Hollywood: The Asian investors’ next frontier

Creative Genius Asia shares why businessmen should consider producing films and television shows in the US.

It’s not as difficult as winning both the pot money and the girl in Slumdog Millionaire but it’s also not as easy as duping people in the Wolf of Wall Street. Investing in films and television shows takes a lot of guts and street smart but its rewards are tenfold.

Scott Morgan, an award-winning writer-director and production consultant, says the time is ripe for Asia to dip its hands into Hollywood and see what films and television shows have to offer in terms of profits.

Since the rise of the Internet in the 1990s and the recession in 2008 that affected many studios, substantial shifts have been experienced by the US entertainment industry. “Fifteen years ago, at least 60% and up to 90% of all released films were funded by studios. Now, less than 20% are,” Morgan says.

He explains that many studios had their levered advertising cash in real estate values and many of them never recovered after the economic crash. Nowadays, a lot of financing comes from hedge funds and other sources like Singapore, Shanghai and Hong Kong.“The natural un-tapped source is Asia. This vacuum of investments filled by such business-profit-savvy cultures in Asia will surely change the dynamics of profit,” Morgan says.

A sweeter fruit
Morgan, who won awards in three film festivals for his film “Playing Solitaire,” has since worked as a producer and consultant for investors interested in entering Hollywood. He says outside investors are often clueless and naïve on how to go about producing films and television shows in the US.

His advice is not to take everything by face value and to find the ‘coveted secret fruit.’ “Basic truth in all business: don’t swallow what those in power throw, seek the sweeter fruit higher in the tree they hope you don’t see,” he explains, pointing out that others often take advantage of outsiders.

Morgan says an investor should start with a good script and later build on the other requirements. “All it takes to join this world is access to the best material, and true understanding of what drives the people in Hollywood,” both of which he is willing to provide.

He warns that many agencies shortchange newcomers to benefit themselves. He suggests investing in television, which generates revenues that dwarf film profits. By investing in both film and television, investors are able to diversify their sources and maximize their capital.

Many independent investors had made a killing at the box office because they were able to spot valuable screenplays. Examples of these include “The Conjuring,” which had a budget of $17 million and $148 million in revenues. “Slumdog Millionaire,” which cost $15 million earned as much as $417 million. With decades of experience in the film industry, Morgan has started working with businessmen from Asia who seek guidance when it comes to investing in Hollywood films.“Very few professionals in the film Industry reach a level of deep understanding of both the creative and business sides of the Entertainment business anymore,” he says, adding that many of his mentors were film icons like Freddie Fields and Barry London who was the vice chairman of Paramount Pictures.

“I’ve worked as an actor, cinematographer, photographer, writer, producer, director, financier, stunt man, and consultant,” Morgan adds. “Every one of these skills gave me another perspective to write or produce with more realism, more artistry, but also with more financial wisdom.”

The Asian connection
Morgan says he started taking an interest in Asia after recognizing the region’s potential for future film producers. “I recognized the rise of Asia as a market and financial giant in films almost 20 years ago,” he explains.

The former actor-turned-screenwriter said he has since been going around Asia not only for work but also for charity. For the last 14 years, he has been caring for orphans in three Asian countries. Through his travels, Morgan discovered that the “cinematic art of many Asian films surpasses American films.” He further enhances this by guiding the producer into tweaking films for international audiences.

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