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Quite a bit of Hollywood's problems is involved in the money they spend on single-point high costs: That is, huge salaries for major stars and star directors/producers, over-the-top special effects and monstrous promotions; instead of using the lesser (but just as talented) actors, directors and producers to their full extent, scaling back on car crashes and fireballs, and utilizing basic promoting methods for their movies (commercials, tie-ins and reviews).
There are a number of parallels to the publishing industry, as it so happens.
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