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Even big budget movies are forced to rely on hedge funds and private investors to help finance their multi-million dollar productions. This kind of film investment can generate huge return on investment, with 50 percent to 100 percent recouped within the first year. A continuing stream of revenue can follow long after the movie has peaked at the box office, from DVD and merchandising sales, for example. Disney makes a reported $40 billion from merchandise. TV royalties can continue for years — even decades — after the official cinema release of a film, meaning that investors can continue to reap the rewards for a very long time to come.
Even small budget films can bring huge financial rewards to those willing to invest. Paranormal Activity, for example, was made for the extraordinarily small budget of $15,000 and went on to reap over $200 million in worldwide sales. Saw cost a relatively minimal $1.2 million to make and resulted in sales in excess of $103 million. Even today, Universal Picture’s Unfriended made dollar for dollar (against budget) more money than record breaking Fast & Furious 7. Saw, for example, is still an ongoing franchise with associated merchandising and even theme park rides, all of which bring in healthy royalties to investors. Of course, this level of success can’t be guaranteed in every case, and film investment does carry significant risks, but when working with TheMovieFund.com and sufficient research and a strong network of creative talent and other movie investors, those willing to take a gamble on film financing can find their chances of healthy financial rewards have significantly increased.
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