Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

To: bnelson44
There isn't a net figure to find. The studios don't publish net figures. They charge a bookkeeping fee to themselves and recycle the accounting so movies never, or rarely, go into the black to people on the outside. They charge overhead to a movie's profits, they have all kinds of profit participation and distribution deals, and they charge THEM for the accounting--which the studio itself performs. They do this everytime they give an accounting to one of their participants, so the "profit" keeps dropping to the naked eye while the studio enjoys the profits.

It's one of the reasons why if you were to write a screenplay or act in a movie and are offered net points, you should laugh very hard, because you will never see them. And only a handful of people earn gross points. Spielberg is one of them, but he also owns Dreamworks, so technically his participation would cut into the net-except he's profitting.

Stop looking for the net; you won't find it.

39 posted on 07/19/2005 7:04:19 PM PDT by Darkwolf377 (Dean won't call Osama guilty without a trial, but DeLay and Rove should be in jail)
[ Post Reply | Private Reply | To 36 | View Replies ]


To: Darkwolf377

thank you


49 posted on 07/19/2005 8:05:03 PM PDT by bnelson44 (Proud parent of a tanker!)
[ Post Reply | Private Reply | To 39 | View Replies ]

To: Darkwolf377
There isn't a net figure to find. The studios don't publish net figures. They charge a bookkeeping fee to themselves and recycle the accounting so movies never, or rarely, go into the black to people on the outside. They charge overhead to a movie's profits, they have all kinds of profit participation and distribution deals, and they charge THEM for the accounting--which the studio itself performs. They do this everytime they give an accounting to one of their participants, so the "profit" keeps dropping to the naked eye while the studio enjoys the profits.

It's one of the reasons why if you were to write a screenplay or act in a movie and are offered net points, you should laugh very hard, because you will never see them. And only a handful of people earn gross points. Spielberg is one of them, but he also owns Dreamworks, so technically his participation would cut into the net-except he's profitting.

Stop looking for the net; you won't find it.
Ditto!

A movie producer told me that in the movie business, you never accept a percentage of net profit - only a percentage of gross profit if you can get it, or a salary. They adjust, i.e., cook the books, so there is no net profit.

Maybe they find that convenient for income tax purposes. I wonder if they have really good lawyers and accountants that keep them legal, or if they think they are above the law.

66 posted on 07/20/2005 2:01:26 AM PDT by FraudFactor.com (Support redistricting reform to end gerrymandering and achieve more honest and responsive government)
[ Post Reply | Private Reply | To 39 | View Replies ]

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson