters environmental.

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Every production impacts of the environment.

All organizations leave their footprint on the environment and our industry is no exception. In

the studio and on location, work consumes large amounts of energy and natural resources.

They generate waste and sound pollution.

As an example: When foreign (Bollywood and Hollywood) Movie producers use high

technology to their productions, so it‟s harm to our natural environment.

Recommendations of Natural Environment of Sri Lankan Film industry

We can start to make a difference, helping to increase the public‟s understanding of the

natural world and the very real need to conserve it. Send this message through community,

advertising, and campaigns with famous actors, actresses and film producers.

Let’s face it. If we mess up Planet earth too much, it isn’t like making a movie. We don’t

have a backup location.

Greening the Screen of Sri Lanka

Film producers considering caring for the environment on their next production. All of them

try to do bit for the environment. Greening the Screen – an environmental toolkit for film

industry.

Let’s face it, every production impacts of the environment.

All movie makers leave their footprint on the environment and our industry is no exception.

In the studio and on location, our work consumes large amounts of energy and natural

resources. We generate waste and emissions. We make great use of both natural and built

environments and this adds environmental responsibilities to the production schedule.

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Think smart, work better and add value

In all types of industries, people are recognizing that it is essential to factor the environment

into business planning.

Good environmental practices bring cost savings, better risk management and reduced

liability for any production. But equally important, responsible business management

enhances reputation, increases competitive advantage and provides better access to investors

and funding.

There is to be vision of Sri Lanka on film is big business

The environment is key to the success of our screen production industry.

The beauty of our country captured on film is big business. Many international production

companies come to film here because of our natural environment. Tourists are inspired to

visit Sri Lanka by what they see in our country.

The environment is one of our unique selling points. It‟s simple: good environmental

management has positive effects on the environment and for our industry.

Environmental management: setting and achieving transparent and challenging targets for

continual improvement in environmental performance.

An opportunity to demonstrate leadership

An opportunity to demonstrate leadership in environmental management by:

understanding the environmental impacts of their work

showing others what they can do to protect and enhance the environment

Simply doing the right thing whenever movie makers can.

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Sri Lanka has a diverse pool of acting talent with a wide range of ethnicities available to the

international production. There are no restrictions or quotas on bringing international cast to

film in Sri Lanka. So government should bring rules and regulations

to protect our nature.

It’s easy to make a difference

It‟s not just what happens on screen that matters. Behind the scenes, there are many

opportunities to introduce energy, water and other resource

conservation measures that reduce or eliminate waste.

Environmentally responsible practices often mean we can

do more with less.

Just to give you an idea, think of all these things which we use daily in movie making that

have an environmental impact:

paper use for scripts

energy use for lighting

catering waste

materials used to build sets

chemicals needed for film processing

technical equipment

Media and information technology.

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This is just the tip of the iceberg; there are many more aspects of our work where we can

make a difference.

The environmental toolkit is full of ideas and examples intended to help companies and

productions use their creativity to seek win-win solutions for success on the screen and for

the environment.

Greening the Screen will:

encourage companies to strive to improve environmental performance

help protect Sri Lanka‟s natural, historical and cultural heritage and the value of the

“clean green Sri Lanka” image

contribute to sustainable economic growth in the screen production industry

enhance the reputation and competitiveness of the industry

support the adoption of environmentally responsible practices

Demonstrate sector-wide leadership in corporate environmental responsibility.

Sri Lankan government should fund to protect natural resources

Sri Lankan government should bring policies than before to protect the natural environment

because of Hollywood and Bollywood films also making here. They use high technologies; it

may be create big disaster to our nature.

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Legal environment in the film industry of Sri Lanka

Legal environment/factors:

These are related to the legal environment in which the film industry operates. In recent

years in Sri Lanka there have been many significant legal changes that have affected the

industry‟s behavior. The introduction of age discrimination and disability discrimination

legislation and an increase in the minimum wage are examples of relatively recent laws that

affect an industry's actions. Legal changes can affect an industry's costs (e.g. if new systems

and procedures have to be developed) and demand (e.g. if the law affects the likelihood of

customers buying the good or using the service).

These are the questions someone would have when dealing with issues with the legal

aspect of the film industry

Are there any legal problems with using a specific product in my film?

Can I use a song or other copyrighted work in my film if I change ... percent of it?

Can treatments be sold to film studios or production companies to adapt them into

screenplays?

Do I need permission to use locations in my city?

Do I need permission to use my actor's image in my own films?

Do I need to get my film rated before I can show it to an audience?

Do I need to get the rights to music used in my film if I am not charging people to

view it?

How do I 'copyright' my company's name?

How do I check whether my movie name is available?

How do I copyright my script?

