Quote:
Originally Posted by EdwardA
George Lucas: Star Wars Director Loses $60 Mil Plus on "Red Tails" - Forbes (http://www.forbes.com/sites/rogerfriedman/2012/03/29/george-lucas-star-wars-director-loses-60-mil-plus-on-red-tails/ - broken link)
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There's really no such thing as a money-losing movie any more. They just don't exist.
When you read articles like that about a movie losing money, it's basically the accountants, investors, tax law, etc. painting a false picture. When a movie is made, the producers tell investors, "We project it will max X amount of dollars by Y amount of time in domestic ticket sales." If that doesn't happen, then everyone says the movie "lost money."
But in fact, movies don't lose money anymore. Between foreign ticket sales, licensing, cable rights, DVD sales, licensing fees, etc., every movie eventually runs in the black. It might take a year. It might take 3 years. But every movie eventually runs in the black, even so-called "flops."
So, when Lucasfilm reports the
Red Tails lost x amount of money, all that means is Lucasilm accountants are claiming a loss for tax reasons, investor payout, etc. But
Red Tails will eventually run in the black, even if it takes a while.