A professional film budget is divided into two primary sections: Above-the-Line (ATL) and Below-the-Line (BTL). Understanding this division is essential for managing the financial health of any production.
Above-the-Line (ATL)
The Above-the-Line section of a budget is where the creative and development personnel and rights are accounted for and budgeted. This section is not about the technical process but about the individuals who drive the project's creative vision.
ATL costs include:
- Writers: Fees for the screenplay and any underlying material.
- Story Rights: The cost of purchasing the rights to a book, article, or original story.
- Key Talent: Fees for producers, directors, and lead actors.
- ATL Perks: Contractual requirements such as personal assistants, private trailers, travel, and housing.
- Fringes: Social security, taxes, and union matches for the above personnel.
At the early stages, cast numbers are often placeholders based on the production company's appetite for specific roles. If an actor is later cast at a higher rate, the filmmakers may ask for "breakage," which increases the greenlight number to accommodate the change.
Below-the-Line (BTL)
The Below-the-Line portion of the budget projects the actual costs of shooting and producing the project. It is divided into several sub-sections:
The Production Period
This includes all departments involved in the prep and shooting of the film, such as set design, locations, and technical crew. The most expensive part of the BTL budget is almost always the cost of labor. While the things you see on screen—props, costumes, and furniture—are important, they are often the least expensive part of the show compared to the personnel needed to bring them to life.
The Post-Production Period
This section covers editorial, visual effects (VFX), and music. It includes:
- Editorial: Editors, post supervisors, and sound mixing.
- VFX: Visual effects supervisors and digital asset creation.
- Music: Composers, scoring costs, and music rights clearances.
General Expenses
BTL also includes general costs such as insurance, finance fees, and contingency percentages (usually around 10%).