I read a lot of non-fiction books about the film industry in general. This one was full of useful info but it didn't explore any new territory. It was written factually without much regard for easy reading. Useful to learn about some of the business practices in Hollywood if you haven't learned much already. A decent primer.

Epstein gives a fascinating account of the rise of Hollywood in the early part of the 20th century, focusing on the role intellectual property law played in the that development (the fact that patents in technology related to the making and showing of movies were controlled by the Edison Trust, located on the East coast, forced would-be movie moguls to relocate to the West coast away from courts sympathetic to the Edison Trust). He also explains how historical and legal developments (studio ownership of the means of production and the resulting anti-trust lawsuit brought by the federal government) led to the rise and fall of the studio system by the 1950s, and how federal legislation made it impossible for television networks to produce their own shows in the 1970s, a void the movie studios rushed to fill. Epstein details of the creative accounting methods and other legalisms that the six major movie studios use to maximize profit in the modern world of movie finance, where licensing revenue and home video sales far outweigh box office receipts.

jeffbrownlegal@gmail.com

Epstein gives a fascinating account of the rise of Hollywood in the early part of the 20th century, focusing on the role intellectual property law played in the that development (the fact that patents in technology related to the making and showing of movies were controlled by the Edison Trust, located on the East coast, forced would-be movie moguls to relocate to the West coast away from courts sympathetic to the Edison Trust). He also explains how historical and legal developments (studio ownership of the means of production and the resulting anti-trust lawsuit brought by the federal government) led to the rise and fall of the studio system by the 1950s, and how federal legislation made it impossible for television networks to produce their own shows in the 1970s, a void the movie studios rushed to fill. Epstein details of the creative accounting methods and other legalisms that the six major movie studios use to maximize profit in the modern world of movie finance, where licensing revenue and home video sales far outweigh box office receipts.

jeffbrownlegal@gmail.com

If you want to understand how Hollywood became what it is today then this book ticks all the boxes: it tracks Hollywood from its beginnings in the early-20th century and the early part of the book focusses on the development of the big six media corporations in the world and who runs them and why TV and DVD are now far more important to the bottom line than straight theatrical release.



Some of the real examples of Hollywood's incredible loss-making ability are startling: one studio's 'greatest success' actually lost over US$60m, and you learn that the drivers of money and power are not the strong but actually it all boils down to children: what they want and don't want fuels the whole industry.



Fascinating stuff and very easy to read...five stars, no questions asked.

If you want to understand how Hollywood became what it is today then this book ticks all the boxes: it tracks Hollywood from its beginnings in the early-20th century and the early part of the book focusses on the development of the big six media corporations in the world and who runs them and why TV and DVD are now far more important to the bottom line than straight theatrical release.

Some of the real examples of Hollywood's incredible loss-making ability are startling: one studio's 'greatest success' actually lost over US$60m, and you learn that the drivers of money and power are not the strong but actually it all boils down to children: what they want and don't want fuels the whole industry.

Fascinating stuff and very easy to read...five stars, no questions asked.

There's no business like show business, goes the old adage. But we now need a clarifier; which show business? The old show business of the 1940s-1950s of the big-budget epics starring the big name stars, or the new show business of DVD's, toys, stand-alone soundtracks, digital piracy, multi-national crews and casts and computer animation...

This book examines the evolution of the Hollywood business throughout the 20th century and into the early 21st century. Unlike other books of the same topic, this one looks at the major players, both individuals and companies, and covers a lot of the technological changes such as the advent of talkies, color movies, VHS, DVD, and the Internet. The book also deals with a lot of the legal / political issues, such as free-agency of actors and actresses, unions and guilds within the industry, copyright laws and intellectual property, and interconnected web that links TV, video, toy sales, franchise names, and company logos together.

The author shows how changes in technology and laws have changed the Hollywood business by changing relations between movie companies and their employees, between directors and the actors and actresses, and between moviegoers and moviemakers. The role of advertising is examined to see how it has changed over the decades from posters and previews of previous decades, to the TV spots, toys in food boxes, pre-screenings, and guest-show appearances of today. The book also shows how changes in Hollywood have affected the movie industry in other countries, and vice versa.

Overall, a well balanced and comprehensive book on the movie-making history.

