Many of you may have heard of them, been offered one and seen the emails and articles about them, many of you will not even have realised it was possible.
We all watch them, buy them, read about them and talk about them; films are there for us to see and their success and failures are widely publicised. However, when it comes to financial investments, many miss them and fail to see the potential through fear of the unknown or ignorance, missing out on a great investment opportunity, the film investment.
The British Cinema has been hitting the high notes for some time now, in 2012 British Musical drama, ‘Les Misérables’ won three of its eight Academy Award nominations and the 23rd James Bond film, ‘Skyfall’ became the UK’s highest grossing film ever in just 40 days after its release.
For years we have been saturated with facts and figures and information about property, gold, currency, blue chip stocks and oil & gas investments. Most likely one or two of you reading this has gained and/or lost money on some of these, or know someone who has. The reality is, all investments have some element of risk we all know this, sure some are safer than others but taking the risk factor away, what should be the most important factor in any investment opportunity is what you get out of the investment in the end.
The film business as a whole is fast approaching $100 billion per year in global revenues, even during the severe economic downturns the movie business stayed strong and kept on making money whilst many other businesses failed fast. The Lion’s share of that $100 billion film business lies in the hands of the Hollywood studios; however these studios don’t have a monopoly on success. Many independent films have become huge mass market hits generating spectacular returns on investments, representing the most effective way for individual investors to capitalise on the film industry.
2012’s leading UK independent film release ‘The Woman in Black’ became the fifth biggest independent UK film to be released, generating over 321 million at the UK box office, followed by ‘The Best Exotic Marigold Hotel’ with £20.4 million, and ‘The Iron Lady’ and ‘Nativity 2: Danger in the Manger’, earning more than £9 million each. (BFI Online 2014)
And it’s not all about the BIG celebrities, after all everyones career has to begin somewhere and there are many high profile celebrities who got their break in small budget independent films. Take Ewan McGregor who got his international breakthrough with British crime drama ‘Train spotting’ and Keira Knightly who gained widespread recognition in 2002 after her role in British comedy drama ‘Bend it like Beckham’. A film investment offers you the opportunity to be part of the next big success story.
Investing in film is one of the best investments you can make for the up-side potential vs the risk.The benefits stretch far beyond the sales of box office tickets; DVD sales, television airings and merchandise all count towards the profit a film makes and can continue to generate a profit years after the film was first released into the cinemas. Take the US movie ‘Halloween’, which cost as little as $320,000 to produce but earned $75,000,000 and will continue to earn money for a lifetime.
Many film investment opportunities can offer investors the chance to appear in the movie itself and includes an invitation to red carpet events. As an investor you can have your name appear in the movie credits for all to see. Most importantly a film investment offers you the chance to invest in something real, something which is actually there for all to see, a chance to proudly pass that DVD on to your grandchildren telling them that you were part of that box office success story, the one that made their idol famous.
The giltz and glamour is not all a film investment has to offer; As well as high returns and a lifetime of earnings, investing in the British film industry can also offer you a great deal of tax relief benefits. In 2012 prime minister, David Cameron announced the extension of the film tax relief for UK filmmakers in 2012, creating a range of incentives for film investors with an EIS film investment scheme.
Sounds great, but what is the risk?
As with every financial investment, there is always an element of risk. It is very important as an investor that you take your time to think about things and do your research before making any financial agreement. It is important that you never invest what you simply can’t afford to lose, that’s just common sense.
The film business has an impressive history of stability; even at the height of the financial crisis the demand for film remained stable.
And so for those who can afford to invest, want to invest and are happy to take a risk then you can be part of the film industry and make money from it!
For more information about film investments, contact us on the form below.