Movie Madness consists of three short segments which satirize personal growth films, glossy soap operas, and police stories.

In Success Wanters, Dominique Corsaire (Ann Dusenberry) is a young college graduate determined to succeed in life, who in a few days time lands a job as a stripper, then becomes the mistress to the owner of a margarine company which she inherits when he dies, and is then romanced by a Greek shipping tycoon, and ultimately the US president (Fred Willard).

Municipalians includes a naive rookie Los Angeles policeman (Robby Benson) paired with a cynical veteran (Richard Widmark) of the force to catch an inept serial killer (Christopher Lloyd).

[4] 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.