Make Money Investing in Movies
There used to be a time when only influential entertainment moguls can put their money in filmmaking ventures. But as years went by, the movie industry has since shifted and became more accessible to anyone capable of funding movies. And who doesn’t want to be a part of the entertainment industry with all its parties, red carpets, and glamorous lifestyle?
However, investing in movies is not all rainbows and butterflies. There are a lot of factors to consider when investing in the entertainment industry. Knowing how to manage production costs properly, recognizing talents, and associating with the right distributor are only some of the challenges investors will face as the production moves forward.
And the biggest factor of it all is whether the film you want to invest in can attract viewers and spend their hard earned money on it. After all, people’s taste is subjective and can easily fluctuate. If the film didn’t click with moviegoers, it could lead you to lose money instead of earning.
But if a movie does well, the benefits can go long. You can have a possible franchise on your hands, merchandise to sell, and prestige to boast. It’s safe to say that investing in movies is not for the faint of heart. But if you’re thinking of making money by investing in movies, read below to find the information you are looking for.
What does a film investor do?
A film investor, in simple terms, is the person who gives funding for a movie. Generally, investors are hugely involved in the film production process. They interact with the producers, directors, and actors to ensure that everything is smooth sailing, and their money is used in good faith.
Based on the movie and the amount of investment, film investors can earn a massive amount of money if things go well. Aside from the potential financial rewards of film investment, they can also be invited to esteemed red carpet premieres, promotional parties, and be treated as VIP for film festival openings.
What are the things required to be a film investor?
The biggest thing an aspiring film investor needs to have is money or at least access to it. Most movie investments range from several hundred thousand dollars to tens of million dollars. Of course, this is only an estimate as it still depends on the investor’s capacity and the needed financing of the movie.
Placing all of your money into a single investment is not a good plan. Even though you want to go all-in on your passion, you should have sufficient money to pay your bills after your investment.
It will be best to have a good knowledge of the production process of filmmaking and the audience’s taste for entertainment to guarantee you’re investing in good material. It can help you gain better judgment on whether a film can attract an audience.
What do you need to do before investing?
You should do your due diligence and research the movie and the people involved before you promise your millions to a project— as you should do with any other investments. Just know that a project may sound incredible on paper, but may not translate into a profitable venture.
Make sure to research the project, the people involved, and their credibility. The more popular the producer is, the more information you can find about them on Google and other sites. Any movie investor, even independent film investors, feel better about their investment if the production holds a reliable reputation.
Film investors can get an idea of how well a movie will sell through the script. Therefore, be sure to read the script or whatever amount of it is accessible to investors. However, do not rely on this method alone. The actors in the film can also have a swing on how well a movie can perform.
How can you invest in movies?
Private equity and hedge funds are among the most common vehicles for direct investment in cinematic ventures. However, one of the biggest downfalls for this is that any investors can come into the project— even the unreliable ones. If you will opt for this route, check any offering documents that must correspond with relevant protection law.
Crowdfunding has become a very prominent investment method for many aspiring movie moguls. For filmmakers, this method is a great way to get capital. As through it, they can raise small amounts of money from an extensive group of people. Some sites for film investment crowdfunding include Movie Investor and The Movie Fund.
If you want to go for the traditional way, you can do so by taking entertainment-related stocks. Though, you won’t receive a producer credit. Investing in studios that produce big-budget films like Netflix, Viacom, and Disney allows you to reduce some of the risks of a stock market investment.
As much as investing in movies lies in having money, the passion you have for the industry is very relevant. Things may not go into the plan initially, and you may want to quit on the project before seeing the final take. But the faith and love you have for the film are the things that will matter and lead to surprising success.