How Hollywood cooks the books

Disney (NYSE:DIS) will make a fortune from the new Star Wars film. But that’s no guarantee anyone else will.

Star Wars: Return of the Jedi, Forrest Gump and Harry Potter and the order of the Phoenix were very popular films. But according to Hollywood accounting practices, none of them made a profit.

The release of the new Star Wars Movie on Thursday night may well become one of the top three grossing movies of all time. It may also turn out to be just as ‘unprofitable’ as Return of the Jedi. How so?

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