For years now I've assumed that's why A-list actors get such huge paychecks upfront, because they know they'll miss out if they're supposed to get percentage on profit.
But advertising costs has been one of the "excuses" I've seen why a movie fails to make money. I find that doubtful since the majority of advertisement spending is at the beginning of a movie's lifespan. Many movies continue to generate revenue years after theatrical release due to sales outside of movie tickets such as DVDs or streaming licenses.
In the end, I still have to wonder why such practices are continued to be ignored when they seem so suspect to begin with. Don't forget that the IRS is probably willing to spend a million dollars to squeeze that extra thousand bucks out of you, so I doubt they would just be OK with what they get.
If run correctly a Ponzi scheme can last a long time. As long as you can keep new people paying into the scheme then it keeps going. Ultimately the scheme falls apart when either someone takes a good hard look at the books or people quit paying in.
The key is to not let anyone realize it's a scheme to begin with. Hollywood accounting isn't quite like that since almost everyone understands that they do it.
But advertising costs has been one of the "excuses" I've seen why a movie fails to make money. I find that doubtful since the majority of advertisement spending is at the beginning of a movie's lifespan. Many movies continue to generate revenue years after theatrical release due to sales outside of movie tickets such as DVDs or streaming licenses.
In the end, I still have to wonder why such practices are continued to be ignored when they seem so suspect to begin with. Don't forget that the IRS is probably willing to spend a million dollars to squeeze that extra thousand bucks out of you, so I doubt they would just be OK with what they get.