re: Random question about actor's pay I have never found an answer to

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How do the studios make money on the movie

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Product placement in the movie, distribution

ETA: Or they use the losses to offset gains from other movies. Apparently Hollywood accounting is very screwy.

In general? Overseas distribution, home video sales, and TV / pay cable rights.

It is effectively gambling on low stakes that you likely break even or possibly hit it big.

Most of this stuff craps out but you occasionally get very lucky. Lionsgate had a little nothing horror movie with one big star in Danny Glover and some lesser stars in Cary Elwes, Tobin Bell, and Michael Emerson that ended up being a huge moneymaker for them.


That also doesn’t go into some other financial frickery which is used to severely cut film costs.

Germany used to have some major tax credits if the film was a German production, which is partially how Uwe Boll was able to make so many shitty movies.

States like Louisiana also have their own credits which are used to offset a lot of costs for films, ranging from the Syfy channel B movies to bigger films like Ray.