Feature Film Investment - The Biggest Gamble?

by Paul Spurrier

This article was written in relation to feature film investment in the U.K. and U.S.A. It was not written in relation to any individual project or company, and some of the advice given does not apply to the Thai market. However I include it, as some of the basic points are universal.

Pre-Sales

It is possible to regain the investment in a film before it has even been made. If a production company has a project based on a best-selling novel, or with a star who is currently at the peak of their fame, or with a very successful director, they can often sell the screening rights to television stations and to foreign cinema chains even before the film has been made, sometimes even covering the entire costs of the production. In other words, the production company can be guaranteed to break even before they have started shooting.

The problem with this is that no private investor is going to get a chance to invest in such a film, because the production company doesn’t need your money. Whereas with the stock market, private investors can become involved even with very limited capital, the world of feature film investment is very hard for the private investor to penetrate. It is almost impossible for the private investor to invest a small amount of capital in a legitimate feature film.

Does the idea or plot of the film appeal to you?

In the final analysis, instinct is probably as valuable a way of evaluating a film project as any other. If nothing else, a film project can take a long time to reach fruition. If you are going to follow its progress, you might at least be sure that the subject matter vaguely interests you. So it is worth asking, “Why will anyone want to see this film? What type of person will want to see it? In which countries might it be of interest? Are there any other films that have been made that are similar which have been successful?”

Finally, do you know whom you are dealing with?

This should be true of any investment, but it is always worth checking that the company actually exists, that the address is legitimate, and that you have a means of contacting the producers. This is all obvious stuff, but it is amazing how few of the unsolicited offers that turn up in our e-mail actually include a name, an address and a phone number. You have the right to expect a prompt, helpful, honest, and informative response when you contact the production company. If they do not return your calls before you have invested your money, they are certainly unlikely to behave any better after they have received your money!