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this post was submitted on 08 Mar 2024
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Piracy: ꜱᴀɪʟ ᴛʜᴇ ʜɪɢʜ ꜱᴇᴀꜱ
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Think of it like Russian nesting dolls.
You got the production company that pays $100 million to make a movie. The production company is owned by a studio. Production company licenses the movie to the studio that owns it for $200 million. But it’s all the same ownership and no money changed hands. It’s just on paper. So now the $100 million movie cost $200 million. Then the studio licenses out the movie to the marketing company, which the studio also owns, for $300 million. Again no money changed hands and the value is all on paper.
Do that a couple more times and that’s how a movie that literally cost $100 million and made $500 million at the box office “barely broke even”.
Might be off on the layers, but I heard that description of movie accounting years ago.
Nice write up. Crazy how fat cats find ways to milk the cash cows.
I'm reminded of how the freaking NFL of all things is considered a non profit somehow. Simply due to the fact that they pay themselves so much money.
The NFL is a non profit, the teams are not. It still doesn't make it right, though.
It's also how the studios fuck over anyone involved who had "profit share %" in their contract.
The marketing costs eat up 100% of the profits, movie makes no money, yet the marketing company the advertising was sold to made half a bill...
Exactly. I left that part off since I thought it was already a long description. But completely true. Can’t pay out an actor that takes a percentage if it never made any money on the “official” paper.