Receiving payment

[Slobodan Blagojevic]

Folks supporting this kind of corporate backhand masquerading as something of value would help themselves by researching Stockholm syndrome

Folks opposing this kind of corporate "backhand" "masquerading" as something of value would help themselves by researching economics 101.

[Paul Sumi]

Not even Time Warner would give away six point four million dollars, especially in today's climate. To keep things in context, that's the budget of a small Hollywood film, which would employ hundreds of those "little men" for months just to make the film, including the on-set still photographer, and provide work for the thousands who work in distribution, screening, concessions, DVD/BD pressing, sales, advertising, critique, etc..

OT but $6 million will not buy you much of a movie; back in 2006 the average Hollywood movie cost about 10x that amount (per MPAA).  These days a modestly budgeted Hollywood movie (e.g. District 9) will cost around $30 million.

Of course, there are the surprise extremely low budget hits like Paranormal Activity - cost $35K and has grossed over $140 million worldwide.  But these definitely the rare exceptions.

To further put $6 million into perspective, this will buy you approximately 2 episodes of an U.S. prime time drama.

Paul

[Slobodan Blagojevic]

... I can see that the concept of morality is foreign to some who are in this 'chat' ...

Speaking about morality... I do not know why, but it reminds me of the old saying:

"If you are not a socialist by the time you are 30, you have no heart... if you are still a socialist after 30, you have no brain."

Apparently, some in this 'chat' are still very young at heart  

P.S. Nothing personal... purely for rhetorical purposes

[tokengirl]

Most commenters here are conflating two different things: TIME Inc. offering early payment for a fee, and media companies in general paying late as a matter of course. Assuming TIME pays on time they are clearly and without question offering a win-win deal for those who want to be paid earlier than the quite standard thirty days.

Just because there are (other) companies out there abusing the client relationship doesn't mean every company is. There are plenty of companies out there who pay later than expected and they should change their ways. I just find it mind boggling that people are attacking TIME for charging for something which has tangible monetary value for both parties involved as if making money is a curse word, and making wild accusations just because of some bad apples in the industry.

Well said.

Perhaps people need to learn to make better decisions with regard to extending credit in the first place.  Providing goods or services on credit without first determining the buyers willingness and ability to pay as agreed is poor business practice.  When in doubt about a buyer's ability or willingness to pay at all, demand payment up front or don't make the sale.  And if you have reason to believe that you will get paid, but late, charge extra and offer a discount to pay early (here is that "time value of money" thing again).  Use a buyer's level of creditworthiness as a tool in determining how much business you want to do with that particular buyer, if any, and under what conditions.

[BFoto]

OT but $6 million will not buy you much of a movie; back in 2006 the average Hollywood movie cost about 10x that amount (per MPAA).  These days a modestly budgeted Hollywood movie (e.g. District 9) will cost around $30 million.

Of course, there are the surprise extremely low budget hits like Paranormal Activity - cost $35K and has grossed over $140 million worldwide.  But these definitely the rare exceptions.

To further put $6 million into perspective, this will buy you approximately 2 episodes of an U.S. prime time drama.

Paul

6 mill......per day Paul.

So, acorrding to your 10x rule of thumb, within 2 working weeks they can make a movie. Thats 26 movies a year.

Now, if each movie made 20% on the investments (and i recon that's been conservative), then every 2 weeks a futher $1,200,000 profit is made.

So, now every 50 days, or 10 weeks, they can make another movie. So, then every year they can make 26 initial movies and then another 5 on the interest earned.

31 movies - that's a lot of jobs.