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
The premise of this question is wrong, most movies make money eventually. Traditionally, even if a movie underperforms at the box office it could make its money back eventually through ancillary markets – dvd, streaming/cable rights, etc. And even if it does lose money, that tax write off can be very valuable too.
Before a studio even green lights a movie and insane amount of research is done comparing similar movies performances. Oh you want to make a Ryan Reynolds action comedy in August? Here is how 3 of his others have done. Stuff like that. Granted they aren’t perfect but they have a general idea of how a movie should perform before they write the first check.
The movies that genuinely lose a studio large amounts of money are few and far between.
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