How Hollywood CHEATS Its Talent Out of Millions
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- Опубликовано: 25 май 2023
- Did you know Star Wars lost money? We take a deep dive into the details on Hollywood Accounting amid the writer's strike.
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If any of us did our personal accounting like this, we’d be in jail. But that’s the glory of corporate personhood under American “capitalism” and “meritocracy” -“Jail for thee, yachts for me.”
You just need a good accountant. But I agree, it is difficult for the average person to pull this off.
This is not a tax dodging scheme, the distribution company would still pay taxes
@@daviidon Government doesn't care or even worse promotes these behavior's because of huge taxes being collected.
Writer rain. The actors stay dry while writers feel the pain.
You could set up the exact same type of corporate structure if you wanted to. I don’t think it’s good to look at it like them versus us when we are all playing under the same rules. They just know the rules a little better that’s all.
This reminds me of a famous insurance scam which was happening years ago here in Italy, when someone claimed a car accident they were required to choose their own mechanic to solve the issue, the insurance company would then pay out whatever the amount was; so people would agree with the mechanic to make them pay a waaay higher amount than what was really owed so that insurance companies would pay that and both the mechanic and the claimer split the profits.
Uh that happens everywhere
a very old technique still working to this day. in america the health care situation is very very similar. particularly its ties to the FDA and the Pharma corps. the fda has the dubious nefarious gig of being the safety regulator but yet profiting off gatekeeping and lobbying etc
What no one is also saying is that, with all these LOSS listed they can end up not paying any taxes on profits. Which now takes away from the state and federal government.
While the same entities then will push their nose in the same government to influence it while not contributing to its funding.
I think ur confused
I thought Hollywood was filled with giving, loving, caring, smart people. They always tell me how much better they are than me.
Who said that? The creative people are all that and likely more - the business "owners", the ultra-capitalists that own as much as possible and who want even more, they are the "Hollywood" that runs the show.
And function according to the rules business follows across the lovely land we live in (roughly the entire planet - but I'm focusing on the US of A).
@@amerikawoche8243 The actor, writers , studio owners, directors etc . 90% of them are garbage. Dont know what you are trying to say but the creative people are also garbage humans.
The level of BS involving highly profitable ventures somehow losing money INSANE!
As an accountant, I thoroughly enjoyed this 😄
Same, it's a fucked up trick though
@@nickwarner84 It’s not fucked up if you’re following the law. The goal of any company is to pay as little tax as possible but yes it’s wrong they are screwing over the writers and actors, but then again we already know it’s a terrible industry to work in and kind of to be expected. If I was acting or writing I would not take any deals that don’t involve payment up front
@@newyorkvisionary I understand they’re following the law and it’s the goal of any for profit company to avoid taxes. But yeah I meant it’s fucked up for the writers and actors who take net point deals not knowing the accounting entries make the movies lose money at the end. I guess it’s a lesson most of them will learn the hard way starting out if they’re ignorant or have a lack of information.
@@newyorkvisionary I’m arguing with someone about how the wealthy pay as little tax as possible. They seem to think that if you have high income, you pay more tax. But high income are WORKING for their money (this is taxable). Wealthy people don’t have to work for the money they receive (limited tax available, due to legal loopholes).
What would you say, as an accountant to someone who thinks billionaires pay a lot of tax?
@@drillingig2368 They should absolutely pay more, taxes. The laws are rigged in their favor.
It’s crazy how confident Hollywood execs seem to be that they won’t be ignored and replaced
This is the reason why they are rehashing old movies again, rebooting, or take only the best series of a book into a movie
The idea is to not start production until the script is written, yet rewrites happen in the middle of production all the time.
As a former television film production accountant I can tell you all the money stays above the line. Most of the budget goest to actors, producers, directors, and writers. I often see a 20 million dollar budget with 15 mil above the line representing 20-50 people, while there’s 5 mil below the line representing 250 people plus all other production expenses including rentals, locations, etc. The writers have a valid argument but they’re hardly getting the worst of it!!
Theres a reason Bob Iger’s compensation plan has nothing to do with “net profit” but everything to do with Share Price and a fat annual guarantee..
I had no idea the top Hollywood studios were this disgusting.
Why can’t they just pay out what’s actually owed?
Because they're a public company and have to go after maximum personal income, so fucking over some movie maker that either gets their movie made and gets known, or gets to make a F grade movie. Has no option but to bite the poison pill
They are paying out what is owed per the contract the workers sign. Its beyond me why people sign contracts that they all know are written for the company and the shareholders of the company. This practices are long standing and well known yet people still sign the contracts.
because how else would they be able to support their families 9 generations down the line?
Because how are executives going to buy their 3rd Yacht?
Sort and simply put the profits have to go upp and UPP each quarter 😂
hollywood also lies about the actual budget sometimes, when everyone thinks its a flop theyre secretly profiting
Oh snap I didn't think of that, they probably over inflate it just so they can pocket the rest of the money
You've been creating a lot of good content, keep up the great work.
how is this not fraud, or at least monopolistic behavior?
No one of good intentions can get anyone with power to take a good look at the financials.
