I understand that these Hollywood Studios have the power and technology to create just about anything but going from $938 million in gross profits worldwide to a $167 million loss isn’t exactly color correction.
I guess that’s why stakeholders of “Twilight” asked for a percentage of gross profits and not net. Members of Harry Potter and the Order of the Phoenix weren’t as fortunate.
Harry Potter is just one example. I mean one large one too but it’s not the first or last. I’m sure Hollywood uses these accounting practices whenever possible. Ultimately it’s done to justify not paying writers, actors, etc….
It’s obvious that if Hollywood were taking losses in the range of hundreds of millions per project there wouldn’t be filmmaking or Hollywood itself!