La Grande Illusion
The first rule in motion picture funding is “never use your own money.” Approach potential investors and get what you can from state and local grants. States pour millions into the movie industry each year. Why should Hollywood receive subsidies with worldwide box office receipts and home entertainment sales turning flops into moneymakers, and with 50 of the largest companies accounting for 80 percent of $55 billion in annual estimated returns? The film business is far from going under.
Don’t tell Hollywood. Armed with powerful lobby, top studios habitually complain before Congress about massive financial losses as a result of piracy, often using data from “independent” firms to support their claims. For example, in 2005 the Motion Picture Association of America commissioned a study reporting 44% decline in revenue due to college student piracy. Two years later, the same firm revealed the percentage was erroneous. Losses were closer to 15%. Other analysts say the actual figure is 3%.
