Media Invoice Discounting: A Guide for You

‍"Zindagi lambi nahi honi chaahiye, babumoshai, zindagi badi honi chaahiye." - Sholay (1975)
Translation: (Life shouldn't be long, sir, life should be grand.) 

Entertainment captivates audiences worldwide, from the golden age of cinema to today's cutting-edge streaming platforms.

But what if I told you that behind the glamour of red carpets and blockbuster premieres lies a debt asset class that offers diversification and high-growth potential?

Welcome to the world of media invoice discounting.

In this guide, we'll explore why this avenue is attracting investors, what types are available, and how you can get started with this exciting avenue.

Why Consider Debt Assets in Media & Entertainment?

The debt assets in the entertainment space have become an attractive avenue to invest for several reasons. Let's break down why you might want to consider adding them to your portfolio.

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Diversification

The investments landscape is a complex ecosystem, and diversification remains the golden rule. Traditionally, individuals have balanced various investment options to create a well-rounded portfolio.

But what if there was a way to diversify beyond the conventional investments, with an added layer of security?

Enter BetterInvest's debt assets, offering a unique path to stability and growth through media invoice discounting.

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Why Debt Assets in Entertainment?

The Power of Non-Market Linked Investments and Invoice Discounting

Unlike conventional investments, which can be swayed by the whims of the broader market, entertainment debt assets often operate in a different sphere. Here's what makes them shine with BetterInvest's approach:

• Uncorrelated Performance: BetterInvest focuses on invoices backed by streaming giants like Netflix and Prime Video. These invoices are pre-sold content rights through deals with streaming platforms. BetterInvest leverages invoice discounting to access these deals, offering opportunities to invest in the revenue stream independent of the market's volatility.

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What is Invoice Discounting?

Invoice discounting is a financial tool where BetterInvest advances funds to the production house in exchange for the invoice representing the future payment owed by the streaming giant for the pre-sold content rights.

This allows the production house to access immediate cash flow, while BetterInvest offers investors the opportunity to earn returns on the discounted invoice amount.

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Benefits of Invoice Discounting for Investors:

• Reduced Risk: By focusing on outright content rights where the price is fixed, BetterInvest mitigates the risk associated with a project's box office performance. The revenue stream is primarily driven by the established agreement with the streaming platform.
• Transparency and Security: Invoice discounting provides a clear picture of the pre-sold content rights and the future income stream from the streaming platform. This fosters transparency and security for investors.

With BetterInvest's debt assets secured through invoice discounting, your investment could remain relatively stable. A captivating series on a popular streaming platform, even amidst a market correction, could continue to generate returns through the pre-determined agreement with the platform.

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Building a More Resilient Portfolio with BetterInvest:

By incorporating BetterInvest’s invoice discounting into your investment portfolio, you gain several advantages:

• Mitigate Risk: The non-market linked nature of these invoices and the focus on pre-sold content rights acts as a buffer, potentially reducing overall portfolio risk during volatile periods.
• Unlock Growth Potential: The entertainment industry is a powerhouse, offering exciting opportunities alongside established productions. BetterInvest leverages this by evaluating the production house on a 5-level framework with strong pre-sale potential and utilizing invoice discounting to make them accessible.

High-Growth Potential

The entertainment industry is known for its blockbusters and chart-topping hits, which can translate into significant returns for investors. Movies, TV shows, and music have historically generated impressive revenues.

Passion Meets Profit

Engaging with debt assets in the entertainment space can be about more than just financial gains. Many investors are drawn to this avenue because of their love for movies, music, or TV shows.

It allows them to align their financial goals with their passions, creating a unique blend of personal interest and potential profit.

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Diversification Within Entertainment: Beyond Just Movies

At BetterInvest, we believe in offering a variety of opportunities in the entertainment sector. Unlike traditional methods, we provide a platform where affluent individuals can tap into unique debt assets within the entertainment industry.

Our approach involves facilitating discounting invoices from production houses or entertainment companies and then listing them as opportunities for our investors. Let's explore how you can diversify within the entertainment sector through BetterInvest, focusing on various revenue streams.

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Audio Rights

Music plays a pivotal role in many entertainment projects, from movies to TV shows and video games. When production companies create audio content, they often sell the rights to larger companies for distribution and licensing. These sales generate invoices which will be paid later, to solve the cash flow gap, the production house sell the invoice at a discount in our platform.

By investing in these discounted invoices, you will earn stable returns with short-term commitments without waiting for years for your money to mature.

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Satellite Rights

Satellite broadcasting is a crucial distribution channel for entertainment content, particularly in regions with high satellite TV penetration. When production houses or content distributors sell satellite broadcast rights, they sell this discounted invoice at BetterInvest. 

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OTT Rights (Over-the-Top)

The rapid growth of Over-the-Top (OTT) platforms has changed the way entertainment is delivered to audiences. Content production companies often sell OTT rights to major platforms like Netflix, JioHotstar, and Amazon Prime Video.

These sales result in invoices just as audio and satellite OTT payments will also be paid later, so to fulfill the cash flow gap production houses discount these invoices. It creates a new avenue for you to diversify your portfolio. 

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How BetterInvest Works?

Our process is straightforward. Production houses sell their movie streaming rights to OTT platforms like Amazon Prime or Netflix, but they often receive only an advance payment. To cover their immediate financial needs, they offer these invoices at a discounted rate on our platform.

