Harry Potter Owes $167 Million or He’ll Lose His Knee Caps

It seems like everyone is excited over the new Deathly Hollows trailer, and that’s good, because the studio behind the franchise is still paying off the last film.  Harry Potter and the Order of the Phoenix made over $938 million worldwide at the box office but a recently release statement says Warner Brothers actually still owes money.  According to Deadline, the multi-million dollar blockbuster owes $167 million dollars despite the films monumental success.  Many would just brush this off as rumors, but it is hard to dispute when they actually have the receipt.

According to industry insiders, this is not by accident.  The studio intentionally spends every dollar earned so that there are no Net Profits to be shared among the cast and crew.  Net Profits are money earned after the cost of the film is paid for and are also used as bargaining chips in contract negotiations to lower the cost of the film.  For instance, let’s say I’m a director and I want 4 million dollars. They might say, we’ll give you $1 million and 50% of Net Profits.  So if the film cost $200 million and it made $600 million at the box-office, I stand to make a lot of money.  But since marketing and distribution are roped into the cost of making the film, if there is no money left over, then there is nothing to get 50% of.  Funny how that works, huh?  Don’t think just because they have spent every dollar earn from the film that the production studios aren’t making their money.  I wouldn’t be the least surprised if the company they owed money too is owned by Warner Brothers. Hollywood, what a town.

Source: Deadline.com

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Mike Villarreal
Mike Villarreal 1360 posts

Mike once killed a man with a plastic butter knife. True story. #ViolentGentlemen