Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: BurbankKarl

The studios wouldn't stay in business long if they made a habit of this. Their purpose is to make money, not give it away. And theater chain owners would scream bloody murder. They get as much or more of their revenue from concessions as from tickets sales. Am I supposed to believe that the studios are footing a big chunk of the original production costs for films, and then buying up millions of tickets which will not be resold, and paying off theater owners for the lost concessions? Theater owners have a stake in this business too, and wouldn't stand for this if it happened on more than very rare occasions in a limited number of markets. And local journalists would have a field day, since they'd have no trouble confirming the stories with the many casual workers who staff theater ticket windows, projection rooms, and concession stands. And most of these major studios are publicly traded companies, or segment-reported subsidiaries of publicly traded companies, so the stock analysts would be all over this, followed quickly by the SEC's investigators, who'd slap fines and nasty publicity on the studios that would put a quick stop to such schemes. And competing studios would get wind of such antics quickly, and be quick to expose them, since their own revenues would suffer from false promotion of competitors' films as blockbusters. If major studios were falsifying financial reports by misreporting sources of revenue and targets of 8 figure expenditures, while engaging in deceptive practices that thousands of casual theater workers, plus theater owners, are in a position to notice and blow the whistle on, the execs would be in deep trouble very quickly, and the practice would end.

Nope, if what you describe has ever happened, it has been rarely and on a small scale. Inflated ticket sales/attendance numbers are very common in the sports world, but none of the major sports organizations are publicly traded, and nobody is paying for the tickets. The same companies, or incestuously related companies, are getting most of the revenue from ticket sales, and reporting the numbers, AND managing the events on site (so unsold seats are frequently packed with people who've been given free tickets, making the reported numbers look at least vaguely believable to naive people, and making concession owners happy since people who got free tickets buy at least as much junk food as people who already spent a bundle on tickets).


157 posted on 01/06/2006 4:51:21 PM PST by GovernmentShrinker
[ Post Reply | Private Reply | To 69 | View Replies ]


To: GovernmentShrinker
 
I knew there was someone lurking around out there that could more eloquently say what I was thinking. Thanks ;)
 

165 posted on 01/06/2006 4:57:58 PM PST by HawaiianGecko (Timing has a lot to do with the outcome of a rain dance.)
[ Post Reply | Private Reply | To 157 | View Replies ]

To: GovernmentShrinker

I see your point, but the producers of the movie don't have to show inflated ticket sales. It's the owner of the theater, a separate company, who would be misrepresenting the ticket sales by putting "Sold Out" in the window. As long as the theater accurately reports its income to the IRS, who is going to care?

And consider this. When the movie gets nominated for an Academy Award, which is probably the intent from the get-go, it can be re-released as "Nominated for X Academy Awards". And the company that owns the theater can profit from that. And if it wins, which isn't all that unlikely, it can get a longer and bigger run at theaters. So I still think there may be an element of hype here.


196 posted on 01/06/2006 5:37:07 PM PST by popdonnelly
[ Post Reply | Private Reply | To 157 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson