INVESTING IN HOLLYWOOD

CONGRUENCE OF INTERESTS

   It is best to invest in an endeavor where everyone shares the same risks and rewards. A moviemaker who takes a large fee from the production budget may financially prosper from a picture that returns nothing to the investor. It is better to back a moviemaker willing to work for a modest wage and share in the success of the endeavor through deferments or profit participation. An investor can take some comfort investing in a motion picture on the same terms as a producer or distributor, where all parties recoup at the same time. Beware of investing in a project where other parties benefit when you lose.

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