Investing In Film Distribution Financing Also know as “Print and Advertising Financing” (P&A) The Best Kept Secret In Hollywood

P&A financing involves financing the physical movie copies (prints) as well as financing the purchase of airtime on television and radio as well as billboard, magazine and online advertising (advertising)

Most film investors are only ever given the opportunity to invest in the production of movies but are rarely if ever offered a piece of the distribution financing, that is where the true safe money is. That area is mostly saved for the Hollywood insiders.

The fact is that over 9000 independent films are produced every year in North America, yet only about 500 of those films ever get a distribution deal that would require P&A financing. Those 500 films generated over 5 Billion dollars of domestic box office of which is shared by the P&A investors. The other 8500 films with no domestic distribution deal are where most investors lose money investing in the movie business.

Benefits of P&A Investing

P&A finance is among the last expense to be funded on a film

Usually within 2 months preceding the theatrical release

Order of funding

Domestic Print and Advertising Expenses

Release prints.

Advertising, including but not limited to theatrical trailers, network television, print, radio campaigns and person appearances tours.

Rates of Return

P&A investors receive up to 20% return on their investments

Which is normally in the form of a loan.

Investors take a UCC1 Lien against all North American revenue.

In addition investors also receive 5-10% lifetime royalty on all net revenue on all markets.

Order of Repayment

·      P&A investors are paid off the top from 100% of proceeds from all domestic film revenue.

·      Has priority over almost all other payments.

·      Typically repaid within 3 months following theatrical release.

·      P&A investors are the LAST investors to put money in and the FIRST investors to get money out.

P&A preforms extremely well in tough economic times

Films out preform most other investments in bad economies

Increased sources of new media cause new streams of revenue. ( Netflix)

P&A is repaid even in extremely low domestic box office performance.

There are several A-list Hollywood films that have the potential to be smash hits or win awards that are currently seeking distribution financing that will pay its few privileged investors up to 20% returns plus up to 10% royalties for life.

Contact me to learn more.