Suraj Rajwani, CEO of DoubleRock, Discusses How One Would Invest In The Film Industry
The film industry can be a lucrative source of investment opportunities. There are thousands of options for investing in film, from buying entertainment-related stocks to investing directly in independent or major studio productions.
Suraj Rajwani, a venture capitalist with DoubleRock, explains how investors can take advantage of the many perks of supporting the film industry.
Huge Selection of Projects
While traditional movie theaters are still suffering due to Covid, many new movies stream on Netflix, HBO Max, and many other venues. The studios have been busy turning out content for these new platforms, ensuring viewers have a broad selection of entertainment in all genres and categories.
There are small-scale indie movies, high-budget tentpole films that could become blockbusters, critically acclaimed dramas, and children’s films to invest in, along with dozens of other types of entertainment.
The following are frequently asked questions about getting started in the film industry, as well as some practical tips to manage your investment:
What do investors need to get started in the film industry?
The primary thing that you need to get started is money. Typically, movie investments range from hundreds of thousands to millions of dollars. If you choose a smaller indie film, you may be able to invest as little as a few thousand dollars. Make sure that you are not putting all of your money into film investments since they can be quite risky by nature and depend on sometimes fickle audiences and critics.
It is also helpful to have a basic understanding of how the film industry works. Learn about how films are produced and what audiences are looking for when they want to see a movie. This can help you decide whether your investment will be productive in the end.
What should I do before investing in a movie?
Before you invest, you should research the movie and its producers thoroughly. Check into the principals’ backgrounds, seeing how many hits they have produced or whether their situation is shakier. Understanding the studio’s previous output, directors, and producers can help you decide whether the film may be a good investment.
Next, you need to read the synopsis or as much of the script as the production company will let you see. This can give you a good idea about whether it will be a quality movie or whether it will be a flop.
You also need to consider who has been cast in the movie and their track record. Some actors are more successful and could produce an excellent box office draw, while others are more obscure. Make sure that critics and audiences agree with your assessment of the film’s stars, directors, and producers. You may want to consult the audience comment site Rotten Tomatoes for help in researching each film.
What will the studio do with my money?
After your film is produced and sold, its first income will pay off investors and the production’s debts. You could rest assured that you will get paid back before anyone else if your film makes money.
The remainder of the profit is divided between everyone involved with the production, including the investors. Film staff and the cast’s salaries are covered under the producer’s portion of the profits.
Why should I invest in the film industry?
The film industry is not for everyone. It is inherently risky because it is difficult to say in advance which films will be hits and languish at the box office or fail to be streamed by large audiences. Suraj Kumar Rajwani stipulates that large investors should have extensive budgets and keep most of their capital in other investments. For this reason, film investments are primarily the preserve of the wealthy.
Perks of Film Investment
You may be invited to awards shows and allowed to visit the set and interact with the cast and crew. You may be able to attend glitzy Hollywood premieres and walk the red carpet.
As a film investor, you can also help to influence the industry for the better. Having a solid handle on what audiences like to see, as well as which directors, producers, and actors produce the highest-quality films, can be a huge help as you plan your investment.
Suraj Rajwani knows how nerve-wracking it can be to invest in your first film. Taking his advice in this article can help you protect your investment and make sure that you are putting your money into a potentially profitable film. Make sure that you keep a relatively high level of risk in mind before you make a large investment, and make sure that your entire portfolio is thriving and diversified.