Investing in the Film Industry
Investing in the Film Industry
Film production is a collaborative undertaking, even at the level of financing, is this for you?
The best filmmakers and smartest producers bring on-board not merely investors, but allies. When a filmmaking structure is built with this degree of common cause among all its participants, the odds are maximized for fully realising the vision on screen and consequent success at the box office that inspired everyone to sign up in the first place.
Why Invest in Movies?
Investing in movies can be lucrative – the rewards reach beyond just ticket purchases. DVDs, Blu-Ray DVDs and audio cassette sales, VOD subscription sales, deals with streaming services and sale of merchandise can count towards the revenue that movies make and they will likely generate revenue throughout the entire cycle.
Moreover, investing in the film industry means investing in a creative pursuit. This can be rewarding artistically, whether you’re investing in an independent film or a Hollywood blockbuster. Making a movie investment means supporting artists to create work as well as seeking a return on money invested.
It can be a win-win in this regard, supporting a film project at the same time as seeking a return on capital. It can be a challenging but fulfilling journey as well as a method of portfolio diversification for the already sophisticated investor. Film investment has been a tried and tested method of investment since the dawn of cinema.
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Film Industry Changes in the Corona Virus Landscape
Behind the scenes, relevant parties inside the film industry have been extremely active in evaluating what COVID-19 means for changes in demand and production.
As a result it seems to be clear is that a new opportunity has arisen to capitalize on sharply changed appetites among audiences for entertainment consumption.
Studios (e.g. Disney, Universal, Paramount) and streamers (e.g. Netflix, Amazon, Hulu) all agree that what audiences want now is product in the “feel-good” genre.
A “feel-good” film is one or more of the following:
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Comedic
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Romantic
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Nostalgic
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Escapist
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Glamorous
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Inspirational
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Joyful
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Simply pure fun;
There here is now huge demand for specific types of entertainment products to take audiences minds off the economic pain and social disruptions of COVID-19.
Studios have signaled that such products (if produced at a level of sufficient quality, of course) will be snapped up for distribution, and a premium will likely be paid to acquire such product.
There is simply insufficient supply of “feel-good” movies in the pipeline, since until COVID-19, there was much more of an emphasis on action/crime/horror … or even straightforward drama. No one wants that anymore.
They want to go back to entertainment basics: material that gives relief and distraction from daily woes.
Furthermore, with an enormous increase in the streaming of films (due to people staying home as a result of social distancing) this shift in demand is expected to continue indefinitely.
(Separately: more animated content is in immediate demand because it is made by animators working at their computers at home and therefore practicing social distancing: no physical production required on movie sets with human actors and crew gathering together.)
How to Invest in Movies?
Before starting to invest in cinema though you should understand that it is extremely uncertain and it offers a real chance of losing some money. Squarely looking at ROI rarely makes filming worthwhile.
So avoid going into a production without knowing how much you want to lose. And remember that ROI shouldn’t’ necessarily just mean making a profit. It may include passion for projects, supporting noble artistic pursuits, tax incentives or deductions, attractive benefits of attending red carpet events, obtaining a producer credit, or attending festivals.
In this brief guide, we’ll provide a good overview of what it looks like to invest in movies and how investing in the film industry can work. We’ll also demonstrate how we generate income from films whilst also showcasing our top filmmaking projects that seek investment.
Calculating Independent Film Return on Investment
A professional filmmaker can provide you with information on your expectations about how much money you would spend on your movie and who you are aiming it at. Some filmmakers say pitching a script outside movies is an investment.
Depending upon your perspective you need some judgment skills when selecting scripts for you. If you’re going to invest in movies, you’re going to need some kind of high-value judgment on what makes a good script and what doesn’t.
Other aspects of an investment offer include anchored talent that our investors seek to see. And our target audience are those with film financial support from producer to consumer. If we’re going into production, production/streaming, mixing this with another movie, the return on investments could be negligible unless the movie is actually viewed.
Read more...
Investing in the Film Industry
Film production is a collaborative undertaking, even at the level of financing, is this for you?
The best filmmakers and smartest producers bring on-board not merely investors, but allies. When a filmmaking structure is built with this degree of common cause among all its participants, the odds are maximized for fully realising the vision on screen and consequent success at the box office that inspired everyone to sign up in the first place.
It remains the case that film investment, as a key ingredient in the peculiarly complex recipe of cinema, carries with it a greater degree of inherent risk than is found in many other fields and endeavors, it’s also fair to say that film investment is not a purely hope-based proposition. There are facts, figures and predictive techniques to bring to bear on the analysis of a film’s prospects, so long as you know the right questions to ask. The team’s combined experience in film production is having learned the right set of questions, which we share respectfully for your consideration in our Investor's presentation.
Example Investor's Documentation:
The Film's Sizzler
The Film's LookBook
