There’s a famous phrase called “Hollywood Accounting”. It’s a creative approach to accounting, in order to make a profitable business venture (i.e. movies) look like a loss. Traditionally, this has been used to reduce taxes and dodge contractual obligations, as some were paid a percentage of profits.
Generally, it means shuffling the money around. CBS lost $40m, to make another business unit (in a tax-advantaged location) a ton of money.
Counterpoint: LotR trilogy, where we know pretty much everything about the production and income (a lot of income), somehow mysteriously stays unprofitable to this day.
There’s a famous phrase called “Hollywood Accounting”. It’s a creative approach to accounting, in order to make a profitable business venture (i.e. movies) look like a loss. Traditionally, this has been used to reduce taxes and dodge contractual obligations, as some were paid a percentage of profits.
Generally, it means shuffling the money around. CBS lost $40m, to make another business unit (in a tax-advantaged location) a ton of money.
Doesnt quite work for broadcast TV where the income from advertising on a show is roughly known by observers, as is roughly the budget.
Doesn’t change the point I was making. If the producers want to make it look like it’s losing money, they absolutely can.
They could still charge ridiculous fees for the studio, licensing the name or any number of different things.
A common one is the studio has to pay a sister company “distribution fees” or similar. These fees just happen to be the expected profit…
The Ed Sullivan Theatre is insanely expensive. If CBS could be shot of it they’d be happy.
Counterpoint: LotR trilogy, where we know pretty much everything about the production and income (a lot of income), somehow mysteriously stays unprofitable to this day.
yeah, you’ve got this one wrong tho. both film and tv do some wackadoodle shit with the monies.
i work in the industry and have both seen it and have been expected to participate in it.
it’s straight up money fuckery that doesn’t make sense unless you have the waaaay zoomed out view.