The entertainment industry has many blurred and overlapping lines. This book exposes them all. The fascinating history and illustrious careers of pioneering visionaries such as Walt Disney, Akio Morita, Lew Wasserman, Rupert Murdoch, Steve Ross, and David Sarnoff, is worth the cover charge. It emphasizes just how entrepreneurial show business is while it examines the past, present, and future operating systems as they pertain to all branches of the entertainment industry. Anyone who has thoughts, desires, or plans to become a writer, producer, director, or film/television studio executive has got to read this book for inside information and inspiration.

This is a very detailed and insightful book on the movie entertainment business. Epstein researched an enormous amount of proprietary financial information from the Motion Picture Association All Media Revenue Report (MPA). This is a report disclosed only to the studios that details movie earnings. It is unclear how Epstein obtained access to this proprietary data. Epstein leveraged this proprietary data into an incredibly insightful analysis of the movie-entertainment industry. Thanks to Epstein lively writing style the book is a quick read despite the volume of information provided.

The movie business is not an economically viable stand-alone business. Indeed, over 95% of the movies loose a ton of money at the Box Office even if they often generate hundreds of millions in such Box Office revenues. Movies have become extremely expensive advertising for a very risky long-term investment in an "intellectual property" right. The pioneer of such a business model was Walt Disney who fully grasped the possibilities of the ancillary businesses more than half a century ago.

Related ancillary revenues generated by videos, Pay TV, and Networks dwarf the revenues at the Box Office. While the major studios derived 100% of their revenues from Box Office in 1948, this percentage has continuously dropped to only 18% in 2003. Additionally, these ancillary businesses are almost all profits. The vast majority of the production costs have already been absorbed within the Box Office business.

However, a majority of movies still loose money when you figure the full life cycle of its "intellectual property." Epstein details throughout the book such a cycle for "Gone In 60 Seconds" with Nicolas Cage. At first, the movie seems a roaring success as it grossed $242 million in worldwide Box Office. But, when you figure the whole cycle, as of 2003 the movie including the ancillary businesses was still $150 million in the tank.

The reason movies still get made is because there are so many willing equity partners absorbing the brunt of the losses in financing movies. The studios survive because they are supported by their strong parent holding companies whose businesses are diversified in technology, news, media, and consumer products. The directors and stars make a fortune. And, the equity partners are the ones loosing their shirts.

After reading this book, one assesses that movie stars are the most overpaid human beings on the planet. In one single movie, they often make more money than sports stars make over their entire career (tennis or golf comes to mind). Even though some stars do attract the public, the underlying economics of their movies over the full cycle is not attractive. If it were not for equity partners making irrational investment decisions, the castle of cards would crumble.

The book also breaks or confirms many interesting myths. For one, Tom Cruise does not do his own stunts despite what you see in DVD bonus features. This is because insurers cover the risk that Tom Cruise will not be able to complete the shooting of the movie. The face of an actor is now digitized on to the body of a stuntman. So, when you see a close up of Tom Cruise jumping off a cliff it really looks like him. Another interesting concept is that movie theatres make more money from selling popcorn and sodas than from showing the movie. It is true! The movie represents foot traffic. The popcorn and sodas represent the high profit margin business segment they don't share with the studios.

There are a zillion more interesting facts mentioned within the book embedded in a coherent and very entertaining history of the movie business from its inception to nowadays. Thus, I strongly recommend this book.

Epstein's book strips the Hollywood movie industry down to its underwear. Hollywood tries hard - and often succeeds - to portray itself in certain ways that we usually accept just because Hollywood is in the business of creating fantasy. But Epstein disrobes the pretense that Hollywood dresses itself in and shows that even Hollywood is just a business, albeit one that operates with accounting rules heavily stacked in favor of the studios.

Take, for example, Epstein's oft-cited example of the movie "Gone in 60 Seconds". The movie cost $103 million to make in 2000. Disney spent $103 million more on various residual fees, printing costs, insurance, taxes, and so on, for a total cost of $206 million. The film grossed $242 million worldwide, $139.8 million was paid to movie theaters leaving only $102 million for Disney, out of which it had to pay employees and overhead, leaving it with a net loss of $160 million. So, the movie was a bomb right? Wrong.

The movie earned $198 million from sales and rentals of DVDs and videos and $18 million from HBO for the television rights. No doubt there are other revenue streams that Epstein doesn't mention. But, due to some nifty accounting tricks, most of this revenue is pure profit. So Disney's $160 million loss is more like a $30 million profit once DVD and video product expenses are accounted for. Not bad for a movie that was a complete flop at the box office.

