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Warner Bros. is now erasing games as it plans to delist Adult Swim-published titles
(www.polygon.com)
this post was submitted on 08 Mar 2024
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I honestly don't understand the math of not releasing movies and un-releasing games. People say tax purposes but I'd think streaming is essentially pure profit, hard to imagine not being able to make 20% of your money back or whatever credit you get for taxes.
Think of it like Russian nesting dolls.
You got the production company that pays $100 million to make a movie. The production company is owned by a studio. Production company licenses the movie to the studio that owns it for $200 million. But it’s all the same ownership and no money changed hands. It’s just on paper. So now the $100 million movie cost $200 million. Then the studio licenses out the movie to the marketing company, which the studio also owns, for $300 million. Again no money changed hands and the value is all on paper.
Do that a couple more times and that’s how a movie that literally cost $100 million and made $500 million at the box office “barely broke even”.
Might be off on the layers, but I heard that description of movie accounting years ago.
It's also how the studios fuck over anyone involved who had "profit share %" in their contract.
The marketing costs eat up 100% of the profits, movie makes no money, yet the marketing company the advertising was sold to made half a bill...
Exactly. I left that part off since I thought it was already a long description. But completely true. Can’t pay out an actor that takes a percentage if it never made any money on the “official” paper.