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That's probably just Hollywood Accounting, where everything makes a loss so you don't have to pay out to anyone who signed up for a share of the profits: https
by arethuza 7y ago
That's probably just Hollywood Accounting, where everything makes a loss so you don't have to pay out to anyone who signed up for a share of the profits:
https://en.wikipedia.org/wiki/Hollywood_accounting https://en.wikipedia.org/wiki/Hollywood_accounting
e.g. Apparently the Lord of the Rings movies made losses using these rules...
- babypuncher 7y agoThat hasn't been an issue for years. People know to ask for a % of the gross rather than the net. It helps that almost every creative position in Hollywood is protected by a union.
- jsmith45 7y agoI've literally seen contracts that define promise n% of "____ gross", where "____" is some inconspicuous seeming word, but they then define that phase in such a way that it does not even remotely correspond to the actual gross. So knowing that you want gross instead of net is nowhere near good enough to avoid getting screwed. (In the case I am referring to a book author who sold movie rights was screwed over by a contract specifically misworded to sound like she would be getting a percent of of gross, when the actual definition used was much closer to that of net).