The typical investment for distributing and advertising a movie is between $10 and $20 million. That’s a substantial amount, but it’s usually spread out over several investors. In return they get to make a profit in a relatively recession proof industry. There aren’t many other investments that offer the potential to earn 10% on all revenues after costs have been covered.
Priority Payments
Other low risk investments such as mutual funds may have similar returns, but you have to leave your money in the fund. Investors in a company like Sycamore get their initial investment back within 6 months and then they keep making money after that. It’s a unique investment model that makes it a good alternative to mutual funds, stocks, or real estate.
Edward Sylvan’s company has been around long enough to refine their business model. They now control distribution and promotion for the movies they back. This was the best way to make sure their investors were able to get their initial investment back quickly.
