Um... the producers and studios are the ones who paid for the production of the movie. They are the ones who lost the most money in this situation. After the movie was made and they got a look at the finished product, they realized they had a turkey on their hands so they saved as much money as they could on distribution because that would just be throwing away more money. They knew that even if they gave it a wide release that nobody was still going to watch it anyway. Trust me, it's the producers who are the biggest losers here.