Indeed, according to the Federal Trade Commission, investment opportunities in the entertainment industry may sound glamorous, cutting edge and can't-miss, but films, infomercials and the Internet are among the most risky of ventures. But many films never make it to a theater, let alone television or video distribution. Even if a film succeeds at the box office, financial backers usually are the last to recoup their investment from the project.
Pitchmen also hawk the profits to be made in special interest television programming.
But the success of any new network venture requires a rare combination of creative programming, an ability to get access to cable systems and an ability to draw viewers and advertisers. Potential investors in cybercasinos should know that Internet gambling is not legal in any state and that fraudulent promoters traditionally overstate the profitability of casinos. As for infomercials, legitimate industry members estimate that only one infomercial in 30 is successful in generating enough sales of the featured product to make any money for investors. The fact is that the IRS does not approve or evaluate any investments for IRAs. According to the FTC, if you want to invest in a movie, buy a ticket.