How Successful People Get Burned In Hollywood

Every year, another wave of accomplished people decides to get into film. Tech founders, bankers, executives who've crushed it in their industries. These aren't dumb people - they've built and sold companies, engineered exits, managed billion-dollar funds.

But something happens when they step into Hollywood. Maybe it's the parties. Maybe it's the chance to tell people they "produced a film." Either way, entertainment attorney Schuyler Moore has watched $20 billion crash on these shores over his 40-year career.

And somehow there's always another wave coming.

Industry Power Players And Transactions

Entertainment attorney Schuyler Moore doesn't just know where the bodies are buried - he's structured some of Hollywood's largest financing transactions. From Reliance's investment in DreamWorks to the Ratpac-Dune slate financing for Warner Brothers, from the Hemisphere slate financing for Sony and Paramount to Hunan Group's slate financing for Lionsgate.

Rated as one of the top 100 "Power Lawyers" by the Hollywood Reporter and among the top three "Most Influential Lawyers" in media by the National Law Journal, Schuyler has been practicing entertainment law since 1981. He represents everyone from producers and sales agents to foreign distributors and financiers. In 2019, The Hollywood Reporter named him a lifetime "Legal Legend."

Why Achievement Unlocks Bad Decisions

"The industry attracts two types," Schuyler explains. "Outright frauds and hopeless dreamers."

The frauds will show you fake bank statements. The dreamers will tell you about Swiss gold bonds and leveraged trust funds. Both will waste your time. Neither will make your movie.

But here's the real problem: successful people aren't used to hearing no. When you've built something substantial, when your calls usually get returned, Hollywood's gatekeeping hits different. Schuyler has watched this play out countless times - from the hedge fund manager who backed a trilogy of soccer films to the dictator's son who wanted into the industry.

The First Check Trap

Here's the truth about film financing: whoever puts in the first dollar usually ends up financing the whole thing.

Because once you're in for a penny, you'll hear the magic words: "The dailies look great but we need more money to finish." Now you've got a choice - lose your initial investment or double down.

This is how smart people end up financing 100% of movies they only meant to put 10% into. Schuyler's seen entire film slates funded this way - one check at a time until the original investor is all in.

The Real Power Dynamic

"Distribution is king, not content," Schuyler explains. Here's why: About 600 feature films get made every year. Only about 150 see any kind of meaningful release.

The math is brutal. Production is sexy. Distribution isn't. At a party, would you rather say "I make films" or "I handle video-on-demand logistics"? That's why there's a tsunami of content but barely a trickle of real distribution.

The power dynamic has shifted too. Studios used to control distribution. Now streamers do. "The studios have become effectively production companies for streamers," Schuyler notes. "They're on their knees to Netflix now."

What Actually Matters

Everyone wants to read the script. Don't bother. Unless you're making message films for ethical reasons, script quality is the least important part.

Instead, ask:

• Who's the line producer? (The only adult supervision on set)

• Are the sources of financing real or fantasy?

• Does the producer have actual relationships or just an IMDB Pro subscription?

• Is distribution actually locked down or just "interested"?

The AI Revolution Is Coming

"You're either going to get replaced by AI or harness AI," Schuyler warns. "Those are your only options."

With AI poised to reduce production costs by 90%, the entire industry is about to transform. The question isn't whether to adapt - it's how fast you can get ahead of the change.

Key Moments From The Full Interview

01:29 - Reverse Engineering Success in Filmmaking
How to approach the film business from a commercial perspective

04:23 - Navigating AI in Filmmaking
Protecting your content while reducing costs by 90%

06:28 - The Importance of Distribution Over Content
Why the power lies with distributors, not producers

09:29 - Understanding Film Investment Motivations
The real reasons successful people invest in movies

10:12 - De-risking Film Production and Investment
What's actually possible when it comes to protecting your investment

12:11 - The Shift in Film Financing
How streaming has upended traditional power dynamics

15:22 - Surprises in Film Deal-Making
Why $20B keeps flowing into Hollywood despite the odds

18:16 - Production Incentives and Tax Credits
The truth about Section 181 and state incentives

21:43 - Understanding Film Financing Risks
The First Dollar Rule and why initial investors often end up all-in

24:00 - Navigating Distribution Opportunities
How the market is changing and where the opportunities lie

26:02 - The Allure of Producer Credits
What those coveted EP credits actually cost and buy you

28:31 - Identifying Schemes and Dreamers
How to spot industry frauds before they spot you

32:55 - When to Engage Legal Expertise
The right time to bring in professional help

33:39 - The Accidental Journey into Film Law
How Schuyler became Hollywood's deal architect

36:06 - Essential Questions for First-Time Filmmakers
What you need to ask before starting your first project

Watch The Full Interview →

Free Resources From Schuyler

Want to go deeper? Schuyler has literally written the book on entertainment law and business. Now in its sixth edition with over 50,000 copies sold, this is the same textbook Schuyler uses to teach at UCLA Law School and UCLA Anderson School of Business. Written so "my mom could understand it." Get it on Amazon →

Forbes Column - Monthly insights on entertainment law, film finance, and industry trends. Recent articles:

• The Basics Of Raising Seed Equity For Films

• Film Economics 101

• New California AI Legislation Affecting Hollywood

Newsletter - Get Schuyler's latest insights directly. Email [email protected] with "add" in the subject line.

YouTube Channel - Search "Sky Moore The Biz" for his full UCLA course, free to watch.

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