Everything You Need To Know Before You Invest In Movies

Everything you need to know before you invest in movies

There are a few things to keep in mind when deciding to invest in movies. Primarily speaking, knowing about Production House, the ensemble & cast, marketing & release plans, distribution deals and storyline of the film project are important matters.

  • The Production House is the nerve centre of film production. Gathering various talents from acting, directing, production, etc, it distils their skills and creates cinematic films for public consumption.
  • An investor should be aware of any production house’s filmography and how much attention, traction and collections they have made.
  • Some investors tend to look at box figures and they tend to think that bigger the numbers, more the profits. This is not always true.
  • For example, The Tashkent Files had limited release in theatres but the number of distribution deals was such that fewer revenues went to distributors and more to the studio and production house like ours.
  • A Hollywood film Blade Runner 2049 was made in a budget of 150 Million Dollars and earned 250 Million Dollars. Profits? An 80 Million Dollar loss for Alcon Entertainment, the producer of that film! It is also important to note which projects are under consideration and which of them are to be released and when.
  • Unpredictability lies where there’s a paucity of information on competing films and their release schedules which coincide and eat away the share of the project an investor is interested in. But, this is not always the case.
  • It is possible to take risks when we have films of different genres being available for the public under the same schedules.
  • Do the owners of the production house have established ties with distributors and other production partners at the helm of the film project? If they do, then they are experienced players in the market and investing money in their projects; wherein they have some form of financial auditing in place and mechanism for expense control is a safer bet.
  • If their projects are backed by a major studio, then there’s nothing better than this. The Studio Model of film production is streamlining financial revenue and this bodes very well for other investors too.
  • But even of greater importance is the film itself! An investor of films must know why he/she is investing money into films. Films are not tangible products whose valuation is merely in terms of currency.
  • Films are like a mirror held to us; in which we see ourselves and our society at its best and its worst. Films evoke memories; films are a celebration of life. A film investor is also someone who is genuinely into cinema. There are examples of investors who have poured money purely because they want to bring projects to life because to them, it matters!