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The Benefit of Investing in Films Are you aware that you can get a great investment opportunity with the films? Well, they surely are for the right type of investor. Here are reasons that you should know. For a lot of investors, the high return is quite attractive since films do have such potential for a big return but there is a really high risk with so many ifs.The film can do well when this has a good script, excellent acting, fantastic production value and if it has a budget that fits the kind of film and this strikes the chord with the buyers or the distributors for TV, DVD, foreign rights and other markets. If the film would go into theatrical release, this comes with the potential to get a much bigger audience though the theatrical is not the main income source for most films just like those big blockbusters, due to the reasons that the theater owners would take 75 percent of the box office unless such film would go into a long-term release and there is that big cost for prints even if a lot of the theaters have gone digital. The value of such theatrical release is for promotional value in order to obtain the other kinds of sales except for such big blockbusters. Despite such potential for high returns for some of the films, the investors in it who are for the money must realize that any kind film investment is a huge risk since so many issues can take place from the production of the film to when it will be released and distributed. Such risks are going to include the film not being completed since it has gone over the budget and is not able to get additional financing or there are issues on the set. Moreover, a risk is that the film is not well-received by the TV buyers as well as distributors so this is not picked up.
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But, for so many investors, the other important reasons for such investment are more important. This could be for the reason that they believe in the message of the film. They like and support the film producers, the cast and crew. They also like the glamour of meeting with the stars as well as joining those film festivals. They would see their investment as an opportunity to travel to far locations for filming and to promote the film.
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If the stars align and there is a very good film done with a great budget, the distributors and buyers and the audience respond, the film could definitely earn 4 to 10 times of the expenses and such would make all happy. An indie film that has a low budget which is shot for up to $200,000 could get around $500,000 to $750,000 for the TV sale and may earn more through the DVD, foreign rights sales and streaming.