

How Does the Film Industry Actually Make Money? - kfk
http://www.nytimes.com/2012/07/01/magazine/how-does-the-film-industry-actually-make-money.html?_r=1

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chrisbennet
As I understand it, there is a big difference between what the studios _say_
that made and what they actually made - see "Hollywood accounting".

Example: According to this, "Return of the Jedi" did not turn a profit.

[http://www.techdirt.com/articles/20110912/13500315912/hollyw...](http://www.techdirt.com/articles/20110912/13500315912/hollywood-
accounting-darth-vader-not-getting-paid-because-return-jedi-still-isnt-
profitable.shtml)

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gee_totes
Also, if you're interested in "Hollywood accounting", I suggest checking out
the book The Hollywood Economist[0]

[0][http://www.amazon.com/The-Hollywood-Economist-Financial-
Real...](http://www.amazon.com/The-Hollywood-Economist-Financial-
Reality/dp/1933633840/ref=sr_1_1?ie=UTF8&qid=1341278717&sr=8-1&keywords=holywood+economist)

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larrys
"For the cost of “Men in Black 3,” for instance, the studio could have become
one of the world’s largest venture-capital funds, thereby owning a piece of
hundreds of promising start-ups."

That assumes you know how to do that of course. People know and are
comfortable with what they know. Drawing a comparison to a skill in another
industry that takes years to hone really makes no sense.

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rprasad
Most blockbusters make money. They simply record the income in a different
entity (or entities) than the entity (or entities) which recorded the
expenses.

A large part of not getting screwed in a Hollywood contract is making sure
your percentage relates the right entity.

