Here is an amazing glimpse into the dark side of the force that is Hollywood economics. The actor who played Darth Vader still has not received residuals from the 1983 film "Return of the Jedi" because the movie, which ranks 15th in U.S. box office history, still has no technical profits to distribute.
How can a movie that grossed $475 million on a $32 million budget not turn a profit? It comes down to Tinseltown accounting. -Derek Thompson
To be cool is now not just to be rich, but to appear caring. Hollywood still seeks hundreds of millions in tax breaks unavailable to small businesses without shame because it is so manifestly compassionate. -Victor Davis Hanson
"I get these occasional letters from Lucasfilm saying that we regret to inform you that as Return of the Jedi has never gone into profit, we've got nothing to send you. Now here we're talking about one of the biggest releases of all time," said Prowse. "I don't want to look like I'm bitching about it," he said, "but on the other hand, if there's a pot of gold somewhere that I ought to be having a share of, I would like to see it." -Dave Prowse
Hypocrisy, Liberal, Financial, Greed, Hollywood
Documentary film director Michael Moore, who has become a millionaire thanks to the profits from his movies, told CNSNews.com that “capitalism did nothing” for him.
Democrat, Liberal, Obama, Financial, Corruption, Hollywood
President Obama’s record $15 million fundraiser tonight at the home of actor George Clooney is being co-hosted by DreamWorks CEO Jeffrey Katzenberg. In addition to being the largest single donor to the pro-Obama Super PAC Priorities USA at $2 million, Katzenberg’s company is currently under investigation by the SEC for allegedly bribing Chinese officials.
Crime, Financial, Hollywood
A Harvard College-educated filmmaker allegedly scammed $4 million in film industry tax breaks by inflating expenses — including claiming to have paid Richard Dreyfuss six times what the Oscar-winning actor actually made — reigniting the debate over the controversial movie biz perks.
Tax, Greed, Hollywood
Though the film grossed $938.2 million worldwide, the accounting statement below conveys that the film is still over $167 million in the red.
As Planet Money explained in an interview with Edward Jay Epstein in 2010, studios typically set up a separate "corporation" for each movie they produce. Like any company, it calculates profits by subtracting expenses from revenues. Erase any possible profit, the studio charges this "movie corporation" a big fee that overshadows the film's revenue. For accounting purposes, the movie is a money "loser" and there are no profits to distribute.
Tax, Greed, Hollywood
Wikipedia explains how it works.
Editorial, Tax, Greed, Hollywood
The Twilight gang has it right: if you’re going to be earning a percentage of a film’s profits, make sure it’s from the theatrical gross, and not the net profits. Certain members of the cast and crew of Harry Potter and the Order of the Phoenix haven’t been so lucky though, as a leaked accounting statement from Warner Bros. clearly demonstrates. The film made over $938 million worldwide—almost a billion dollars—but if you were to believe the below numbers, the film hasn’t made any profit at all.
Liberal, Hate, Incitement, Bigbrother, Hollywood
Roseanne Barr: "I first would allow the guilty bankers to pay, you know, the ability to pay back anything over $100 million [of] personal wealth because I believe in a maximum wage of $100 million. And if they are unable to live on that amount of that amount then they should, you know, go to the reeducation camps and if that doesn't help, then being beheaded," Barr said with a straight face.
Hate, Character, AntiAmerican, Academia
Let’s get rid of all the economic (expletive) this country represents! Bring it on, I hope the Muslims win! — Chrissie Hynde of The Pretenders