Quote:
Originally Posted by WhawhaWhat
Disney had no risk but also only got 5%. Now Disney wants 50% of the risk for 50% of the profit. If you take a movie like Venom and put the Disney deal in place, then Sony loses hundreds of millions.
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What am I missing?
If Disney has half the risk, I’d take that to mean half the expense. If they have half the expense and get half of the revenue, the margin would be better than giving away 5% of the net.
Meaning that if it made money Sony would get less. If it lost money Sony would lose less. It wouldn’t take a profitable movie and make it unprofitable.
50% income - 50% expense = net
Vs
100% income - 100% expense = net -5%
So what am I missing?