Awhile back I did a couple movie-related posts on how many James Bond commercials were out there for his new movie. It made me think of how these Hollywood blockbuster movies rarely show a profit (click here.) Through some accounting slight of hand accounting, movies are able to expense everything including marketing such as expensive commercials and as a result never show a profit. Here’s a simple explanation from an Atlantic article I found on the subject:
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| From http://www.theatlantic.com/business/archive/2011/09/how-hollywood-accounting-can-make-a-450-million-movie-unprofitable/245134/ |
Here is a listing of some movies that generated a lot of moola but never showed a profit:
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| http://www.pajiba.com/box_office_round-ups |
Compare that list to this video listing the top 10 most profitable movies. (Note that Blair Witch, filmed in Maryland, only cost $22K to make. May be the first time ever that something so cheap and yet so profitable was done in Maryland.)