There are 336 films eligible for the Best Picture. These are the rules-
To have been eligible for the 2016 Academy Awards, feature films must have played in a commercial theater in Los Angeles County between Jan. 1 and Dec. 31 for at least seven consecutive days. The pics, which have to be exhibited theatrically on 35mm or 70mm film, or in a qualifying digital format, must have a running time of more than 40 minutes.
It has nothing to do with the movie quality, you just have to lobby and screen the movie in a LA theatre. There are a lot of bullshit movies in the list like Bad Santa 2 and Monkey King 2- no one on the jury is going to watch those movies, don't worry š