> Here's a question for those who know something about the business of
> movie-making. There's so much talk these days about movie studios being
> unable to turn a profit.
Not true, as far as I know. Hollywood took a hit from the recession -- DVD sales are down, but BluRay and online sales are up (3D films may also be the next big money-spinner, though the jury is still out on that one). The economics are like this: most films fail, but a few earn outsize returns and pay for the failures. So if a studio doesn't have that blockbuster, they can get hammered. Still, the industry is in a heck of a lot better shape than most of the US economy.
The big actor and director salaries are a product of this strange logic -- the studios are hoping to land that big blockbuster, so they shell out lots of money for a few lavish productions. But it doesn't threaten the economic foundations of the business.
-- DRR