1946 Classic Movie, Originally a Box Office Flop, Became a Major Hit Because of a Simple Mistake
It's a holiday staple that is considered one of the greatest movies ever made. So, how could It's a Wonderful Life have been a box office flop when it first came out in 1946?
Yet it was. The iconic film starred Jimmy Stewart and Donna Reed, was directed by Frank Capra, and it had a sentimental theme. How could audiences not have embraced the film from the start?
The movie is considered by many to be the greatest Christmas movie ever made. An author for The Lincoln Institute argues it's the best movie ever made of any genre; it made the American Film Institute's list of the top 100 best movies ever made, placing 20th. "When It's a Wonderful Life was released in 1946, it was a box office flop for RKO Studios. And the critics were also lukewarm," the National Endowment for the Arts explains.
At the time, some critics were scathing. "[Director Frank Capra] is trying for the big, meaningful sentiments and as often as not falling into embarrassing theatrics," wrote Archer Winsten in The Post.
According to The New York Post, the film made $3 million when it first came out, but Capra needed the movie to make double that to "break even." It was, The Post reports, "a flop."
A Mistake Turned 'It's a Wonderful Life' Into a Movie Classic
The movie turned into a hit due to a mistake. According to The Post, it was mistakenly released into the public domain for a time. Since it could be shown for free, it was, and the increased play time introduced the movie to wider audiences.
"It didn't become a Christmas classic until its copyright lapsed, and broadcasters were able to show it royalty-free," the National Endowment for the Arts says. However, although it performed poorly at the box-office and wasn't initially well-received by some critics and audiences, the movie did earn five Academy Awards, the National Endowment for the Arts says.
It's now on the National Film Registry of the Library of Congress, "which recognizes films that are 'culturally, historically or aesthetically significant,'" the Endowment wrote, adding that, although the movie, "has become inextricably linked to the Christmas holiday season, the film's director Frank Capra didn't think of it as a holiday film at all."
Audiences Rediscovered 'It's a Wonderful Life'
According to the Endowment, Capra said that the movie's theme was "the individual's belief in itself," adding, in an interview with the Wall Street Journal, "I didn't even think of it as a Christmas story when I first ran across it. I just liked the idea."
According to Mental Floss, "Audiences and critics were lukewarm toward the picture, resulting in a box office disappointment that killed Capra's nascent production company, Liberty Films." The lost copyright, which was later regained, occurred due to a "clerical screw-up," Mental Floss reported, adding that the film was plagued with problems during production, including "a bloated shooting schedule, and an ever-changing crew."
It's a Wonderful Life was competing with a movie about a soldier returning home from war called, The Best Years of Our Lives, and it was better received by audiences, according to Mental Floss. According to Mental Floss, by the time it hit the public domain, audience sentiments had changed, and folks in the 1970s were more open to its positive messaging than people were in the immediate aftermath of World War 2.
This story was originally published by Men's Journal on Jun 17, 2026, where it first appeared in the Entertainment section. Add Men's Journal as a Preferred Source by clicking here.
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This story was originally published June 17, 2026 at 4:00 AM.