These discoveries left him feeling helpless and under immense pressure.
With the rise of Lionsgate Films, executives at the Big Six Studios felt threatened. In order to avoid being fired by the board, they had to figure out how to produce profitable movies for the shareholders.
However, investing in films is akin to gambling; before a movie is released, no one knows whether it will turn a profit.
According to Hollywood's film industry investment rules, less than a quarter of movies make a profit each year. Taking movies released last year as an example, there were 826 films released in the North American Region with an average box office of 13.26 million US Dollars, most of which were unprofitable.
The Big Six Studios couldn't expand movie investment and ensure profitability at the same time, which also prevented them from catching up with Lionsgate in box office earnings.
