I know they say they'll do both; but with finite money, I have to assume some of their art-house pictures will have to be cut. Over time, I would assume if the blockbusters make enough money, I would assume they would scrap even more prestige films for more blockbusters.

This actually reminds me a lot of the "enshittification" cycle. Develop a strong brand at a loss that consumers respect, then lower the quality as much as you can to maximize profits.

As an aside, I wonder how their reputation will affect their ability to produce blockbusters. If you could get your movie made by a larger studio, would you be likely to make it with A24 just because they have a history of prestige films?

In any case, it will be sad to see A24 go this route. Hopefully a new studio is able to fill the void, should A24 move out of the art-house film space.