The whole purpose of accounting is to reduce or avoid sharing profits with actors and stakeholders other than the studios. So creative accounting may be a common practice, but is it legal? After all we didn’t hear many entertainment companies swept up in the accounting investigations of the early ’00s. There is a grey area...Read More

That’s why you normally see the gross income when studios brag about how much money the next Avengers movie made, opposed to the net income. Each film is structured like a corporation intended to lose money. Within this structure are shell companies, existing primarily in name, designed to drain the film’s profits and redirect them...Read More