[Upd-discuss] huh: Hollywood copes with digital age

[Michael Hart]

The secret is in how they count profits and success.

Hollywood accounting is VERY creative and tricky.

The studio's 5% is counted AFTER George or Steven get their $100 million,
and everyone else is paid off, too, right down to the parking lot guard.

Michael


On Fri, 2 Jun 2006, M Featherston wrote:

> That's a good question. Movie studios obviously need to make money,
> just like any other business, but their chosen line of business is
> somewhat unique.
>
> So, if 4 out of ten movies make money, everything is ok for film
> companies. In baseball, you are considered a successful hitter if you
> succeed 3 out of 10 times.
>
> I think the movies makers, the old guard I mean, will probably do
> pretty much the same thing that they have done for decades. I think
> market forces beyond their control may eventually change them, but it
> is going to have to be something very dramatic. Plus, it makes sense
> that film producers look at other way to make money off of films.
>
> MLF
>
> On 6/2/06, Mashilamani Sambasivam <mashi3981@yahoo.com> wrote:
>> On how hollywood is coping with filesharing:
>> http://news.bbc.co.uk/1/hi/programmes/click_online/5019472.stm
>> 
>> Another interesting programme was:
>> http://www.bbc.co.uk/pressoffice/pressreleases/stories/2002/04_april/22/hollywoodinc.shtml
>> 
>> Extracts from the programme:
>> <quote>
>> *A film costs tens to hundreds of millions of dollars.
>> 
>> *For a studio, as an investment, 6 out of 10 films
>> fail.
>> *For a studio, as an investment, they get 5% return.
>> They can get more if they put the money in the bank.
>> </quote>
>> 
>> what I am getting at is why do the studios put so much
>> effort (0.1 to 1 million dollars per minute of film
>> footage), time and money if the studios can get much
>> better return on investment elsewhere. The obvious
>> is deeply influencing culture. But apart from that,
>> what is so important about movies?
>> 
>> anyone have any thoughts on any of the above?
>> 
>> Masi
>> 
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