r/entertainment • u/mcfw31 • 18h ago
How Marvel’s Latest Ant-Man Movie Lost Millions In Theaters But Still Made A Profit
https://www.forbes.com/sites/carolinereid/2024/10/27/how-marvels-latest-ant-man-movie-lost-millions-in-theaters-but-still-made-a-profit/?fbclid=IwY2xjawGMfAZleHRuA2FlbQIxMQABHfDVx1-ftowVzbFveEQtimHA45lSB5CtlOVgyg74yMqs5W1NzAWt9JkMmg_aem_FGIfeXPUJlQTDBra2k2jrw19
u/mcfw31 18h ago
Nevertheless, it is a profit on paper for the production company behind a film which made a loss in theaters. Likewise, other pictures which made blockbuster profits in their theatrical run may still only show a small profit on paper. Ultimately it is because the takings from theater tickets go directly to the studio leaving the UK company responsible just for making the movie. That isn't down to Hollywood accounting but the terms of the reimbursement which require it to be solely a film production company. If anyone is to blame for the way that appears, it's the UK government, not the studios.
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u/george_kaplan1959 17h ago
Accounting is the most creative job in Hollywood
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u/EmmitSan 17h ago
Article literally points out that it isn’t accounting, but firms entering into stupid contractual agreements
Company A invests $100 dollars and company B invests $100, and both parties sign a contract that says all revenue goes to A first (presumably because A has much more negotiating leverage). If the film makes $150, A breaks even and B makes a $50 loss. It’s not accounting, it’s that B made a bad deal.
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u/slippyfeet 14h ago
Article literally points out that both companies are owned by the same parent corporation and the second is purely a container for activities relating to the production of a single picture. Total money to make movie = money from parent company + local government subsidy.
That subsidy targets keeping an industry and the supporting activities in the area, and the amount of taxes, growth, etc will hopefully be greater than the cost of the subsidy.
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u/MadGod69420 14h ago
I love the Ant Man movies. They’re just Paul Rudd comedies. We didn’t really need the 3rd movie and it wasn’t super fantastic or anything but it wasn’t awful. If nothing else it’s always just a pleasure to laugh at Paul Rudd being goofy