WSJ Looks at Indie Film Investing

Posted On October 1, 2012

An article over the weekend from WSJ talks about investing in independent films. Interesting to look at this through the prism of someone with decent wealth who is looking for some high risk investments to diversify their portfolio. Here’s how they paint the ideal investor:

Ms. Andrews keeps the investment in its own “sandbox,” outside of Dr. Mattar’s portfolio. “The odds of making money on his brother’s independent film are better than the lottery, but worse than blackjack,” she says. “His financial security cannot rest on investments like this.”

Such investments are best suited for people who already have put aside between $3 million and $5 million to retire and have between $5 million and $10 million in net worth, says Christopher Jones, a fee-only financial adviser in Las Vegas.

The few examples they cite are the outliers of indie films that had small budgets with huge returns, like Paranormal Activity or Supersize Me. Their definition of indie feels more like Hollywood Indie vs true indie. Crowd-funding doesn’t even get a mention, though as of now there’s no platform that’s setup to offer percentages to investors.

As my friend likes to say, it’s basically for people that have Fuck You Money. It’s more interactive than the art you can put on your wall!

Putting your money in a film can pay out in other ways, says Mr. Schwarzman. Unlike art, which arrives already completed, film production is a collaborative, dynamic process investors can witness up close.

It also offers other perks, such as set visits, dinners with actors and directors, tickets to film festivals and on-screen credit.

via Stalking the Next ‘Paranormal’ Blockbuster – WSJ.com.

Written by Joey Daoud

Joey Daoud is an award-winning documentary producer. When not filming he likes to climb mountains and brew coffee.

Related Posts

Is Group Brainstorming BS?

People in groups tend to sit back and let others do the work; they instinctively mimic others’ opinions and lose sight of their own; and, often succumb to peer pressure. The Emory University neuroscientist Gregory Berns found that when we take a stance different from...

Paul Battista Interview – Independent Film Producing [Podcast]

Paul Battista Interview Entertainment lawyer and filmmaker Paul Battista talks about his new book Independent Film Producing: The Outsider's Guide to Producing a First Low Budget Feature Film. We talk about low budget filmmaking and producing, mistakes first time...

How to Figure the True Cost of a Kickstarter Project

Focus of Project The first big question is do I got for all the money I actually need (to film, edit, and send to festivals) or focus the project on one specific event, and take it one step at a time, with future projects for different stages of the production. … Well, if you were 100% honest and your project budget is the bare minimum you need to complete it, then where is that couple of hundred dollars supposed to come from?

0 Comments