most movies that are considered 'successes' wind up losing money. It's actually just like the movies. The movie is set up as a corporation, which is funded by

most movies that are considered 'successes' wind up losing money. It's actually just like the movies. The movie is set up as a corporation, which is funded by an investment by the studio (read:venture capital). The movie is made by the producer, director, actors, crew (founder, advisors, employees, contractors). The movie is released (public launch), and hopefully after a few months of being in theaters (ramen profitable), the movie leaves theaters (makes an exit). The corporation that was formed to make the movie pays back the studio (its investors), and the producers, directors, and maybe the lead actors get their backend cut (stock options). The corporation always "loses money" because the studio always gets paid back.