If you look at how film are financed, you’ll see that it basically is money laundering and tax fraud. Short version is the studio sets up a production company, studio gives production company everything they need to make a film. Production company then let’s the studio use their new stuff, for a fee (think like $5 for a page of a script printed out). Studio now owes production company millions (the cost to produce the film), so studio never makes a profit on the production. Production company goes out of business because studio doesn’t pay them, so they eat the debt and folds.
If you look at how film are financed, you’ll see that it basically is money laundering and tax fraud. Short version is the studio sets up a production company, studio gives production company everything they need to make a film. Production company then let’s the studio use their new stuff, for a fee (think like $5 for a page of a script printed out). Studio now owes production company millions (the cost to produce the film), so studio never makes a profit on the production. Production company goes out of business because studio doesn’t pay them, so they eat the debt and folds.