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With huge hits including Captain America: Civil War, Deadpool, Zootopia, and The Secret Life of Pets, 2016 proved to be a very strong year for movie ticket sales. Standout releases helped set new records for domestic ticket sales, but the year also played host to big budget disappointments that dashed franchise hopes and helped drive movie business profitability down roughly 15%. As a rough guide, big budget films typically need to earn somewhere around 2.5 times their production budgets to break even. This is because theaters receive a portion of ticket sales and because of the need to cover marketing and distribution expenses.
While 2016 played host to a range of films that underperformed, the biggest flops belonged to Disney (NYSE: DIS), Viacom (NASDAQ: VIA) (NASDAQ: VIAB) and Lions Gate Entertainment (NYSE: LGF.A). Click through the presentation below to get the details on the year's five biggest film flops and to learn what last year's movie misfires mean for the companies involved.
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