Wednesday, 21 July 2010

Every movie loses money

Apparently there have been a couple of court cases recently where it's been revealed how Hollywood companies cook their books and set up shell corporations so that the bottom line of every single movie is a net loss while the parent corporation remains filthy rich.

Basically it goes like this: every movie is made under a separate organisation, owned by the parent company. That individual movie company is charged enormous fees by the parent company so that the balance sheet comes out negative. At that point, the parent company disbands the small company, pockets the profits and tells a sob story to anyone who's entitled to a share.

Jurors aren't buying it because who would? Under even the most incompetent cross-examination it would have to come out that the parent company gets the money that was "lost" and both companies are one and the same.

Mokalus of Borg

PS - Exploiting loopholes like that always looks crooked.
PPS - That's because it's evil.


Charles said...

I pray for Hollywood to break off into the ocean.

Is that mean?


John said...

Well, yes. Pretty much. But you know someone would still make a movie about it.