Hollywood Never Turns A Profit

It’s interesting that anytime you see a new film, whether at the cinema or on DVD, you’re unwittingly putting money in the palms of corporations that hardly ever turn a profit.

This is because most, if not all, Hollywood blockbusters use creative accounting to avoid the dreaded net profit figure.

[According to the Accounting Technician magazine May/June 2016 Edition] The ‘Return of the Jedi’ took in $475m on a budget of $32m but didn’t make a profit. ‘The Blind Side’ turned $49m into $400m but didn’t make a profit. ‘Harry Potter and the Order of the Phoenix’ was a hit with $612m income against a budget of $150m but declared a loss.

I suppose in a way, you could say that, as a generous punter, you pay the tax on the money being passed on to them so that they don’t have to.


About Phoenix

Accountant | Tax Specialist | Dreamy Entrepreneur | Blogger


2 thoughts on “Hollywood Never Turns A Profit

  1. I couldn’t access the article in the link but I’m interested in learning more about how they do this creative accounting.

    Posted by The Meades | August 17, 2016, 10:35 pm
  2. I bet you are! 😉

    Posted by Phoenix | August 17, 2016, 10:36 pm

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