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Strangely enough, even films celebrated for their box office records can be declared unprofitable. Take Harry Potter and the Order of the Phoenix, which cost $150 million to create, yet grossed nearly $1 billion. Despite this, Warner Bros. claims a loss of $167 million on the project. Similarly, Star Wars: Return of the Jedi, with its impressive earnings of $475 million in 1983, has reportedly never turned a profit according to Lucasfilm, Disney, and Fox. What is behind this puzzling phenomenon?