So many bad movies are being released constantly – are they all losing money?

Question

I really don’t get it how it works. Making a movie costs a lot of money, even if it is not a blockbuster.

So many TERRIBLE movies are being released every month. How are all they making profit?

In: Other

Answer 1

[Hollywood Accounting](https://en.wikipedia.org/wiki/Hollywood_accounting) is a term you should research.

Even if the accounting was done in the same way as other industries, I read recently that a movie that cost 65 million to make is considered a flop because it only made around 67 million. That is 2 millions dollars in profit, but they put 65 million at risk to make that, so that is like a 3 percent return. Investors want a higher return than that, so they call it a flop.