I saw an article that the movie “I.S.S.” made 1.2 million this opening weekend. I’m no movie expert but I’m guessing it cost a lot more than that to make.
Not trying to make an argument about whether they’re good or not, but it seems that the last 4 or 5 WB/DC Super Hero movies bombed hard, too. How does WB continue to make movies if each one makes less than it cost??
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Hollywood accounting; They pay themselves for the services they provide to distribute the film from the film’s budget. This is not considered profit.
I.e Movie Co pay Movie Co productions $100m to make a Movie
Movie Co pay Movie Co Distribution $100m to distribute the Movie. The cost to make the Movie is $200m, but flops and only makes $100m. Movie Co loat £100m
However the Movie cost Movie Co Production $10m to make and Distribution only cost Movie Co distribution £1m.
Movie Co are given tax relief due to lack of profit and Movie Co Productions and Movie Co Distribution are sat in some tax haven.
Movie Co Productions and Movie Co Distribution are owned mostly by Movie Co shareholders.
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