Film and Entertainment Funding
Consumption of media and entertainment has altered considerably in the last decade. Traditional kinds of entertainment now face new challenges and possibilities. Thus, television and home streaming have become significant rivals in the cinema business. Audiences no longer rush to the theaters but instead consume entertainment from the comfort of their own homes, computers, or mobile phones. The Millennials are shaping the market; they prefer streaming content to go to a movie or watching it on TV. Consumers are also increasingly interested in shorter types of content like YouTube or videos available on social media sites. A diverse cast and plot, increasing social commentary, lesser budget films explicitly created for internet platforms like Netflix and Amazon, and handheld shots contribute to influencing the future of the entertainment business.
One of the most popular streaming services, Netflix grew from 7 million US customers to 93 million globally. It has grown from video rentals to television, and now cinema is a paradigm to follow. As a result of Netflix’s popularity, the contemporary television and film industries have changed drastically. Netflix has influenced a change in the entertainment sector through its willingness to break away from the norm and produce material that represents cultural understanding. Netflix, like Stranger Things, took a chance on unknown filmmakers and an original story. Alternately, with the equally renowned Orange Is the New Black, they assist raise awareness of the disparate consequences on communities of color in jails and prisons. Platforms like Netflix have therefore offered possibilities for under-told tales.
Even though the entertainment business is evolving, it continues to blend old and contemporary strategies. Until recently, CGI seemed to be replacing physical effects—little did we know that blockbuster movies would bring them back. Star Wars: The Force Awakens, along with other notable films like Mad Max: Fury Road, used CGI with physical effects, most notably Christopher Nolan’s Inception. Films with significant social and political criticism are also on the rise. Not just in movies but also in news sources, satirical comedy programs, social media, etc. Popular TV series like American Horror Story have also highlighted current societal topics such as race relations in the film Loving, which centers on interracial marriage. Also, last year’s best picture winner, Moonlight, tackled LGBTQ and racial themes. As a result, the film industry has become more diverse. As seen in the 2016 Ghostbusters reboot, which included all female leads in traditionally masculine roles.
The independent cinema industry has helped produce handheld shots, sometimes known as discovered footage, which is a creative approach employed today. Handheld filming is used in horror and independent films to make viewers feel bewildered. The view also helps conjure spooky sentiments inherent in thrillers. Cloverfield, Paranormal Activity, and Chronicle used the trademark handheld camera technique. This approach has made films seem more lifelike, both the people and the settings they inhabit. A constantly evolving sector, these trends all constitute a component of what is in demand and should be considered before joining the entertainment business.
Entertaining Industry Loans
Why should a film or entertainment firm seek funding for a project or regular operations? However, debt finance may be used to meet expenditures such as acquiring equipment, paying employees, paying suppliers, marketing, and advertising. Listed below are some of the debt financing possibilities.
Banks and credit unions provide SBA loans to enhance conventional funding. This amendment protects SBA lenders by guaranteeing the bulk of expenses incurred if an entertainment sector borrower defaults on their loan. The government wants to enhance small company financing by lowering lender risk.
This is a standard business loan with 1 to 25 years. Consolidation of debt, working capital, inventory finance, and improvements are common reasons for a bank term loan. It’s not simple to secure a bank loan in the entertainment sector, but you’ll receive the best commercial finance available if you do.
Business owners may acquire money without having to go through another underwriting procedure. A line of credit eliminates the need to pay interest on funds not utilized. A line of credit may be unsecured (credit-driven), but most lenders base rates and conditions on a company’s receivables and other things on its balance sheet.
Instead of buying altogether, you might lease your entertainment industry equipment. Modern equipment might rapidly become obsolete. Instead of getting finance to purchase your equipment entirely, you might lease it for some time, with the option to extend the lease or buy it completely.
Selling your entertainment company’s future receivables might provide quick cash without much screening or paperwork. Selling future bank deposits to a financing business for a lump-sum payment is one way to get money. Until the money is returned, daily ACH payments will be made from the company’s principal operating account.
If you are unable to obtain loans through the following options, there are loans that are available via GAD Capital.
Most entertainment and film industry ventures and undertakings are funded through equity. There are debt financing options for your entertainment company. Enterprises in need of operating cash have both traditional and unconventional loan choices. If you seek finance and need assistance evaluating your preferences, please contact our fundraising consultants.