#movie studios

The Economist:

As the studios spend ever more on lavish prequels, sequels and “franchise” films, supposedly as a way to reduce risk by backing proven formulas, there is a growing danger that these movies will be nixed by jaded punters. Steven Spielberg, no introduction necessary, reckons that the studios could face “meltdown” if several big films flop at once. Studios are increasingly putting out just two types of film: mega-budget ones that can move the needle for the conglomerates that own them, and tiddlers for under $25m that can do nicely when they work. “Hollywood is like America,” says Kevin Misher, a producer. “The middle class has been squeezed.”

Mr Goldman described how, by 1983, the studios had all but given up developing their own ideas. Instead freelance writers, producers and other outsiders toured Hollywood touting ready-cooked packages, often with the stars already signed on and the script written. Now the studios, having cut their remaining development spending to boost their marketing budgets, are even more reliant on outsiders to design their product; imagine if Apple or Toyota did this. The studios are also looking outside for the money to finance films. A new species of intermediaries, such as Village Roadshow Entertainment Group and Skydance, have sprung up to bankroll projects.

The studios are now essentially giant marketing machines and not much more. Sort of sad, actually.

David S. Cohen, writing about a panel on the future of the movie business at the USC School of Cinematic Arts, featuring Steven Spielberg and George Lucas:

“There’s eventually going to be a big meltdown,” Spielberg said. “There’s going to be an implosion where three or four or maybe even a half-dozen of these mega-budgeted movies go crashing into the ground and that’s going to change the paradigm again.”

Lucas predicted that after that meltdown, “You’re going to end up with fewer theaters, bigger theaters with a lot of nice things. Going to the movies will cost 50 bucks or 100 or 150 bucks, like what Broadway costs today, or a football game. It’ll be an expensive thing. … (The movies) will sit in the theaters for a year, like a Broadway show does. That will be called the ‘movie’ business.”

And this is going to happen faster than most people realize. There are maybe a half dozen big movies worth seeing in the theater every year (and that’s a good year). The rest are crap or indies. And those independent films will never scale the way Hollywood needs them to in order to keep the current system intact.