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New Line Cinema
Companies and corporations

New Line Cinema: from early successes to merger with Warner Bros.

06.04.2025
2 min read

How New Line Cinema became a successful cult film studio

New Line Cinema has given the world a number of cult films. Among its most famous projects are The Lord of the Rings, Teenage Mutant Ninja Turtles and A Nightmare on Elm Street.
Robert Shay founded the studio in 1967 as a distribution company. The entrepreneur supplied the American market with foreign films. Gradually, the company expanded its activities and released its own feature film in 1976. It was a major box office success and set the stage for the studio’s further growth in film production.
As the company grew, Michael Lynn, a classmate of Shay’s, joined the company. In 1983, New Line Cinema’s staff had grown considerably, including regional sales managers.New Line Cinema film studio

The first successful film

One of the most important stages in the studio’s history was the release of the film ‘Nightmare on Elm Street’. The film premiered in 1984 and its success became the basis for the creation of the first New Line Cinema franchise. In addition, the films in the series brought general recognition to the studio:
1. The first film, with a budget of USD 1.8 million, grossed USD 57 million.
2. The sequel grossed over USD 30 million in the United States.
3. The third film, released in 1987, took in USD 45 million.
4. The total profit from the first six instalments of the franchise was USD 500 million.
5. The next three films made a further USD 250 million.
The success of the franchise allowed the studio to go public on the New York Stock Exchange in 1986. New Line Cinema completely modernised its internal processes and expanded its distribution channels. The company began to release films on television networks and pay channels.
Other famous projects
The studio’s next famous project was the 1990 film ‘Teenage Mutant Ninja Turtles’. The film broke box office records at the time, grossing USD 135 million in the United States and Canada. The success of the first film became the basis for a franchise that brought significant profits to the company.
At the same time as releasing famous films, the studio was actively expanding its business. It acquired other companies and strengthened its position in the film industry.
In 2001, New Line Cinema released The Lord of the Rings. The trilogy grossed a total of USD 2.9 billion. This made it the most successful project in the company’s history.

Closing out activities

As in any business, success in the film industry cannot last forever. At some point, Warner Bros. began to acquire New Line Cinema divisions. Following the release of The Lord of the Rings, the studio suffered losses on a number of projects. In 2008, after the failure of The Golden Compass, the company lost its independent status and became part of the Warner Bros. structure.

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