Comment by Tangurena2
5 hours ago
My state, like many others, offers rather large tax credits to make films inside this state.
> the entertainment industry's economics are brutal
A large part of those economics are self-inflicted. The money is "loaned" to the production company at credit card rates with repayment from the receipts from theater viewing years later. Depending on how "big" the movie is, 95-100% of the box office receipts for the first 2 weeks of a theater run go back to the studio (so the movie theater survives on selling popcorn and stuff). This tapers down until the theaters get 100% of ticket sales about 2 months later. The last movie that theaters made profits from displaying was The Full Monty - it got a small release in 1997 but those theaters played the movie for months.
I worked with some guys who did special effects for movies & TV shows.
>so the movie theater survives on selling popcorn and stuff)
Apparently some of those profits now go to the studio too? Some of the deals being made sound borderline criminal to me.
This sounds like the "360 contracts" that record companies require bands to sign. When bands are touring and getting an audience, they frequently sell CDs and T-shirts. The "360 contracts" require the band to give a percentage of that income to the record company and frequently require them to purchase CDs from the company at a higher-than-wholesale prices.