The Hollywood Reporter Quotes P. John Burke on Rocky Relationship Between Hollywood and Its Film Financiers
P. John Burke, head of the entertainment practice at Akin Gump, has been quoted by The Hollywood Reporter in “Hollywood and Film Financiers: A Torrid Love Affair Hits a Rocky Road,” an article that looks at the fallout from many Hollywood studios breaking up with their outside financiers.
The article reports that all of the major studios, except for Disney, rely on third-party money to partially cover the costs of many of their movies, especially big-budget projects. Some key investors, however, are backing out, leaving the studios in the lurch.
“The film business has become much more volatile and much more unpredictable,” said Burke. “It’s more important than ever for studios to find financiers willing to invest in films, but at the same time it is more difficult than ever for financiers to invest on historical terms because film performance is more volatile. In order to get deals done, the studios need to be willing to align their interests more closely with the interests of the investors.”