With cinemas recording record breaking returns, Hollywood is eagerly anticipating the launch of the first movie-futures market.
As the public look to Hollywood for distraction from the doom and gloom of a crumbling economy, anticipation is building as the launch of the first ever movie-futures market edges closer.
The Cantor Exchange, currently awaiting approval from the Community Futures Trading Commission, looks set to list its first Movie Box Office Contract on the exchange within the next month.
This will not only give movie fans the opportunity to benefit from a film’s box office success, but will also enable the film community to hedge against potential losses if ticket sales are poor.
The launch of this new trading opportunity is expected to be well received, not least because its development by brokers Cantor Fitzgerald, comes in response to the huge popularity of its virtual trading portal, the Hollywood Stock Exchange. However, while movie buffs will undoubtedly be on board, interest is expected from the wider trading community too.
With the stock market in tatters, those traditionally interested in speculating solely within the realms of finance are looking to invest elsewhere. Providing the Cantor Exchange gets regulatory approval, the movie-futures market looks set to provide a very luctrative avenue.
The US saw box office takings gross over £1 billion for the first time ever in January, with takings up an impressive 19%. The UK also saw ticket sales soar 5% over the course of 2008 as ticket sales grossed £939million. Together these paint a very promising picture for the entertainment industry’s year ahead.