Deciding the genre of movie that you should be investing in can often take a bit of time to narrow down. If you are a new investor you might want to look into a specific type of movie that generally provides favorable returns. It’s also generally a good idea to stick to a genre where you have some expertise. As speculation is a big part of the industry, knowing the genre that you are investing in can play a big part in determining success and failure for a movie. Here are some ideas that can guide you to better returns by sticking to a genre:
Sticking with action adventure: action-adventure movies have some of the largest record-breaking ticket sales and also some of the highest budgets. It’s not likely that you will ever own a major stake in a blockbuster action-adventure film but this can be one of the best places where you can see consistent returns. There are however some areas where these large moneymakers can lead to losses for investors. Investing in a film that does poorly at the box office such as Outlander or Southland Tales could have you facing a loss with your investment.
Helping out on comedies: A comedy, drama or romance movie can often deliver some great ROI even in a low-budget film. Napoleon dynamite for example is a fairly low-budget film that cost is $400,000 to make, it generated a whopping 5667% return with its performance at the box office.
Documentary films: with online streaming services there are now more documentary films being created than ever before. The nice part of a documentary films is that they are often quite inexpensive to produce. Movies like supersize me cost around $65,000 to finance and saw a returns of over 22,000%. Getting in on a trendy documentary could produce one of the best investment returns especially if it gets picked up by a popular streaming service.
Keep some of these ideas in mind if you are seeking one of the best genres to invest in.