[ELI5] How do film studios stay in business with so many bombs?

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I saw an article that the movie “I.S.S.” made 1.2 million this opening weekend. I’m no movie expert but I’m guessing it cost a lot more than that to make.

Not trying to make an argument about whether they’re good or not, but it seems that the last 4 or 5 WB/DC Super Hero movies bombed hard, too. How does WB continue to make movies if each one makes less than it cost??

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Anonymous 0 Comments

If it’s an independent studio, they may have completely financed the film via distribution deals and other deals made with Executive Producers. In this case, the distributors lose money, not the production company.

A major studio film can survive bombs, because they have a bottomless pit of money to play with, and they make money via other successful films that have been produced.

However, distributors and independent film companies do go bankrupt all the time. It’s an incredibly risky business.

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