It hardly flopped. Look at international proceeds. I'm actually surprised to read New Line would sell off international distribution rights after trends set by Lord of the Rings and Harry Potter make it clear that fantasy films, particularly those with a more pronounced British component, do much better outside of North America than inside. I just don't get why they'd do that. I'd be selling of North American distribution before ditching the safe bet if I was that hard up for capital.
Well New Line might have been tangling with Jackson and the Tolkien estate over revenue, but then compare New Line and Warner Brothers over DVD content for the end user and I'm left looking at the various WB titles that leave me feeling "stiffed" by them instead.
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