How do I get the rights to adapt a book into a screenplay?

How do I get the rights to use a song/music in my film?

How do I prepare a prospectus and/or investor memorandum for my film?

How do I start a film production company?

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If I show my character watching TV, do I have to get permission show whatever is on

the screen?

If I use fake guns in a public place am I legally obligated to inform the local police?

Is it necessary to obtain a release from everyone whose face appears on camera?

What good legal resources are out there?

What type of insurance should a filmmaker consider?

What's the deal with referring to copyright/trademarked material in a script?

Why should I copyright my work?

Legal environment in the Sri Lankan context

There‟s a mechanism for censorship.

Screening of movies has to obtain prior permission from the board of control for screening in

movies of Sri Lanka.

Latest changes in the legal Environment of film industry

Minister given powers to intervene and stop screening.

Opportunities of the Legal environment

High standard good quality productions done ethically.

A good legal structure protects the players of film industry and encourages

them to pursue their talents without fearing that the industry will fall.

A solid legal environment ensures that the industry is stable.

Consequently, a sound legal system reflects professionalism in the industry.

To silence certain unbiased accusations.

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To prevent from certain people using the law unnecessary to sabotage the

movie.

To prevent petitions or motions.

To stop piracy.

Unauthorized access blocked.

Original productions are preserved.

Good productions come out because of a strong legal background within the

industry.

Threats in the legal environment of Sri Lankan Film industry

Some films are not allowed to shown in the Sri Lanka because they do not pass through the

censorship test. Legal restriction as such discourages producers and directors to make films

that address forbidden yet important issues in the society.

Corrupt people try to overpower the legal system through bribes and threats. These

incidences harm the credibility and stability of the industry.

Privacy policy.

E.g. Actresses certain scenes exposed among people and media.

Taking legal action because of copy right issues.

Because of jealousy and to sabotage the film taking unnecessary legal action and

depriving the film of screening in Sri Lanka.

Producers and directors going above the law and taking mean advantage of the actors.

Actors not paid and filing cases against producers and directors.

Terms and conditions not stated properly.

No legal entity or board, specific lawyers to look into matters regarding regulations

and legal issues.

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Recommendations of the legal Environment of the Sri Lankan Film industry

Establishing a solid legal entity to look into matters in the film industry.

Well conceived regulation can encourage completion and ensure fair productions ,thus

governments develop public policy to guide commerce sets of laws and regulations that limit

business or production to the of society as a whole.

Written regulations cannot possibly cover all potential production or marketing of films,

beyond written laws and regulations, films are also governed by social codes and rules of

professional ethics.

Copyright and Intellectual Property: In order to secure meaningful distribution

for a film, a producer must be able to prove that he or she owns, or has a

license to use, EVERY piece of intellectual property in the film.

Screen credit:

The copyright owner might ask for screen credit in exchange for the

Producer‟s use of the work. It is important to be careful about granting too

Many screen credit rights too early in production, especially for general areas

Such as “Producer” or “Executive Producer” because distributors and

Investors often have specific screen credit requirements. For example, an

Investor might require a credit as being the only “Executive Producer.” If a

Producer has already agreed to give an executive producer credit to someone

Else, this could interfere with the producer‟s ability to close a good investment

Deal.

Other provisions:

An agreement may deal with the right to write the screen play, the right to

write any sequels or television versions, or the rights to produce live stage

versions, novelizations, and derivative works based on the screenplay. In

some instances, rather than actually licensing a screenplay, a producer might

“option” a novel or screenplay. An “option” means that the producer has paid

an author a fee to “tie up” the story, for a limited period of time so that no one

else can produce it while the producer searches for finance or distribution.

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Legal aspects involved with the Film Industry

Copyright and Intellectual Property:

In order to secure meaningful distribution for a film, a producer must be able to prove that he

or she owns, or has a license to use, EVERY piece of intellectual property in the film.

“Intellectual property” includes many things, such as the right to use the screenplay, the right

to use the music in the soundtrack, the right to use the title of the film, the right to use any

brand names that appear in the film, ownership of the actors‟ performances and many other

issues. It is critical that a producer be very conscious and organized with regard to intellectual

property.

Representations and warranties:

This is the part of the agreement where the current copyright owner represents and warrants

that he or she actually owns the copyrights and can freely transfer over the rights to the

producer. A producer can check on the state of copyright ownership by getting familiar with

the Sri Lanka Library of films database at National Film Corporation.

• Price:

A producer might pay an up-front fee for the use of copyrighted material, or might grant a

royalty in any proceeds from the film, or even a combination of both.

