Editorial: How A $19 Million Movie Makes $150 Million... And Still Isn't Profitable

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  10 October 2012
Quote: I remember an episode of Freakazoid that touched on this -

that was a cool cartoon, along with animaniacs, lol
Heights of great men reached and kept were not attained by sudden flight, but they while their companions slept were toiling upwards in the night.
  10 October 2012
Originally Posted by imashination: Im mostly surprised neither he nor his agent knew about this, isnt it fairly common knowledge that every movie made will have the numbers massaged to ensure it doesnt turn a profit?

This might be getting taken a bit too far...
Actually a lot of movies, even after the HWA treatment, do turn a profit and correspond the quotas to writers and directors who had contractual options to receive them.

There's also a bit missing, which is that on a rated, even if low budget, movie the marketing expenses can easily be five to fifteen times the cost of the movie itself, and there's a slew of other numbers being hustled around.

We're making it sound like every movie is always 0 profit on all sides regardless of its impact, that is not the case, if it was you wouldn't see writers and directors complaining when this happens. They complain because they will have got their shares before a number of times, just they are a fraction of what they would be if movies were number crunched transparently, but if that was the case, then the marketing and production machines would have to change gears considerably too, and A-List names wouldn't get their 7-25 mills caches anymore.
Come, Join the Cult http://www.cultofrig.com - Rigging from First Principles
  10 October 2012
Originally Posted by plastic: Actually I'm doing the same when freelancing.
I pay taxes of what I earn, minus business expenses.
So every year I'm figuring out how I can maximize business expenses, like buying new computer, buying software, etc.

Not the same at all.
All you're doing is bracketing your net where it's convenient for you accounting for other factors.

What HWA is largely about would be the equivalent of you taking a job, then opening a company in someone else's name, subbing the job to that company, and charging fees back and forth until that company is at a loss and can be foreclosed at 0, and then opening a third in someone else's name again and have that company invoice your main one for the entire amount of your net left to complete the job botched by the second so you 0 out your main name as well, and then lastly having running/opening costs for that third so artificially inflated and confused that it's also at a loss and can be closed.

If you're doing something like that for one-man-band freelancing I tip my hat to you for your financial shrewdness
Come, Join the Cult http://www.cultofrig.com - Rigging from First Principles
  10 October 2012
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