Warner Bros

In 1948, the US government broke apart the studios. Warner Bros owned theaters, studios, and stars. The government said this was illegal and forced separation. Warner kept studios and distribution. Warner faced a new problem. It no longer controlled exhibition. It had to negotiate with theaters over box office splits. A film earning 10 million meant Warner kept roughly 5 million. A major Warner film costs 150 to 300 million to produce. Marketing adds another 150 to 300 million. The film requires 500 to 600 million in revenue before breaking even. Domestic box office provides 40%. International markets provide 25 to 30% aftercuts, plus revenue fragments across streaming, home entertainment, and licensing. A film that loses money in theaters can become profitable later through other channels. In 2020, Warner launched HBO Max, rebranded to Max in 2023. The company committed 4 to 5 billion annually in content.