Producerbazaar.com in association with BetterInvest.club launches a new initiative to provide funding to Production houses based on sale contracts of OTT, Audio label, Web Series, Tele Serials and Satellite TV Networks
It is a common practice for OTTs and Audio labels to pay the money in installments to producers after signing an agreement with them to acquire the relevant rights of their movies, web series, tele serials etc. Television networks buying the satellite rights of films have also started following this method. The practice of paying in multiple tranches is also set to be adapted for the sale of Television serials and web series in near future.
The pain point Production houses face because of this deferred payments is that, the Production houses require funds at present to complete the projects in their pipeline. To add upon this, availability of structured finance in Media & Entertainment space is very minimal.
To overcome this and help Production houses, ProducerBazaar.com (formerly Oracle Movies) has partnered with a new-age financial entity called BetterInvest.club to launch a new initiative.
Through this initiative, the Production house who has signed an agreement with the Rights buyer (OTTs, Audio labels, Satellite TV Networks) will be provided immediate financing within 7 to 10 working days. Also, BetterInvest discounts the sale agreements between the Production houses and the Rights buyer without demanding any assets as collateral.
ProducerBazaar.com and BetterInvest.club have started this funding facility for producers in other languages including Telugu, Malayalam, Kannada and Marathi as well. So far 4 Tamil movies have been financed in this way.
Talking about this unique venture, Pradeep Somu, founder and CEO of BetterInvest.club, said, “Structured financing is still not accessible for the Media and Entertainment Industry. We, at BetterInvest, provide bridge capital to Production houses by discounting sale contracts of OTTs, Audio labels and Satellite TV Networks at a nominal interest rate. This is set to change how the Media and Entertainment industry has been financed and helps Production houses with better control over their business.”
GK Tirunavukarasu, Co-Founder, ProducerBazaar.com, said, “Producers have to deal with various financial constraints between one project and the next, resulting in delays in the release of project and monetization of the same. This new initiative will be a huge boon to all Producers.”
Production houses with a pipeline of movies, web series, television serials and have signed contracts with OTTs, Audio labels, Satellite TV Networks can now avail the services of BetterInvest.club and ProducerBazaar.com, to effectively manage the working capital requirements.
It is noteworthy that Producerbazaar.com, which was jointly started by tech expert Senthil Nayagam and Tirunavukarasu, is involved in various activities for the development of the film industry.