Film Finance: The Role of Private Investors in the European Film Market

Chapter
Part of the Media Business and Innovation book series (MEDIA)

Abstract

This chapter explores the conditions under which a more active role of private investors may substantiate the external financing of the European film industry. In Europe, this industry is characterised by its reliance on public support schemes. While the existing market structure of the European film industry—strong prevalence of SMEs and mid-cap companies—and the nature of the production function might justify a public sector intervention, this chapter argues that the characteristics of the financial markets in Europe, mainly based on financing by banks, has not facilitated the emergence of an active private class of investors.

Keywords

Debt financing market External financing Film financing instrument Gap financing Hedge funding Informational barriers to entry Intangibles and risk Loan guarantee schemes Presale agreements Private investors Subsidies Third-party financing Venture capital 

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Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.European Investment BankLuxembourgLuxembourg

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