How to PROFITABLY Invest In Indie Film
After talking with hundreds of investors over the years, I've heard the same concerns about film investment again and again.
I get why they want to invest in indie films... it's exhilarating! Visiting set, getting to know actors and crew, being part of the process. Choosing the projects that get produced, all the way to getting your picture taken on the red carpet at the premiere... my pulse quickens just writing about it.
You don't get that kind of experience when you invest in the stock market or in tech. Most investors build wealth through predictable, consistently profitable vehicles—owning companies, real estate, funds. Wealth creation becomes mechanical: do more of what works.
What they lack, however, is a sense of impact - that they are leaving a legacy that they are proud of, that they want to be remembered by.
Most investors are sophisticated - they have experience in real estate or venture capital or private equity, and are actively looking for new opportunities, but there are so many unknowns that create fear and uncertainty when it comes to indie film.
"Nobody knows anything"
~William Goldman
There is a lack of predictability in the film world. William Goldman - who wrote Butch Cassidy and the Sundance Kid, The Princess Bride, All the President's Men, and many more - highlighted this in his book Adventures In The Screen Trade.
Many filmmakers put the emphasis on "nobody knows anything", but my interpretation is that the emphasis is on the knowing.
You can't know how the audience will receive a movie, or what other movies will come out that weekend, or what natural or political or other disasters will occur that impact your movie (for better or worse).
What many investors do know is the experiences they've had in the past. I've talked to dozens of film investors who will never, ever invest in films again because they had a terrible experience where a producer took advantage of their eagerness to be a part of this amazing industry.
- Investors who put money into a "family film" that they had to walk out of at the premiere because of the sensational content.
- Investors promised a return who never saw a dime, despite the film being profitable
- Investors who wanted an experience but were left out of the process entirely
As an indie producer, these stories make my blood boil. They're why I'm here, talking about it openly—because I'm determined to change things.
Oh, and the uncertainty doesn't end there. Often, there is no plan for distribution, long or unknown timelines for the expected return on investment, missing a good investment because your money was tied up in a "bad" one, and the ever-changing landscape thanks to the studios and streamers who are increasingly good at extracting money from the market, and not sharing any with the people that make the content...phew!
No wonder investors are hesitant to jump in with both feet!
But, there is a silver lining around all of these "dark clouds" of uncertainty and fear...