Above The Line

“Above-the-line” (ATL) is a crucial term in film budgeting. It refers to the part of a film’s budget allocated for the primary creative and financial talent. These are the individuals who have significant artistic control and influence over a project. Their involvement often begins long before principal photography starts. Their salaries are typically negotiated, not based on a standard union scale. The costs for this talent are listed “above” a literal line on a budget summary page. This placement separates them from the costs of physical production.

Who is Considered Above-the-Line?

The above-the-line category is reserved for a select few key roles. These individuals act as the primary drivers of a film’s creation and commercial viability. The main ATL roles include:

Essentially, these are the people whose participation is often essential for the film to get a green light. The rights to an underlying property, like a book or play, also fall under above-the-line costs.

The Origin of “The Line”

The term originates from the physical layout of a traditional movie budget. A top sheet, or budget summary, would have a bold line drawn across the middle. Above this line, producers listed the variable, negotiated costs for the major talent. Below this line, they listed the fixed, standard-rate costs required for the physical production. This simple division created two distinct cost categories. The line became a clear and important distinction in film financing and production management.

Above-the-Line vs. Below-the-Line

The opposite of above-the-line is below-the-line (BTL). Below-the-line costs encompass everything needed for the day-to-day physical production of the movie. This category includes the salaries for the rest of the cast and crew. For example, the director of photography, production designer, editor, and camera operators are all BTL. This category also includes all production expenses. These costs cover equipment rentals, location fees, set construction, catering, and insurance.

A below-the-line cost also includes a film’s special effects (VFX) budget. It falls under post-production expenses. Even in a blockbuster with massive VFX and few stars, the VFX budget remains below-the-line. The nature of the cost (negotiated talent vs. physical production)—not just its size—determines the distinction.

Financial Significance

To sum up, Above-the-line costs are often the most variable part of a film’s budget. A-list actors and directors can command huge salaries. These salaries can represent a massive portion of the total budget. In independent films, ATL talent might work for a lower upfront fee. In exchange, they may receive “points,” or a percentage of the film’s profits. Therefore, managing above-the-line costs is a critical part of producing a film. It directly impacts the project’s financial feasibility and potential for profitability.