The rift between Village Roadshow and Warner Bros was aggravated by disagreements over sequel and prequel rights following the release of The Matrix Resurrections, causing significant legal expenses that have strained their partnership. This spiraling financial crisis is compounded by a failed studio initiative launched in 2018, which failed to yield profitable productions, alongside broader industry challenges exacerbated by the pandemic and recent strikes by Hollywood writers and actors. As Village Roadshow grapples with these setbacks, the company's future hangs in the balance amidst a transforming entertainment landscape.

In December, the Writers Guild of America condemned the production house for failing to compensate its contributors, deepening the company's financial woes and mounting pressures within the industry. The fall of Village Roadshow serves as a stark reminder of the volatile nature of film production and the complexities of industry partnerships.