A couple of month ago, I made a 6-page slide presentation about investment in entertainment in front of enthusiastic and optimistic indie music practitioners. I hope by now they should know about the inevitably the no 1 requirements in order for them to advance in the industry. Capital.
Investing in entertainment or creative industry is not really significant in Malaysia. Even though the government is providing several funding initiatives, I would not consider that as an investment in entertainment. It is more like a social service and the industry is in the growing process, if any.
In my opinion, to consider an investment in any given industry, there should be more participants other than government agencies. You should have investors like banks and private equity firms. And that would only take place when the industry is considerably significant and the return of investment (ROI) is not something like a Russian roulette. Hit and miss.
Investors like Morgan Stanley Global Private Equity invests in Creative Circle LLC, one of North America’s largest professional staffing firms specialising in advertising, creative and marketing talent. Investors like Ingenious Media that invests in media and entertainment including in Rise of the Planet of the Apes, X-Men: First Class, Avatar and Music Festival.
Investors like Media Rights Capital, an independent film and studio backed by Goldman Sachs, AT&T and WPP Group PLC. They invest heavily in films including Ted, Babel, Bruno and The Adjustment Bureau. In television, they have House of Cards with Kevin Spacey and The Ricky Gervais Show.
Unfortunately, in Malaysia, so far I just don't see the same investment scenario taking place. The synergy of production houses, filmmakers, Bank Simpanan Nasional, Creative Industry Loan, FINAS an other form of financial incentives is not there. Giving away and investing are different. Investments may require returns. Giving away may produce outcomes.
I do hope one day local investment banks in Malaysia would have dedicated team focusing on investment in creative works. Private equity funds and firms should consider and create a landscape within creative industry whereby the funding considerations may produce a double digit return, to say the least.
Anyhow, creative industry is not limited to films and music. It also involves animation, creative content, fashion and textiles, performing arts (theatre), visual arts, crafts and publishing. Advertising is also consider a component in the creative industry though.
Yes, investing in entertainment in Malaysia is a myth...
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