The best part for the investors is that they don’t have to wait long to earn their money back. In the movie industry, distributors are paid first and P&A investors next. Sycamore Entertainment takes control of both of these processes. That means they get paid before anyone else involved in the movie does. On average, an investor will recover their initial investment within 6 months.
Short Term Investment
Most investors would be happy to recover their initial investment within 6 months, but they want to make a good return on their money as well. Once that initial funding has been recovered, Sycamore Entertainment stands to make 5 to 10% on all additional revenue the film generates. With the potential for years of circulation on video on demand services that can mean a nice steady revenue stream.
No investment is guaranteed and the movie industry is no different, but even the less successful movies eventually break even. That makes the Sycamore model a low risk venture that’s attractive to investors looking for an alternative way to make money.
A Quick Return
There aren’t many recession proof industries, but the movie industry comes close. When consumers can’t afford to go out on a Saturday night they’ll turn to streaming services such as Hulu or Netflix. Every time one of these on demand companies picks one of Sycamore’s films up their investors make money.