• Screen credit:

The copyright owner might ask for screen credit in exchange for the producer‟s use of the

work. It is important to be careful about granting too many screen credit rights too early in

production, especially for general areas such as “Producer” or “Executive Producer” because

distributors and investors often have specific screen credit requirements. For example, an

investor might require a credit as being the only “Executive Producer.” If a producer has

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already agreed to give an executive producer credit to someone else, this could interfere with

the producer‟s ability to close a good investment deal.

• Other provisions:

An agreement may deal with the right to write the screen play, the right to write any sequels

or television versions, or the rights to produce live stage versions, novelizations, and

derivative works based on the screenplay. In some instances, rather than actually licensing a

screenplay, a producer might “option” a novel or screenplay. An “option” means that the

producer has paid an author a fee to “tie up” the story, for a limited period of time so that no

one else can produce it while the producer searches for finance or distribution. Eventually,

the producer will either let the option expire, or will “exercise” the option by entering into an

agreement to produce the screenplay into a film.

• Is a copyright assignment or a license always necessary?

Whether or not a producer needs to obtain copyright permission depends on the source of the

film concept. For example, a producer will need a copyright assignment or a license if the

film is based on any kind of existing work such as a novel, short story, stage play or a remake

of an older movie. On the other hand, a producer will not need a copyright assignment or a

license if the film is made from his or her own original idea or a true event. For example, if

you were to write a screenplay from scratch, that screen play would belong to you. However,

as a producer you will still need to license the screenplay to the LLC that holds the film. If

a producer writes a film with a partner, it will be important to have a co-authorship agreement

describing how the authors plan to share the rights related to the screenplay. True events

cannot be owned by anyone, and therefore do not implicate copyright issues, although an

author‟s description of the event is protected. A producer should be careful about portrayals

of real individuals, living or dead. There is a highly complicated legal interaction between the

right of free speech under the Film Amendment to the Sri Lankan Constitution, and the right

of individual people (and sometimes even companies) to live free from defamation and to

enjoy certain rights of privacy and publicity. The individual a film portrays could potentially

sue the producer for defamation or violation of privacy or publicity rights, and even a small

chance of potential liability will make investors and distributors nervous. If possible, a

producer should try to get written permission from the individuals portrayed in a film,

especially if those individuals are not public figures.

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• Works Made for Hire:

Anyone working directly on the production, such as actors, directors,DPs and anyone else

who could create a copyrightable material, should have “work made for hire” status, if

appropriate. “Work made for hire” means that an artist‟s work will be the original property

of the production company, as if the production company had created that work itself. Actors

and crew might work under union contracts, but these contracts do NOT create a “work made

for hire” status. An attorney can help a producer to draft the specialized contracts that provide

for this status.

• Music:

Obtaining all the required rights to use music in your film can be very complicated. The

composer will have rights, the recording label will have rights, and there are often others with

rights to be considered. There is a number of ways to obtain permission to use a piece of

music. One is to directly contact the musician or the appropriate agent or record label.

Certain types of rights can also be obtained through the major music clearing houses, known

as. The cost of using a piece of music can vary greatly depending on the music, the musician

and the specific type of film production. Sometimes a producer will “fall in love” with a

piece of music before beginning production, only to discover that the music license will cost

more than the entire film's budget! So either don't fall in love, or check out your music costs

early. One more note on music: there is a myth in the artistic community that it is legal to use

under 10 seconds, or a few bars, of a song without obtaining permission. This myth is not

true concerning music, or any other type of copyrighted material you may want to use

without permission.

• Trademarks:

Trademarks are words or symbols that identify the goods or services of a business in

commerce. Famous examples are Coke, McDonalds, and the MG Million. Trademarked

products are often licensed for use in films but increasingly, product manufacturers will pay

for the opportunity to have their products featured (otherwise known as “product

placement”). As a filmmaker, you have broad free speech rights and will be given some

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flexibility in displaying trademarks in your movie. However, watch out for scenes that may

disparage another company‟s trademark or in any way imply that the production is affiliated

that other company. It is best to ask your attorney.

• Copyright Registration:

Once a producer finishes a film, the producer automatically has copyright protection over the

completed film. However, a producer can obtain important additional benefits and protections

by registering the film with the Sri Lanka NFC OR Copyright Office. The process of

copyright registration is simple, the filing fee for basic registration is currently $30, and the

proper forms can be obtained from the NFC.

