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this post was submitted on 03 Jul 2023
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Movies
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I think you missed OP's point that studios care about minimizing risk as much as they care about maximizing profit. Sure, if you take risks maybe you'll come out with a smash hit that makes you billions-- but you could just as easily come out with a bomb that costs you hundreds of millions of dollars.
Let's say your studio has a budget of $500 million for this year. You've decided to produce 10 movies, each costing an average of $50 million to make. You could take risks, leading to two gems that each pull in $500 million, and eight stinkers that "only" pull in $5 million. (Remember, they cost $50 million to make each, so you're losing $45 million per flop here.) You end the year with $680 million, for a profit of $180 million. Not bad, all things considered, but not spectacular margins.
Alternatively, you could play it safely by numbers, and make $100 million per movie. Now you're making a profit of $5 billion.
If you're a corporate exect who doesn't give a damn about art and only cares about the numbers, it's tragically a no-brainer.