Stock-Line Interview with Meham Golan (circa June-1998)
stnn.com
S-L: What specifically do you anticipate that First Miracle is going to focus on?
GOLAN: Well, we are focusing on low budget films for the international market. The films range between
$1 - $5 million a picture. And we are currently, at this minute shooting a picture in Russia. It's called Lima.
It's about what happened in the embassy in Peru. And I'm shooting it in Mintz in White Russia. And this
I'm shooting for the production by New Image; but the production is by First Miracle.
S-L: Now, in terms of the kinds of pictures that you'd like to make, are there any specific types of markets
that you envision?
GOLAN: Well, we would like to make films that are good for an international audience. The first three
pictures -- one is a comedy called Cattle Call, and one is an action movie called Renegade Blade. And we
have a star in them. You know, I discovered a new star, the son of Segal, the young Segal, who is starring
in Renegade Blade. And in Cattle Call, we have Dom DeLouise and Mike McDonald currently starring, and
there will be some more stars. It's a comedy about Hollywood and what's happening behind the scenes in
Hollywood. Those are the first two pictures that we are producing.
S-L: Now, in terms of your time frame of having something that would be ready to bring to market, when
do you anticipate releasing these pictures?
GOLAN: At the end of the summer.
S-L: And in terms of a distribution strategy, how will these pictures be distributed?
GOLAN: We are not a domestic distributor. We are an international sales company. And we are selling
through local distributors around the world, county by country. And we hope to get a distribution deal with
one of the companies in America. And if not, we'll go to through the auxilliary rights, like the television, the
cable, the video, etcetera.
S-L: Now, when you look at the potential market for your films, you just mentioned three or four of them.
Do you see the primary market being cinema initially? Or do you see these going directly to video?
GOLAN: Well, our aim is to make entertaining films, where people want to see them. In today's market, the
main way to bring films of low budget to the international market and audience is via television. There is a
very strong salability on television, stronger than video. And there is always cable developing in many
countries. So our main goal is to make entertaining pictures that for some countries it will first go theatrical,
and then it will go on television.
S-L: Now obviously, distribution is critical. How do you plan on approaching distribution on a country by
country basis?
GOLAN: Well, this is our expertise. We have done it. The co-chairman and myself, we have done it over
the years. We go to the festivals and to the marketplaces, like Cannes Film Festival, like [?] in Milano, like
ASM, the Los Angeles market, and others. And there we meet buyers from all over the world, and we
license the film for five to seven years to those countries.
S-L: Now, when you talk about international films, are there are any common characteristics of these films
that would make a film that would not necessarily be interesting to an audience in the U.S. marketable
elsewhere?
GOLAN: I don't believe in splitting the interest, whether it is the U.S. or it is another country in the world.
American films have a strong interest in most of the countries in the world. And we are doing American
films, with American stories, with American casting. Naturally, we are aiming perhaps to find a way to
cover our costs in the United States. But an easier way of covering the cost of the film is by doing sales and
not going into the risk of distribution, which is a very, very, very costly matter. We are doing low budget
films and by selling them to the international market, to all kinds of media, we practically are almost
eliminating the risk, but I think that if we do these low budget films, there are a lot of buyers out there. And
we do not take the risk of the theatrical distribution on such low budget films.
S-L: I think that's a very important point that you're making; you are in effect premarketing the film, is that
correct?
GOLAN: We are premarketing. But in today's marketplace, the buyers want to see a [?], a trailer. They
want to see, not just to read the script, not to just hear about your cast. They want more. So the main
selling is happening during the making of the movie, when you can show in the festivals, you can show
scenes on video or on television, when you can show the buyers the essence of the movie and some scenes.
And of course, the best, if the film comes out well, is to wait and show it completed. But our aim is to
cover our downside. And to cover a $3 million film, I would say in the international market in all media is
not so difficult.
S-L: Now, let's discuss the special challenges that are faced in producing a low budget film. Maybe you
could take our audience through some of the issues.
GOLAN: We cannot, of course, get the superstars. That costs $10 - $20 million in salary. We can do it with
discovering young, interesting stars, or taking actors with familiar names on television, and bringing an
interesting subject matter, a unique one into the world and not to go into the big, big budget film. Because
we are not a major company.
S-L: When you look at a timeline or obtaining financing for the film, at what point in time does the film
become commercially financable? And by that do you need to have a trailer put together?
GOLAN: Financing is some other way. In other words, if the project is done by professional people who
have a track record, then financing is easier. Because you know, and the financiers know that they can trust
the makers to bring at least a finished product to the marketplace at a non-risk budget. And the way we
finance our films, we let the people who invest in them see the first money back -- before the company sees
a penny.
