Producer of ‘Matrix’ and ‘Ocean’s Eleven’ Declares Bankruptcy Due to Streaming Competiton

Village Roadshow Entertainment, the powerhouse behind beloved films like “The Matrix” and “Ocean’s Eleven,” has recently filed for bankruptcy, adding to the ongoing struggles in Hollywood. This West Hollywood-based company, known for its work on “Joker,” took a hit when it sought Chapter 11 bankruptcy protection, as reported by the Los Angeles Times.

The company attributes its financial downturn to a combination of factors. It has pointed to a legal dispute with Warner Bros., its long-time partner, as a primary reason for its current unstable financial situation. Moreover, Village Roadshow’s prior unsuccessful foray into producing independent films and television during the pre-pandemic era has also contributed to its plight, according to the Times.

A significant issue at play is the practice of streaming platforms releasing high-budget movies without a full theatrical run, which has been a point of contention for many entertainment businesses. Scarlett Johansson’s lawsuit against Disney regarding the release of “Black Widow” serves as a notable example of the tensions arising from this issue. Village Roadshow similarly cites a situation with its sequel “The Matrix Resurrections” facing challenges due to streaming.

The latest installment in “The Matrix” series struggled at the box office, a performance that Village Roadshow attributes to the simultaneous streaming release strategy by Max, as reported by the Hollywood Reporter. As legal battles persist with Warner Bros., the road ahead remains uncertain for Village Roadshow. The company faces mounting legal costs related to the “Resurrections” dispute, leaving its financial future in question, Variety notes.

Village Roadshow’s ongoing conflict with Warner Bros. risks damaging a longstanding profitable partnership, which has been integral to its success in the entertainment industry, the company acknowledged in a recent filing. As these legal matters continue to unfold, the intricacies of this situation underscore the challenges faced by production companies in the ever-shifting landscape of modern entertainment.