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Sunflower
Valinor
Aug 19 2007, 9:16pm
Views: 1144
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Can somebody explain some general facts aobut Hollywood finance for me?
1) New Line made more than 3 BILLION dollats out of the LOTR franchise...and that was just from international box office alone, not counting the ancillary revenue...DVDS, toys, etc. WHAT the heck did they do with all that money in just 4 yrs that they are again broke? I know that films nowadays are more exoensive to make and to market, the average tnepole now cositng maybe 200-250 million to make and market, but still, NL is one of the smaller studios, I can understand how someone like Warner's can blow through all that cash, but it'snot like NL is making 10 tentpoles a year!
2)Why has it become necessary in recent years for Hollywood to abandon its traditional methods of finance and go for this questionable "credit"finacing or whatever it is--or some studios anyway. Exactly when did traditional investorsbegin to lose confidence in Hollyowwd and why? Is it soecifically because of the rising costs in marketing a film, or diminshing returns on investments relative to cost? And traditionally how ere Hollywood films financed?
3)What is "creative accounting"? Someone explained this to me once and I think I know the basics, but why is it used so frequently, besids the usual thrist to wring the last buck from an investment.
4)Just how important is Hollywood to the financial health of the country really? Now that we basically outsourced our manufacturing capacity to China the last 15 yrs, (to the point where I wonder if, God forbid, we ever have a world war as nations go to open battle over the world's diminshing rescources, say, 30 yrs from now, which factories we are going to use to move to an all-out war capacity--you wonder why even now troops are being sent to battle in Iraq with shoddy equipement--and God help the soldier or journo who dares to ask why!) and the American economy basically revolves around the construction industry, building more and more homes and suburban sprawl (and no one will ever openly admit this), movies seem to be the only thing that the U.S. is still the global #1 in. Entertainment industry. The music biz is dying, due to tis own colossal stupidity. Hollywood hasn't sank that far yet, and God willing it never will. US willing,I should say.
So another question is I guess, how much of Hollywood is foreign-owned and financed (we were happy to let foreigners own our ports and comanies, etc?) Will they pull out if this gets worse? And how important is Hollywood to the country really?
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Movie financing , the credit crunch, and "The Hobbit"
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Idril Celebrindal
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Aug 17 2007, 3:10pm
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Oh no! Not another hurtle...
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Patty
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Aug 17 2007, 3:45pm
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MGM?
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FarFromHome
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Aug 17 2007, 3:45pm
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Well, they do have the distribution rights, after it's been made...
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Patty
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Aug 17 2007, 3:50pm
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That's true
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FarFromHome
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Aug 17 2007, 3:55pm
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NZ's dollar
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Ataahua
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Aug 17 2007, 8:34pm
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Our died too
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Elven
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Aug 18 2007, 3:14am
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Could be good news.
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Darkstone
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Aug 17 2007, 4:06pm
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Yes. If our people hold up...
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Patty
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Aug 17 2007, 4:19pm
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It's just temporary.
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Compa_Mighty
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Aug 17 2007, 10:22pm
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Tom Cruise (UA/MGM) raises 500mill$ for 15-18 films over next 5 years ...
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Elven
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Aug 18 2007, 7:15pm
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Think Tom Cruise would make a good Bilbo?
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Darkstone
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Aug 18 2007, 7:41pm
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Palpatations ...
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Elven
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Aug 18 2007, 7:47pm
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Can't you just hear McKellen sonorously intoning...
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Darkstone
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Aug 18 2007, 8:16pm
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That
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Ataahua
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Aug 18 2007, 9:03pm
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Sloans comments mentioning the Hobbit (ToRN homepage article)
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Elven
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Aug 19 2007, 3:20am
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On a side note....
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Sunflower
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Aug 19 2007, 9:16pm
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PS Patty.
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Sunflower
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Aug 19 2007, 9:21pm
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