This reminds me of Steve Jobs on Pixar in his biography. When he bought Pixar it selling 3D rendering as a medical aid and other useful things. When work with Disney led to Toy Story they concentrated on movies. I'm paraphrasing but he said if he'd thought Pixar was a film company when he bought it he probably wouldn't have bought it. The man liked widgets.

If I met a multi millionaire with a widget? Why I'd bat my lashes like drums.

At least with a movie that bombs, you get a DVD keepsake. What about the people who invest in legit theater/Broadway? As for whether it "helps them with their other businesses", that reminds me of a scene in "The Player": GRIFFIN MILL When can you be back? LARRY LEVY After my AA meeting. GRIFFIN MILL I didn't realise you had a drinking problem. LARRY LEVY I don't really, but that's where all the deals are being made these days.

If done responsibly (Ha!) you can make money in Hollywood. I point to examples such as Roger Corman, Avi Lerner, Pierre David, etc... When you are vertically integrated, cost conscious, and audience savvy then movies are a good investment. I , and others have made movies for $100K (or less) which have grossed over $600k - $1M. Unfortunately, I made those movies for other people and didn't participate in the windfall. That said, Hollywood moviemaking can (and should?) be a responsible industry that operates by the same rules that other industries must adhere to...

Let's not forget that 'profit' is a relative term and may always move toward zero if contracts are paid in percentages of profit. There would also be more profit if the suits would leave the movie making to the creative people. Better stories, better movies, reasonable profits.

Edward Jay Epstein has two great books on the subject -- The Big Picture & The Hollywood Economist. As someone who briefly worked in financial services at one of the bigger firms that backs Hollywood Studios, these books are pretty insightful. Also there are some articles on why Relativity Media (essentially the arm of a hedge fund) is unique, and sheds some light on the majors in the process.