You can invest in these discounted invoices through BetterInvest. By doing so, you provide immediate capital to the production houses, and in return, you await the final payment from the OTT platforms. With that, you enjoy a stable return of up to 16% per annum.

This method offers a secure and transparent way to engage with the entertainment industry, supporting production houses while benefiting from stable returns.

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Mitigating Risk: How We Protect Your Money?

Investing in media invoices to diversify and earn stable returns can be rewarding, but like any avenues, it comes with its own set of risks.

At BetterInvest, we prioritize the security of your money, implementing robust strategies to mitigate potential risks. Let's dive into how we protect your money by addressing three key risks: Performance Risk, Repayment Risk, and Extension of Maturity Date.

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Performance Risk

Performance risk refers to the uncertainty surrounding how well an entertainment project—like a movie, TV show, or music album—will perform financially. This could be influenced by factors such as box office sales, TV ratings, or streaming views. If the project doesn't meet expected targets, returns will get affected.

To mitigate this risk, BetterInvest uses Outright Sale Agreements. These agreements are contracts that ensure the revenue for a project is secured through predetermined sales to OTT, Satellite Channels, and audio labels, regardless of its commercial success.

For example, a production house might enter into an agreement with an OTT (Over-the-Top) platform, like Netflix or Amazon Prime Video, to sell distribution rights at a fixed price. This arrangement ensures that even if the movie doesn't perform well at the box office, there's a guaranteed revenue stream from the outright sale, reducing the risk to the investors.

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Repayment Risk

Repayment risk involves the potential that the expected returns from an invoice might not be paid as planned. This could happen if the project's revenue falls short or if there's a breach of contract. To protect against this risk, BetterInvest employs an Escrow Mechanism.

An escrow is a legal arrangement in which a third party holds funds on behalf of two parties involved in a contract. In our case, an escrow account is established to hold funds dedicated to meeting financial obligations related to the invoice. This means that when revenue from a project is generated, a portion is placed into the escrow account, ensuring there are enough funds to repay investors as stipulated in the contract.

By using this mechanism, we ensure that even if something goes wrong, there's a secure source from which investors can be repaid, providing an added layer of security.

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Extension of Maturity Date

In some cases, the expected timeline for an engagement to mature might be extended, leading to delays in returns. This can happen due to production delays, distribution issues, or other unforeseen circumstances. To address this risk, BetterInvest secures your engagement with Accrued Interest.

Accrued interest is interest that accumulates on a financial obligation over time. If an invoice maturity date is extended, BetterInvest ensures that participants continue to earn interest during this extended period. This compensates for the delay and helps maintain the value of the engagement.

For example, if a movie's release is delayed, causing a delay in revenue distribution, the accrued interest ensures that participants are still rewarded for their patience, maintaining the overall return on engagement.

By implementing these risk mitigation strategies, BetterInvest creates a secure and stable environment for debt assets in the entertainment space.

The combination of Outright Sale Agreements, Escrow Mechanisms, and Accrued Interest ensures that your money is protected from common risks, allowing you to explore the exciting potential of entertainment assets with confidence and peace of mind.

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Investing in Media Invoices: Getting Started

If you're considering media invoice discounting, here are some key steps to guide you through the process.

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Minimum Investing Amount

Investments in BetterInvest has minimum amount requirements. These minimums can vary depending on the type of invoice. Be sure to understand these minimums before committing to an opportunity.

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Due Diligence

Thorough research is essential when investing in media invoices. Understand the specifics of the deal, including the project's production team, distribution agreements, expected revenue streams, and potential risks. Due diligence helps you make informed decisions and reduces the chances of encountering unexpected issues.

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Seeking Professional Help

Media invoice discounting can be complex, especially if you're new to this debt asset class. Consider seeking guidance from a Relationship Manager at BetterInvest or shoot us an email at support@betterinvest.club. They can  help you assess opportunities, and streamline you with the opportunities which align with your financial goals.

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The Future of Media Invoice Discounting

The future of media invoice discounting as a debt asset class looks promising, thanks to technological advancements and a globalised entertainment market.

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Technological Advancements

The rapid growth of streaming platforms and digital distribution has opened new opportunities for invoice discounting. Investors can access a broader range of projects, and revenue streams are becoming more diverse. 

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Globalised Entertainment Market

The entertainment market is becoming increasingly global, allowing investors to reach broader audiences. This global exposure creates new revenue opportunities and reduces dependency on specific markets.

As international collaborations and distribution agreements increase, the potential for entertainment assets to generate substantial returns also grows.

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Conclusion

Media invoice discounting offer an exciting avenue for diversification, combining high-growth potential with the allure of the entertainment industry. There's a range of opportunities to explore in this media and entertainment space. However, like any avenue, it's crucial to understand the risks and perform thorough due diligence.

If you're considering media invoice discounting for portfolio diversification, start by exploring reputable platforms and seeking professional advice. The future of  media and entertainment looks bright, with technological advancements and a globalized market offering new possibilities.

Ready to explore media invoice discounting and add a touch of Indian Cinema to your portfolio?

Contact BetterInvest today to learn more about these unique opportunities.

Let's bring a little movie magic into your financial goals and strategy.