Warner Bros., Right After Announcing Record Profits, Pleads Poverty In Asking People To Support 'Grassroots' Campaign For E-PARASITE Act
from the that's-chutzpah dept
In July, we informed you about the creation of and Warner Bros.’ involvement with Creative America, a grassroots coalition uniting the entertainment community and others against one of the biggest threats we face as an industry: content theft. Thank you to those of you who have already joined and supported Creative America. This is an important first step, but there’s still more we can do.I dunno. WB, if you've just made $822 million in profits alone, perhaps you could donate some of that to residuals? Ha Ha, who am I kidding? Movie studios never pay residuals. Remember, this is Warner Bros. And part of the reason it was so profitable this quarter was the latest Harry Potter movie. But last year, we got to analyze the accounting on an earlier Harry Potter movie, showing how Warner Bros. played with the numbers to take a movie that brought in $938 million and still let Warner Bros. claim a $167 million "loss," through highly questionable accounting, designed almost entirely to avoid paying royalties. The trick, of course, is to set up each movie as its own "corporation" that has to pay the parent studio "fees" for certain "services." You keep ratcheting up those fees, and the studio makes a ton, but the "company" that is the movie can always claim a loss to avoid paying royalties.
Thieves in the U.S. and abroad continue to make millions of dollars off our work, talents and creativity. For instance, “The Big Bang Theory” is one of the most popular targets of digital content thieves, with more than 600,000 illegal digital downloads thus far in 2011. Meanwhile, “The Hangover Part II” was illegally downloaded some 700,000 times in the first five months since its theatrical release.
Content theft doesn’t just affect a single show or film or even studio. It affects residual benefits, pension funds and health plans as well as jobs that our industry supports—whether directly or in ancillary markets and businesses. Therefore, it’s in all of our interests to stand behind Creative America.
Honestly, if you know anything about the numbers, you'd know that Warner Bros. is a much larger threat to residuals and other things like health plans and jobs, than any file sharing by some kids who'd never pay to see the movie anyway. SOPA/E-PARASITE isn't going to help people in the business get paid. Execs, sure. But not everyone else. Not by a long shot.