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

2.05K 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

As others have said, it’s not that they *wanted* or *expected* to lose money. Your question is basically, “Why do people lose money investing?” They’re not *trying* to. They just bet wrong.

And also, bad movies and movies that don’t make money often aren’t the same thing. Transformers: Revenge of the Fallen is 20% on Rotten Tomatoes. And made over 800 million dollars. Just because a movie is bad, doesn’t mean that it can’t be profitable.

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