/biz/ - Business & Finance

>>51148391
>>51148415
>>51148433
I'm the anon that posted that pic last thread.
If anything, this should make you go long on WB.
There are all sort of shady tactics film studios can use to make a film that grosses over 1B a loss on paper.
30% is a magic percentage in US law - basically the highest amount allowed to be considered reasonable by US courts.
>highest credit card APR allowed is 30%
>highest consulting fee deductible is 30% of gross
>typical business referral fee is 30%
A percentage of net profits is a favorite trick used by film studios to lure people into accepting less up front or alternative compensation schemes.
Eddie Murphy has called a % of net profits "monkey points" because they are useless
>Everyone in the motion picture business knew that net profits were not really profits. They represented what was left after the studio got back all its costs, generously paid its big-name talent, and took out a hefty chunk for itself. Little wonder Eddie Murphy called net profits "monkey points."
Other people who have done business with hollywood can corroborate these things. Bill Burr's episode on the JRE has a great dialogue between the two about how scummy these hollywood people are.
Bill Burr took a deal where the film studio takes 40% of the gross profit for his special and he takes 60% of net profits.
And he reveals "those fucking people always made more money than me"
https://www.youtube.com/watch?v=eGsB7hE_cFo
Every corporation uses scummy accounting tactics and tax loop holes to reduce taxable income. But hollywood is the most egregious and repeat offender. Screwing over so many creators, writers, actors, authors, etc.