Better way to finance film.

As we all know , classical forms of banking ask for higher interest rate with higher risk . The blockage of funds in the film industry was not sudden , it was gradual and attributed to
1. A recessionary trend globally which hit the film industry as well as between 2008-10.
2. Failure of some big budget films where major banks had an exposure.
3. Change in the manner of film distribution (eg. Minimum guarantee arrangements replaced by revenue sharing arrangements-repayment was now dependent on the success of films increasing the risk).
Therefore, globally the film industry typically averse financing from banks , whereas private financiers are often preferred . The film industry could possibly take initiatives to rejuvenate interest from banks. Risk is a major factor keeping the banks away from failure and box office , from risk i mean , piracy , legal suits, incapacitedness of actors during production process can be ensured. The industry can adopt professional practices for making the sector attractive for bonding companies as some films never reach the cinema hall. The other source of revenue is by theaters , satellites , non linear source , music albums which are also substantial .

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s