I admire your dedication in researching all this. Thank you for your work.
Hollywood : "No, this wasn't the deal! You were supposed to go after Crypto-bros, and douchebags on RUclips and social media, not us professionals!"
Spencer Cornelia : "I am altering the deal, pray that I do not alter it further!"
Not to mention the "friends & family" that run those companies are getting paid. Most likely those are "friends and family members of the investors of the movies.
Writers strike. Reality tv is born…
Reality tv is also heavily scripted
@@brederbeeld Poorly scripted, it's probably cheaper
The best part is that the system is set up like this. New writer in Hollywood? Well we know an agent! And that agent loves your script so much they think you should take the net %.
Love the content spencer keep up the good work!
Another solid video Spencer. Thanks for your content!
Fank you Fu Mab ChU!
Very eye-opening. Great video, Spencer.
Great video Spencer! Awesome work!
Thank you for sharing with us, love your savvy ways of educating and entertaining us at the same time. Hope 💯 % of the profits go to you 😉
Thanks for making great content! This was really informative.
awesome video - also it was awesome meeting you at the vegas meetup!
This has been going on for decades. As you say, the A-listers, such as Tom Hanks, negotiate legit percentages. Anyone whose contract includes Hollywood-calculated residuals should refuse to work unless they get the same deal as Tom Hanks. Of course that's easy to say considering there are only five major Hollywood studios, so for now, crew and B-listers are stuck.
This is completely off-topic... But anyone who watch European football, Chelsea FC (England) precisely, you'll know that Spencer and Mason Mount look like twins brothers 😮
Now this is the type of quality content that I like to see.
Thus was a solid banger Spencer, jeep h content rolling.
@Spencer Cornelia 3:24, small correction, that is an income statement (or profit and loss statement for the specific movie), not a balance sheet. From Google, an income statement assesses the profit or loss of a business over a period of time, whereas a balance sheet shows the financial position of the business at a specific point in time (this is the income statement for the movie, not the business overall).
it all makes sense now , thanks
yo you explained that complex shit so well, thank you
Excellent Spencer. Just a marvellous video.
When it comes to business, the only place net profits should be distributed is to owners and shareholders. Everyone else should be clamoring for a cut of Gross profit or a flat rate.
im into film and music and im also in the field of abuse and im also very educated about racism and religion. Ive also been signed to record labels and talent agents decades ago. at my old age and being well read and with my experiences the one common thread between each of the aforementioned topics that I realized recently was that humans are grifters. humans have been exploiting other humans since the beginning of time. its too tempting for humans to not steal labor or exploit someone if they get an opportunity. its madness. some of my fav bands or musicians have either assaulted someone sexually or stole money from them or both.
How do you even BEGIN stopping this kind of debauchery??
If any of these movie executives think they're living "The good life" from the blood, sweat and tears of all the hard working talent, they need to realize, YOU REAP, WHAT YOU SOW. There's a lot of suffering with people and their families for doing other people in
You still believe that? Lol. Cute
@@WhoIsMikeJones568
Yep, wholeheartedly! I see it every day. Keep living and you'll see. All you need do, is look in history and see how the wicked has been brought down, one by one. The evil hearted can pretend to be happy all they want, but trust,..they're freaking MISERABLE! God will not be mocked! NOT CUTE
This sounds like accounting laundering more than anything else.
Wow. I'm shocked, and here I was believing that the producers of the movie were the ones that made the majority of the money.
Please do a video on the difference in above the line and below the line pay
This should be illegal smh
The talents got ***kosherized.***
As a prequel fan, this does make me sad.
well george lucas made his movie with HIS own money
Yup, I’ve noticed that a lot. Well the film cost 80 million but we added all these costs. It’s like all these industries that add all these bullshit fees. In Vegas they’ll add entertainment tax etc yet people need more then one job
Great video
This is how money is laundered legally. Wonder what their tax returns look like 😢
Exactly. Alot of people don't realize that 'Legal Money Laundering' goes on all around us all day, every day.
this isn't money laundering, this is swindling. laundering is when you take unaccounted for money and pass it through a legitimate business so that it becomes accounted for
Finally a new interesting video!
Remind me never to accept points for net profits on my next movie deal
Im so shocked right now I am speechless
just imagine how the public would be doing if these large corporations actually paid taxes.
Even if they made a blanket 5% tax mandatory it would be way more than they actually pay nowadays.
Meanwhile the average person can barely cover basic living expenses. It's absolutely discussting.
I have no idea why there's not a worldwide strike. If everyone sat at home it wouldn't take long for everything to change as the rich and powerful panic to save their extravagant lifestyles.
Sweet video
❤🎉
Had no idea it was this bad. It's just money laundering.
This is "a standard" in worldwide stockholder and corporate thinking.
So, the concept of "accounting consolidation" does not exist in America, where all inter-company transactions of companies of the same group (have some or all ownership) are eliminated and must be reported as one company, therefore liable for lawsuits.
It's like Enron all over again: little companies die from loss, while big daddy company lives with profit. With consolidation, that´s just not possible: even dead companies have a life line and need to pay taxes.
