FINANCING CONTENT
The profitability of most projects is directly related to the project, its genre, talent, distribution options, and a balanced financial plan.
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While there may be some investors who do not finance films with the goal of generating profits and are merely looking to enjoy Hollywood perks - such as visiting a film set, meeting a-level actors and directors, and celebrating at glamorous red-carpet events - most investors who appreciate these perks, also appreciate a good return on their investment.
Enjoying the Hollywood perks and generating profits can both be accomplished if producers and investors apply strict investment criteria when financing films.
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These investment criteria include:
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Investing in projects with feasible budgets, supported through distribution revenue projections issued by bankable sales agents
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Verified market demand for a project established through presale distribution agreements in support of the projections issued by a bankable sales agent
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A balanced financial plan that includes presale financing, non-recoupable finance elements such as production incentives, a leveraged equity investment in support of IP ownership, and a meaningful premium and profit participation component
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Approval rights for all financial and distribution-related agreements, as well as project changes that could negatively affect the film's profitability
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Confirming distribution through bankable sales agents and distributors
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Production insurance to protect the investment
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Revenue protection and transparent accounting/financial reporting through escrow agents
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Investors would ideally confirm the feasibility of a project and evaluate all risk mitigation options before investing in a film or television project.
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