Investors

For some, investing in independent filmmaking is hotter than Wall Street. These investors may achieve even greater returns after the film hits the screens in the U.S. and is distributed on cable, home video, television, and in international markets.

For investors accustomed to stocks, bonds, and mutual funds, the financial gains from independent films seem implausible and they are usually not realized without a high degree of risk. Although film investment requires a significant tolerance for risk, the potential returns may be enormous. Today's independent film industry offers individuals a unique opportunity: A chance to become involved with a dynamic industry that involves art, glamour, celebrities, and premieres, while at the same time allowing investors the prospect to realize triple-digit returns.

For example, a movie such as HALLOWEEN, costing as little as $320,000 to produce, earned $75,000,000 and it has not stop earning money. RETURN OF THE SECACUS 7 cost only $60,000 and grossed $2,500,000. BENJI cost $550,000 and grossed $45,000,000. NIGHT OF THE LIVING DEAD cost $114,000 and grossed $40,000,000. GRIZZLY cost $700,000 and grossed $31,000,000. DAWN OF THE DEAD cost $700,000 and grossed $55,000,000. There are thousands of other examples where the return was at least three times anything done by securities listed on the New York or American Stock Exchanges.

Despite the advent of television and the growth of the home video market, theatrical distribution has continued to prosper. While U. S. theatrical distribution is the first choice of any feature-length film, other opportunities are becoming increasingly attractive. Here are some interesting facts regarding key opportunities for independent films:

DVD/Video sales now often pass theatrical revenues.
International markets are gaining even greater strength than they had before.
Independent films have been steadily gaining market share in the 1990s.
The worldwide market for independent films is estimated to be $3 billion.
The entertainment industry is one of the last businesses in which the United States still dominates the world market. In Europe, American films currently capture at least half the box office.
While the US economy has been enjoying an incredible surge, it is important to note that investing in film is somewhat recession-resistant. In the same year, the stock market experienced the crash of 1987; theatrical film box office receipts broke records.

According to some investors, a movie is the best investment one can make for the up side potential versus the risk. They are better than real estate, blue chip stocks, gold, silver, gems, income-producing rental properties, futures, or international currencies. There simply is no business with manufacturing capital entry requirements as low as motion pictures where the potential return can be as unlimited over the short, medium, and long terms.