Author Topic: How movie money works  (Read 734 times)

BrianDzyak

  • Administrator
  • Full Member
  • *****
  • Posts: 157
    • View Profile
How movie money works
« on: April 26, 2015, 08:52:33 AM »
http://johnaugust.com/2011/how-movie-money-works

Quote
When you read articles claiming every Hollywood movie loses money, an obvious question arises: “Why do they keep making them, then?” In this installment, John and Craig explain how the film industry spends and makes money.

It’s a big and complicated topic. You could easily spend a semester studying it — John did — but this overview should give you a sense of how it all works.

The most important thing to understand is that each film is accounted for separately. Studios charge distribution fees that earn money for the company without paying down the investment in each movie. That’s how Theoretical Pictures can turn a profit even when each of the last 20 films it has released shows a loss.

Because we’re throwing a lot of terms around this episode, here’s a handy cheat sheet:

CLICK ON LINK ABOVE FOR FULL ARTICLE AND PODCAST