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Re: [dvd-discuss] 2001 Best year ever for movies



So what's so different about Hollywierd than any other business? Jack is 
just showing the Hollywierd accounting mentality. Because they are so 
special they have to be given such special breaks and they have created 
some of the the most bizarre accounting in history.  Because they are so 
special, they are entitled to move profits from successful pictures to 
unsuccessful ones (which they can write off as losses so they don't have 
to pay out to any of the investors. Mel Brook's "The Producers" is 
actually a satire on Hollywierd accounting). 

One thing that has changed in the last 15yrs is that until 1950, films 
were made and released and then they sat in vaults (or were destroyed in 
some instances). Sometimes they would rerelease a film in the theaters but 
rarely. Then TV gave them a market for all those films that were working 
on their way to spontaneous combustion of the nitrocellulose stock that 
were sitting in the vaults. But that controlled that somewhat. The VCR has 
given them another set of winners to pay for their losers - classic films. 
They have a market already. The film is paid off. Only mastering is 
required and they don't even have to deal with distribution of it. Its 
found money for them and they want to keep the flow coming but also 
control it. Hence the DVD.






Scott A Crosby <crosby@qwes.math.cmu.edu>
Sent by: owner-dvd-discuss@eon.law.harvard.edu
03/07/02 03:40 PM
Please respond to dvd-discuss

 
        To:     mickey <mickeym@mindspring.com>
        cc:     <dvd-discuss@eon.law.harvard.edu>
        Subject:        Re: [dvd-discuss] 2001 Best year ever for movies


On Wed, 6 Mar 2002, mickey wrote:

>
>
> http://www.foxnews.com/story/0,2933,47200,00.html
>
> How many films did the major film studios make in 2001? By the "two out
> of ten" guide,  around 100?

Both sets of numbers are completely believable. Most films flop.  Only a
few films actually make money, but those that do, make it BIG. Same thing
with large-scale commercial music. Most bands lose money, but those ones
are funded by the ones that make money.

So, if we have 10 movies. All cost $10M to make. 2 make $50M, the rest
make $3M, then it is perfectly true that we can have a great year,
making a profit of 24%, yet, have 80% of our movies make barely a third of
their money back. :)

So, Valenti is complaining about the risks of the movie business. But in a
self-serving fashion in front of congress, cause its ALWAYS been that way.

Scott