So, the trick is to just ask for a fixed fee and ignore the percentage of profits. At least you get properly paid...
Or ask for a percentage of Gross and not profits
In Iran , I don't need to pay for movies since pirating stuff made my foreign is totally leagle
Spencer, my guy - chill it with the red blush makeup or like use some sunscreen 😅
I love seeing these little oddities companies use to screw over the people who make the company work
Also good to see someone in the wild using Google Drawings, such an under-appreciated tool. Super cool integrations can be done with Sheets and a bit of code as well
Look into bohemian rhapsody writer that sued. Hollywood is shady af. Why i gave up on screenwriting.
Please want a copy of this book
How can CPAs pull that given securities and accounting laws? If govt is being shafted on taxes like that it would be criminal charges
That's the neat part...the companies pay the tax, since they pay up to uncle Sam , he doesn't see shit wrong here
Wow this is crazy
always take your cut off the top line not the bottom line ✌️
People are easily fooled by the possibility of big money. Unless you are a company owner (stock holder) you are an employee, employees are paid a salary or hourly and almost never get a cut of the sale unless you are in sales. The entertainment industry has been doing the carrot on a stick trick forever and people keep falling for it, who's fault is that.
Nothing new...yet kudos to Spencer for breaking it down in layman terms and providing great examples. Rubber hits the road right at the end with Nick's "percentage of the gross."
This is an awesome video. I was part of, The Vanities Crew(Hair&Makeup) for years. Film Sets are more grueling than the Military. The pay is low and the treatment is much worse.
A statement from someone who clearly was never in the military.
i wouldnt say its more grueling then the military but its def a hard job dealing with alot of bs an awful pay. source- i was a former 2nd ac and dolly grip. my job was def not harder then being in the military and my job was way more grueling then yours was
Interesting...
Wow those graphs would take me months to make😮
Very clever
have both sides use ai to predictively model potential outcomes for a variety of circumstances. make sure the models are within reasonable agreement. people below the line could choose whether they would want to work in the movie. if the real time movie production diverged that could be a basis of legal recourse
Insane
Hey about time, you touched on this interesting and mysteriously suspicious practice.
Overlord DVD approves and endorses this video.
Human Beings are predators
The magic of Hollywood smh
And the Music Industry is EVEN WORSE. You can't trust ANY of their books, if and when they even open them. They can say your record didn't sell enough, and charge you top dollar for 'Tour Support'. And which incredibly disliked but incredibly protected demographic is head of BOTH industries?
What’s that demographic?
Feel free to chop your foreskin and convert
Robbery. A monopoly is never good
Disney is poison. Please do your best to never give them another penny.
Creative accountancy 😕
Spencer, I'd consider adding your face to the thumbnail. I subscribe to over 200 channels and your content is one of very few I instaclick when I notice an upload. However, I barely noticed this one in my feed as I also sub to a lot of gaming and tech channels.
Even with subscriptions, it's what you watch that changes AL Gore's Rythym.
Always make a deal with gross profit not net profit because they will never make profit
Shady!
As much as the Republicans pretend to hate on Hollywood, they sure are sharing the playbook.
This is gangsta as f. Rofl
What's happening with coffee z ?
Well, looking at the quality of writing in Hollywood movies these days, I doubt chatgpt would do a worse job.
Isn’t that the game though. If the movie flops those who worked on it still got paid. The studio is taking the risk.
Please don’t hate. That’s business. Im not saying right or wrong, just the way it is and it looks illegal how they do this. Now I see why actors just don’t ask for a cut as they’ve got this game mastered.
Why not pay the writers based on the ratings of the shows they write for. So if a studio want to have a show about drag queens, the writers will certainly be working for free. Lousy ratings equals lousy pay, I like that.
Rupauls Drag Race, a show specifically about drag queens, has over 15 seasons. More than Seinfeld and friends. its also rated 4/5 stars and over 80% on RT. I think you dont actually know what youre talking about lol. Please stop talking.
16th version 🤣🤣😂😂
Yes when I saw the Witcher and Rings of power I wondered who would pay anyone for shit like this? Now we know that they didnt pay shit...
It's wild that I've never heard of this, but I guess no one making money cared
You NE ef heard that Batman (1989) still hadn't turned a profit.
They should just offering a wage without another option then. They probably got sick of being burned when people cashed out on successful movies
how are people "cashing out" when their movie is successful? if you hire an actor for a role and they do a legendary job to catapult the movie into the category to make hundreds of millions, surely you'd agree they deserve a percentage of the profits for their work on that role....Heath Ledger as the Joker is one of those roles that are iconic enough to make the movie an all-time great....would you consider the film company being 'burned' for having to pay a % of the profits to him for as long as the movie keeps making millions?
If movies never make money why do they keep making them? 🤣🤣🤣🤣
He talking about the actor and ppl who work on it
Behind every great fortune lies a great crime.
I hate what the world has become.
Next, i want to see what the folks from Bollywood are doing
See also season 1 of the original mighty morphin power Rangers, the original cast...
kanye is watching this really really close lol
honestly, everyone involved in bohemian rhapsody should be in jail