Making a Fake Movie to Understand Hollywood’s Shady Accounting

Funny how if fraud is sophisticated or pervasive it’s legal.

This is also why they constantly make flops now. You can make money just by making the movie.

there is a movie "adaptation " from 2002

I like the part where you said you’d make a movie and then didn’t make a movie, ya filthy liar

Funny how to most useless people in the industry manage to pay themselves the most

And now I know the next business to start to add a layer of "unaffiliated sourcing", we get you stuff, we charge 10x all our costs, but only if we get it to you (you know for the hard to source things like cups), in turn we pay an 80% referral commission to the person who refers the business to us, so bring your company here, we can make 50-90% over our costs after transaction fees, overhead, etc. and you will make 800% of our costs while getting to deduct it as an expense from the organization you control that you referred to us.

Same thing happened to rock and blues musicians.

First rule, never take percentage of nett. Only percentage of Gross.

I did NOT see order of the phoenix

Dude, you have really good content. It’s interesting so You could try slowing down and less Quicks edits. It takes away from the depth of your subject matter. Keep up the good work!

Sounds like government accounting. That's why we need an audit.

Lol maybe Mel Gibson is the right ambassador to Hollywood for Trump 😂😂😂

You'd almost think that they were democrats 🤔

No disrespect....but, you're not telling us anything we haven't figured out a long time ago. The $ is not going to wash itself.

Basically money laundering

Same tactics that all large corporations use to avoid taxes and paying workers.

So THIS is why Hollywood moves have such insane production costs. They are inflated! I always wondered how other countries are able to make amazing films at a fraction of the cost of Hollywood... like Godzilla Minus 1 cost just 15 million USD, anf yet haf better CGI than most Disney & Marvel movies. Now I understand what's going on!

That is why I hate when governments give movie makers tax breaks for shooting movies in their countries! It's all a scam!

I worked for a business in Detroit that tested products before they went into full production. My little test lab with 16 people would pay a company in Ireland $15K a month for marketing. We didn't need any marketing, we were on a short list of approved facilities that manufacturers had to use before their customer would buy their products. It was just a way to move money to a tax haven before it gets taxed at US corporate tax rates.

You don’t know your history, as you have this backwards. Initially, actors were paid per Diem, without contracts, then came contracts (to be paid whether used on set or not. Then came “% of back-end profits” for a smaller up/front contract. Looked good, but never materialized (as per video). Jack Nicholson’s role as “The Joker” was the 1st contract negotiated for “% of gross ticket sales”. Which is now the standard for those stars with the power to negotiate it.

Don’t forget, they are running the same numbers to the IRS………

Well he's a bit unaware of tax laws and seems to focus on ripping off talent when it's ripping off everyone, but yes the studios do the same tactics, and more, as Las Vegas construction companies & the major banks..

Steven Seagal movie

Gangsterwood

Mel Brooks tried to tell us this in the 1960s

This gives "certain people" a bad name.

JUST ANOTHER EXAMPLE OF CORPORATE FRAUD AND GREED

Show Biz has been and always will be a scam. It's run by crooks and you really can't believe anything about anything related to it.

steal everything

I.E. corporate fraud.

Weird. The same people who make/own Hollywood and are to blame for Metoo also commit financial fraud.

Wait people with millions or billions are dirt bags? Seems like they make that movie everyday. You just haven't realized that, unless you are the scumbag, you're the unpaid star of this modern tragedy. Long live Mario M.

Oh look, professional liars sometimes lie about finances.

You lie down with dogs, you come up with fleas.

'Snow White' won't need the creative accounting to lose money.
It won't make a dime.

Weird. Weird. 🤪

If the actors know they're not going to make any money by being paid off net, why do they do it?

Long before I had a chance to make it in this world, all these scams have been setup. And nobody made a peep.

Every.single.time.

Looks like tax evasion.

So... "The Producers" is real?

This is America, don't catch yourself slipping up

Leo Bloom: You see? You see what I'm trying to tell you? You could've raised a million dollars, put on your $60,000 flop, and kept the rest.
Max Bialystock: But what if the play was a hit?
Leo Bloom: Well, then you'd go to jail. See, once the play's a hit, you have to pay off all the backers, and with so many backers, there could never be enough profits to go around. Get it?
Max Bialystock: Uh-huh. A-ha! So, in order for this scheme to work, we'd have to find a sure-fire flop!
-The Producers

You lost me at Harry Potter. I only ever watched one of those, 14 years ago. Who knows which one (of the hundreds) that was.

Ahh yes lying and actual fraud “Hollywood Accounting”

The producers plot ?

Le Accounting

Wow, sounds a lot like how the government "works". I wonder if there are any other parallels between the people who tend to run Hollywood and work in government...

Just another reason why I’ve divorced myself from Hollywood. Trash industry

We lost so much money on this video.