Like $200 Million In Invesment Money Is Going To Make A Difference In Hollywood?
from the it'll-make-one-crappy-movie dept
We've discussed in the past the idea that Wall Street might start investing directly in movies, hoping that if that happened it would help kick the studios into realizing that their old model of doing things wasn't working out so well. With that in mind, it's not too surprising to hear that JPMorgan is planning to start investing in Hollywood, hiring some former Hollywood bigshots as advisors and setting aside $200 million for investments. Wait... $200 million? Isn't that what Hollywood insiders falsely insist a good movie has to cost to make these days? In other words, isn't that pocket change? It's hard to see how that kind of money makes any difference at all in Hollywood unless JPMorgan is really planning to embrace the Silicon Valley model of making films, where less money is put to more efficient work. Hopefully, that's where it's heading (though, hiring those bigshots suggests otherwise). If it's simply going to throw that money into the traditional Hollywood machine, it seems quite unlikely that it will last very long or go very far.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Filed Under: movies, wall street
Companies: jpmorgan
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They've already been doing this for ages...
There's even a Wikipedia page about how it typically works:
http://en.wikipedia.org/wiki/Film_finance
And it's not just for films, a lot of musicians have mezzanine-style financing against future royalties. David Bowie pioneered this approach almost 20 years ago.
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i already own stock
i've made millions!
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Re: i already own stock
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Not everyone will lose
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Mortgages
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Re: Mortgages
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Investing
I personally wouldn't invest in a movie production, too risky in a business that says they have to make back three times the investment in gross ticket sales (to pay the theaters and promotional costs) before they break even. Look at last weekend, movie receipts are half of the same time last year.
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