Hollywood Meltdown: Is The Industry Imploding On Itself?

24 Jul

The Great Emancipator almost was not great enough for the big screen. According to Steven Spielberg, Lincoln, was extremely close to being premiered on HBO.  Despite his film grossing over 182 million dollars in the domestic box office, he has spoken out about the implosion of Hollywood.

What does this mean for the cinema consumer? The implosion means that smaller films will move to television and bigger films (superhero films, etc) will be more expensive to see. [1]  Let’s take a look at some way the implosion is already affecting the experience gif seeing a film.

1) $50 dollar movie tickets already exist:  Paramount studios have announced that they would implement the “mega ticket” in select cities when World War Z premiered.  The ” mega ticket” includes a future digital copy of the film, custom 3-D glasses, a movie poster and small popcorn.

2) Indies are already streaming: Independent filmmakers no longer need the studios for distribution.  VOD is increasing financial gain to the independent market.

3) Hollywood is turning to foreign markets: Sequels have been going to foreign markets because they are easier to sell.

4) Without DVD sales, Hollywood cannot take any risks: The Internet has taken away the cash flow that was coming in due to DVD sales. Without these sales, studios no longer have an idea of how to project their profits.  Studios will only be able to make films they know will sell. [2]


Sources

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68 Responses to “Hollywood Meltdown: Is The Industry Imploding On Itself?”

  1. ComicRelief July 24, 2013 at 9:46 AM #

    Paris,

    Thanks for the well-researched and organized article. Your appraisal of an industry in crisis is very compelling. You obviously know where to find facts that can help create a sense of crisis.

    Regardless, I have some questions about some of the assumptions made by the article that may have nothing to do with the fact that you wrote it.

  2. littlebells July 24, 2013 at 11:00 AM #

    I don’t need a future digital copy, I don’t need a poster, and I don’t need specialized 3D glasses. In fact, I don’t need the 3D effect at all. Just give me my damn small popcorn and let’s call it good. 🙂

    • Open Book July 25, 2013 at 2:19 PM #

      Hahaha! Classic answer. If I may add to LB’s eloquent statement.

      There is no need to bribe us with all that crap, just focus on putting out a good film.

  3. ComicRelief July 24, 2013 at 11:03 AM #

    According to Carol Wells of the Media Awareness Network, in the early 1970’s just prior to or contemporary with the film school graduations of Martin Scorsese, Steven Spielberg, George Lucas, and Francis Ford Coppola Hollywood was changing it’s expectations of entertainment. Replacing previous “tentpole” entertainment like “the disaster film” (possibly defined by “the Posidon Advenure”, ”The Towering Inferno”, “The Andromeda Strain”), “the buddy film,” (possibly defined by ”Butch Cassidy and the Sundance Kid”, Midnight Cowboy, The Odd Couple), “the vigilante film,” (possibly defined by “Billy Jack”, “Taxi Driver”, “The Good, the Bad and the Ugly”), Hollywood was on the verge of a major change which consequently changed box office expectations in regard to content, development, and payment.

    Paris,

    Is it possible that current changes in blockbuster entertainment may just be a contemporary change in content, distribution, film technology, and payment also?

    • parisienne July 25, 2013 at 7:02 PM #

      It’s possible, IMO, changes within the industry is making it difficult for people because of international economic instability. Film making is a business first and foremost that is attempting to hang on to whatever financial gain that they can.

      I know that we’ve discussed this before but why would people want to go to the cinema when they can sit at home in their jammies and make their own snacks? They don’t want to spend money that they don’t have.

      • Com1c Relief July 25, 2013 at 7:33 PM #

        “…Film making is a business first and foremost…”

        Statements like that must be what insiders have to keep reminding themselves so that they don’t let their collective guards downs.

        Fortunately for us, so many on the artistic side of the equation help us forget the business aspect of the whole venture so we can continue explore as many screen based fantasies, scenarios, and situations as we can handle.

