{"id":18665,"date":"2022-02-16T14:24:50","date_gmt":"2022-02-16T08:54:50","guid":{"rendered":"https:\/\/www.primafelicitas.com\/?p=18665"},"modified":"2026-02-03T10:26:07","modified_gmt":"2026-02-03T10:26:07","slug":"when-the-established-film-industrys-money-math-doesnt-add-up","status":"publish","type":"post","link":"https:\/\/primafelicitasdemo.com\/prima\/blockchain\/when-the-established-film-industrys-money-math-doesnt-add-up\/","title":{"rendered":"When the Established Film Industry\u2019s Money Math Doesn\u2019t Add Up"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h1 class=\"wp-block-heading\" style=\"font-size:24px\">When the Established Film Industry\u2019s Money Math Doesn\u2019t Add Up<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">What would you think of a company that took in a lot more money than it spent but reported only losses? With most kinds of companies, it would seem scandalous. In the case of Hollywood production companies, though, it wouldn\u2019t be unusual at all.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s commonly assumed that big names in Hollywood mean big salaries. And if you\u2019ve ever stuck around through the credits at the end of a movie, you know there are a lot of people to pay when it comes to studio expenses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, what you might not know is how established film industry money math can bloat expenses to make gains look like losses. It doesn\u2019t always happen with a production, but it happens enough to make \u201cHollywood accounting\u201d an actual term for an unreal financial practice with a not-so-praiseworthy purpose.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-and-why-some-studios-let-blockbusters-bomb-budgetwise\" style=\"font-size:22px\">How and Why Some Studios Let Blockbusters Bomb, Budgetwise<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Whatever the intention one may pin on the execs and number crunchers involved, it\u2019s no secret that some <a href=\"https:\/\/matt-rickard.com\/gross-not-net\/\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>obviously profitable movies have ended up looking like flops<\/strong><\/a> because their returns were dubiously reported as losses:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Blockbuster Film<\/strong><\/td><td><strong>Box Office Earnings<\/strong><\/td><td><strong>Budget<\/strong><\/td><td><strong>Reported Loss<\/strong><\/td><\/tr><tr><td>Star Wars: Return of the Jedi<\/td><td>475<\/td><td>32<\/td><td><a href=\"https:\/\/www.slashfilm.com\/503174\/lucasfilm-tells-darth-vader-that-return-of-the-jedi-hasnt-made-a-profit\/\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>\u201cNever made a profit\u201d<\/strong><\/a><\/td><\/tr><tr><td>Forrest Gump<\/td><td>683<\/td><td>55<\/td><td><a href=\"https:\/\/www.slashfilm.com\/503174\/lucasfilm-tells-darth-vader-that-return-of-the-jedi-hasnt-made-a-profit\/\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>-62<\/strong><\/a><\/td><\/tr><tr><td>Harry Potter and the Order of the Phoenix<\/td><td>942<\/td><td>150<\/td><td><a href=\"https:\/\/screenrant.com\/harry-potter-order-phoenix-box-office-loss-explained\/\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>-170<\/strong><\/a><\/td><\/tr><tr><td>Men in Black<\/td><td>589<\/td><td>90<\/td><td><a href=\"https:\/\/www.yahoo.com\/now\/men-in-black-profits-ed-solomon-104552239.html\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>\u201cNever made a profit\u201d<\/strong><\/a><\/td><\/tr><tr><td>Coming to America<\/td><td>288<\/td><td>36<\/td><td><a href=\"https:\/\/www.pajiba.com\/box_office_round-ups\/10-movies-that-made-hundreds-of-millions-in-boxoffice-dollars-and-yet-somehow-showed-no-profit.php\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>\u201cNo profit\u201d<\/strong><\/a><\/td><\/tr><tr><td>Bohemian Rhapsody<\/td><td>911<\/td><td>55<\/td><td><a href=\"https:\/\/deadline.com\/2021\/11\/bohemian-rhapsody-profits-lawsuit-queen-freddie-mercury-writer-anthony-mccarten-fox-1234876595\/\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>-51<\/strong><\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">(Numbers in millions, USD)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-hollywood-accounting-is-done\" style=\"font-size:22px\">How \u201cHollywood Accounting\u201d Is Done<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Essentially, a film\u2019s production is set up as a corporation, more specifically a shell corporation, which takes the money a movie makes and hands it to the studios. From there, film industry money madness can take off, with the studios paying themselves whatever they want for virtually any kind of production-adjacent expense, inflating costs to make it look like there\u2019s no profit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This flexibility\u2014as exercised in a culture that\u2019s widely secretive about the finances of productions as it is\u2014is what allows Hollywood accountants to claim a loss despite good earnings. Producers have even been known to <a href=\"https:\/\/entertainment.howstuffworks.com\/hollywood-accounting.htm\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>assign expenses to the currently highest-grossing movie<\/strong><\/a> to affect ultimate financial results.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So why would a studio undercut the true economic value of a movie, making profits look like losses, when other kinds of companies do their best, legitimately or not, to make themselves look as profitable as possible?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As we\u2019ll see shortly, many of those who create and appear in film productions have already made up their minds about the answer to that question, claiming it\u2019s a way to keep them from receiving a share of the profit they\u2019re due. After all, if a production looks like a loss on paper, there\u2019s no profit to share in.