AEfx
Well-Known Member
Great, another “Hollywood accounting” discussion. It’s a tax avoidance scheme. If you never post a gross profit, the corporation which holds the film’s copyright is never taxed. Any monies the film makes are sent to predetermined parties, studio, investors, actors and crew, as expenses so revenues are never greater than expenses.
This isn’t hard.
These films do make money, but it’s only the taxman, and some suckers, who don’t see a profit. TFA made money on its investment and so will TLJ. Saying they’re failures is preposterous.
Conversely, some people don't understand that when a film makes grosses $1B dollars, it doesn't actually *make* $1B.
In the case of TLJ, it needed to hit about $800M gross in order to break even when you account for theater percentages, advertising, costs of making the film, etc. Clearly, it will make that, and what happens after is profit.
That's why the stupid articles today showing up saying "New Star Wars films surpass the $4B amount Disney paid for Lucasfilm!" like it means anything are really so stupid and clickbaity. I still firmly believe that it's the best investment the WDC ever made, but that doesn't change how relatively meaningless that is.