Advertisers have long linked up with Hollywood by placing their products within films or trotting out stars as their official sponsors. But some companies are now going a step further, investing directly in movie productions in the hopes of striking even deeper connections with film audiences.
In what could be the latest trend in the financing of independent films, Unilever brand Dove has agreed to invest $3 million -- about one-fifth of the budget -- into "The Women," the first theatrical movie by Diane English, the creative force behind the hit television series "Murphy Brown." Gatorade, the sports drink maker, quietly put up $3 million for the production of "Gracie," a story about a girls soccer team that is coming out this weekend.
"With low-budget movies you have to have different ways to create marketing efficiencies and leverage your ability to fund them," said Andrew Shue, producer of "Gracie." He said the seed money from Gatorade enabled him to raise an additional $7 million from a hedge fund. "This is absolutely something in the future for these kinds of movies that are smaller budget and under the studio threshold."
Independent studio Lions Gate has been discussing potential producing partnerships with several corporations.
The investments are crucial for independent producers struggling to cobble together funding for their movies. National brands can give smaller movies a broader marketing appeal and can often give them the aura of a bigger studio movie.
Some Hollywood executives, however, are skeptical that corporate financing will grow into a broader movement. They point to the experience of PepsiCo Inc.'s Mountain Dew, which invested nearly $4 million in the snowboarding documentary "First Descent." The film grossed only $988,368 in worldwide ticket sales, although Mountain Dew was less interested in making a box-office profit than reaching a specific demographic: snowboarders.
"I don't see any signs that it's a significant trend," said Steve Gilula, chief operating officer of Fox Searchlight. "But it is interesting to see another source of funds flowing into filmmaking."
Some talent agencies, however, see an opportunity. ICM has hired a former marketing executive to look for potential deals to marry brands with the agency's clients.
"When it's a perfect fit, it isn't a stretch, it is organic," said Lori Sale, head of global branded entertainment for ICM, who put Dove and English together for "The Women." "It's very much matchmaking: What does the brand do for the movie? What does the movie do for the brand?"
