FREQUENTLY ASKED QUESTIONS

I've never invested in a movie before, what are the risks?
The risk factors are as follows:
  • The movie not getting made is a major risk for the investor. However, based on the producers past history, this would be very unlikely.
  • Going over budget is always something to be concerned about. Therefore, we arrange for insurance for this in the form of a bond. This eliminates the risk of the movie not being completed.
  • Getting distribution for the film is always a risk factor. We have many connections with various distributors, either with major studios or independent distributors, therefore we feel confident we will secure distribution for the film.


Aren't Film Investments Risky?
Analyzing the growth of the entertainment industry and its stability show that the industry is one of the most solid, stable and profitable businesses in the United States. Films are responsible for a large percentage of the positive foreign trade making them one of the critical export industries, every year showing a substantial trade balance in favor of the United States.


How long does it take to start making money on a film?
A film will be in distribution between eighteen to twenty-four months and revenue flow begins after this period.


Will this Independent Film be competing with the Major Studios?
Not directly; the market place is too large for the major studios to fill, especially when the majors have chosen to concentrate their efforts on the larger budgeted "blockbuster" films. The average cost for a major studio released film is now over $60,000,000. Add to that the $25 to $40 million to promote, advertise and distribute the film and you can quickly see that most studios must limit the number of productions they undertake in any year. In addition, studios have no desire to make pictures at the under $6 million level, yet that is a budget level which helps to minimize risk and maximize profit.

High quality, lower budgeted films, often cost less then ten percent of an average Studio Film, while offering profit and recoupment possibilities which increase exponentially for its investors.


What relationship, if any, is there between the cost of a film compared to its box office potential?
If the story, cast and film makers are of top quality there is no correlation between what a film costs and what it can earn financially. The reality is that the box office price for a ticket bears no relation to the production cost of the film.


Can we see any of the films the producer was previously involved in?
Yes! Enclosed in this package is one of the films our producer was involved in making. This film along with many other films are still being rented and sold in major video rental stores around the world.





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