Part 3/12:
The Frightening Economics: Flops, Rising Budgets, and Studio Desperation
Financially, Hollywood’s landscape has shifted unfavorably. Films that once guaranteed big profits now underperform or flop outright. The $270 million expenditure on The Marvels exemplifies the reckless spending habits of studios desperate to recoup losses, even on projects with questionable appeal.
Meanwhile, the trend of inflating budgets continues unabated, even as box office returns dwindle. The idea that higher spending correlates with higher earnings is a misconception prevalent among executives who view movies strictly as business ventures rather than art.