"Of course, it's not only Paramount that employs these devices every studio uses them to minimize risk. Remember all those stories about how New Line was betting its entire future on the Lord of the Rings trilogy? Not quite. New Line covered almost the entire cost by using German tax shelters, New Zealand subsidies, and pre-sales. If studio executives don't crow in public about such coups, it's probably out of fear that such publicity will induce governments to stiffen their rules as, for example, Germany periodically does with its tax code. When you've got a golden goose, you don't want to kill it while it's still laying eggs."
A fascinating article about how many big Hollywood blockbusters are financed.
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