Platform: Angel Funding
Investment Made: 05/31/2023
Investment Return: 08/10/2023
Return: 20%

What is P&A?

P&A stands for “Prints and Advertising.” It’s an old theatrical industry term from back when movies were printed onto physical film. The term is still widely used today to describe the cost of taking a finished film and marketing it to moviegoers.

P&A is a crucial piece of the marketing budget for a film and may be appealing to certain investors. With P&A, money is only raised after the film is already made and any potential return to P&A investors is paid directly out of theatrical proceeds–meaning P&A investors get paid right after the theater gets paid. So, it’s the last money in, and the first money out.

P&A investments hold the potential for returns far faster than the significantly longer timeframe required when investing in a film before the filming process even begins.

My thought process:

Investing in movies can be a tricky business. While there is potential for huge returns, it’s potentially more likely that the film will lose money and you’ll get nothing for your investment. Also, films can take many years to complete, so if you invest in the early stages, you may be waiting several years to see any sort of result. What’s different about P&A is that it is the last step in the process of putting a movie out there. What that means for the investor is that your money is tied up for a relatively short amount of time. Another benefit is that you may have the opportunity to see (or at least preview) the finished product before deciding to invest. For those seeking outsized returns, this would not be a recommended vehicle for investment. While the downside is limited to your original investment amount, the upside in this case was capped at a 20% return above your original investment. If you invested $1,000, your maximum return is $1,200. Not a bad return for a few months of investment, but there is also no chance to 2x-10x your return if it ends up being a blockbuster. Sound of Freedom falls into this bucket. On a budget of just under $15 Million, this movie grossed over $250 Million worldwide.

The key to this type of investment, as with most opportunities, is to believe in the success of the project. I saw the quality of the product before investing and had a feeling that the subject matter would spur the intended audience to action, thus creating a grassroots movement. This combined with Angel Studios‘ unique Pay-It-Forward campaign led to this being their greatest success to date.