Why do all hollywood movies lose money?

[NomoneyNohoney]

Star Wars: Return of the Jedi.
Forrest Gump .
Harry Potter and the Order of the Phoenix.

What do these three films have in common? Each was a blockbuster, among the first or second highest grossing films of the year. All three were also unprofitable .

https://priceonomics.com/why-do-all-hol ... ose-money/

[DiamondEcho]

My immediate thought was; they don't or they wouldn't be made, it's simply creative accounting. And the linked article then confirmed that, referring to it as 'Hollywood accounting'.

[didds]

i haven;t read the article...

if the "cost of making film" > "ticket sales"...

does the real money come form merchandising and franchising?

didds

[didds]

read it now!

its till doens;t make sense in that... if this is so "open" and "common knowledge" - why does any actor with any clout at all ever sign up fo0r a % profits deal? They miust know that there will be no profits to share ever?

didds

[redsturgeon]

read it now!

its till doens;t make sense in that... if this is so "open" and "common knowledge" - why does any actor with any clout at all ever sign up fo0r a % profits deal? They miust know that there will be no profits to share ever?

didds

The article explains this.

John

[didds]

But the explanation is nonsense.

Everyone in Hollywood understands the system.

So saying "Ive potentially 10 million after net profit share" is meaningless. Because everybody knows there will be no net profit to share..

its all emperor's new clothes?

didds

[redsturgeon]

But the explanation is nonsense.

Everyone in Hollywood understands the system.

So saying "Ive potentially 10 million after net profit share" is meaningless. Because everybody knows there will be no net profit to share..

its all emperor's new clothes?

didds

That's show business!

John

[NomoneyNohoney]

But the explanation is nonsense.

Everyone in Hollywood understands the system.

So saying "Ive potentially 10 million after net profit share" is meaningless. Because everybody knows there will be no net profit to share..

its all emperor's new clothes?

didds

That's show business!

John

Now if we had recs, you'd have got one from me for that quip...

[didds]

Now if we had recs, you'd have got one from me for that quip...

ditto!

didds

[UncleEbenezer]

read it now!

its till doens;t make sense in that... if this is so "open" and "common knowledge" - why does any actor with any clout at all ever sign up fo0r a % profits deal? They miust know that there will be no profits to share ever?

didds

Erm, does Springtime for Hitler mean anything to you?

Another face of showbiz accounting comes in what are usually called ticket touts. You set an official price much lower than the real-world price, and benefit twice over:

• The taxman sees the official price and therefore doesn't relieve you of the profits. Likewise your investors expecting a share.
• The fans' resentment at outrageous prices is directed at faceless touts, not at you.

[didds]

errr... yes. the prioducers. a comedy based around creating a fraud based around a flop... that wasn't.

So these stars sign up for % profit deals that aren't in reality ever supposed to turn a profit in the vague hope that a plan goes wrong and a once in a lifetime possibility may happen?

K.... meanwhile they miss out time and time and time and time again with films that do "fail" as designed?

nah, still far too clever for me.

didds