Coming To America Movie Analysis
Legality
Technically speaking, the methods mentioned above that Hollywood accounting comprise, designed to avoid paying out profits to those people in which they are due, is legal.15 For the most part, there are no accounting regulations that have been outright violated by Hollywood’s accounting practices, and similar methods can be found in other industries, albeit to a lesser degree. Further, Hollywood has so much power in this country, and helps fund numerous political campaigns, that the government does not usually give the film industry many problems.16 Evidence suggests that some crony capitalism may be present, as movie studios receive tax incentives from the government, while in-turn lining the pockets of political campaigners.
Though the general practices may be legal in the United States, that has not stopped numerous high-profile judicial cases from arising in an effort to alter the established …show more content…
Paramount in 1990.18 Art Buchwald brought the case to court after Paramount essentially stole Buchwald’s pitch for a movie, which would end up being released under the title “Coming to America,” starring Eddie Murphy. The movie made over $200 million over its budget at the box office, and Buchwald never received payment for Paramount using his movie idea.19 Paramount argued in court that the movie did not make a profit. Upon analyzing the financial data, the court ruled against Paramount, and called out Hollywood accounting practices in determining writer compensation in its decision. The court also recommended that Buchwald follow up by filing a tort lawsuit against Paramount for the civil wrongs created by Paramount’s accounting practices. As this would have opened Hollywood accounting as a whole to scrutiny from the public and even the SEC, Paramount made the decision to settle out of court as
Technically speaking, the methods mentioned above that Hollywood accounting comprise, designed to avoid paying out profits to those people in which they are due, is legal.15 For the most part, there are no accounting regulations that have been outright violated by Hollywood’s accounting practices, and similar methods can be found in other industries, albeit to a lesser degree. Further, Hollywood has so much power in this country, and helps fund numerous political campaigns, that the government does not usually give the film industry many problems.16 Evidence suggests that some crony capitalism may be present, as movie studios receive tax incentives from the government, while in-turn lining the pockets of political campaigners.
Though the general practices may be legal in the United States, that has not stopped numerous high-profile judicial cases from arising in an effort to alter the established …show more content…
Paramount in 1990.18 Art Buchwald brought the case to court after Paramount essentially stole Buchwald’s pitch for a movie, which would end up being released under the title “Coming to America,” starring Eddie Murphy. The movie made over $200 million over its budget at the box office, and Buchwald never received payment for Paramount using his movie idea.19 Paramount argued in court that the movie did not make a profit. Upon analyzing the financial data, the court ruled against Paramount, and called out Hollywood accounting practices in determining writer compensation in its decision. The court also recommended that Buchwald follow up by filing a tort lawsuit against Paramount for the civil wrongs created by Paramount’s accounting practices. As this would have opened Hollywood accounting as a whole to scrutiny from the public and even the SEC, Paramount made the decision to settle out of court as