Ali received the standard location fee for the use of his rooms and props. Flenniken states that a test screening of the film in Rhode Island was met with extremely negative response, and that audience members tore up the seats in the theater to express their dislike of the film. The film was completed in 1981, but not released until two years later. A fourth segment intended for the film was entirely removed. A disaster movie parody directed by Jaglom, the segment was entitled "The Bomb", and starred Kenneth Mars, Allen Garfield, and Marcia Strassman. Steven Bach, United Artists' vice president of production at the time, later wrote that the film's "high commercial promise was dashed when its two directors delivered three good, funny segments and a fourth that rendered the other three pointless because it was of an awfulness that made the whole picture--too short with merely three sections--look unreleasable." Nonetheless, images from the segment appeared in press materials, despite not appearing in the final film. Leonard Maltin gave the film a "bomb" rating, describing it as an "incredibly idiotic parody", describing the segments as "each one worse than the ." This film holds a zero percent rating on Rotten Tomatoes, from five reviews. Producer Matty Simmons later said, "Scenes between Peter and Diane in "Movie Madness" are possibly worth the price of admission but the rest of the movie didn't come off as well." There was never an official soundtrack released, but four songs are known for appearing in the film.