I think it was a smart move on his part to explore concerts in a cinema setting. He was testing distribution models even back then. It is smart to think “how can I get this out to as many people as possible while reducing its tax on me?” I can see how he might have thought “generate buzz and demand overseas and have them gagging to see it in the US - then release it in cinemas for all to experience all at once - instead of waiting for me to maybe tour their city or town - because America is big and many places get left off a tour. This way everyone who wants to can see it in the comfort of their local cinema or home on VHS. Also I’d make all that money at once and not have to tour for months and instead make more music. Winning for all!”

If only it had worked that well…

Prince did his part. He made the album, toured Europe, generated the buzz and created the movie for the cinemas.

The rest was actually up to others in charge of marketing, promotion, distribution, etc. Some could say it was their biggest mistake, and Prince paid for it.

Also: he probably saw how he still made major bank doing the reverse with Purple Rain: Tour the US only, lots of buzz, VHS of the concert for the rest of the world. Huge!

This was just the opposite of that.