Hollywood, like any other business, is trying to turn a profit. So why does it continue to make expensive bombs like DIGGER and ONE BATTLE AFTER ANOTHER? I should say first of all when a certain movie tanks on opening weekend it is rarely a surprise to anyone. They have a very sophisticated tracking system that while not always accurate gets it right more often than not. And sometimes when you add up international, VOD & streaming, these movies end up breaking even over the long run.
Unlike other businesses, Hollywood is not just making widgets. A movie like DIGGER is a prestige play. They're hoping to win awards which in turn makes the movie more valuable. But it also gives the top brass a certain amount of social cachet particularly if it is an Important Film about a Big Subject like climate change. But it's more than that. Studios see themselves to some degree as patrons of the arts. They're hoping to attract top-tier filmmakers and one way to do that is to offer them artistic freedom. It helps to build relationships with talent over time.
I will say that things may be changing and consolidation like the Skydance merger is only going to accelerate it. You have studios thinking more like tech companies because that's what they're all in the process of becoming. We're a long way from Robert Evans and the heyday of Paramount. Which reminds me of that famous quote "Nobody knows anything." That HASN'T changed.
No one knows where the next surprise hit is coming from. They didn't expect OBSESSION to be as big as it was or there would have been even MORE of a bidding war. So these execs are also thinking like stock portfolio managers. They diversify. There's only so much IP in the world. You need to have different kinds of movies on your slate. OBAA took a bath at the box office but SINNERS and WEAPONS – even the MINECRAFT MOVIE – did better than expected. Same studio, same execs. The ones they just fired by the way – a decision I believe even hope will come back to bite them in the ass.
You can say, "Why don't they just make surefire hits?" Which is like telling an MLB player to hit a home run every time they get up to bat. People who say things like that don't know how the business works. Execs can look at all the metrics they want and run the numbers every which way. But ultimately what they have to go on is their artistic taste, their gut instinct, and the courage of their convictions – and that last one is the rarest quality of all. People like that are a dying breed and we'll all be worse off for it.