Working with Unions:

Unions were created to protect workers from unfair wages and poor working conditions. If a

producer wants to use any union labor, then that producer will have to become a signatory to

the appropriate union contract. This does not necessarily mean that the production must not

hire only union labor, nor does it mean that the production will need a big budget. Some

unions, such as the Screen Actors Guild ("SAG") offer various contract options for small and

medium budget films.3 The major unions for on-camera actors are SAG (for feature film) and

the Sri Lankan Federation of Television and Radio Artists ("SFTRA," generally for

television, radio and commercial work). The major unions for crew are IATSE (International

Alliance of Theatrical Stage Employees, Moving Picture Technicians, Artists and Allied

Crafts) and the Teamsters. In this section, we will examine how a producer runs a SAG

signatory production. While each union has its own specific rules, this discussion should

give a good sense of how the overall process works. SAG has a basic contract that contains

all of the union rules. That contract is about the size of a novel, and a producer might never

get around to reading it (that‟s what the attorneys do!). The producer signs a signatory

Agreement. This short document says (essentially) I agree to follow all the rules in the

(really long) SAG basic agreement Those rules address everything from how many hours

actors can work in a row, to when lunch must be served, to how residuals are calculated, and

many other aspects of employment. The rates that a producer must pay, whether the

production can hire non-SAG labor, and many other questions, depend on what kind of

signatory agreement the producer signs. For example, the “Ultra-Low Budget” signatory

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agreement applies to films of with budgets less than $200,000 and requires a day rate of $100

for each performer, while the “Modified Low Budget” signatory agreement applies to films

with budgets of less than $625,000 and requires a day rate of $268. SAG has specialized

agreements for shorts, and even student films. The details of the SAG signatory agreements

change from time to time, so it is important to coordinate directly with SAG and make sure

the production is incompliance with the appropriate agreement. Many of the details of the

SAG agreements can be found online at www.sagindie.com. SAG suggests that producers

contact their local SAG office at least 4 to 6 weeks prior to beginning production. A SAG

representative can be very helpful, and it‟s a good idea to keep in touch with SAG “early and

often.”Once the production has become a “SAG signatory production,” all the performers

must sign a SAG form of employment agreement before the beginning of production, which a

producer can get from the local SAG office. This agreement will address basic employment

questions such as pay and hours. However, this agreement does not address intellectual

property issues such as copyright ownership. For this reason, it is critical that the performers

sign appropriate release forms in addition to the SAG employment contract. on-SAG talent

do not sign the SAG employment agreement, however SAG will usually require that a

production pay non-SAG talent at the same rate as SAG talent. For this reason, it is

important for the production to have a non SAG form of employment agreement in addition

to the SAG form. SAG also requires producers to carefully keep track of which performers

work which days and hours. A local SAG representative can help a production set up a

system for keeping track of these details. The key to success in union relationships is to begin

communication well in advance of production and keep that communication open throughout

the production.

Financing and Investment Issues:

Film financing is one of the most difficult and least understood challenges facing a producer

and it is fraught with perils for the unwary. Many independent film producers find

themselves caught in the "Producer's Paradox" namely: "You can't sign talent and develop

your screenplay without financing, but you can't obtain financing without talent and a

polished script." Given that most film producers do not want to use their personal assets to

fund their films, the most important issue for many producers is how to finance their film

project with other people's money. The methods of financing film projects are as diverse as

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the film projects themselves, the most common ways being; "debt" (such as borrowing

money);"equity" (such as selling membership interests); or a combination of both (such as a

production support agreement). If the producer has a track record of successful film

production, then additional sources such as "pre-sale" of film distribution rights or studio

financing are available. And there are producers who merely package a project and assign

the rights to another, better financed, production company. However, for most independent

producers film financing is limited to debt and equity. The problem with financing a project

with debt is that such agreements require the payment of a sum-certain, with interest, on or

before a specific date. A credit card is a simple form of debt and is the worst possible way of

financing your film (except, perhaps, using a home-equity line of credit secured with a

mortgage on your home) for the reason that the debt usually must be repaid many years

before the film is commercially viable and money begins to flow back to the production

company. If you have a day job, then incurring a small amount of debt (in the amount of

$5,000) may be an acceptable option to finance a short film. And there are state-sponsored

programs, such as "Lights, Camera, Sri Lankan “which can provide better terms and

conditions, but generally debt financing should be used only with great care. The other major

source of funds, equity financing, is problematic because a securities offering memorandum

(or disclosure document commonly referred to as a "Private Placement Memorandum or

PPM") is required to raise money from investors outside of your family no matter how small

the amount involved. Full disclosure is required under the securities laws and notice filings

are required by the federal Securities and Exchange Commission (the "SEC") and by the laws

of each state in which investors reside (known as "Blue Sky Laws"). Violations of the SEC

requirements and the applicable Blue Sky Laws carry both criminal and civil penalties.

The Lights, Cameras, Colombo! Program, in partnership with Colombo -based financial

institutions, presents Lights, Cameras, Colombo! To encourage the film and television

industry to make major motion pictures, television/cable and commercial productions in the

district of Colombo by providing loans at below market rates.

