Budgeting for Creative Vision
A motion picture budget is traditionally divided into two main sections separated by a literal line on a budget summary page. The costs listed above the line (ATL) are those related to the key creative and rights-holding individuals whose involvement is foundational to the project. These are the people who are generally engaged long before principal photography begins and who hold significant influence over the creative direction and financial viability of the film.
ATL costs are often seen as the “development” costs. They represent the payment for the intellectual property and the primary artistic drivers of the film. These expenses are highly variable, not based on union scale, and are subject to intense negotiation based on the individual’s track record, prestige, and market value.
Who is ‘Above the Line’?
The primary roles and costs considered above the line include:
- The Writer(s): Compensation for writing the screenplay or for the rights to an existing script.
- The Producer(s): The salaries for the producers who have developed the project, secured financing, and oversee the production.
- The Director: The fee for the film’s primary creative decision-maker.
- The Principal Cast: The salaries for the main, often well-known, actors. This typically includes lead and major supporting roles.
- Underlying Rights: The cost to purchase or option the rights to a novel, play, or other intellectual property upon which the film is based.
Because these costs are attached to the creative nucleus of the project, they can fluctuate dramatically. The salary for an A-list movie star or a highly sought-after director can sometimes account for a third or even half of a film’s entire budget. These deals often include complex back-end profit participation, further distinguishing them from the fixed wages of the crew.
The Importance of the ‘Line’
This budgetary distinction is crucial for producers and studio executives. The ATL budget represents the initial, core investment needed to get a project off the ground. A package with a compelling script, a proven director, and a bankable star is what is used to attract financing from investors and secure a distribution deal. Only after the ATL elements are in place can the more fixed, predictable “below the line” costs of physical production be accurately calculated.