Hollywood Accounting — How Harry Potter Loses Money 447
An anonymous reader writes "Techdirt has the details on how it was possible for the last Harry Potter movie to lose $167 million while taking in nearly $1 billion in revenue. If you ever wanted to see 'Hollywood Accounting' in action, take a look. The article also notes two recent court decisions that may raise questions about Hollywood's ability to continue with these kinds of tricks. For example, the producers of 'Who Wants To Be A Millionaire' now have to pay $270 million for its attempt to get around paying a partner through similar tricks."
The Terrible Economy Threatens Even the WB (Score:5, Funny)
My thoughts and prayers are with Hollywood and the families of everyone involved with such quality original films.
Re:Peter Jackson (Score:5, Funny)
Wait...if they claim they are losing money on every copy they sell, aren't the pirates saving them money?
MPAA's Piracy Statistics (Score:5, Funny)
Re:Not a new trick (Score:5, Funny)
Shrimps are expensive.
Paging Washington (Score:5, Funny)
Obviously Hollywood needs a government bail out. First the pirates were cutting into sales, and with all these extremely successful movies that have lost millions, Congress must do something fast!
Re:Peter Jackson (Score:5, Funny)
Jackson's contract is for a cut. What's crazy is, in hollywood everyone knows to ask for a cut of the *gross*, not net. I can buy the idea of magic rings, elves, dwarves, hobbits, dragons, ents, wizards, and so forth, but a net reported profit on a Hollywood movie? That's just fantasy.
Re:Not a new trick (Score:5, Funny)
Life is like a box of chocolates...where someone has eaten the middle out of every one.
Re:Peter Jackson (Score:5, Funny)
That's why piracy has GOT to be stopped immediately. It foils the movie makers' tax dodge (and revenue sharing dodge)
Let's see them bring THAT justification to congress, on why it is imperative for the economy to make tougher anti-pirate laws
Re:So this means (Score:2, Funny)
So this means I should pirate more movies, since my pirating isn't hurting their wallet as much as they claimed it was yes?
When pirating, you never took into consideration whether or not it would hurt anyone's wallet except your own, so continue pirating at your regular rate. If you ever get caught (unlikely) you can tell them falzer on Slashdot said it was OK.
Star Trek interview (Score:5, Funny)
Years ago I read an interview with one of the cast members of the original Star Trek. He said that the most creative writers were the finance guys who claimed that in 30 years of reruns that Star Trek has never made a profit. (I think the interview was in the early 90's) Unfortunately I do not recall who that was.
Re:Not a new trick (Score:5, Funny)
And Star Wars (4-6) - the guy who was actually in Darth Vader's suite never got paid for the role.
I mean, why should he? That freeloading bas**rd was just hanging around Vader's suite? Being such a key figure in the Empire, he's probably got his suite outfitted with all sorts of luxuries.
note: suite and not suit
Re:No it doesn't (Score:4, Funny)
Tack a negative sign to the box office take in.
Re:Peter Jackson (Score:5, Funny)
Re:Hollywood is different (Score:3, Funny)
Tax avoidance through expense maximization and income minimization
Yeah, you would not believe the amount of taxes I avoid paying through income minimization.
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Perfect movie for this theme (Score:5, Funny)
Forrest Gump: A producer?
Guy: That signed you up and fucked you.
Forrest Gump: Oh, yes sir. Fucked me right in the buttocks. They said it was a million dollar contract, but the studio must keep that money 'cause I still haven't seen a nickel of that million dollars.
Re:Let's not jump to conclusions (Score:5, Funny)
Avatar had writers?
Re:Not Hollywood alone (Score:3, Funny)
Re:Peter Jackson (Score:5, Funny)
Re:ENTERTAINMENT BUSINESS COMPLETELY OWNED BY JEWS (Score:2, Funny)