From a movie business standpoint, what exactly are the repercussions when a film “bombs at the box office”?

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Whether it’s due to bad reviews, people not just showing up to watch, or other factors, what happens afterwards behind the scenes when a film tanks?

In: Economics

9 Answers

Anonymous 0 Comments

By the time a movie appears in theaters, almost all the money has already been spent. Poor performance would lead to cutting future advertising, but that’s a small figure. If it doesn’t make enough, then the investors lose money.

The business impact is that future movie decisions will be colored by “{Title} bombed at the box office”. Ideas get pitched, like a DC comics universe parallel to the MCU, and then get shelved when a movie does poorly. Ideas that seemed unlikely, like a Venom movie family, get green-lit when a movie over performs. Both of these effects are business effects, as investors use past performance to gauge future risk.

Sayings like “Get woke, go broke” are coined to label patterns in this profit landscape, and directly impact future investment decisions.

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