Why invest in Film
Investing in Film and TV offers generous returns. The benefits stretch beyond the sales of box office tickets. DVD/Blu-Ray sales, television airings, Video on Demand (VOD) subscriptions and the sale of merchandise all count towards the profit a film makes and can continue to generate a profit for many years after the film is released.
Film and television investment are historically resistant to the unpredictability of the global economy even in a difficult financial climate. Returns are unrelated to equity, property and bond markets.
Investing in an independent film with a smaller production budget offers the chance to make more profit with less risk than a film with a large budget, where overheads need to be recouped before investors will see a return. A film doesn’t need to be a large success at the box office in order for an investor to receive a return on their investment, that’s the benefit of investing in independent film.
Film and television investment can be tax efficient for appropriate investors. London Production Studios is poised to take advantage of UK government incentives for UK tax payers including the EIS (Enterprise Investment Scheme,) and SEIS (Seed Enterprise Investment Scheme,) which provide 30% tax relief over a three year investment and 50% tax relief for the current or previous Tax Year (from date of Share Certificate), in qualified projects.
The rapidly expanding universe of distribution platforms is increasing the potential for very long term returns as it is easier than it has ever been for a film or television project to find its audience. These outlets mean that a film doesn’t have to be a box-office success to deliver financial returns.