Lots of people think that film investment is about risks. And yet, investors from all over the globe are seeking movie projects that they can be a part of. Film investment has not given the significance that it genuinely deserves when it comes to investment options. But the stark reality is that it’s one of the best investments you can make, with possible returns of 10 percent per year.
The film industry has plenty of what to celebrate in recent years. 2015 was the fifth straight year that the UK box office topped the £1 billion mark. Not just that, the international film industry, in general, managed to grow in the recession of 2008 to 2009 by 3.5 percent.
How Does Film Investment Work?
Film investment is just a long process. It usually takes between three and ten years to see a return. There are even instances in which it will take longer for an investor to see any investment return. This will depend on the film and the obstacles it faces before it is brought to the big screen.
When making a video investment, the investor is bankrolling the production of the movie. The money is going to be used to fund the production process. It is going to be up to the producers to appropriate the fund to where they see fit. Before investing, there must be a clear budget to find out the expenses and explain why they have to raise investments. Click here to read the review about red rock entertainment.
There are two phases of the production process, which are development and the ultimate means of production. The former is the initial phase by which the script’s rights, intellectual property, or synopsis are acquired. While film investments do vary, the minimum amount is generally around £10,000.
Advantage of Film Investment
There is always an odds of the film becoming a box-office success. Investing in an independent movie with a low budget gives investors the chance to earn more profits with less the chance of a sizable budget film.
Apart from the ticket sales, investors also get their share of the DVD/Blue-Ray sales, Video on Demand subscriptions, merchandise, and TV rights. The film can generate again for a lengthy time.
Apart from the financial benefits, investors may also see their names in the film’s end credits. There are instances wherein their opinions are asked during the production phase and invited to the premier event for the movie.
The good news is that the film industry has got the government’s support via tax cuts and rebates. Among the tax vehicles could be the Enterprise Investment Scheme launched by the UK government in 1994. Its goal is to make more people spend money on unlisted but high-risk companies. As compensation for the risks, the investors get several tax advantages.
As you will see, film investment should never be overlooked if you are searching for investment opportunities. You must do a lot of research first before purchasing a film to make sure you’re obtaining a good deal.
