I've heard the general story several times, and don't doubt it. But, under the studio system, did a film that was nominated five times truly lose money? That's a bigger surprise, if true.
The film's history would not be sullied if it had been a hit at the time. Can anyone confirm its "flop" status?
It’s a Wonderful Life was not a big studio release but in fact an independent film produced by Capra’s Liberty Films. It was an expensive production. Consider the large set that had to be built to represent the town, as well as the large cast. The film lost money in its original release. Capra only made one more film under the Liberty Films banner before folding the company.
I saw the film last week in New York City at the IFC Theater. Donna Reed’s daughter said a few words before the screening explaining that the film was released for a limited run before Christmas 1946 in order to be considered for the Oscars. It had its broader release early the next year which of course was after the holidays and not a great time for a Christmas movie.
The WW2 film The Best Years of Their Lives won many of the Oscars that year and was a major box office success. It was released the week before Wonderful Life.
Of course today not many people remember Best Years of Their Lives but everyone knows the George Bailey story. The themes presented in Wonderful Life are timeless.
http://www.imdb.com/title/tt0038650/business
“Budget $3,180,000 (estimated)
Rentals $3,300,000 (USA)”
http://www.imdb.com/title/tt0038650/trivia
“The set for Bedford Falls was constructed in two months and was one of the longest sets that had ever been made for an American movie. It covered four acres of the RKO’s Encino Ranch. It included 75 stores and buildings, main street, factory district and a large residential and slum area. The Main Street was 300 yards long, three whole city blocks!”