        • Com1c Relief July 25, 2013 at 7:44 PM #

          You know, I almost don’t care that people in Hollywood don’t know what they’re making anymore; as long as they don’t stop doing it.

          • parisienne July 25, 2013 at 7:58 PM #

            I think society feels the way you do. They stopped caring enough to bring around positive changes within regards to what they are consciously allowing themselves to demand from films and the industry as a whole.

            • Com1c Relief July 25, 2013 at 8:37 PM #

              I posted this list in Ozzie’s last article.

              Paris,

              I know I’m being juvenile but I can’t get over the fact that the entire list is in the billions. JUST FOR ENTERTAINMENT; RIDICULOUSLY OBSCENE AMOUNTS OF MONEY!!!

              I know that it’s been along time since our Grandparents paid a nickel or quarter for films but am I wrong to think we’re so blessed to have the opportunity to have our leisure time occupied by something as rare as cinematic entertainment.

              Wikipedia says that…
              • The United States and Canada made $10.8 billion in 2012.

              • China made $2.7 billion in 2012.
• Japan made $2.4 billion in 2012.

              • United Kingdom made $1.7 billion in 2012.

              • France made $1.7 billion in 2012.

              • India made $1.4 billion in 2012.

              • Germany made $1.3 billion in 2012.

              • South Korea made $1.3 billion in 2012.

              • Russia made $1.2 billion in 2012.

              • Australia made $1.2 billion in 2012.

              • Brazil made $0.8 billion in 2012.

      • Open Book July 26, 2013 at 8:01 PM #

        “why would people want to go to the cinema when they can sit at home in their jammies and make their own snacks? They don’t want to spend money that they don’t have.”

        ITA when people are strapped for cash they stay home. However, don’t u think the cinema allows filmmakers to have audiences undivided attention? Meaning they can’t be distracted by phones, internet etc…, which might lead them to lower their standards for content.

        Paris-U brought up awhile ago having a movie site where people could watch and discuss a film. I loved that idea. What do u think about this concept today? Do u think filmmakers and producers would have an easier time connecting with moviegoers?

  4. ComicRelief July 24, 2013 at 11:14 AM #

    Few artists have had film careers as impressive as Steven Spielberg, influencing the studio system, distribution and every genre imaginable. Steven Spielberg has succeeded in nearly defining the film media as we know it. He nearly has an Oscar in everything a creative person in the field can hope to gain recognition in.

    Paris,

    Is it possible that the film industry has finally started to ebb and flow in ways that do not necessarily define his genius. And this may be why he defines the change in film craft, development, and payment models as an implosion of sorts? I guess we would all love to be so influential that we impact something we love as much as he has. Doesn’t he just deserve a big hug?

    As you have so skillfully done, isn’t it just as easy to define industry anxiety about all of the changes in content, development, and payment models without discussing Steven’s crisis in confidence?

  5. ComicRelief July 24, 2013 at 12:07 PM #

    There are many plusses for the super hero film. The already branded characters already have some record of success in the market place. Lasting in many cases decades, a studio has some notion of the character’s market durability. Having a backlog of story ideas how can a creative team fail when so many aspects of the character have already been explored. Having the benefit of the digital technology any adventure sequence can likely be visualized.

    Paris,

    But does a super hero film really remove all of the doubt associated with main-stream content, development, and payment models?

    Why was Warner studio head, and developer of “Man of Steel”, Jeff Rabinov recently fired?

    Despite the over 600 million dollars earned by the film, doesn’t a film like “Man of Steel”, still have to have a plausible story, at least adequate acting, and be watchable for audiences unfamiliar with the central character?

    • Com1c Relief July 25, 2013 at 7:25 PM #

      Seems Jeff Robinov wasn’t fired as much as he wasn’t rehired.

      http://www.deadline.com/tag/jeff-robinov/

    • parisienne July 25, 2013 at 7:49 PM #

      Most HW films today are total shit having an inadequate emotional connection to consumers. Which is why it’s imploding, IMO. In today’s society with all the electronic communication quickly growing, it’s easier to put less than adequate films out there.

