Icap, the world’s largest inter-dealer broker, has set its sights on Hollywood and the $12bn market in independent film distribution as it seeks to reduce its reliance on bond and forex trading. The group, founded by Michael Spencer, has been hit by slowing volumes in its key markets amid heavy deleveraging of balance sheets at banks and hedge funds. It has already begun diversifying into non-core trading products, such as shipping derivatives, and quietly entered the film sales market recently when it bought Moving Pictures, which brokers the international distribution of titles not financed by big Hollywood studios. Independently produced films, which are relatively cheap to produce, can be highly profitable when sold internationally for distribution in cinemas, on TV or on DVD. With new pay-TV channels and websites springing up around the world, there is a demand for professionally produced film content. Icap is building an operation in LA and is on the hunt for film libraries that could be sold to international buyers. It is also looking to exploit Moving Pictures, its recently-acquired entertainment industry trade publication.

This entry was posted by Gwen Robinson on Monday, December 8th, 2008 at 5:36 and is filed under Capital markets. Tagged with icap. Edit this entry.