'Disaster' in script for movie makers

By THIS IS MONEY
Updated:

 

A SENIOR News Corp executive has warned rising production costs threaten the existence of the film industry.

'The cost of these movies is the dirty secret of Hollywood,' Peter Chernin, chief operating officer, told a conference in Los Angeles.

The latest box-office flop - The Alamo - may lead Walt Disney to write off more than $150m (£85m), but that could be small beer in the future, said Chernin.

He added that some Hollywood blockbusters cost $200m, and warned of the consequences of such a film taking just $25m. 'It will rock the industry to its foundation and appropriately so,' said Chernin.

Few in the industry were willing to talk about the risks, he said.

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