Darling Nikki Finke Talks Studio Accounting

And it doesn't look good...

"Net profit deals are still a sucker's bet. I was slipped a net profit statement (below) for Harry Potter and The Order of the Phoenix, the 2007 Warner Bros sequel. Though the film grossed $938.2 million worldwide, the accounting statement below conveys that the film is still over $167 million in the red:"

There has to be a better way....discuss. 

Kindle Lightens Load for Screenwriters, Agents

Sit down here by the fire with me kids.  Yes, settle in now...
Back in the old days we pulp screenwriters had to send out our work on...paper!
Yes, we had to actually buy reams and reams of paper and and print out our screenplays... I know, crazy right?  Then we had to punch three holes along the spine and put in two brass brads, only two, with brass washers.

Then we had to put our cover letters and scripts in to envelopes and send them out via the mail.  Shocking! The agents would get these scripts and have to log them in and lug them home to read every night. 

But finally, we got smart and the internet and the Kindle changed things for everyone.
(courtesy Variety)

RedBox and Netflix = Majority

Scott Kirsner over at Cinematech made a discovery today after reading this article from the NY Times.

RedBox and Netflix together represent 54% of the
DVD rental business in America.

These two companies - whose mottos advocate bargain DVD rentals and convenience (so much so that Netflix added a download to rent program) represent the consumer wishes when it comes to their rental entertainment.

I can only imagine that the current lawsuit outlined in the article will only spur consumers to find more RedBox locations near them or open a Netflix account. The Studios are in the unenviable position of having to argue that they aren't making enough money on their movies...

And when the figures are trotted out as to how cheap it is to actually manufacture and replicate a disc - the average consumer will wonder why they couldn't just make a rental version of the movie and a retail version (as some studios are doing).

The studios that are fighting RedBox have a much higher hill to climb. If they actually trot out numbers as to how much it costs to make Hollywood blockbuster movies then we'll all get a peek at how much fat there is built into the Hollywood machine. No one will argue that they have to recover their production and marketing costs.

But when they open the books and people see what the costs are - what was actually charged to the movie's accounts on the studios books - well there's going to be an outcry... Especially from hedge funds that have invested in Hollywood movie making.

This is a can of worms. Squiggly, epileptic worms.

Traditional Indies Tank Big...Honestly

Note that I say "traditional" in that headline...

It's been a hell of a year for some folks with whom I've consulted. A lot of employee slates have been wiped clean. The herd has been culled. (Insert another ugly "a lot of people lost their jobs" metaphor here)

I'm still here.

With you.

Working on 2009 and beyond.

This isn't a "I told you so!" post. I took some hits. Major kicks to the wallet. Went from small nest egg to yolk on the floor. But there is a reason I still have an apartment and shirts to wear, and a job to go to...and a strategy for the future.

It's because I was honest with myself and didn't lie to myself regarding any movie I've worked on. I didn't lie to myself and throw a lot of money at a film or a film company which I KNEW (or at least were told) had limited potential or appeal, hoping somehow the problems would go away. I was honest with myself, my clients and my colleagues.

I treated it like it should be treated - a business - respectfully.

Honesty goes a long way. It slices through double talk like a hot knife through butter. It gets you labeled as "difficult" or "demanding." It gets you exasperated sighs or awkward silences during meetings when you question the validity of a strategy...

But damned if it doesn't save your ass every now and then. Honesty allows you to keep working while other "cooperative, nice" sweethearts are shown the door.

So, if you want to give yourself a gift this year - give yourself some honesty.

Like herpes it's the gift that keeps on giving.

(I'm going to be quiet now because I have a webcomic to write this weekend)