      Honestly, HW does not value the beliefs and morals of people within “regular society” consumers are looking for something that offers them hope and a sense of purpose in their lives. I also don’t think that HW understands that films are a means of escapism to many people. They don’t want to get financially strapped any more than they already are.

      • Com1c Relief July 25, 2013 at 8:10 PM #

        Sorry I can’t really argue with you but everytime a decent movie actually gets made, we all seem to benefit from it. If it takes 30 bad movies have to be made to squeeze one good one, I have admit I would be satisfied.

        One of the things I recognized from Ozzie’s last article, in some parts of the world, poverty, censorship, and state executed violence make it impossible to even make that one film.

        • parisienne July 25, 2013 at 8:16 PM #

          You have a valid point however why wait around for ONE Decent film when we can and should demand that we don’t want what they give us anymore. People do not demand a better quality of life for themselves any longer. If they most of the worlds issues would not exist.

          • Open Book July 25, 2013 at 11:26 PM #

            “why wait around for ONE Decent film when we can and should demand that we don’t want what they give us anymore. People do not demand a better quality of life for themselves any longer.”

            APPLAUSE! I second that.

      • Open Book July 26, 2013 at 8:17 PM #

        “Most HW films today are total shit having an inadequate emotional connection to consumers. Which is why it’s imploding, IMO. In today’s society with all the electronic communication quickly growing, it’s easier to put less than adequate films out there.”

        How does crowdfunding play into audiences having more of a connection to the film? Do u see this becoming popular with filmmakers trying sustain their original ideas and get moviegoers support?

  6. ozzie20 July 25, 2013 at 1:42 PM #

    Hi Everyone!

    If I’m not here for tonight’s discussion, I’ll be still trying to fix my computer. Something’s gone wrong and I have to take it back to factory settings. I’m hoping to have the basics up and running by discussion time so I can join in! *crosses fingers and toes!*

    • Open Book July 25, 2013 at 2:26 PM #

      No problem Oz! I will keep my fingers and toes crossed too. Catch up when u can!

      • ozzie20 July 25, 2013 at 5:21 PM #

        Testing…

      • ozzie20 July 25, 2013 at 5:37 PM #

        Good news and bad news.

        Bad news, a technician is needed to fix it! Hopefully it will be fixed tomorrow,

        Good news, I can access the the full site on my Mum’s computer! Which I am on now but I shall warn you all in advance. The keyboard is very small and laid out differently than mine. There maybe symbols in my posts, until I get used to it, lol! I will be checking them before I post. Well as best I can, It has a tiny screen too!

        So you can’t get rid of me for long! :p Talk to you all later!

        • Parisienne July 25, 2013 at 6:49 PM #

          Ozzie,

          Hope to see you here and don’t worry I’m having technological issues as well.

        • Com1c Relief July 25, 2013 at 7:40 PM #

          Ozzie, your tenacity is really impressive!

          • ozzie20 July 25, 2013 at 8:23 PM #

            I’m glad I’m not the only one having technical issues Paris! What’s even worse is the computer I’m on now, a couple of months ago had problems and had to go back to factory settings as well. I did that and put on all the extra’s back and updated everything less than 5 hours. But no, mine has to be the pain in the butt! ARGH! That’ll teach me not to mess around trying to do a full clean up of things (no it won’t. In a few years once the rubbish builds up to a point I can’t stand anymore, I’ll do the exact same thing again. I never learn). Maybe I didn’t threaten it enough? Ok, first thing in the morning, it’s going to get told if it doesn’t work it’s going out of the window. That usually works!

            *bows* Thank you CR! I do my best to carry on as normally I normally do. It may give me a headache but dammit I won’t give in! Not over a stupid computer anyway, lol.

