Monday, June 27, 2011

Graft, Fraud, and Corruption in America

How can a billion dollar grossing film end up "losing" a major studio $167 million?

Well, here's how Harry Potter and the Order of the Phoenix film, which had the 4th biggest opening weekend gross of any film in history supposedly "lost" money:

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I think it is funny how Americans complain about bribes, graft, and corruption elsewhere in the world. They just down see it in their own backyard!

To find out more details, read this article in Deadline:
Signing a deal that makes anyone a net profit participant in a Hollywood movie deal has always been a sucker’s bet. In an era where studios have all but eliminated first dollar gross and invited talent to share the risk and potential rewards, guess what? Net profit deals are still a sucker's bet. I was slipped a net profit statement (below) for Harry Potter and The Order of the Phoenix, the 2007 Warner Bros sequel. Though the film grossed $938.2 million worldwide, the accounting statement below conveys that the film is still over $167 million in the red.

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