A business plan and a securities offering memo serve very different functions. A business

plan is a marketing document created from a selling point of view, which necessarily contains

optimistic information, forward-looking statements, hopes and dreams, and possibly financial

projections. A securities offering memo, on the other hand, is a full disclosure document,

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which must contain all the bad news, risks, and must list and comment upon all possibilities

that could go wrong. In order to safely comply with these laws, a producer should work with

an attorney who is familiar with both entertainment and securities regulation. This is not a

“do-it-yourself” type of project nor is it wise to "cut and paste" portions of other PPM

documents that you find on the web because the producer, without help of securities counsel,

has very little notion of what provisions and information are needed.

The following is a summary of some of issues that arise when preparing a

Private placement investment offering under this exemption:

1. No General Solicitation.

The producer may not engage in any “general solicitation.” This basically means that

investors are limited to people that the producer actually knows, such as business

associates, friends and family. The producer may not advertise for investors in a

newspaper, or use a general mailing list or any other means of mass communication.

There are specific rules regarding general solicitation, and an attorney can help to

clarify exactly what a producer may and may not do when approaching potential

investors.

2. Accredited investor requirements.

All investors must be “accredited investors.” An “accredited investor” is a person of

high net worth, or certain kinds of banks or corporations. There are exact numbers

and specific requirements that a person, bank, or corporation must meet in order to be

considered “accredited.” These rules are complex and change from time to time as

the laws are updated. When making an initial pitch, a producer can target people or

corporations who probably have high net worth. However, before finalizing the deal,

the producer must coordinate with an attorney, and review the investor‟s financial

statements, in order to make sure the investor is indeed “accredited.”

3. Disclosure requirements.

A producer should present potential investors with a “private placement

memorandum” or a “PPM.”The PPM is a document that discusses the business plan,

the nature and structure of the investment, and the potential risks involved.

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WhileThese issues are provided merely as examples of SOME of the requirements to

be satisfied in

Connection with the sale of stock or membership interests. This is not a complete list of

issues and under no circumstances should a producer attempt to create a PPM or to raise

equity funds without the assistance of qualified securities counsel. Note that this is costly

legal work, and that producers should budget accordingly.

Securities laws do not specifically require the PPM; it is nonetheless a critical document. By

communicating with investors through a PPM, a producer can significantly reduce the

possibility of lawsuits or criminal charges down the road. A PPM is more than just a

business plan; it is a carefully drafted legal document and should be prepared by an attorney.

4. Filings.

There are certain documents that the producer must file with the state and Federal

governmental authorities when issuing securities. Securities laws require these

filings, and the filings act to alert the relevant governing bodies that the producer is

conducting an exempt securities offering. As you might expect, an essential part of

any request for financing is for the producer to develop a credible budget and

production timeline. Without both of these documents, prepared by someone with

experience in film production, the producer should not undertake any serious

fundraising. So, how do you solve the Producer's Paradox? One possibility is to start

with a short film and work up to a feature film project. A short is far less expensive,

allows you to develop an understanding of the difficulties you will face with a feature

film, allows you to develop relationships within the industry and it can become a

calling card for potential sources of funds.

Business and Investment Structure:

The first task of film production is to select and set up a business entity for the film. This is

true whether the producer is making a short film, shooting wedding videos and commercials,

or creating a larger feature film project involving hundreds of thousands of dollars, salaried

employees, and a crew of independent contractors. The goal of creating and using a business

entity is to anticipate four primary areas: control, financing, liability and tax. Control refers

to the manner in which the producer intends to manage and maintain control of the film

project and involves such issues as "Who owns the film's intellectual property?"And "Who

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has the right to manage the creative, financial and business aspects of the film project?"

Financing refers to the source of funding for the film including interactions with investors, if

the financing is equity-based. Liability refers to the obligations incurred by the film

production and the producer‟s personal liability for such obligations. Tax refers to the tax

benefits (such as the Illinois Film Services Tax Credit and tax obligations incurred in the

production and distribution of the film. Each of these issues should be considered as part of

developing a film project. The most common business entities are sole proprietorships,

general partnerships, corporations and limited liability companies. The first two types(sole

proprietorships and general partnerships) should not be used in film production because they

expose the producer to individual liability for the debts of the production. This is particularly

true because independent film projects normally take at least 3 years (and often 5 or more

years) to reach the production phase and it may take another 2 years to obtain a meaningful

distribution deal(that is, a deal where money flows back to you). Keep in mind that film

production is a very high risk endeavor and individual liability will expose you to the

demands of creditors who want to be paid today. Thus, it is well worth the time and expense

of forming a company and conducting all business in corporate form. By organizing and

operating as a corporation or a limited liability company producer can avoid personal liability

for the business's operations and can, more easily, bring investors into the project. Keep in

mind that the protection offered by a corporation or LLC may disappear if you fail to comply

with all the formalities. For example, if you fail to file annual reports with the Secretary of

NFC your company will be dissolved, or if you mix personal and company funds, creditors

may be able to reach your personal assets. So, create a separate bank account and FEIN for

each entity. To determine which entity is best for your project, you should speak with an

accountant, attorney or someone familiar with the benefits and burdens of each type of entity.