            • Open Book July 25, 2013 at 11:35 PM #

              Hahaha! That’s the spirit Oz! I admire your determination too.

  7. Open Book July 25, 2013 at 2:29 PM #

    Hi Paris,

    Great job! Thanks for bringing up this topic.

    U Said: “Hollywood is turning to foreign markets: Sequels have been going to foreign markets because they are easier to sell.”

    Why are sequels easier to sell to foreign markets?

  8. Open Book July 25, 2013 at 2:42 PM #

    What about movie pirating? I thought pirating cut into Hollywood’s profits? I heard that studios want greater legal tools and the tech companies want more of a free market approach for content distribution. What do u think of this idea?

    • Com1c Relief July 25, 2013 at 8:18 PM #

      I would like to understand this better myself.

      But it’s amazing that the places that have this culture of pirating are frequently the places where people need the work the most. It’s like having would be wino’s breaking in and stealing from the liquor stores. It really points out how much audiences (especially in repressive countries) need artful communication.

      Hollywood becomes the natural and perpetual victim, for conditions they did not create.

  9. Open Book July 25, 2013 at 2:46 PM #

    Sorry, here is the discussion I read between studios and tech companies on pirating.

    http://www.extremetech.com/electronics/159250-hollywood-and-silicon-valley-faceoff-on-movie-piracy

  10. parisienne July 25, 2013 at 5:13 PM #

    Hey everyone,

    I’ll try and make it tonight. I’m not feeling very well

    • ozzie20 July 25, 2013 at 8:25 PM #

      *hugs* Hope you get well soon!

      • parisienne July 25, 2013 at 8:34 PM #

        Thanks, I had and still have somewhat of an infection that I’ve been given a z-PAC for. I’m getting better though my brothers girlfriend caught the infection from me and then gave it back to me. It’s just nasal congestion but it was is infected so I got hit with it twice.

        Sorry for the TMI. Lol

        • ozzie20 July 25, 2013 at 8:49 PM #

          I don’t mind the TMI. I’ve heard worse! Sounds nasty. I hope it goes for good this time. There’s nothing worse than something nasty that gets passed back and forth from friends and family!

          • Com1c Relief July 25, 2013 at 8:51 PM #

            Really.

            • ozzie20 July 25, 2013 at 9:31 PM #

              Huh? Sorry, I’m tired and confused, lol!

              Obviously there are things out there that are a lot worse! It’s just a saying to comfort someone and to let them know that you understand what they’re feeling. 🙂

              Unless you are talking about the “I’ve heard worse!” part. Actually it’s not that it was the worst TMI about an illness I heard. We have a TV series called Embarrassing Bodies. Watch a couple of episodes of that and nothing is TMI anymore! Anyway, it was more the reaction from friends and family of the person in question I was talking about. It was terrible, it crossed a line and definately was TMI. 😦

        • Open Book July 26, 2013 at 12:11 AM #

          Gosh! I feel for u Paris. Not fun at all.

    • Open Book July 25, 2013 at 11:41 PM #

      Sorry, I missed the discussion tonight my meeting ended later than I expected. I hope u get well soon. I’m sending u cyber ginger lemon tea.

  11. parisienne July 25, 2013 at 6:52 PM #

    Everyone,

    I might be a bit slow tonight, I’m on meds that are making me drowsy so if my answers ramble on or don’t make much sense. That’s why.

    • ComicRelief July 25, 2013 at 7:11 PM #

      I think ONE night of less than perfect communicating is going to distract from a history of so much other wise fine communicating…

      By the way, in a fake entertainment tonight world of so much canned optimism; I think it took a lot of courage to unearth all of those uncomfortable facts and gracefully arrange them in such an easily digestable manner.

      In terms of all of the business analysis, I think Lurker would be very proud. 🙂

      • Com1c Relief July 25, 2013 at 7:14 PM #

        …perfect communicating ISN”T going to distract….

