NEW TO FILM & TV INVESTING
Welcome to Film & TV Investment
If you're curious about investing in film and television but don't know where to start, you're in the right place. At Karoo Sky, we believe the best partnerships are built on clarity, honesty, and mutual growth. Here's what you need to know about how film investment works in the UK.
When you invest in a film or TV project, you're typically buying a share of the project itself. That means if the film makes money, you do too. Your investment helps fund development, production, post-production, or marketing, depending on when you come on board.
1. What Are You Actually Investing In?
When you invest in a film or TV project, you're essentially buying a piece of that specific project — like owning a small part of a business. The size of your share depends on how much you invest compared to the total budget.
So, for example, if the film has a budget of £600,000 and you invest £60,000, you would own 10% of the film. If the film starts to make a profit (after it pays back production and marketing costs), then 10% of those profits would come to you. The profits might come from cinema ticket sales, streaming deals, international distribution, or DVD sales.
Your investment can go toward different parts of the process, depending on the stage the project is in when you join — from early script development all the way through to post-production and marketing.
2. Tax Relief & Government Support
This is where things get exciting from a financial point of view. The UK offers generous government-backed schemes to support film and TV — and these directly benefit investors like you by lowering your financial risk.
Here’s what that could mean for you in practical terms:
Film Tax Relief (FTR) and High-End TV Tax Relief (HETR): These allow the production itself to claim back up to 25% of its UK qualifying costs — which means the budget stretches further, and your investment goes further. It's like getting a rebate on the production spend. We are thus able to make an even higher quality project while your investment amount remains the same, and you still keep the same share of profits (but that is now a share in an even bigger project).
Enterprise Investment Scheme (EIS): If you invest through EIS, you could claim back 30% of your investment as income tax relief. So if you invested £10,000, you could get £3,000 back from HMRC. And if the project makes a profit, you may not pay Capital Gains Tax on those earnings.
Seed Enterprise Investment Scheme (SEIS): Designed for very early-stage projects. You can claim back 50% of your investment in income tax relief and enjoy further tax advantages if the investment performs well.
In short: these schemes help you reduce your upfront risk, reward your success more generously, and potentially save thousands on your tax bill.
3. How Do Returns Work?
Films and TV shows can earn income in several ways: cinema box office, streaming platforms (like Netflix or Amazon), international sales, TV channel licensing, and more.
Once all the costs of making and marketing the film have been paid back, the remaining profits are shared. Your share depends on how much of the project you own. At Karoo Sky, we’re upfront about how this “recoupment waterfall” works, so you’ll always know when and how your money might come back to you.
For example: if you invested 10% of the budget, you’re generally entitled to 10% of the profits. If the project gets picked up by a streamer, shown in cinemas, or sold to international broadcasters — you start seeing your return once the costs have been recouped.
4. Is It Risky?
Yes — like any investment, there are risks. Not every film makes money. But there are tools to manage that risk:
Government tax incentives help stretch the budget and attract top talent.
Pre-sales allow us to sell distribution rights in advance to raise funds before shooting even begins.
Multiple revenue streams — including box office, streaming, and global sales — mean more chances for return.
We don’t greenlight passion projects without a plan. We only move forward with projects that have both creative power and a strong business case.
5. What Kind of Investor Do You Need to Be?
You don’t need to be a millionaire. We work with people investing anything from a few thousand pounds upwards. Some investors want to back a single project, others want to support a slate of upcoming films and series.
If you're just starting out, we can talk about development funding — smaller contributions that help us get a project off the ground, often with options to be involved again later. Think of it as a toe in the water.
You don’t need to be an expert — that’s our job. But if you’re thoughtful, curious, and interested in supporting stories that matter, we’d love to hear from you.
We’ll Walk You Through It
Film and TV investing shouldn’t be a mystery. If you have savings or capital and want to see it go into something meaningful — something with emotional and financial return potential — we’d love to chat.
Let us show you exactly how it works, and where you could fit in.
business@karooskyent.com
