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.
I couldn’t access the article in the link but I’m interested in learning more about how they do this creative accounting.
I bet you are! 😉