Film Investor Perks
Investing in film can be a rewarding and exciting field to invest in. Becoming a film investor brings a set of perks very different from other forms of investment. From film credits to possible 200% returns, the perks are wide ranging and different for each film.
As discussed in our earlier article there are both benefits and risks to investing in film. But with the right production company and film these risks can be minimised and the perks can be very memorable. At Films4U we offer a wide range of perks for investing with us and investment return guarantees under the EIS scheme.
What perks do you get as a film investor?
As a film financier the perks are markedly different from that of other investment opportunities. The monetary perks from film investment can make investing very worthwhile. One of the most famous examples of this is the film The Blair Witch Project which cost only $300,000 to make but turned over a staggering $141 million in revenue.
This shows how much return can be made on a single film investment. It goes without saying that most films do not have quite this successful of a turnover, but The Blair Witch Project shows that these kinds of figures are possible to achieve.
Aside from the monetary perks of investing in film, there are other positives to becoming a movie investor. There is a wide range of these kinds of perks, and whilst these vary from film to film, there can be some really exciting opportunities. Some examples of the kind of benefits to investing in movies include:
- Credits in the films – often as the executive producer
- Minor acting roles for either you or a family member
- Tickets to the movie premiere (often including the red carpet) for you and (sometimes) your family
- Rights to converse with the director, producers and actors on set
- Movie merchandise – this can be especially profitable if you can invest in this as well
- The potential to be included in decision-making processes regarding the film
What does a film investor do?
Once you have decided you want to become a film investor then you must choose the way you want to invest. For example, whether you are going to use a film production company or invest directly. Once you find the way that you want to invest you must contact that company and set out the amount of money you want to put into the project and find out the details of the film you are looking to invest in.
After this, you will meet with lawyers to sign the contract of your investment. When you have finalised the legal paperwork then you can begin conversations with directors and producers regarding the movie. The amount of say you have in the final output of the movie will differ depending on the type of movie you are investing in, and how much you invest.
What happens when you invest in a successful film?
So you have invested in a film and watch it become a successful movie. What now? The first aspect to think about is the return on your investment. A successful movie should mean a good return on your investment, which can be further enhanced under the UK government’s EIS tax scheme. The most successful films can make a return of 200% or more, take a look at Films4U’s most successful projects.
Once you have the success of one movie in your investment portfolio you may find that film is a field you want to invest in more and more. There are so many avenues to explore, from streaming services to blockbuster films, and if you have an eye for what is successful, film investment can be very lucrative.
A successful film also has the potential to be made into a series, meaning there are multiple opportunities for investment. Take the Harry Potter franchise as an example. What started as a book series was later adapted into films, and now the Hogwarts fantasy world is worth an estimated $25 billion. This is especially impressive given that $7 billion of that worth is merchandise, so if you invest in a film you may find that other investment opportunities present themselves to you.
Do film investors always get their money back?
Essentially this depends on how you invest your funds and who you invest with. If you invest directly into a film without an intermediary film production company (like Films4U), then you may not have the guarantee that you will get your money back. This is one of the risks with investing in this way; if your film is not successful then you may not recoup your investment. However, you would never lose all of your money due to tax relief and loss relief.
However, if you opt to invest with a film production company that uses EIS, like Films4U, then you will get 60% of your investment back even if the film makes no profit whatsoever. This is because EIS protects your investment as you are investing into smaller companies, and allows for some tax breaks (for example you are exempt from capital gains tax on your profits).
Film production companies are also more thorough in the vetting process which decides which films they invest in. This means you are much more likely to have your film distributed and return your investment.
At Films4U we help you invest your money into films that are profitable, to date we haven’t lost money on a single film. This is because of our great relationships with partners in the industry and our knowledge of what makes a great film. With 30 years of experience in investing in film your investment will be in good hands. For more information contact one of our advisors today.