So exactly how are profits calculated? Is it just the total sum of money earned, since everything prior to filming is already paid for? Or is it the sum of money earned from the movie, subtracted by the actors' pay, the cost of the cameras, etc?
Thanks.
Too broad a question.
In general the "profit" is anything after all expenses are paid.
=============================================
The aim of an argument or discussion should not be victory, but progress.
Joseph Joubert, essayist (1754-1824)
=============================================
The aim of an argument or discussion should not be victory, but progress.
Joseph Joubert, essayist (1754-1824)
Exactly. "Profits" are whatever the financing entity can get away with.
In a "perfect" and honest world, a movie would cost a certain amount of money to make and then after those expenses, the rest would be the profit.
But, in our real world, those in control of the accounting have ingenious ways to "hide" the real numbers by inflating certain production costs and hiding income. So when you see a "final" budget report (ie, whatever Variety reports that a specific film cost to make), it is most likely not accurate and is often over-stated.
This is why those who can demand large upfront fees, do. Studio financiers can NOT be trusted to deliver accurate back-end money. That is why crews have come to distrust any production that claims poverty as their pleas for compassion are generally dishonest. No matter the "emergency," in most cases the money to "fix" it shows up from somewhere. That "somewhere" is usually from the actual available funds and/or the contingency. So it's not that the production doesn't really have the money to pay people properly...it's that they don't want to and will do whatever it can to keep from doing it.
Another trick by a studio is to inflate some production costs. For instance, a studio will own a fleet of production vehicles that have long been paid for. The only true costs are licensing and maintenance, which are relatively low. But, the studio will charge itself large fees for its own property in order to inflate the budget on paper. What that means is that when the final tallies are made, it appears that the movie cost more than it actually did and the result is that those who have deals for back-end pay, will get less because the "cost" is taken out of the box-office money, therefore there is less "profit" to be split up.
So, how are profits calculated? In reality, as sneakily as possible.
Brian Dzyak
Cameraman/Author
IATSE Local 600, SOC
http://www.whatireallywanttodo.com
http://www.realfilmcareer.com
Brian Dzyak
Cameraman/Author
IATSE Local 600, SOC
http://www.whatireallywanttodo.com
http://www.realfilmcareer.com
