There are many different areas in which you can invest in entertainment. The entertainment industry is booming, whether it is film, television, or video games – there is always something going on and there is always a slice of financial pie you can grab. The important thing is knowing what ventures are worth your time and money and which ones you should avoid at all costs. Of course, that is not always easy to figure out, but there are ways you can succeed at investing in entertainment.

If you want to invest in entertainment by putting your money in films, you have to have clear and realistic expectations. Do not go into it thinking you will have a piece of a major motion picture deal. Chances are very likely that you will not fund that type of film. Why? Because the studios already have the funding in place to make these films, so why would they need you to invest? Instead, what you need to look at is a promising independent film. One that can be shopped around at various film festivals until it appeals to a studio or a film distributor. This is the only way you will see a return on your initial investment in the film.

If television is more your speed when it comes to investing in entertainment, then you have to know of the pitfalls to this area. Unlike with movies, if you invest your money in television, the only way to get a return on your investment is if the television show lasts long enough to not only get released on DVD and Blu-Ray, but also to get syndication deals. Unlike with films, you can’t rely on theater ticket sales to help defray the costs of production. Instead, you have to bank on the fact that the show will get sold into syndication – hopefully on more than one channel. Still, investing in television shows is a good thing to consider.

Video games are probably the safest bet if you want to do some investing in entertainment. There are countless people out there who love video games and most of them will buy a video game just to try it out. If you can invest in a good action video game, you are sure to see a profit on your initial investment with the video game maker. Just remember to go into all of these investment situations with your eyes wide open. You do not want to get taken for all you are worth, but you also do not want to pass up a wonderful investment opportunity. So, do your research and you will be able to make a sound investment decision when it comes to the entertainment industry.

On March 14, 2012 By Richard Wilson

Practice Test

Investing in Entertainment – A Breakout Hit?

Before the economic recession, investing in entertainment was hailed to be predictable and without much risk. It was easy to believe consider the sheer numbers that major motion pictures draw in each year and the masses of people that head to the theater on any given day, but this type of investment has taken on a higher risk description in more recent years. Despite the portfolio risk, there are plenty of reasons to look for the entertainment industry, especially when you consider the low level investing into which anyone can break.

Any non-insured investment will carry some amount of risk, and the entertainment industry is often considered one of the riskiest businesses. But this is one area in which the underdogs often rise above the rest. There have been plenty of musical examples which were slated to do horribly but ended up running on Broadway for several years. The reality is, although risk is involved, it is shared risk between multiple investors, so the amount being risked is quite small compared to other endeavors. On that same note, the rate of return will be more modest than aggressive investments. There’s also the ability to feel personally satisfied that you had the chance to participate in the creation of a film or theatrical piece. That personal payoff is something you won’t find in traditional stock investments.

Independent films are great places to start, and plenty of those have risen through the ranks in recent years to take center stage with other major motion pictures. What’s more, investors can look locally for up-and-coming bands that need help financing recording sessions, local productions that need investors, and much more. Mutual funds also carry different levels of investment opportunities on a wider scale. The great thing about investing in entertainment is that one success in this industry could mean a long payoff. Modest investors who bought into a musical called The Fantastiks back in 1960 are still reaping the rewards from that endeavor today.

This isn’t to say that all local and small-time plays or musicals will become hit Broadway productions. Chances are they won’t, so evaluate your risk before getting involved. It can be quite rewarding becoming a benefactor to a struggling drama group or musical band, even if the payoff will be quite low. Those already knowledgeable and involved in trading stocks may consider buying entertainment industry shares from major productions, television networks, and other media outlets.

On March 14, 2012 By Richard Wilson

Practice Test

Investing in Entertainment – Entertaining Alternative Investments

There are few investing opportunities that can provide as much uniqueness, financial return and personal satisfaction as investing in entertainment. There are plenty of different ways to go about investing in entertainment, but finding the right opportunity is important. You shouldn’t just leap into this blindly because you’re excited about the possibilities. You need to treat it just like you would any other investment – by doing your research, weighing risks and returns, and much more. Here’s a look at why this investment path is worth considering and how you can go about embarking on it. In some cases, it’s much easier than you probably realize.

First of all, realize that investing in entertainment doesn’t have to cost you a fortune. Obviously, you can invest into a major motion picture studio or help back a major film financially, but there are less expensive options that are still rewarding. For example, you can invest in a local recording studio or even in a band, paying for their first album in return for a cut of the profit. Digital cameras and computers have made it cheaper than ever to create an independent film, and investing in the right one could bring you a huge return on your investment, especially if you hit it big with a low-budget flick that catapults onto the national level like many in recent years have done.

There’s also the chance that that initial investment will pay off for many, many years to come. Think about royalties or other dividends from long running musicals or high selling albums. Even DVD players and digital media have helped extend the longevity of entertainment, and investing in entertainment could end up paying off huge for the next several decades depending on the quality of the project that you decide to back with your investment. It may provide quick returns, but it could provide long term ones as well.

Finally, it’s important to realize that investing in entertainment provides rewards of a personal level as well as financial one. Obviously you shouldn’t base your investment just on personal pride, but when you invest in a film or show that you can be proud of, you’ll be able to show it off for the rest of your life. Telling someone you traded a few stocks is one thing, but telling them you had a hand in bringing a movie to life is far more impressive and personally rewarding, and only investing in entertainment can do that.

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Investing in Entertainment – How the Entertainment Business Can Profit You

Investing in Entertainment – A Breakout Hit?

Investing in Entertainment – Entertaining Alternative Investments

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