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
It’s not sustainable, especially with current interest costs on borrowing money. But as to why they make them, it is due to being risk averse and wanting to make lots of money.
There are only so many screams and so many days in the year. So they want to make lots of blockbusters that do huge box office in the weeks or less and be able to release it in screens all over the world. So this means they make pg-13 films that are based on something that was already successful in some form that can easily be edited to be acceptable in multiple markets and thus it turns into a lump of beige. Comic book movies and cheap loans have them a false sense of security as it introduced a fresh genre that was very amenable to being broadly pleasing with simple plots and if something failed, you could pay the near non existent interest for a long time so you could drag out the consequences of a failure until a successful one hit and have you capital to pay it back.
But even with success, they were just spending too much. A good example of that was fast X. The box office was solid for a sequel in a franchise, but not enough to cover the $300+ million budget and massive advertising blitz.
If this summer is all like the last few weeks have been, I suspect there will be real, tangible consequences in the industry. Even with getting budgets under control and offering up fare other than superhero movies, they are still losing money hand over first. The big winners are just breaking even.
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