Noci Opens Low Risk High Return Alternative Investment Opportunity In $2 Trillion Industry

Affluent Investors, family offices, and private equity funds can participate in a top alternative investment.
By: Noci
 
SAN FRANCISCO - Oct. 29, 2017 - PRLog -- The U.S. Department Of Commerce recently released a report summarizing Price Waterhouse's Analysis that the global media & entertainment industry is almost at $2 Trillion.

Noci (noci.com) is opening the doors to investors to evaluate top alternative investments in film and tv.

"Many investment opportunities are available online in cryptocurrency, tech startups, real estate, and traditional stocks, bonds, futures",  states Noci's Managing Partner Yuri Rutman. But there is a limited amount of accessibility to quality film & television opportunities".

While a few independent films raise nominal amounts on places like Kickstarter or IndieGogo, only a small percentage of them achieve the kind of financial success in the real world.

"At the same time, many investors who invest into independent films are promised the glory only to see their investment end up on someone's living room shelf with no distribution", adds Rutman.

Like any other business that is successful, investing in film requires a structure in place that minimizes risk and maximizes return.

Teen sex comedies, cheesy horror films, or movies about 20-something relationships will not translate well into revenues for limited partner investors.

Action films, crime dramas, thrillers, and supernatural thrillers have more of an angle for originality and global film distribution, even if the film does not receive a U.S. theatrical release.

Also, a film's budget is exponential to whether it will show a high ROI or fade into obscurity.

$30,000 microbudget films, $250,000 comedies, or $1,000,000 action films will have a limited shelf life in the international marketplace.

"The best budget for maximizing a film's profitability is either a $2.5 million all equity investment, or, a $10 million film", Rutman states.

"At $2.5 million, the budget is high enough to be able to find major Hollywood actors who are also stars globally at salaries ranging from SAG scale to $75,000, which creates a comfortable cushion for producing a high quality film in a high tax credit or tax rebate state or country.  Such a budget allows an investor to have an ROI of $500,000 – $700,000 6 weeks after production.  With 50 countries to sell a film to, plus a deal with Netflix, Amazon, a studio, or a mini major distributor, investors should normally see a multiple of 3x – 5x their investment amount, including such sweeteners as an Executive Producer credit, invitation to film festivals, etc".

Rutman further continues that "A $10 million film would be financed with 25% equity, 20%-25% in tax credits and rebates upfront vs. the back end, and 50%-75% in pre-selling the film's distribution rights to 3-5 countries.  If the pre-sales exceed minimum guarantees, an investor will see his entire investment back before a movie or television series is even produced".

For more information on how to successfully invest in media & entertainment, please contact Noci at 310.651.0799 or http://www.noci.com

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Source:Noci
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Tags:Investment, Private Equity, Technology
Industry:Investment
Location:San Francisco - California - United States
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