How A $19 Million Movie Makes $150 Million - And Still Isn't Profitable
This is exactly how record deals work as well, I can tell you first hand.  The added kick in the nuts which isn't even mentioned is that if the project starts to come close to the level of profit where the artists would get payment - all the studio/label has to do is spend more money on additional, marked-up promotion and the project goes deeper into "debt."<p>Why would they bother paying the artists, when instead they can invest that same money on a 2nd round of advertising?  From their perspective it doesn't make sense to ever pay the artist.  The only time they do is if the artist gets really pissed off, has some clout and the studio/label wants to keep them happy.  If all three of those things happen then maybe they'll get some crumbs.<p>The moral of the story is, unless you have the kind of clout to make your own deal, make sure you get a satisfactory amount of money from your advance (up-front payment).