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"who-s-hurt-by-fuzzy-film-financing-and-some-who-ve-fought-it\" style=\"font-size:22px\">Who\u2019s Hurt By Fuzzy Film Financing, and Some Who\u2019ve Fought It<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<figure class=\"wp-block-gallery aligncenter has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" data-id=\"18698\" src=\"https:\/\/www.primafelicitas.com\/wp-content\/uploads\/2022\/02\/Film-crowdfunding-1100x483.png\" alt=\"The Problem of Time-Efficiency in dApp Development\" class=\"wp-image-18698\"\/><\/figure>\n<\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">A notable example of one such claimant, among many, is the actor playing Darth Vader, <a href=\"https:\/\/dorksideoftheforce.com\/2015\/07\/28\/david-prowse-told-by-lucasfilm-star-wars-return-of-the-jedi-not-profitable\/\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>David Prowse<\/strong><\/a>, who\u2019s received no share of profits from <em>Return of the Jedi<\/em> as contracted for. Although this will likely seem ridiculous if you know about the success of Star Wars movies at all, the table previously shown reveals the actual numbers that prove it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In fact, many performers and creators in similar situations have sued over the falsely reported value of a movie project they\u2019ve contributed to. Examples include actors such as <a href=\"https:\/\/www.hollywoodreporter.com\/business\/business-news\/kevin-costner-settles-lawsuit-robin-724616\/\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>Kevin Costner<\/strong><\/a>, whole teams of actors and creators such as <a href=\"https:\/\/www.lamag.com\/culturefiles\/scarlett-johansson-lawsuit-disney\/\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>those behind <em>This is Spinal Tap<\/em><\/strong><\/a>, screenwriters such as <a href=\"https:\/\/deadline.com\/2021\/11\/bohemian-rhapsody-profits-lawsuit-queen-freddie-mercury-writer-anthony-mccarten-fox-1234876595\/\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>Anthony McCarten<\/strong><\/a> (for <em>Bohemian Rhapsody)<\/em> and directors such as <a href=\"https:\/\/www.hollywoodreporter.com\/business\/business-news\/michael-moore-harvey-weinstein-fahrenheit-911-lawsuit-291581\/\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>Michael Moore<\/strong><\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With so many examples across different kinds of productions and roles, \u201cHollywood accounting\u201d has become commonly known and tolerated despite being highly unacceptable. However, such cockamamie calculations don\u2019t <em>have<\/em> to be the status quo.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That\u2019s because new paradigms of film production financing, such as Film.io\u2019s blockchain-based movie crowdfunding platform, offer established film industry alternatives that ensure all stakeholders are treated fairly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Essentially, <a href=\"https:\/\/film.io\/\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>Filmio<\/strong><\/a> is for those who simply want to make great movies with other creatives and fans but also get paid what they\u2019re really worth, from what their work can really earn.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"finally-seeing-behind-the-screen-as-well-as-what-s-on-it\" style=\"font-size:22px\">Finally Seeing Behind the Screen as Well as What\u2019s on It<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.primafelicitas.com\/wp-content\/uploads\/2022\/02\/Film-crowdfunding-1100x483.png\" alt=\"Film crowdfunding\n\" class=\"wp-image-18698\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">With Film.io\u2019s movie crowdfunding platform, it\u2019s virtually impossible for creators to be edged out of profitable movies by fabricated figures, for many reasons.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First of all, the way Film.io\u2019s platform is blockchain-based ensures a production\u2019s transparency because blockchain technology is immutable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Not only does Film.io\u2019s transparency set it apart from the established film industry\u2019s opaqueness, but many of the groundbreaking platform\u2019s other qualities also set it apart, and refreshingly so. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With Film.io, fans aren\u2019t set up to just passively accept the kinds of movies they happen to be able to access or share their insights through relatively ineffective, traditional evaluation methods such as screenings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead, among many other functions such as communicating directly with creators, fans can vote to greenlight which movies are produced, through Film.io\u2019s special utility movie token, the FAN Token. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Indeed, a movie\u2019s financing is based on definitive metrics at every step through Film.io\u2019s innovative \u2018Go Score\u2019, which is substantially based on fan input and largely determines how a film is funded, produced and distributed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this way, Film.io\u2019s system is as efficient as it is transparent, as films on its platform aren\u2019t financed until they have enough potential to succeed. In the process, Film.io is setting a new standard of accountability and accuracy in film financing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ultimately, with Film.io, fans see the movies they want to see and creators\u2019 rights are treated with respect through contracts whose transparency is technologically guaranteed. What\u2019s more, producers are held to a higher standard and investors are provided with more accurate, fan-driven metrics about more carefully and consistently developed projects.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Not only that, for all of you movie makers out there who just want your voice heard and project greenlit, Film.io\u2019s platform levels the playing field, enabling audience building and fan interaction to anyone who has access to the internet.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><a href=\"https:\/\/www.primafelicitas.com\/contact-us\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Contact us<\/strong><\/a> now if you are interested in <strong>Blockchain \/ NFT Services<\/strong> etc, <a href=\"https:\/\/www.primafelicitas.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>PrimaFelicitas<\/strong><\/a> can bring you the best results.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n","protected":false},"excerpt":{"rendered":"<p>When the Established Film Industry\u2019s Money Math Doesn\u2019t Add Up What would you think of a company that took in 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