GOLAN: We first, from all sources, of any sales in any media, we first give the investors their money back.
And after the investor has recouped his investment, then the company starts to also see money, sometimes
on a 50/50 basis with the investor. We only charge 20 percent sales commission to cover our overhead in
selling the pictures in all the festivals. We have to travel and we have a big expense in publicizing the film in
the trades, etc.
S-L: Now, there are a record number of movies that have come out this year or are scheduled to come out
this year. It seems each year that there are a greater number of movies produced. What special challenges
does it entail for you to attract distributors in such a crowded market?
GOLAN: Well, you have to bring to the market themes and stories and casts that people would have an
interest to look at. I mean, we are not in so-called art movies style.
We are bringing action movies, which have a strong interest with the youth of the world; or local American
comedies that have an audience. The subject matter is very important. The story is very important. Because
after all, we have to compete with the huge Titantic-style major movies.
S-L: What is your background in the film industry?
GOLAN: Well, I'm making films as director, writer, producer of American films, already over 20 years.
And I'm always working in the independent market as a filmmaker. And every now and again I have a huge
success that goes beyond just selling the film. A film like Breaking, which we made for $1.2 or 1.3 million
made $63 million in the world. A film like Runaway Train that we did was acclaimed and won nominations
for the Oscar. A film that I did about Entebbe, Operation Thunderbolt was nominated for the Oscar. It cost
about one million dollars and made about $40 million. So among all our independent films, we have some,
we sometimes break out into what you may call a major hit.
S-L: Now, in terms of the type of scenes you can shoot, the types of actors that you can get, how is that
different than if you were with a major studio?
GOLAN: Well, the major studio gives you a budget of $10 - $50 million. And they take the risk that the
film will not be a success. They depend on [?] ... they depend on the theatrical exposure. You know that to
open a film in America costs almost more than the film, just with advertising and other costs. We do not
attempt to compete with them in the theatrical market. We do not want to take a risk of the downside. We
are working on a very special niche. There are hundreds of independent films around. We are trying to be
independent, but create good international product at the level that maybe a major would have done.
S-L: Which is the first picture that your company is scheduled to release?
GOLAN: The first one is the one I'm shooting right now, which is called Breaking The Silent Lima. It has a
very unique interesting story about terrorists that take over an embassy in Peru and holds them for four
months. If you remember the case that happened a year ago in Peru?
This is the kind of an action political thriller that you may see from a major company. Now, why am I
shooting it in Russia and not in Peru? First of all, I can create here bigger sets and scenes with lower prices.
We are always looking for locations and places where we can for a $2 - $3 million budget make a film that
on the screen nobody can say it didn't cost $20 million. This is the movie I'm doing for New Image. They
are distributors. We have already the distribution. They are financing it. And we, First Miracle, are
producing it for a fee and for 40 % of the profit of the film; for a fee, which is my salary, because I work
for a public company, and the salary of the producer, the director, they are all going into First Miracle and
giving it a base of income.
And the next one is a film called Cattle Call, starring Mel Brooks. Mel Brooks you see in comedies of
major companies. And stars like that. And we are still doing the film low budget because the star likes the
director, he likes the story, the stars in it. We are trying to attract names which like the material. And then
we don't have to pay them an arm and a leg, and we can keep the film as low budget and deliver to our
buyers around the world a film with some story and quality of name actors.
S-L: Now, in each of those films, who would you consider to be your target audience?
GOLAN: Anybody who loves cinema. Anybody who loves a good story and a good film, an entertaining
film, an American film. And American films, as you know, are very popular around the world. When you
come to Cannes Festival, there are 10,000 buyers for their countries, who are buying films for independent
distribution. This is completely different than what you may know about distribution in the world, which is
done by the seven or eight major companies, American major companies who do not sell their movies.
They have their own offices distributing their own films in those countries. So what do they do, those
independent distributors that cannot buy a major film? They are looking for us. And usually they are very
interested in American films that we can provide them with.
S-L: What kinds of revenues should these films generate?
GOLAN: I think it is very difficult, because our target is first to protect the cost of the film, the downside.
And I would say that we have a terrific chance of protecting the cost of the film and making a small profit.
To tell you right now or to prophecize that the film will make $100 million, I don't want to do it. But
sometimes it happens.
S-L: What would you tell investors looking at the company?
GOLAN: All I want is for them is to take an interest in our company, in our young company, in our new
company, First Miracle Pictures, and look at our development. And I hope that within the next year, we
shall prove ourselves to be a profitable company with some films which are selling everywhere.
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