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F. A. Q.
Overview
Capitalization goal is $120,000,000 (this reflects combined assets of River Motion Pictures and first productions LPs.
Video Overview
Accredited Investors.
PPM
Development Loan
Development Loan is repaid 120% at time of production capitalization, and another 80% 0f the loan out of net proceeds from distribution.
For each movie or TV show an LP is created to manage legal definitions of investor and producer shares.
Production Investor's Share is typically defined as 50% of the total Net Proceeds. The other 50% of the Net Proceeds goes to the producer (the “Producer's Share”). Any talent and other non-investor third parties who have been promised a back-end share in the movie are paid their percentage out of the “Producer's Share.”
The project
What is the difference between a movie and a TV Series?
A movie is created for Theaters and TV re-distribution and is produced by a single team for that project.
A TV Series is a factory for producing episodes on a continuing basis. The team includes many directors, writers, crew, talent and may cycle through a very large list of personnel.
As an example, the project Art House Conspiracies is a feature length movie and also a TV series.
Estimated cost for projects are targeted from $4,500,000 to $70,000,000
Two stages of investment
1. Development costs
$150,000
ROI at time of production capitolization, and at net profit.
2. Production costs
$4,500,000 to $70,000,000
ROI at time of distribution profit.
Why can production costs become so inflated? Mega Stars require many millions in additional fees.
When investing in films, the rewards may be staggering, but the risk is higher since even seasoned directors and cast can experience poor sales. So it is important that you do your due diligence and research the project.
Investment systems are changing rapidly with the appearance of crowd-funding movie and start-up portals. Yes we are using several of the portals so small investors may also take part in select productions.
F. A. Q.
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