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Why do movies cost so much to make?

Why do movies cost so much to make?

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Movies and Parkinson's Law

The cost to make a movie has little or no correlation to its profitability.

Movies cost so much because of the financial concept known as Parkinson's Law, which means film budgets will continually expand to use the capital available, regardless if the extra cash results in a better product...

During the mid-2000s economic boom, Wall Street hedge funds partnered with investment banks to push $15 billion into Hollywood films. A new payment structure gave outside investors a slice of a film's total profits over its product's lifetime, such as box office sales, video on demand, DVDs, TV l...

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