Hollywood isn’t interested in always making blockbuster films. They will bury a film out of spite or even write the losses of a “protected” film off against a successful modestly budgeted film (burying it and it’s production team).
They have 75 years of film to sell/lease on cable and home video to remain solvent.
“They have 75 years of film to sell/lease on cable and home video to remain solvent.”
I agree with your first statement, but this one isn’t as true as it once was. MGM thought it could handle excessive debt due to its catalog of films. That turned out not to be the case :-).