Isn't this, like, the opposite of the truth? Theater revenue is a small fraction of the total revenue from a film. From where did you draw the impression that it was otherwise?
I've seen some industry insiders talk about how box-office takings effectively "snapshot" later earnings. So the TV syndication rights or streaming rights will pay out based on the box office (and possibly even just the opening weekend).
Certainly this isn't always true: The Room has been running for a long time, and is now presumably much more valuable than its initial box office would suggest. But I don't think that most movies become cult hits, and their revenue is probably closely related to initial box office.
I don't have a source for this beyond reddit comments though.
"In the film and media industry, if a film released in theatres fails to break even by a large amount, it is considered a box office bomb (or box office flop), thus losing money for the distributor, studio, and/or production company that invested in it." [1]
Also keep in mind that Hollywood typically inflates costs to avoid taxes and royalties [2].
Yeah, you're not very good at reading. What part of "thus losing money for the distributor, studio, and/or production company that invested in it" did you miss? Would "box office flop" even exist as a term if the box office was not the main source of revenue for films?
And since we're here, from where did you draw the impression that it was otherwise?