At Imagine we've been calling this model "Ivywood" and we have been looking for a place to put the big Hollywood-type sign. We've also been looking around to identify the filmmakers who will produce the collaborative mini-studios that will earn their stripes in a highly competitive entertainment market. We see them (Scout Productions, Element Productions, Picture Park, Edgewood Studios, Robbins Entertainment and others), we nurture them whenever possible. We cheer them and encourage them because this industry is a viable and valuable one for our region. New England needs a regional reputation in the near term. Otherwise, we fear the potential will be lost to us. The opportunity will pass us by, and the talented and professional people who want to work here will continue to drift away and pay taxes in other states, namely New York and California. -PUB

The elements combined by Cobweb Films, as outlined at their company launch presentation last month in Providence, Rhode Island, demonstrate a thorough understanding of the business of filmmaking. The event was well attended by Rhode Island film community leaders and potential investors. Most important, it was a thoughtful and reassuring entry into a competitive business by an entity that has armed itself with vital strategic partners.

"Movies made to sell profitably" is the mantra of Cobweb Films, a brand new company whose clear vision is to produce high quality, cost efficient, commercially viable feature films that deliver as much entertainment value as the major studio productions at a fraction of the cost. Cobweb will make movies using a 'market-targeted' story, casting at least one well-known actor, staying on a tight schedule and budget (average budgets around $2 million) and shooting on location in Rhode Island and at the Sonalysts Studios in Connecticut (one hour from Providence). Scripts will be selected jointly with LifeSize Entertainment & Releasing, a full service East Coast distribution company for quality feature films and documentaries. LifeSize Entertainment will distribute Cobweb's movies.

Cobweb creates the concept of the Hollywood studio with technicians, producers, and management, working full time to create back to back, commercially viable movies, with budgets designed to make a profit.

LifeSize is able to open Cobweb's movies on selected screens across the country and in Canada. Their video relationships are multi-tiered and lucrative. Among the majors, they have working relationships with MGM, Columbia TriStar, and Twentieth Century Fox. Among the "minis" they sell into Monarch (Ingram) and York Home Video. They also self distribute dealing directly with Blockbuster, Hollywood and West Coast Video, such deals can add as much as 30% to the Bottom line. And they have excellent relationships with every Pay TV outlet as they do internationally, specializing in split rights deals.

Sonalysts Studios, of course, can be described as a 'Mini-Major," providing Cobweb with most of the facilities that a major studio has to offer but on a smaller scale. The seven building, 70-acre campus houses three state-of-the-art sound stages, the largest being 15,000 square feet. It includes a complete music recording studio; a post production facility with online Avid editing suites; an animation and graphic design department and an 18,000 square foot scene shop with on-staff carpenters and scenic designers. All this just one hour away from location shooting in Rhode Island

"Cobweb creates the concept of the Hollywood studio with technicians, producers, and management, working full time to create back to back, commercially viable movies, with budgets designed to make a profit."

Cobweb Films chose Rhode Island as its home base because it is one of the nation's most film friendly states. The new company believes that the passing of Senate Bill SOO-2675 last summer will allow Cobweb to compete with Canada and other "runaway production" venues. The bill allows a 25% tax credit on investments into locally made movies with budgets between $300,000 and $5 million. As we understand it, Cobweb Films is preparing to raise $6 million that will be held for four years in a Trust. This cash, along with Cobweb's 15% investment and the Rhode Island tax credits, is expected to enable Cobweb to make five full-length feature movies at average budgets of about $2 million each.

LifeSize Entertainment has estimated that Cobweb Films will average revenues of $5 million for each of the films they plan to make. Stock will be issued to investors and some investors will be on the board of directors. This stock will not be able to be freely or publicly traded during the early years. And again, as we understand it, it appears the company's intention is to register an Initial Public Offering at or before the end of the fourth year of operation.

Cobweb Film's launch was smart, sharp, and well executed. It will be interesting to watch the interest of the region in their next phase, which is presumably fund raising and script selection. Here at Imagine we'd like to see ten "Cobwebs" on the horizon. We'll keep you posted on their progress.