02 May 2025 | Category: News
TV Show and Film Funding for Investors in MENA: A Reference Guide
In the MENA region, there is no shortage of ambitious investors. From real estate developers to F&B magnates, logistics experts to retail pioneers, the business landscape is filled with bright, driven individuals seeking new ways to diversify their portfolios. At events like the Saudi Media Forum and the Future of Media Exhibition, our booth attracted an impressive mix of successful entrepreneurs — not from the media industry, but from everywhere else. So what brought them to a media-focused exhibition? The answer is simple: the glitz, the storytelling, and the unique potential of the entertainment sector.
Media is unlike any other industry — it’s dynamic, emotionally resonant, and inherently connected to nearly every other field. That’s why more and more MENA investors are eyeing this space, eager to understand how tradable media assets can serve as a powerful tool for diversification, creativity, and long-term returns.
This article is for those investors. Investing in MENA’s media industry isn’t a leap into the unknown — it’s a strategic step into a sector rich with opportunity. Whether you're backing a bold new series idea or joining a blockbuster in post-production, understanding the funding phases is crucial to making smart, well-informed decisions. This guide breaks down the three core stages of film and television financing — development, production, and post-production — and offers clear insights into the pros, cons, and key terms every investor should know. If you're considering investing in the entertainment industry, this is your essential starting point.
🎥 The 3 Phases of TV Show or Film Funding
Phase | Name | What Happens |
---|---|---|
1 | Development Funding | - Early money to create the concept, script, pitch deck, look book. - Used for research, writing, casting ideas, budgeting. - Sources: Grants, early investors, network development deals. |
2 | Production Funding | - Main financing to actually shoot the film or series. - Covers salaries, locations, equipment, insurance, travel. - Sources: Studios, streamers, coproduction partners, pre-sales. |
3 | Post-Production & Distribution Funding | - Funding for editing, music, marketing, and selling the final product. - May include finishing funds, marketing budgets. - Sources: Broadcasters, distributors, government funds. |
🌟 Investor Pros and Cons by Funding Phase
Phase | Pros | Cons |
---|---|---|
Development | - Small investment needed. - High creative influence. - Early entry into project. | - High risk? (some projects may never get made) In MENA, the rate of “postponed" or 'suspended" projects is at around 12-15%. (not bad!) - No guarantee of return. |
Production | - Tangible progress. - Clearer risk profile. - Ownership or revenue share. - Pre-sales possible. | - High capital need. - Operational risks (delays, cost overruns). - Market shifts.- Slow recoupment (12–24 months). |
Post-Production | - Lower risk (project already shot).- Fast turnaround.- Clear distribution path. | - Limited creative influence. - Lower returns compared to early investors. |
🎥 Phase 2 Deep Dive: Production Funding- The part where most investors decide to JOIN THE FUN!
Pros:
Cons:
Summary:
“At Production, the ship has left the dock — but storms can still sink it before it reaches the market.”
💼 What Are Backend Shares? -→ GOOD TO KNOW!
Backend Shares = Getting a percentage of profits after the film or series is sold and released. In other words, profit participation. You earn money based on how well the project performs financially.
Sources of backend income:
Example:
Caution:
🏆 How Backend Shares Are Negotiated?
** Generally this is how things are done. Of course, in MENA, things could be a little different ;)
Who Gets Backend Shares | Typical Range |
---|---|
Early Investors | 5% to 30% |
Executive Producers | 2% to 10% |
Big Star Actors | 5% to 20% |
Distributors | 5% to 15% |
Important Clauses:
Summary:
"Backend shares are powerful — but only if smartly negotiated upfront."
🏅 Key Takeaway
Smart investors protect their backend deals and carefully assess risk at each funding phase
Interested to find cross- regional investment partners in TV and Film projects?