Epstein delves into the history of Hollywood and really does a great job of telling you why it is like it is nowadays. You'll learn how big stars like Schwarzenegger get preferential treatment by the studios while lesser actors receive what the studios think they're worth. You'll learn the difference between "&" and "and" in movie credits and how studios came to love DVD despite their initial grievances. And you'll learn why G-rated movies hit the financial bullseye so much more often than R-rated ones.

All told, this book will appeal to those of you who are intrigued by the mysterious nature of Hollywood and how it manages to turn sows' ears into silk purses. Read it and see the wizard behind his curtain.

Being a movie fan for most of my life, this was an eye-opener. The movie making has changed as the big studios disintegrated and props sold as so much garbage. Except for what was saved by Debbie Reynolds, who collected enough for a museum now residing in Pigeon Forge, Tennessee.

Movies are not made for entertainment these days, but for the money derived from DVDs and movie channels. It has been hard to find a decent movie these last four months as all are violent, putrid and not meant for normal people. I saw in the paper that an adult movie might be made here on Gay Street (for its name, no doubt) and in the old-fashioned movie theater which replaced the old musty-smelling, but stately edifice. It is now for opera, concerts, and symphony, not films.

Back when the movies were happy and fun to watch, there was no way to buy a copy of your favorite film from a studio. I know, because I tried to buy 'Bundle of Joy.' Now the producers and stars get their money from sales, as Regal keeps most of the ticket sales intake.

Going to the movies is different these days, not to get in a cool place in a "palace" setting, but for diversion -- something to do. I go to the early showings and am amazed at the number of working-age men who are free to waste a couple of hours at that hour. Are there that many unemployed?

The early history of movie making in the East is unique and educational. All the theaters and studios were owned and run by Jewish immigrants. Today, a "star" can now produce, direct, distribute, sue Regal for a larger percentage, change the story and re-release a year later. Now, I call that 'greed' on a high level. I did not see his major production.

Columbia Pictures is now owned by Sony of Japan, who also owns TriStar Productions, CBS Records,and MGM Studio in Culver City. Fox Studio is owned by an Australian media company.

Making movies is a principle sourse of prestige for trhe six conglomerate (global) companies, coveting the gold statuettes as "hold over" from the glory days when movies were decent. Today, it's all about profits at the expense of decency and entertainment.

The reality shows proliferating on television could possibly make movies blase as there are no stars, no high fees, only the privilege of letting average-looking (not beautiful) people do crazy things. Even a playboy with lots of money starred in his own series -- what a joke!

Movies will continue to be made for grown-up audiences to see in theaters, but they will play an ever-smaller part in the BIG PICTURE od Hollywood, which is all an illusion. Mr. Epstein has written LEGEND: Secret World of Lee Harvey Oswald, DECEPTION; Invisible World Between KGB and CIA, and others and his bio is available as a download on Amazon.com in CONTEMPORARY AUTHORS.

I like books on business in general and also read many books on the movie business. This is an exceptional book to understand the current-day economics of the movie business which has changed drastically. Much in this book has already been covered of the original movie business starting from an Eastern Jewish influence to the West Coast. Fortunate to have a business with complete control of the talent through the studio system it was a "win-win" controlling the talent as well as what movies were shown in the theaters they owned. But laws soon outlawed owning the theaters and by the 60s the studio system completely crumbled allowing directors and stars to now bid their pay to incredible wealth.

Where this book really excels is not in the history of the business, where a fine job was done, but in the current discussion of the economics of the business. There are specific examples but probably the most telling is concerning the film, "Gone in Sixty Seconds", a typical car crash film starring Nicolas Cage. Most would probably assume this was not a profitable movie but he explains how movies are generally not profitable from ticket sales but through licensed video games, DVD sales and other promotions. This movie was hugely profitable but only when considering this ancillary income.

The example is carried further in explaining the mystic behind "net" and "gross" points. The known fact in Hollywood is always to get your points in "gross", prior to expense allocation. That's easier said than done. He goes through the whole math of the clearing house. As a former CPA it's an excellent explanation on what is "behind the curtain" in Hollywood accounting that leads to so many lawsuits.

Overall, I consider this on of the best books ever written about Hollywood. But this reads somewhat like a college textbook full of thought provoking information. This is not a light, fun read but a business book which should be required reading for anyone considering entering the business side of Hollywood. I strongly recommend this book if you want to "study" the finance/accounting side of the business.