The investment case for film in South Africa is the focus of this edition of Business Day Spotlight. Host Mudiwa Gavaza is joined by Mpumezo Vuzane, Known Associates COO.
The episode discusses the South African film and television industry from a business and investment perspective.
Vuzane argues that film is an asset class, albeit misunderstood by traditional finance models in South Africa. He calls it a “sunrise industry” with significant exploitation potential.
He contrasts it with the tech startup space, noting parallels in funding models such as venture capital and private equity.
The film executive emphasises taking a “commercial view” rather than a “creative view” when investing. He looks for market appetite and validates projects based on pre-sales and distribution agreements rather than just the script’s artistic merit.
Known Associates is raising a new fund, targeting R500m, to take equity positions in films that would allow them to share in the profit rather than just earning interest on loans for such projects.
Through the discussion, Vuzane outlines the investment case for film in SA, raising capital for future projects, South Africa as a destination for international films, and funding models.
Vuzane describes the group as an end-to-end media entity controlling the value chain.
The group’s portfolio includes Known Associates Entertainment, a scripted production company creating local film and TV content, as well as a distribution business, a post-production refinery and a product placement agency, Media Heads 360.
Join the discussion:
Producer: Demi Buzo
Business Day Spotlight is an Arena Podcasts production.
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