Gloom in Hollywood as reports indicate top blockbusters lost $1bn this summer

That the summer of 2016 wasn’t a classic season for quality mainstream cinema is widely acknowledged. But the full extent of the financial losses sustained by studios for those films has been detailed in a new report by Bloomberg.

Using figures and projections from movie industry site the Numbers, they estimate the loss at around $1bn (£700.48m), and blame blockbusters flopping at cinemas rather than smaller films failing to attract larger audiences.

Their projected deficit – $915.6m – dwarfs last year’s, which was $546.3m. “Overall it was pretty awful,” Doug Creutz of Cowen & Co told Bloomberg. “We have been talking about the increasingly bad ecosystem that we see theatrically, and I think it definitely played out this summer.”

“People aren’t going to the box office as much as they used to,” he added. “The only way out of this problem for Hollywood is [to have] fewer studios, and that ain’t going to happen.”

The worst-hit film was Ben-Hur, which had a projected loss of around $120m (though some dispute this figure, putting it closer to $75m). Studio Paramount also saw disappointing returns for Star Trek Beyond ($75m loss) and Teenage Mutant Ninja Turtles: Out of the Shadows ($65m).

Although Disney had three flops in the Top 10 (The BFG, which lost $115m, as well as Alice Through the Looking Glass and Pete’s Dragon), the success of Finding Dory and Captain America: Civil War (at the moment the two best-performing films of the year) meant it is currently around $521m in the black.

Other notable disappointments include Kubo and the Two Strings ($80m) and the rebooted Ghostbusters ($58m), although this is another title whose figures are disputed).

Flatlining figures are said to be attributed to a variety of factors, including sequel fatigue, the rise in popularity of streaming and small-screen programming, and bad reviews. Critical response is belied by the success of films such as Suicide Squad, which has so far earned $300m (and more than that overseas) despite lukewarm notices.

Warner Bros films The Conjuring 2, Central Intelligence and Me Before You also made it on to the Top 10 list of best performers.