The film industry has changed dramatically during this century with both good news and bad news to talk about. Let's first talk about the bad news.
THE BAD NEWS - By 2010 streaming video technology had crushed the film industry's income from DVD movie sales, which wiped out over fifty percent of a film's profit. Then in early 2019 COVID closed down movie theaters worldwide. So you might think, now is not a good time to invest in film.
But then we also have THE GOOD NEWS - People around the world are still watching movies. Theater audiences are returning to watch movies on the big screen. December 2021, “Spider-Man: No Way Home” scored the third best debut in cinematic history with a $253 million in US box office sales. The film also scored $334.2 million from 60 overseas markets, giving it a $587.2 million dollar total for the first week of its theatrical run.
I recommend watching the movie "Seduced and Abandoned" (2013) starring Alec Baldwin, James Toback and Martin Scorsese. It shows how raising money for making movies has been done for the past seventy years. Basically filmmakers chasing the one percent of the population that can afford to take the risk of investing in film. I feel that today there is a better way to fund movies that lowers the risk to all investors
As the technology of creating and delivering movies has changed the strategy of funding independent films has also changed. US SEC regulations and US Tax Codes now enable small investors to invest in movies. Although film producers still work with hedge funds, private offices, and accredited investors to fund their projects there is now room for more Americans to invest in film.
Airworthy Films, Inc. (myself and my associate producers) meet with hedge funds, HNIs (high net worth individuals) and apply for government tax incentives to fund each film. Generally independent movie budgets are funded by using a various mix of capital, usually a third of the money is from hedge funds or private offices, a third from accredited investors (HNIs) and a third from government tax incentives. Any investment short fall is funded using gap loans from a commercial bank or a hedge fund.
Non-accredited investors CAN NOT invest in the The Allotment LLC or The Weight of Money LLC. Only accredited investors can invest in these two LLCs. A minimum investment of $50K is required, larger share blocks of $100K, $200K, $500K are also available.
However Non-accredited investors in the near future will be able to invest in shares of Airworthy Films, Inc. with offerings being conducted under Regulation A, Regulation D, or Regulation CF through a FINRA/SEC registered broker-dealer. The minimum investment is $1,000.00
Equity investments in ventures such as movies involve a high degree of risk. Those investors who cannot afford to lose their entire investment should not invest. As a film investor myself, I want assure each investor that Airworthy Films, Inc. is in the business of creating commercially viable theatrical films and returning profits to its investors.
Robert Pelt
CEO
