Why do Hollywood blockbusters lose money? How do movies make any money at all? Edward Jay Epstein knows the answers from his years of writing about Hollywood for Vanity Fair and the New Yorker. In his book The Hollywood Economist: The Hidden Financial Reality Behind the Movies, the renowned investigative reporter penetrates the dazzlingly complex economics of Hollywood to uncover the studio’s "invisible money machine." On June 3, 2010, as part of the Mackenzie Speakers Series, Mr. Epstein took the audience through a fascinating look at the real economics of the movie industry to find out where the money comes from and where it goes.

Below is a short excerpt from Edward J. Epstein’s presentation. To view the full video in its entirety, click here.