Thread: Movies and TV Disney buys Lucasfilm for $4 billion
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Old 07-09-2013, 03:44 PM   #1299
DaneMcCloud DaneMcCloud is offline
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Quote:
Originally Posted by Buehler445 View Post
I obviously don't understand movie accounting. If John Carter cost 200M and brought in 283M in receipts, how did Disney write off 200M? Are they accruing sales or something?
What's not factored in the raw box office receipts is marketing and exhibitor fees. Movie theaters can take up to 30% of the overall take. Marketing can easily surpass $100 million.

Disney spent $175 million marketing "The Lone Ranger", so they've spent more than $400 million on a film that will never earn enough to break even.

The dirty little secret is that the studios *need* huge box office failures in order to pay less in taxes and avoid contract escalators.
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