Part 3/8:
At the heart of these discrepancies lies a practice known as Hollywood accounting, a convoluted form of financial reporting that obscures real profitability through what can only be described as creative techniques. This method appears to tarnish the reputations of even the most financially successful films, painting them as losses in order to prevent studios from sharing profits with actors and creators involved in the filmmaking process.
Historically, actors once had the ability to negotiate contracts based on gross pay, allowing them to earn a percentage of a film's revenue regardless of its perceived success. For instance, in the case of Bonnie and Clyde, Warren Beatty secured a staggering 40% from Warner Bros.—a decision that severely backfired when the film grossed $70 million.