Setting up LLC is a relatively simple process that involves filing certain forms with the NFC

Secretary which is available at THE NFC. Be aware that creating and operating as an LLC is

more complicated and expensive than creating and operating as a corporation. So, if you

elect to operate as an LLC you must understand what other documents and agreements (such

as an “operating agreement") are required. When beginning any business venture, a producer

should consult with an accountant in order to understand and plan for tax issues. For

example, Sri Lanka tax credit incentive program for films shot in Colombo that expends

funds for services and wages. But you must apply with the Colombo Film Office so take a

look at the IFO's website (www.srilankabiz.biz/dceo/Bureaus/Film) for complete details.

When developing a film project, many producers first create an incubator corporation or LLC

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(the "Development Company") that develops one or more projects until the time when each

project is ready to be funded and produced. The Development Company, which is controlled

by the producer, does all the development work for the film project, such as acquiring the

underlying literary work or screenplay on which the film is based. When the project is ready

for funding and production, it is transferred to a separate LLC (the "Production LLC"), the

common practice being to create a separate LLC for each film project, thus insulating the

producer's other projects from failure or liability.

The Development Company often serves as the manager of the Production LLC thus

creating a double level of protection for the individual producer. The Production LLC will

own or license all of the intellectual property associated with the film. This includes the

rights to use the script, the rights to the actor‟s performances, licenses for all music, and all

other items that are discussed in the section on copyright. Potential distributors will carefully

examine all of the Production LLC‟s paperwork to make sure that the Production LLC holds

all necessary intellectual property rights. Anyone working on the production should be hired

by and paid by the Production LLC. The producer or the Development Company will

typically be a “member” (that is, the owner) as well as the “manager” of the LLC.Film is a

collaborative process and it is common for two or more individuals to collaborate on the

critical aspects of the film such as writing the screenplay, acquiring other intellectual property

and retaining actors and crew. However, because producer "divorces" are also common,

producers should negotiate and sign a Joint Venture, Collaboration or Joint Owner

Agreement, which provide who is entitled to make decisions with respect to the film project,

which is responsible for certain activity, and what happens if one producer decides to leave

the project. Many projects die because one of the producers has a different vision for the

project and refuses to cooperate with the other producer.

So they should remember "good fences make good neighbors" and prepare a written

agreement that sets out the expectations, responsibilities and rights of each producer.

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Marketing Mix of Sri Lankan Film Industry

Product

The „product‟ here is the films. The Film

Cooperation with the government should take care

to see that directors, producers are given necessary

funding and encouragement to produce/direct

quality films. There are necessarily two major

types of films; commercial films (films that are

made by major entertainment studios or companies

that are owned by international media

conglomerates) and art films (filmmaking which is

typically a serious, independent film aimed at a

niche market rather than a mass market audience.) Commercial films are important because

they bring revenue to the industry while art films are important because they uplift the artistic

quality of the film industry by addressing the movie goes intellect. Both these types of films

are equally important to the long term sustainability of the industry.

Price

Marketers should price the tickets according to demographic areas the film halls are situated

in and according to the facilities of the cinema hall. For an example, the cinema halls such as

Majestic city, Savoy can afford to price high because the audience that lives in the urban

areas are supposedly better off than people living in the rural areas.

Also, it is reasonable to demand a higher price from the urban movie goers because they

enjoy better quality as a result of the technology that is there in urban cinema halls.

However, in the case of children‟s films, it is recommended that the price be decreased so

that schools may afford to take classrooms of children.

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Place

The cinema halls (place) are extremely important to the industry because this is where the

films (product) are delivered to the audience. The cinema halls should be in good condition if

the film producers wish to give out a quality product (film) at the end of the day.

There is no point in producing excellent films if there is no place to screen them with the

appropriate technology. More and more producers are using the latest technology in their

productions. But the problem lies in the cinema halls which are seldom upgraded. Thus, Film

Cooperation together with the ministry should see that necessary improvements are done in

the cinema halls so they are equipped with the necessary technology to screen technologically

superior films.

It is also important to note that the threat of DVD‟s impacting the revenue of the film

industry can be heightened if the audience is disappointed with the quality of the cinema

halls; in other words if they would rather watch the films more comfortably in their own

homes.

