• ShaggySnacks@lemmy.myserv.one
      link
      fedilink
      English
      arrow-up
      6
      ·
      1 day ago

      Welcome to the world of Hollywood Accounting.

      Where movies that gross 4x their budget, somehow took a loss.

      Fun fact, each movie is backed not by the studio or production company. Each movie is backed by it’s own corporation.

      For example: Supergirl is produced by a company called Supergirl Corporation. However Supergirl Corporation doesn’t have any money. However, the Studio and Producers have money. The Studio and Producers loan Supergirl Corporation the money to create the movie.

      Factor the high concentration of corporations owning everything and charging Supergirl Corporation a ton of fees. Supergirl Corporation has gone bankrupt.

      Source: https://brokensecrets.com/2012/05/19/movies-are-corporations-hollywood-accounting/

      Another disturbingly fun fact. The concept of each movie being a corporation is the same concept you can find other industries. For example; Blackstone doesn’t own all those rental properties. Blackstone owns corporations that own those rental properties.

    • dohpaz42@lemmy.world
      link
      fedilink
      English
      arrow-up
      58
      ·
      2 days ago

      I would be shocked (shocked, I say) if Hollywood wasn’t mostly a front for money laundering rings.

      • bizarroland@lemmy.world
        link
        fedilink
        English
        arrow-up
        7
        ·
        2 days ago

        At the same time though, you can save a lot of money if you do everything in house. Especially if you have inexpensive labor.

            • Cypher@aussie.zone
              link
              fedilink
              arrow-up
              1
              ·
              1 day ago

              Yes Japan with its famous expectation of lifelong corporate loyalty kept things cheap with a gig economy.

              • gramie@lemmy.ca
                link
                fedilink
                arrow-up
                1
                ·
                1 day ago

                That expectation was never true for the whole Japanese economy (and referred to large corporations, not the small companies that did most of the work on contract), and is even less true now.

    • The_Lurker@lemmy.world
      link
      fedilink
      arrow-up
      6
      arrow-down
      1
      ·
      2 days ago

      The whole reason the film industry is on the west coast is that they were trying to avoid paying for Edison’s patent on the motion picture camera. So, yeah, Hollywood was founded on IP violations.

    • HazardousBanjo@lemmy.world
      link
      fedilink
      arrow-up
      4
      ·
      2 days ago

      I mean yeah.

      Where do you think all the money for the biggest box office movies goes to? Like 3-5 people on top, then little goes to the main cast/crew, then quality fx and editing are an afterthought.

    • iatenine@piefed.social
      link
      fedilink
      English
      arrow-up
      4
      ·
      2 days ago

      A lot of movies get their budgets from hedge funds because they aren’t generally strongly correlated with the overall market but that’s where the earnings of movies return, not the recipients of the 200M$ spent