From a movie business standpoint, what exactly are the repercussions when a film “bombs at the box office”?

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Whether it’s due to bad reviews, people not just showing up to watch, or other factors, what happens afterwards behind the scenes when a film tanks?

In: Economics

9 Answers

Anonymous 0 Comments

From a business standpoint, they write off the losses as a business loss and use that against the taxable revenue from other projects. Also, any payouts to actors or others that are calculated from profits as opposed to gross revenue don’t get paid.

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