James at 2011-11-14 06:02:04:
The problem is that most businesses don't run a zero sum game. They tend to have this thing called NET PROFIT when a film is successful. Without NET PROFIT, the only other form of profit participation is gross profit. Not knocking Relativity or Kavanaugh. Just pointing out that comparing the film business to other business isn't always synonymous. Also the model Relativity uses isn't new. It's exactly what ROGER CORMAN built an empire doing. My buddy, who is a Spanish film maker, has pointed out the rise of the international market and quality of film. This is similar to what occurred in the 60s. Which was followed by independent American film in the 70s. We're starting to see this cycle again. The only real difference is some mini-majors like Relativity and Summit are ahead of the curve this go-around.