Friday, July 09, 2010

Hollywood's Cooked Books and the Courts that Reject Them

This story over at Techdirt is fantastically entertaining.

Republishing a recently leaked income statement for Harry Potter & the Order of the Phoenix, the post recounts how the film industry was able to show a $167M loss on a film that generated $938M in revenue. It's all a business arrangement of course, with the money flowing out of the film corp. and into the studios and their associated companies.

Only problem is, if the film corp. starts making deals based on that income statement, people have a tendency to get upset. Seems via the lawsuits summarized that the courts agree.

Go figure.


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