The global motion picture industry is constantly being infused with so much great creativity and innovation. There are also continual inventions and game-changer technologies which are making inroads into film projects’ Development, Production and Distribution Value Chain.
The “Script” has been, is, and will always be the starting point in the entire process of the motion picture supply chain. Today, Scripts’ are the mainstay and serve as the underlying asset class which in turn forms the fundamental basis of Structured Project Finance.
Based on a potentially successful and viable Script, the next step is to protect the Intellectual Property Rights (IPR) of the content originator and owner. In addition, the next tangible steps include, but not limited to, proper valuation of the underlying asset, securitization, collateralization and further hypothecation.
Subject to “sacro-sanct” transactional contracts with “back-to-back” arrangements along the Development-Production-Distribution Value Chain, both Limited Recourse and Non-Recourse Finance can be effectively undertaken. This definitive process also enables and ensures risk mitigation and “bankability” for the film project sponsors as well as potential equity investors, lenders and grantors.