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This suggests a significant financial shortfall, with estimated losses nearing $200 million when all costs, including marketing, are accounted for.
The Pitfalls of Over-Inflated Budgets
The disconnect between the announced production budget and actual costs highlights a broader industry issue: studios tend to underreport initial budget figures while the real costs continue to climb. Disney’s "The Little Mermaid" is a prime example, with the true expenditure exceeding estimates by over 40%.
This pattern not only impacts the financial health of the studio but also influences investor confidence and shareholder value, especially when marquee projects fail to break even.