Why do big Hollywood studios make so many bad movies that lose money?

2.07K viewsEconomicsOther

Idk if economics was the right flair but I don’t know how it’s economically feasible for big studios to lose money on a lot of films with huge budgets and to make them so bad.

In: Economics

39 Answers

Anonymous 0 Comments

So, a chef can become a good chef by becoming more consistent in what they cook. An amateur might have great variation in meals, some a success and some with errors, but chefs can make the same meal over and over with little to no variation in quality.

The thing is, there’s no value in making the same movie over and over, the way a chef makes the same meal over and over.

You make the movie once, without any prior knowledge on whether it will be a success or contain errors, and then you go on to make a **different** movie, again with no prior knowledge on how it will go.

Imagine if we told chefs that they can only make every dish once and they will be judged on that first attempt. Afterwards, they can only make a new dish. It must always be an original recipe.

When originality is key to success, it’s not as clear cut whether your project will be a big success or not before you deliver it.

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