Independent Film Investments
Independent films present an alternative investment opportunity. The Blair Witch Project or employees of the passion of the whole Christ have one thing in common: they are independent films, independent films commonly known. Films like these present a unique opportunity for investors to engage in a creative project and see their name on the big screen.
An independent film is produced independently of major Hollywood studios. Due to their distance in Hollywood, independent films are often considered more artistic or more edgy than large studio productions. They are performed around the world at festivals such as the Sundance Film Festival in Utah or the Cannes Film Festival in France. Particularly interesting projects are sometimes bought by large studios for distribution. Independent films are financed with producers’ money for loans with the help of private investors.
Investors do not necessarily have a creative contribution despite the money contribution. There are several ways in which investors can find movies to invest. If you communicate with them directly, most producers will be willing to discuss the projects they have in the works. Investors could find producers through websites of independent production companies or connect in person, attending a film festival and discussing a conversation. Commercial magazines such as Variety can also provide valuable information. These publications often contain lists of projects, and films classified as “in production” may still need investors. Websites that focus on investing in the movie – such as FilmInvestorsNetwork.com or MoviePartners.com – can help investors choose investment opportunities.
Most of the investments in independent films are structured in a limited liability company or limited liability companies, according to Eufemmé Films. Investors are only responsible for the amount of money they decide to invest and are not responsible for other debts or obligations. Investors usually receive their initial investment before everyone gets anything from the project.
“After the investors have recovered and received their bonus, a mechanism of revenue distribution is activated,” according to Eufemmé Films. These agreements may vary from project to project. For example, the next film produced by SKW Entertainment SKS, offers two investment packages that investors can choose. In the same package, investors’ initial investment is not immediately returned, but they receive a higher percentage of all the revenue generated by the movie. Another option is that the initial investment is paid immediately, but the investor receives a significantly lower percentage than the film’s net income. The first option, which is more risky, offers superior performance potential, while the second option provides faster fund recovery with a small earning potential.