Viewing Question: I’m interested in investing in movie production. What should I expect?

1 Response

  1. Investing in movies can be Risky Business. If you don’t do it right, it could be Armageddon for your finances.

    Ok jokes aside, every so often there’s a spate of articles about movie investments and they become popular to talk about. Usually when people talk about funding movies they try to pitch them with talk about meeting stars, invitations to premiers, and executive producer credits. These are all great perks, but they make for good experiences and not investments. Tickets to premiers, or evenings with celebrities are often donated to charities. This can often be a better (and possibly more tax efficient) way to meet a star or go to a premier, often times it may be cheaper.

    If you’re interested in diversifying in an actual investment in a movie it actually doesn’t necessarily have to be an especially risky investment. Movies are often subsidized heavily through tax rebates, credits and grants. The risks associated with many movies are often spread out among many parties through presales. Depending on the vehicle you use, your own exposure (for better or worse) to the performance of the movie may be limited. Don’t be fooled though – movies are still often considered very high risk, and the stream of revenue is unpredictable. Beyond that, movie finance is an extremely complex business. If you don’t know what you’re doing, you may wind up taking on to considerably more risk than you think. Make absolutely sure you work with a professional before taking the plunge.

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