Financing the Audiovisual Industry
This chapter describes the main financial techniques adopted by financial intermediaries to finance audiovisual productions — such as the slate financing structure and the ticked linked bond — and the use of innovative instruments — such as securitization of rights, crowdfunding and microcredit. These techniques follow the logic of contract discounting rather than gap financing. In this latter case, intermediaries usually prefer to act as lenders, rather than to act as equity investors. The reason is to be found precisely in the logic of risk management. In this perspective, the chapter outlines a taxonomy of financial risks associated with financing the industry and the role of guarantee funds in managing the credit risk exposure.
KeywordsCash Flow Credit Risk Investment Fund Single Project Business Risk
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