Movie Investing vs. Investing In Cryptocurrency (Bitcoin, Ethereum, etc.) | Fourth Man Films
Few people know about the potential low-risk and high returns available from movie investing.
We will compare investing in crypto vs. movies and show how movie investing works.
Movie Investing vs. Investing in Cryptocurrency (Bitcoin, Ethereum, etc.)
When most people think of investments, stocks, bonds, and real estate usually jump to mind. In recent years, cryptocurrency, Bitcoin, Ethereum, and newer NFTs have gripped younger generations looking for hot new investment opportunities with astronomical returns.
The first modern cryptocurrency was Bitcoin, which was first released as open-source software in 2009.
New words have now entered the common lexicon such as Cryptocurrency, Crypto-currency, Crypto, Bitcoin, Ethereum, Binance, Dogecoin, Altcoins, Blockchain, Tokens, Digital Currency, and Decentralized Financial Systems (DeFi).
As more and more of the world becomes familiar with cryptocurrency, a different type of investment offering potential lower risk and sometimes higher returns remain in the shadows.
What is this investment strategy?
Investing in cryptocurrency can be risky and often inaccessible to many potential investors. On the other hand, movie investment has opened a massive opportunity for many public and private investors.
Are you interested in learning about wealth creation opportunities in the film industry, how to invest in movies, and how this strategy compares to cryptocurrency?
Then let’s dive in.
What Is Movie Investing?
Hollywood has welcomed aspiring actors, film producers, directors, and private business moguls. With the rise of alternative movie investments, you can also get in on the action as a private investor. Being a film investor is one of the best ways to engage with the movie scene and earn passive income.
The entertainment industry has proven far more reliable in a cryptocurrency world stifled by regulatory changes and fast-changing laws. Many notable projects find film investors the big bucks. With movie investments, you can count on the right talent and the best film distributor to ensure that you get your money back.
Although it also comes with potential risks, there are many benefits associated with movie investing.
Compared to other industries, the film business has established a strong reputation for resilience and stability. The latest financial crisis showed that the film industry remained stable even with stock markets crashing, banks bailed out, and real estate liquidated. History has shown that the demand for films and movies remains stable even in tough times. Box-office receipts rose in six of the last seven recessions, and the Depression, famously, was the heyday of movie attendance in America.
Many profitable movie projects were made during major recessions and financial disruptions. In 1982, movie attendance jumped 10.1 percent to 1.18 billion people. The top-selling movie was E.T. the Extra-Terrestrial, while unemployment rose sharply past 10 percent. Avatar broke records in 2009 as the highest-grossing film amid the global credit crisis. Amid financial hardship, people turn to movies to distract themselves and give them hope.
Movies aren't just a "recession investment." Regardless of the economic situation, people rely on movies and entertainment, so you can count on the stability of the movie market. The industry has big financial backers who ensure that the film business continues to thrive. As a result, we find movie investments to be far more stable than cryptocurrency.
Governments are still figuring out how to deal with cryptocurrency and integrate it with existing financial systems. The same can't be said about the movie industry, as government regulations and technological changes can rarely alter the movie market. Therefore, film investors enjoy more stability and resilience than other alternative investments.
#2 The Work is Already Done for Film Investors
With a professional company like Fourth Man Films, Inc., the research is already done for you about the potential of a new movie investment. Return potential is performed using comparable intellectual properties and knowing the target audience. Same as you would do for a real estate investment comparable using comparables of other properties and knowing the neighborhood.
Movie investing doesn't mean you must go after Hollywood blockbusters alone. More experienced investors go after independent films because they tend to come with a lower budget and are more accessible to the average investor. Investors can diversify their portfolios by investing in more than one film project or stick with one project at a time.
Movie investors have more chances with first look opportunities and using rare mitigation strategies that are not available with cryptocurrencies and most investments. Investing in cryptocurrency is mainly speculative and has a high risk of losing all your money, even with diversification.
#3 Greater Returns on Film Investments
Many investors are drawn to film investing due to the stable yet high-yielding asset class that the film industry offers. It has a higher degree of certainty, smart risk-to-reward profile, and greater resilience than alternative investments like cryptocurrency.
Many experts suggest that movie investing is one of the most profitable ventures with relatively low stakes. As a film investor, you can invest a relatively low sum at different stages of production and gain a tangible benefit.
In addition, the growing popularity of indie films has added to the success stories of many independent film investors. Independent films have a relatively low budget compared to blockbuster Hollywood films and offer the possibility of asymmetric returns on investment. Savvy film investors go after low-budgeted films that can become high-grossing to bring impressive returns.
