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Hollywood creative accounting : the success rate of major motion pictures
AuthorSparviero, Sergio
Published in
Media Industries Journal, 2015, Vol. 2, Issue 1, page 1-36
Document typeJournal Article
Keywords (EN)Film / Distribution / Marketing / Hollywood / Conglomeration
URNurn:nbn:at:at-ubs:3-1486 Persistent Identifier (URN)
 The work is publicly available
Hollywood creative accounting [0.73 mb]
Abstract (English)

Academic, trade, and popular publications commonly assert that 80 percent of motion pictures fail to make a net profit, suggesting also that the main players of the motion picture industry operate in highly volatile market conditions. More importantly, major film companies use this argument to negotiate for better terms with their production and distribution partners, to lobby for stricter copyright protections, and to argue in favor of media conglomeration as a hedge against adverse market conditions. This article disputes these assertions by calculating the full range of income that major motion pictures derive from their primary and secondary markets. It demonstrates that a large share of studio films are

ultimately profitable, therefore challenging the arguments that conglomerates make with industry partners and government policy makers.