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Originally Posted by quexos
I don't get it.
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Obviously.
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If studio B is willing to give a certain amount of money for the rights of movie X then it's cause studio B reckons it will make more money than it had to pay for those rights, so Studio A is losing money by selling rights to studio B, since studio A could be getting all the money of the sales.
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It's a gamble and very much like the stock markets or any speculative market. One of the worst example of executive miscalculation happened with Titanic. Paramount poured (ahem) money to the project and just could not commit to that movie anymore. So they got Fox to contribute in exchange for WORLDWIDE RIGHTS sans for the US. Much of the Fox money went to building the water studio down in Mexico, I believe. As it got close to the end of post production and testings were done, Paramount realized their mistake. Fox is raking in money worldwide - the Japanese market alone is worth all that money.
Another reason for selling those rights could be how certain movies are tied to other projects. If Studio A wants a lucrative share on a high profile movie starring Neil Patrick Harris from Studio B, then they also have to buy shares for a lower-profile movie directed by Uwe Boll from Studio B.
fuad