The Call to Invest in Films

Movies are a good investment opportunity? For many investors, the return hike is a great attraction, because the films have the potential for a great return, although there is a very high risk with a lot of big "if." A film can do very well if it has a good script, a good action, good production value, has a budget that matches the kind of movie it is, and strike an agreement with distributors or buyers for television, DVD , foreign rights or other markets. So if the movie will come out in theaters, it has the potential to have an even wider audience, even if the theater is not the main source of income for most films, big blockbusters, as owners of theater take about 75% of the box office, unless a film is set in a long-term version, and there is a high cost for impressions (although an increasing number of theaters go digital). Despite the high yield potential for some films, investors in this for the money must realize that any investment film is a big risk, because many problems can develop from when a film goes into production for when he was finally released and distributed. Theses risks include the film are not completed because going over the budget and is unable to obtain additional financing or there are problems on set. Another risk is that the film is not well received by distributors and TV buyers, so they are not taken. Or even if a film receives a distribution agreement, the risk is that there is little or no money up front, so that the film has not seen other statements. So, yes - a film can have a high yield, but an investor can lose everything.

If all the stars align, and there is a good movie made with a reasonable budget and distributors, buyers, and a public responds, the film could easily earn 4 to 10 times its cost, which makes the whole world happy. Indy a budget scenario for this level of performance can be a film shot by US $ 50.000 to 200.000. For most films, the main value of a theatrical release is the value of PR to be a known film, so that buyers want to buy or rent the DVD buyers and Television want to show in one of the cable premium movie channels. In addition, most films do not receive a theatrical release, and the funds are raised through other channels.

What kind of films can usually generate good profits since the recent Oscars show that a significant investment does not necessarily mean high returns?

Because of the high salaries of stars that are typical in these films and other high-cost items, such as special effects, many blockbusters still can not make a profit. Thus, dollar for dollar, many films with low budget indy may be a better investment because multiples are higher with success; it is more likely that the indy budget that is well done, with a reasonable budget, and will be sold back is money, and the potential loss is much less.

Good documentaries are particularly good investment opportunity, given that the costs of making documentaries are much lower than for feature films.
Are there any legal or regulatory restrictions which prevent individual investors to participate in film investment opportunities?

What are the main risks behind film investment and how can you avoid them?

The main risks behind the film investment is the potential of losing everything if the film has not completed or not distribution. The best way to protect yourself is to evaluate the potential documentary movie or going; assess whether the budget and the expected return seems reasonable for the project; and assess whether the producer, director and others on the film seem to have the experience to complete and market the film

What will the initial investment needed to invest in film production?

An initial investment can vary from several thousand to several hundred thousand, according to the film and how an investment is structured. For example, some indy filmmakers make films low budget have found creative ways to raise funds, prompting investment of US $ 1000-2000 those involved in the film that the actors and crew. Venture capital funds are also a possibility, especially after some initial investment in the film if the film's budget will be at least 1 to $ 2 million.

With the advances in modern technology, what are the opportunities for producers of independent and emerging films; or are these developments more a threat due to piracy and competition?

There is a possibility increasingly today for Indy and emerging film producers to begin the distribution of other means such as the Internet, stream or download the self-distributed sales of DVD to play on mobile devices and DVD sales or free streaming on Netflix and Blockbuster. In turn, all of these activities can help sell your film distributors and TV buyers, DVD, foreign, and other sales, while attracting an audience of more and more for the film, which makes distributors and buyers more interested in promoting the film.

So yes, indy films can be a great investment for some films. And if you make money or not, an investment can u p open many opportunities for greater involvement in the film industry and for pleasure.