Some movies are so bad that they are good. One of the prime examples being the now cult classic The Room which came out in 2003. These movies are memorable either because they are so bad they are good or they are so bad they actually end up bankrupting the studio that produced them. The film industry is a risky business and the possibility for a big box office return is the commodity that studios trade on. But when they make a poor investment, just like a hedge fund, the losses incurred can be so big that they cannot recover from them.
Over the decade’s certain movies that were thought to become box office successes tanked leaving their studios in dire straits and eventually having to fold. It is unfortunate but hey, “that’s show business” as they say. The following are a collection of films that had massive budgets that did not come close to breaking even once they hit the big screen. Sadly, these studios could not withstand the losses.
New Line Cinema
This film studio was known for big names like The Lord of The Rings trilogy and you would think it would have had the capital to absorb a big loss. Sadly, when they decided to make The Golden Compass an adaptation of the book by Philip Pullman the $200 million budget was a bit of a reach.
They only received the earnings from the U.S. as they did not hold the international rights which meant that they only got back about $70 million. That $130 million they lost put them out of business.