Promotion

Promotion or the ways of communication to the target market is crucial if the producers want

to get back a profit. Producing a film roughly takes 8-10 months. And it is necessary to build

up a hype from the „muhurath‟ (The day producer signs the contract with the cast and crew)

day to the premier of the film.

Posters, trailers, social media, radio, newspapers, TV are some of the ways promotions of

films are done. With the restriction regarding poster pasting in towns, the significance of

poster are relatively low. On the other hand, promotion through online media is becoming

increasingly favorable with the urban audience. But, the most efficient way to communicate

the coming of a film is through trailers on TV, either at 8 clock news or along with popular

tele dramas.

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Conclusion

The Macro Environment

A PESTLE Analysis is undertaken to understand the dynamics of the external environment,

which the film industry operates in. While these factors are out of the industry‟s control, the

industry needs to be aware of them to adapt it self to avoid the threats and exploit the

opportunities in the environment.

The External Environment Impact on The Film Industry

Political Factors

- The political environment is

considerably stabilized and Sri

Lanka is united under one

Government after a span of 25 years.

- The opening up of North and East

areas.

- Government has lessened the

degree of Intervention in the

economy.

- It‟s the Government‟s

responsibility to maintain a good

global reputation for foreign

productions.

- Unnecessary Political intervention

- Funding from the political arena.

- Government imposes tough rules

and regulations and charge 48% off

the films income.

- A stabilized political system is good news for

all.

- In the film industry they are more confident

of planning long term strategies. The opening

up of North and East has given the film

industry the attractive opportunity of

conquering that virgin market and of stabilizing

their industry position throughout the island.

- The loosened restrictions on the economy

allow the film industry to take more decisions

that are independent.

- Foreign exchange coming in to the country.

- Discouraging the work of director‟s and

producers who are upcoming and at times

experience people in the industry as well.

- To create innovative movies as well as

facilitating of physical resources.

-as a result, the cost cannot be covered.

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Economic Factors

- A lot of development projects are

going on across the country.

- Lower interest rates have lured

international players to the market.

- One of the best stock markets in

the world.

- Recovery from the economic

downturn.

- The increase in camera prices,

other equipment, cost of energy

during the

- Crisis period has not yet settled

down.

-opportunity‟s came with IIFA

- less cash flow to the industry.

- NFC lack of finances.

-Sri Lankan made Films doesn‟t

travel much.(locally & globally)

-government impose tough rules and

regulations regarding finances when

screening.

- The development projects taking place

throughout most rural areas have been

creating a steady flow of money in the usually

laid back markets. There is plenty of

opportunity for the film industry to strengthen

their profits by concentrating on marketing

campaigns in these areas.

- The lucrative economy (bull market)

prevailing in Sri Lanka has been luring

investors. This poses threats as well as

opportunities to the film industry as more

financially stronger companies enter and

compete for a share of the film industry.

- Price hikes results in resource constraints for

the film industry as the camera is the main tool

of most of its products.

-IIFA would give many economic benefits

directly as well as indirectly.

- Because of less cash the industry as a whole

Suffering from lack of finances.

-Negative impact on the NFC and towards the

industry.

-As a result not enough to cover the cost of the

film.

Socio-cultural Factors

- Increasing ageing population

- Lifestyles are modern and fast

paced.

- Increase number of higher

- film industry has the opportunity to venture

into new Segments and fill up a gap in the

market for the elderly population.

- Demand for short films is on the rise as a

result of modern day lifestyles.

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Socio-cultural Factors

education institutes.

- Increased Tamil population

- Tourism has taken a sharp rise in

the country.

- Women are employed more than

ever.

- The young generation gives

priority to work, and marriage is

postponed.

- Many Sri Lankans are migrating

back to Sri Lanka.

- A population with a new taste palette too is

on the rise, giving the film industry a reason to

widen their production portfolio.

- The return of Sri Lankan migrants back to the

country gives the film industry a chance to

expand their customer base.

- The tourist boom can be made handy to

market/recommend made in Sri Lanka

productions to the International arena.

- Research shows women act more than men

do, thus the trend of working women is

positive for the industry

Technological Factors

- Investors have been introducing

latest technology into Sri Lanka

during the last few months.

- Technology is being obsolete at a

mind-blowing rate.

- There seems to be almost unlimited

opportunities being developed daily.

Consider the expanding fields of

health care, the space shuttle,

robotics, and biogenetic industries.

- New technology creates new

markets and opportunities

-behind the scene crew are

sometimes hired from various

countries.

- The continuous introduction of modern

technology in the industry facilitates the film‟s

to keep a breast with the international films.

- Trends and operations.

- the film industry owes it for technology for

their undisputed standards of quality and

productions.

-unlimited opportunities for productions.

