I came across this interesting concept via Knowledge at Wharton.
The movie industry fared well during the current recession, generating record receipts of more than $10 billion in 2009. In fact, demand for movies typically increases during economic downturns even while the demand for most other goods and services falls.
For investors, movies represent a potentially attractive investment. The correlation between annual box office receipts and the Standard & Poor 500 Index is slightly negative, meaning that film investments can still do well while the rest of your portfolio suffers. Moreover, a good blockbuster like Avatar might also produce revenues that are multiples of its costs. There are not many available asset classes that exhibit these sorts of tradeoffs.
So, wouldn’t it be great if you could invest in a new film that you thought could be a real blockbuster?