“For Paramount, or Disney, or any of the major studios, there are two big costs to consider with theatrical moviemaking: production and distribution,” David Offenberg, Associate Professor of Entertainment Finance in LMU’s College of Business Administration, told Observer. “You have to spend money to make a movie and you have to spend money to get it in front of consumers. Both are risky because if audiences don’t like the film, it’s incredibly difficult to recoup that money.”
Source: Observer
Paramount May Retreat From Theatrical To Focus On Streaming—Why?