How to find good film investment opportunities
The film industry is a dynamic growing industry, with multiple investment opportunities. The growth of streaming platforms such as Netfllix and BBC iPlayer, alongside the already booming British film scene, makes film and television a great place to invest.
The advent of new technologies and ways to view films have made films more accessible and more affordable to a wider audience. Therefore, it is not surprising that last year the UK film market brought in revenue of over £3.5 billion across multiple platforms.
However, most film investment comes with risks. The risk that your film will not make it to the box office or that you will not make a return on your investments. Here at Films4u we guarantee distribution of every film we raise money for, through our network of distribution partners.
How to choose what type of film to invest in
Investing in films can give much higher returns than other forms of investment. However, finding the best film investment opportunities can be difficult. With so many different companies promising a variety of results, finding the most reliable place to invest your funds is important.
Often when considering investing in film there are two routes which an investor can follow. Either choosing a smaller indie company and helping to finance their projects. Or investing in larger bigger budget films with larger companies. Both options have positive and negative aspects.
Smaller indie films have the advantage that they are often significantly less costly to make and therefore even if the profit they make is not as high as a large scale production the returns on your investment may be higher. If you are looking to invest in indie films you can either approach a film company directly or contact a film production company like us at Films4U.
Larger films often incur more risk to returns as they are more costly to make. This means that their box office (cinema) release has to be very successful to recuperate the costs of filming. However, many large films have made significant profits after release.
How to invest in movies
When investing in movies there are a few options of how to invest your funds. Some carry more risk than others, yet where there is more risk there can often be a higher payout. Here are some of the options available to film financiers:
Invest directly with a film producer
This applies to indie/smaller film companies. If you find a company or a project that you believe in and see the profitability then this may be the way forward for you. However, investing in this way is the riskiest form of investment as there is no guarantee you will get a return of your investment.
Find a film production company
These companies are set up to manage investment into films around the world. They pick films based on their profitability and marketability, meaning they are much lower risk than choosing a film yourself. Often there is a guarantee for returns on your investment and distribution of the film you have invested into. At Films4U our stringent film selection process and guaranteed distribution mean we haven’t lost money on a film yet!
Consider private equity
If you want a low-risk investment, consider private equity firms. They will find film investment opportunities which have a high likelihood of turnover and invest your funds into a few companies/projects. Although this is lower risk it also means that you will not get credited in the film or have any say over the final product.
How to choose good film investment opportunities
Choosing a good film investment can be difficult. There are so many different genres and stories to pick from that choosing a film without allowing your own taste to influence your decision is near impossible. When investing in film, there is a scheme in the UK called the Enterprise Investment Scheme (EIS) which protects your investment. The EIS scheme works by incentivising investors to buy shares in younger and (potentially) riskier companies through a series of tax relief benefits. At Films4U our investors can make use of the EIS scheme as many of our projects are with smaller companies.
How film production companies can help
Film production companies are a way of investing in films which carry a lower risk due to their expertise in the field. Film production companies will seek out films which are commercially viable and marketable, then find investors for these films. The best film production companies will be well established and have a good track record of films and awards to their name.
There are certain aspects to look out for when choosing a film production company to invest in:
- Distribution – do they guarantee distribution of the film you are investing in?
- Track Record – are they a well established film production company? Companies that are well established are less risky to invest in as they have great connections in the industry.
- Demand – are their films released over streaming platforms as well as cinemas?
- Investment strategy – do they take advantage of schemes such as EIS? Is your investment guaranteed any returns?
- Reputation – are they well regarded in the film industry? Have they had success with big name actors or won awards?
- Profitable films – have their films so far been profitable?
Another aspect to consider is how much time the film production companies spend working on the films they invest in. It’s a good idea to choose a film production company that works closely with directors, writers, producers and actors from script to release. This indicates emotional as well as financial investment.
Here at Films4U we aim to make the process of investing in film easy and transparent. We work with small film companies to produce quality films that are released both in box offices and on all available streaming services. If you want to learn more about investing in film visit our website or contact us via email or phone.