Producer of ‘Matrix’ and ‘Ocean’s Eleven’ Files for Bankruptcy, Cites Streaming as Cause

Village Roadshow Entertainment, the company responsible for blockbuster hits like “The Matrix” and “Ocean’s Eleven,” has recently filed for bankruptcy, marking another setback in the ever-evolving Hollywood landscape. Alongside projects such as “Joker,” the West Hollywood-based production company officially entered Chapter 11 bankruptcy this Monday, according to the Los Angeles Times.

Citing ongoing legal disputes with Warner Bros. as a significant factor in the bankruptcy filing, Village Roadshow acknowledged its struggles with producing independent films and television series that were financially unsustainable even prior to the pandemic, as reported by the Times. The company’s decision to transition into these projects exacerbated its financial troubles.

One prominent issue causing concern across the industry is the growing trend of streaming platforms releasing major films for streaming without a traditional theatrical release, which some companies argue is unfair. Notably, Scarlett Johansson’s legal battle with Disney over the streaming release of “Black Widow” gained significant attention. Village Roadshow similarly points to struggles with the release strategy for “The Matrix Resurrections” as a contributing factor to its financial woes.

The most recent installment in the “Matrix” franchise failed to meet expectations at the box office, a result the company attributes to the decision to simultaneously release the film on streaming platforms, according to the Hollywood Reporter. Despite the ongoing legal battle, Village Roadshow still owes approximately $18 million in attorneys’ fees related to the case, leaving its future uncertain, Variety reports.

As the lawsuit with Warner Bros. continues, Village Roadshow has expressed doubts about the possibility of repairing its profitable partnership with the studio, which has been crucial for their success in the entertainment industry over the years. The company asserts that overcoming the rift between the two entities may prove impossible, additionally complicating its financial prospects in the foreseeable future.