Continuing their discussion of the creative side of Hollywood accounting, Dan and Horace take a look at the way income from movies is distributed and why no movies ever make money. The observations sharpen focus on the over-arching influence distribution has on the creative process.
5by5 | The Critical Path #21: Negative Costs.
The following chart is a visualization designed to accompany the podcast:
Compensation based on “Net income” depends on there being a surplus rather than deficit. The problem is that the Fees and claims on income increase as they are defined as a percent of total income so the goal of break-even is a moving target.
The Negative Costs are approximated by the production costs as discussed and visualized in the previous podcast here.
Discover more from Asymco
Subscribe to get the latest posts sent to your email.