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Things that You Get from Investing in Films Are you aware that the films are a great investment opportunity? They are definitely for the right kind of investor. Here are the reasons that you need to know. For a lot of investors, the high return is quite attractive since films do have such potential for a big return but there is a really high risk with so many ifs.The film can do really well when it has a good script, good production value, good acting and when it has a budget which fits the type of the film and such strikes the chord with the buyers or the distributors for DVD, TV, foreign rights as well as other markets. When the film goes into such theatrical release, this has the potential to get an even bigger audience even if theatrical isn’t the main source of income for many films, just like the big blockbusters, because the theater owners would take around seventy-five percent of the box office unless the film goes into such long-term release and there is a huge cost for prints even if so many of the theaters out there are going digital. The value of such theatrical release is for promotional value in order to obtain the other kinds of sales except for such big blockbusters. Even with such potential to obtain a high return for some films, the investors who are there for the money must understand that any film investment is really a huge risk since there are many problems that can happen from the production of the film to its release and distribution. Such risks would actually include the film not getting completed since this has gone over its budget and this isn’t able to get more financing or there are issues on the set. Also, a risk is that the film isn’t well-received by the TV buyers and the distributors, so it is not picked up.
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However, for a lot of investors, the other important reasons for investing are more important. This could be for the reason that they believe in the message of the film. They like as well as support the film producers, the crew and cast. They like such glamour of getting involved with a film that includes meeting the stars and also going to the film festivals. They would see their investment as an opportunity to travel to other locations for filming as well as for film promotion.
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If the stars align and there is a very good film done with a great budget, the distributors and buyers and the audience respond, the film could definitely earn 4 to 10 times of the expenses and such would make all happy. The low-budget indie film might be shot for $50,000 to a couple hundred thousand dollars and such could get $500,000 to $750,000 for the TV sale and get to earn a million more through streaming, DVD and the foreign rights sales.