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They did an interesting article on that: http://priceonomics.com/why-do-all-hollywood-movies-lose-money/ http://priceonomics.com/why-do-all-hollywood-movies-lo

• Retric 12y ago
  The most interesting part of that is the line where people need to agree to follow Hollywood accounting as part of the contract and actors have a large incentive to 'exaggerate' their income. Still, I suspect a more honest studio could quickly gain a lot of traction.
  • delinka 12y ago
    "Honesty" is a logistical headache when it comes to recorded performances. Imagine, before digital distribution, tracking every movie ticket, every rental, every purchase (don't forget discounts like matinée tickets, coupons, clearance, etc), every clip used where royalties are due, etc ... and paying royalties to every face in your movie, at various rates depending on screen time or 'voice' time... As the talent, it's just easier to demand a large payment up front and just forget about the royalties. As the studio, it's easier just to pay that amount up front. Then, magic voodoo accounting and poof any statutory royalties are eliminated. I suppose in this case, the "honest" studio is negotiating that large up-front payment to its talent rather than trying to sell the talent on the eternal royalties that never come.
  • sogen 12y ago
    Maybe that's why these days actors demand a % of the profits: "Bullock's deal with Warner Bros. for the Alfonso Cuaron-directed space epic calls for her to earn $20 million upfront against 15 percent of first-dollar gross. " USD $70 million USD $50 million for Robert Downey Jr. on Iron Man 3 Not too bad