- However, every new technology replaces an

older technology. As an example, CDs hurt

phonograph records, and digital photography

hurt the film business.

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Technological Factors

-Coming up bad copies to the

market

-digital cinema at home at near-

identical resolution

- hiring crew from foreign countries could be

essential for high standard production, however

in the other hand , locals are ignored, lose

opportunity‟s and are discouraged to stay in

the industry.

-Unfortunately, the SIFF screenings were in

BETA format and were very bad copies. They

have not a single reprint of a film. nd locals are

ignored and lose opportunities.

-means that viewers can experience digital

cinema at home at near-identical resolution.

Ecological/Environmental

Factors

- Concern for the protection of

environment has been on the rise.

(Environmental Management

Systems (EMS))

- Floods have disrupted daily life in

few

parts of the country.

-Low cost budget when shooting a

film in local locations.

-major opportunity of wild screen

comes to here.

-movie makers don‟t care about the

environment.

- The demand for films can both increase and

decrease during times of crises. Relief support

groups tends to produce films for a cause to

fund the flood victims. And when victims are

unable to go and watch a film clearly, the

demand in the area significantly goes down.

- Environmental standard certificates are

required when exporting films for foreign

countries.

-As a result local locations are exposed and Sri

Lanka‟s natural beauty has got lots of

accolades and awards.

-knowledge and a whole lot of benefits come in

to the local scene and to the boom and

betterment of the film industry in Sri Lanka.

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Ecological/Environmental

Factors

-every production impacts on the

environment.

- This is a high impact industry where there is a

perception that filmmakers do not care about

the environment.

-In the studio and on location, work consumes

large amounts of energy and natural resources.

They generate waste and sound pollution.

Legal Factors

- Environmental regulations for

filming.

- Disability Discrimination

Legislation

- Increase in the minimum wage.

- Social discretion and cultural

values, morals, ethics, strict laws

and safety regulations.

- Film Act of Sri Lanka

- Consumer Protection Act

- regulations to help shooting and

production of films

- High standard good quality

productions done ethically.

-To stop piracy.

-Unauthorized access blocked.

- Legal factors have an effect on both

production and Employment operations.

Systems have to be either altered or even

created to meet the regulatory demands and the

film industry would have to bear a

considerable cost if changing the usual way of

Processes.

- The demand for quality standards gives only a

few productions a competitive advantage as

they already adhere to highest standards.

- Certain certificates have to be obtained when

exporting films.

-International recognition can be gained by

through high quality productions done in the

highest possible way.

-It helps towards the up liftment of the

industry.

-protects the producer and director as well as

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-Considering the above PESTLE analysis, it is safe to say that the current situation of the

external environment is favorable to the film industry.

- But, all these positive factors (stabilized political situation, potential of the economy,

advances in technology and the expansion of customer base) reflects that competitors

too will be lured to do commercial productions.

- Although the film industry is faced with opportunities to exploit, pressures from

competitors will be inevitable.

- In Conclusion we have discuss the key Macro Environmental Factors, the Definions, Sri

Lankan Context, the Opportunity‟s and Threats of the SWOT Analysis which are the

External Factors, the Marketing Mix and their implications in the film Industry.

Legal Factors

-Original productions are preserved.

-Good productions come out as a

result of a strong legal background

within the industry.

-To silence certain unbiased

accusations.

-To prevent from certain people

using the law unnecessary to

sabotage the movie.

-To prevent petitions Or motions.

-Copyright and Intellectual Property:

In order to secure meaningful

distribution for a film, a producer

must be able to prove that he or she

owns, or has a license to use,

EVERY piece of intellectual

property in the film.

the people behind the scene.

-when there is a solid legal foundation and

background, more people are willing to help

and get involved with the industry.

- Establishing a solid legal entity to look into

matters in the film industry.

- Well conceived regulation can encourage

completion and ensure fair productions ,thus

governments develop public policy to guide

commerce sets of laws and regulations that

limit business or production to the of society as

a whole.

- Written regulations cannot possibly cover all

potential production or marketing of films,

beyond written laws and regulations, films are

also governed by social codes and rules of

professional ethics.

-. The producer will be very conscious and

organized with regard to intellectual property.

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- There‟s a Compact Disk that we have attached with the report for further reference

which depicts the 64 year old Sri Lankan Film Industry‟s History, the Macro

Environment and an Exclusive video interview with the Leading film director Mr.

Udayakantha Warnasuriya.

- And also we would like to make this an opportunity to thank Our Marketing Module

Lecturer Ms. Chulani Senarathna, The National Film Corproration,Award Winning

Vetran Film Director Mr Udayakantha Warnasuriya and all of those who helped us to

make this report in numerous ways.

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REMARKS SHEET

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