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Old July 15 2013, 04:01 PM   #2862
Sindatur
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Re: STID "tracking" for $85-90 million opening [U.S. box office]

Opus wrote: View Post
As many have mentioned here and elsewhere, the reported budget is a "funny money" number. Studios do things like pay themselves to rent studio space and equipment, so who knows how much the studio actually paid out of pocket hard cash.
Yea, I once worked for a SubContract Assembly house for Electronics PCBA.

The owner got a salary, and with that Salary purchased the Building the Company operates in, purchased the Machines the Company uses to manuafacture the Product, and rents the Building and the machines to the Company. Even when the company was losing money horribly, the owner was making out like a bandit, and he could charge whatever rent he wanted for the building and machines, if the company started to make too much money and he needed to have it make less so the employees couldn't grumble about wantintg bonuses.

So, yea, I'm sure the movie business operates in much the same style. Artificially inflate the budgets by over-charging yourself for renting stuff to the movie you have provided a budget for. Plus any Producty placements revenue isn't deducted out of the budget, and isn't included in the Box Office revenue numbers.
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