        SEE IT”S ALREADY CATCHING!!!!

        • parisienne July 25, 2013 at 7:17 PM #

          LOL. ok. 🙂

          • ozzie20 July 25, 2013 at 8:26 PM #

            You’re making sense to me! 🙂

            • parisienne July 25, 2013 at 8:26 PM #

              Thanks!

  12. ozzie20 July 25, 2013 at 7:57 PM #

    Ok, all caught up!

    Great article Paris! I knew about number three but none of the others. $50 for a cinema ticket with a few novelty items thrown? No thank you! Besides for a little over half that price you can get a cinema ticket, the dvd which now come with digital copies anyway, and a poster if you shop around!

    • parisienne July 25, 2013 at 8:00 PM #

      Hi!

    • Com1c Relief July 25, 2013 at 8:01 PM #

      Hi Ozzie.

      • ozzie20 July 25, 2013 at 8:26 PM #

        Hi Paris and CR! 🙂

  13. Com1c Relief July 25, 2013 at 8:03 PM #

    Paris, taken from the “Cracked David Christopher Bell article you referenced, I still have a hard time understanding why this chain of events is actually bad. If you wanted to explain I would not mind it.

    “Now Miramax is gone, but filmmakers like Smith don’t need it anymore. Thanks to video-on-demand services like Netflix, Amazon, and iTunes, independent filmmakers don’t need studios to get their movies out. In fact, VOD is actually giving the indie market buttloads more cash and attention than ever before. “

    • parisienne July 25, 2013 at 8:08 PM #

      From what I’ve read, film makers no longer need the financial backing of a studio in order to put a film on the market which in turn forced the studios to charge ridiculous amounts of money to see basic shit movies.

      • Com1c Relief July 25, 2013 at 8:12 PM #

        Oh! Understood.

        • ozzie20 July 25, 2013 at 8:30 PM #

          It’s like they’re taking out the middle man?

          • parisienne July 25, 2013 at 8:35 PM #

            Exactly!

            • ozzie20 July 25, 2013 at 8:50 PM #

              Yay! I understood correctly!

      • Open Book July 25, 2013 at 11:49 PM #

        “……which in turn forced the studios to charge ridiculous amounts of money to see basic shit movies.”

        Another classic statement. LOVE IT!!!

  14. littlebells July 25, 2013 at 8:19 PM #

    Paris,

    Now that Netflix has started created its own streaming series (Orange is the New Black, House of Cards), I wonder what it costs them to make these shows in relation to a big budget film. I also wonder what their profits are with customers signing up compared to theater attendance at anyone particular film in theaters. Any ideas?

    • parisienne July 25, 2013 at 8:21 PM #

      Honestly , I have no idea.

    • littlebells July 25, 2013 at 8:21 PM #

      Oh I think you already answered my question…

      • parisienne July 25, 2013 at 8:22 PM #

        Did I? Great!

        • littlebells July 25, 2013 at 8:44 PM #

          It would be interesting to see the numbers of viewers for a particular Netflix show…

    • Com1c Relief July 25, 2013 at 8:38 PM #

      Hi LB.

    • Com1c Relief July 25, 2013 at 8:42 PM #

      Now I’m curious too.

  15. parisienne July 25, 2013 at 8:37 PM #

    Everyone, I’m heading out for the evening. TC!

    • Com1c Relief July 25, 2013 at 8:39 PM #

      Bye Paris,

      Thanks for the great article.

      • ozzie20 July 25, 2013 at 8:52 PM #

        Night Paris and another get well soon wish! 🙂

  16. Com1c Relief July 25, 2013 at 8:50 PM #

    Whose up next, thank God it’s not me! This topic is really hard. I’m not pointing fingers but who’s idea was this???

    I’m going to take off too. See everyone later.

  17. ozzie20 July 25, 2013 at 9:34 PM #

    Night from me too! My brain has decided to shut down for the night, lol! 🙂

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