As Seen in Investopedia: What You Need to Know About Investing in Movies
The allure of Hollywood brings with it visions of posh parties, hobnobbing with the rich and famous, awards shows, and dressing up to the nines. There used to be a time when only powerful entertainment moguls could put their money into movie-making ventures; but, not anymore. Indeed, there may be a way for you to get in on the action and invest in the potential success, or failure, of movies.
Investing directly in a movie may sound glam, but it can actually be a complex and risky endeavor. Scouting the right talent, managing production costs, and finding the right distributor are only a few of the hurdles investors share as production moves forward. The hardest thing to gauge, though, is the personal whim of the moviegoer and the voice of critics. After all, taste is fickle. A story with a broad appeal in one decade could fall flat in the next. If a movie does well, it may open the possibilities of a franchise, but if it flops, it could claim a number of casualties—from studios to the careers of actors.
Read on to find out more about what you'll need to consider before shelling out your hard-earned dough, and how you can get in on the action.
