Comment on Disney lost nearly a third of a billion dollars on two Marvel movies
protist@mander.xyz 1 day agoStudios shoot in the UK to benefit from its Audio-Visual Expenditure Credit (AVEC) which gives them a cash reimbursement of up to 25.5% of the money they spend in the country.
It’s not like they were handed a blank check, they spent hundreds of millions more paying people and buying stuff in the UK to get that rebate
PineRune@lemmy.world 1 day ago
“As the CEO, if I pay myself $100 million for making this movie, I will get $25 million of that back from government reimbursement.”
No big budget movie will ever make a profit because they make sure the big wigs get paid the amount the profit would have been. It is intentional.
protist@mander.xyz 1 day ago
It goes into more detail in the article about how they qualify for that rebate, and no, that’s not how it works.
PineRune@lemmy.world 1 day ago
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Easy. I’m the new CEO of the company we set up there. Employee salary is an expenditure, and being a company in that country, it qualifies for that rebate unless there’s more details I’m missing. I was also grossly over-simplifying in my original comment, I’m sure it’s more complicated than that. I also just attribute Hollywood Accounting (see other commenter’s post) to anything listed as a box office loss.
MrScottyTay@sh.itjust.works 22 hours ago
In the UK things like that get checked when it comes to grants, they will usually only be valid purchases if spent with approved companies.
walter_wiggles@lemmy.nz 1 day ago
en.m.wikipedia.org/wiki/Hollywood_accounting