With the rise of streaming platforms like Netflix, Hulu and Amazon Prime Video, investing in film and TV production has become an attractive option for many investors. However, the film industry is inherently risky and shooting investments need to be made cautiously. This article will provide an overview of how to invest wisely in film and TV production, including analyzing scripts, securing distribution deals, managing budgets and leveraging tax incentives. Proper due diligence and risk management are key to ensuring your shooting investments generate returns. With the right approach, investing in film and TV can offer exciting financial upside.
Thoroughly vet scripts before committing shooting investments
The most important step when investing in film or TV production is to carefully evaluate the script. Read the script yourself rather than relying on a summary. Look for compelling characters, an interesting premise and a well-structured plot. Pay attention to the genre – some lend themselves better to commercial success. Also assess if the script suits the intended talent. Budget the production realistically based on locations, special effects, costumes needed. Script development should continue even after shooting investments are committed, so expect rewrites. Don’t be swayed by director or talent attachments that aren’t confirmed. Be wary of investments that seem to only be selling on hype rather than substance.
Secure distribution before shooting to derisk shooting investments
Distribution deals with major studios or streaming platforms are key to recouping shooting investments, so aim to secure these ahead of production if possible. Self-distribution is risky for independent films. Seek advice from sales agents or distributors on genre demand and pricing early on. Be open to selling distribution rights regionally if no single distributor will commit to worldwide rights. having even a limited distribution deal in place will make shooting investments less risky. Treat any projections of revenue from distribution deals with skepticism. Streaming platforms now account for over half the market so focus on getting deals with Netflix, Prime Video and Hulu.
Control budgets tightly to protect shooting investments
There is an old industry adage that a film is only ever as good as its script. But protecting shooting investments requires keeping a tight handle on the budget as well. Experience shows most films end up going over budget. Build in contingency funds of 10-20%. Require sign-off for any expenses above a threshold. Avoid letting shooting run overtime. Cap compensation for talent. Be prepared to make sacrifices on locations, effects and other non-essentials. Leverage tax credits and rebates where possible. Assign experienced line producers. Daily budget tracking and oversight protects shooting investments from cost overruns.
Investing in film and TV production can provide strong returns but requires mitigating inherent risks like weak scripts, lack of distribution and budget overruns. Secure distribution deals early, thoroughly vet scripts, control budgets tightly and leverage tax incentives. With the right diligence and oversight, shooting investments can succeed.