Boehly: Film risk is eliminated by pre-selling international distribution rights
Todd Boehly · Todd Boehly - The Next Berkshire Hathaway at Eldridge (Capital Allocators, EP. 223) · Nov 22, 2021 · at 49:07
Todd Boehly explains Eldridge's structured credit mentality applied to media and film financing.
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“Well, the way we started making movies was we would sell off the Foreign rights market by market. So you could go to Germany and you could get a million dollars for Germany and you can get two million for the UK. So if we sold the rights, we knew we could get enough money to make a movie. Then we had the US domestic as the upside and the movie got paid for by selling off all the international rights. That didn't feel like a really risky business model. Yeah, not all the movies worked, but if they were all paid for and you weren't deficit financing them, then what's your downside?”
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