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By now, even the shittiest movie produced in the 90s has had so many tv runs, so many VHS and DVD units sold, that all production losses and fixed fees have bee
by caf 14y ago
By now, even the shittiest movie produced in the 90s has had so many tv runs, so many VHS and DVD units sold, that all production losses and fixed fees have been recouped.
I'm not so sure about that. The movie business is notoriously crappy - most movies never recoup their costs. It's the few wild successes that keep the studios afloat.
On the other it is true that the marginal cost of selling digital downloads of back catalogue movies is close to zero.
- phurley 14y agoSee http://en.wikipedia.org/wiki/Hollywood_accounting http://en.wikipedia.org/wiki/Hollywood_accounting the movie studios can have a movie that "never recoups their cost" and yet they somehow make money off the enterprise. I am not saying they don't occasionally take a bath on a bad bet, but they do well most of the time (the percent of break even or better is much higher than they like to admit).