10 Disturbing Truths You Didn't Know About The Movie Industry

4. Shady Accounting To Avoid Paying Royalties

It's pretty amazing to believe that David Prowse, the guy who played Darth Vader in the original Star Wars movies, still hasn't received any royalties from Return of the Jedi 30 years later, because the film, which grossed $475 million, reportedly didn't turn a profit. How can this be? The answer is Hollywood accounting; movie studios set up a company for most films they make, and the studio then charges the company a fee - apparently for "marketing and distribution costs" - which is in excess of the box office gross, causing it to appear as though major, successful films have actually made no money. This way, studios get to pocket all the money while paying nothing to the various actors and other aspects of the production who would otherwise be entitled to royalties. Apparently, actor Prowse receives a letter from Lucasfilm periodically to rub salt in the wound, declaring that the film made no money, despite the obvious truth that it did. That Hollywood can get away with such brazenly shameless tactics is, to me, pretty damn disgusting.
 
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Frequently sleep-deprived film addict and video game obsessive who spends more time than is healthy in darkened London screening rooms. Follow his twitter on @ShaunMunroFilm or e-mail him at shaneo632 [at] gmail.com.