With movie investments, there is the possibility of exponential returns without a celebrated cast, good reviews, or a big budget.
Calculating the expected independent film return on investment involves much guesswork and speculation. However film investment companies can help you decide the best movie projects to go for so you can take calculated risks with high chances of profit. Eventually, what stands as a loss for a studio-financed film might be a gain for the private equity, venture capital, or institutional film investor.
#4 Tax Incentives, Credits, and Tax Rebates
One of the most significant benefits of movie investments is the aspect of tax relief. Many experienced investors avoid losses in taxes through independent film investments. The opportunity for tax credits, tax rebates, and company credits can lower an investor's exposure by as much as 100%.
Many film projects use a single-purpose entity which implies that the corporation was made solely for the production and distribution of the film. Such LLCs mean that any profit or loss the firm experiences is directly recorded by the investor on the individual tax returns.
Hence, where the pass-through entity experiences a loss of $1.00, that lowers the investor's taxable income by $1.00. Given that the film investor is in the 37% tax bracket, the $1 loss cancels out $1 of income, saving the investor $0.37. The investors can accept losses to offset other income and reduce their tax burden through this bonus depreciation.
Additionally, at the United States state level, approximately 40 states offer some tax incentives to film production in the form of tax credits. Section 168k and 181K of the IRS tax code also provide that movie investments are 100% tax deductible. So you can roll over your real estate or income gains into independent movie investments to cut your tax liability down to zero.
#5 Long-lasting Profits
Film investments offer more lifetime benefits than passive income ventures like cryptocurrency or real estate. Profitable movie investments can provide stable returns on successful franchises or new projects. Famous franchises like "Star Wars" or "Rocky" still generate revenue decades after the initial film release.
Some distributors also sell movies to different TV channels, streaming services worldwide, or in pay-per-view markets to build a lasting income for up to 10-15 years. More so, film projects often release merchandise in the form of toys, action figures, branded clothing, and more to increase the profit margin and corporate images or logos.
Another way movies can realize profits is through paid commercials and advertisements. It allows companies to advertise their goods, whether cars, food, or clothing items, which is very common in popular franchises. With these profitable income opportunities, movie investment offers more chances for stable uncorrelated returns than cryptocurrency and other passive income gains.
In addition, film investors can also quickly decipher the ROI and when to expect profits. You can also choose what stage of the movie project you want to invest in to increase your independent film return on investment period.
Besides investing during development which has the highest potential return on investment, or film production, which usually has the best mitigation strategies. You can also invest during the final stages of production to cover the distribution costs. As a senior debt P&A lender, you can expect a faster profit after settling the distribution costs.
How To Invest In Movies?
Movie investing can be highly lucrative and come with a lot of perks. Film producers often seek investments from investors and a wide range of sources willing to contribute to ensuring the project will launch.
There are several ways to invest in movies, including crowdfunding projects like Kickstarter, Investment Banks, or Hedge Funds. However, working directly with a film financing company can make the investment process more straightforward and give you more transparent, more valuable information since you are dealing directly. This will lead to better return opportunities and better mitigation strategies for you the movie investor. Fourth Man Films, Inc. is a film financing company that guides individual investors through investments with a great chance for success.
The company actively suggests film projects and independent movies that will directly suit your investment preferences. It allows you to choose from equity, debt, seed level, series A or B, and at what level you intend to invest.
You can also look out for qualifications such as:
- Movie Script or High Valued Intellectual Property
- Built-in Marketable Audience
- Investment Memorandum and Terms
- World Changing and a Real Positive Impact
Invest In Movies With Fourth Man Films, Inc.
Crypto is an exciting asset class with many lucrative return opportunities for private and public investors. However, the market is highly volatile, and cryptocurrency prices can easily fall due to economic disruptions or government regulations. With this in mind, intelligent investors have faith in the profitability of movie investments.
Movie investing comes with mitigated risks, and the film industry has proven historic resilience and stability. But, individual investors are more likely to gain losses without proper help.
This is where Fourth Man Films, Inc. comes in.
We guide movie investors from A-Z by developing highly profitable movie projects from the original idea and screenplay through the theatrical release and beyond.
The company's latest project is America's number one-rated inspirational screenplay. It has a high potential return on investment, will add to your legacy, and you can mitigate your risk from 37% to 100%. Average returns in their focused genre average 25.2% annually, three times higher than the average S&P 500.
Ultimately, you can join Fourth Man Films in this project and increase your profitability as a movie investor.