This Men In Black Secret Will Blow You Mind (For The Worst Reasons)

Hollywood Accounting And The WGA Strike - Summing Up A System That Doesn't Work

Actors can potentially go without that contingent income depending on their salary, but for writers who are paid a less significant wage, the denial of net revenue is more egregious. Sometimes movies can - despite the creative accounting - make a net profit too, but this is rare. Studios do also occasionally go back and tip talent outside of the net points system, but it's not a practice that's applied consistently.

This isn't the case for everyone involved in a film's production, of course. Actors, directors, and writers who negotiate "gross" profit contracts as opposed to net points - referred to by Eddie Murphy as "monkey points" for the fact they never materialise - will earn money on the first dollar grossed, meaning they earn on the revenue accrued immediately rather than once the accountants have twisted the books. However, as Telita Snyckers of the British advocacy group Tax Justice Network writes, "while some big-name A-list actors may well be able to negotiate for a share in gross profits, the vast majority of them can’t, and are stuck with only [...] monkey points."

Clearly, this system cannot go on. But the sad thing is that it's likely to persist, especially with the murky territory of streaming denying writers a fair share. As noted in a report by Semafor, the WGA argues that streaming has depressed writer wages due to short-order seasons and companies paying at the lower end of pay-scales while also gutting writer's rooms. On top of this, streaming residuals are paid out at a lower rate compared to traditional broadcasts, despite these platforms generating millions for their respective businesses. The streaming boom may have led to more opportunities for writers, but even with that work on the table, creators aren't being given fair or equitable treatment, which is why strike action has been called.

Hollywood Accounting in itself isn't the main focus of the WGA's ire. More broadly speaking this is a strike on receiving better compensation overall, which does include residuals and better contracts. However, the dark arts that lead to films making a net loss - and thereby deny creators their share of the profits - seem unlikely to be addressed for now. As long as that continues, only a select few in the movie business - big actors and directors - will be able to negotiate better contracts or pursue profits owed. The sad reality is that a lot of talented folks - the Ed Solomons of this world, who give us amazing things like Men in Black - do not have the sway or resources to challenge the system, and get the rewards that they deserve.