7/26/2005

Movies: For those of you who don't read Slate and are interested in some insight to the corporate structure, reporting of profits and so on, Jay Epstein wrote a good piece yesterday. Hollywood financial reporting has been corrupt for a century and why the SEC allows them to continue now that they are all owned by huge multi-nationals is a mystery. NOBODY knows what a movie costs, how much it actually brings in, and where the money goes before it gets to the company bottom line. Movies derive income through product placement, selling access to shoots, selling posters (potentially huge income), related product (toys), and of course DVD sales and rentals. Epstein says Hollywood is still making plenty----and hiding it.