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We're likely to start hearing unionbusting lies about how studios and streamers can't afford to pay actors fairly because “the writers took all the money.”
(sh.itjust.works)
this post was submitted on 04 Oct 2023
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Antiwork
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In this thread: people who don't know the difference between revenue and profit.
I'm not trying to discredit the protests, they are completely valid, but this chart is meaningless for comparisons. The profits can be calculated and would be much more meaningful even if the numbers aren't perfect.
Properly paying writers and actors are some of their expenses though, not random unrelated people that want money. Using revenue here makes sense to me.
Imagine that the studio makes a movie that uses a famous song, actor, or other piece of intellectual property that is very expensive but they know it will boost box office sales. They might spend $5 million on this IP and it might generate $6 million in additional revenue.
Now, some people look at the $6 million in revenue and ask where their cut is. Of course the studio doesn't actually have the $6m, they only have $1m after paying for the IP. Extrapolate this out for a whole movie.
This is why it doesn't make mathematical sense to compare your wage to revenue - it is ignoring business fundamentals. Instead we need to look at profit which already has all expenses subtracted out. Profit is where any additional compensation must come from, or the studio needs to cut expenses elsewhere.