A great story, the right genre, great distribution make a great movie overall regardless of the timeframe from concept to screen. You have the basis for an attractive asset class, one that offers the potential of impressive — and sometimes extraordinary — returns but without being tightly correlated to other investments such as stocks, bonds, and real estate. (Brown, 2016) 

STABILITY

Independent Filmmaker Roger Corman has seen profits on 280 pictures out of the 300 he has made. (Corman 1998) How I Made a Hundred Movies in Hollywood & Never Lost a Dime. Unlike Financial Meltdowns be it in stocks, shares or real estate, demand for film remains stable. 

APPEAL

Independent smart global distribution coupled with leveraging the possibility of revenue generation for up to ten years are appealing to investors. Industry estimates suggest that, on average, roughly 60% of film "first cycle revenue" is generated within 12 months of release, and 80% is generated within 24 months.

ROYALTY INCOME FROM INTELLECTUAL PROPERTY
BENEFITS

1. Can earn consistent cash flow

2. Are long-term assets

3. Potential for more tax-advantages or sheltered cash flows

4. Protection of volatility in the stock market or elsewhere

5. Liquid investments protect you against rapid falls in value and generate a higher ROI

6. Access to different assets with higher return potentials

7. Passive income, none of your time required.

FILM INVESTMENT VS. REAL ESTATE INVESTMENT

Proofs that show that being a film financier pays better than real estate investments.

Uncapped Potential

When you invest in movies, there is uncapped potential for income. You can make as much money as the film can sell. However, Real estate has a capped potential for income. Therefore, with uncapped potential, investing in a movie is a better bet than real estate. Film financing companies and third party comparables have more clarity and less legwork than the real estate market for investors.

Less Hastle To Manage

Managing property managers, repairs, associated costs for flipping all deduct from your earning potential unlike a movie. 

Financial Markets are designed to boom and bust

Mitigate that risk with a movie because little else will be mitigated against the pressure of the financial markets. People always have money and time to watch movies.
Advertise Your Investment Firm On The Credits Of The Movie You Invested In

The Benefits

Returns are faster and larger as a film financier with an independent film financing company. This  alternative investment can offer tax incentives, multiple exit strategies and an opportunity to guarantee up to 100% of capital. Film finance is unique because the potential return can be as unlimited over the short, medium, and long terms.

FILM INVESTMENT OPTIONS PLANNING

• FULL PRODUCTION & DISTRIBUTION OF MOVIE TRAILER
AND / OR 
• FULL PRODUCTION & DISTRIBUTION OF ENTIRE FEATURE FILM


Investor Checklist:

• Has a High Valued Intellectual Property (Script)

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• Intellectual Property is Original

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• Script Genre has a Built-in Marketable Audience

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• Has a Private Placement Memorandum and Terms Set

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• Production Company and Investors are aligned

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• Production Company has a Distribution Plan or P&A Money Sourced

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• Production Company has a Valid Comparable Revenue Range Model from a Third-Party Source

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• Production Company Focuses on a Niche Genre

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• Production Company has Multiple Mitigation Strategies Available for Investors including up to a 100% Mitigated Pre-Revenue Option

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• Production Company Willing to Debt Finance

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• Domestic and Worldwide Potential

References:
 

1. Fraser-Sampson, G (2010) Alternative assets: Investments for a post-crisis world

2. Brown, C (2016, May 24) Filmed entertainment as an attractive asset class (White Paper Part 1, 2, 3, 4) Filmonomics

3. Baratta, A (2018, August 14) Wealth building secrets wall street doesn’t want you to know – It’s time for a new strategy!

4. 10 proofs to show that film financing pays better than real estate investment (n.d.) Movie Investor

5. Royalty Exchange

6. Jaeger, J Why Invest in a Movie?

7. Yoshida, H (2019, Sep 3) Best investment ever? Some say alternative assets carry the day Forbes

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