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I can cut 40% of a film's budget just going outside of the studio system. Plus more with technology you reference.

Studios want the films to appear to lose money so they can keep all the profit. They control distribution and inflate production costs >35%, move money from one pocket to another etc all to limit the net profit participation of equity holders.

My full comment explaining it- http://news.ycombinator.com/item?id=3498112




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