“Movie going will be more like a sporting event.” – George Lucas
Hollywood heavyweights Steven Spielberg and George Lucas are predicting that the movie industry as we (sorta) know it today is dying. If you look around, there’s truth to what they’re forecasting.
You don’t need to be an economics analyst to understand that movie theaters rely on Hollywood to pump out over hyped films in order to rent you a seat for a few hours and sell you some grossly overpriced sugar water. What’s happened since the American economy tumbled some years ago is that many people still need to be entertained, however we’re guarding our money more and things like going to a movie become a luxury.
Internet services like Netflix, Hulu, and even YouTube are rapidly growing which happen to be lower cost alternatives to cable and satellite television. This year’s E3 expo revealed the Xbox One touted to be a “next generation” entertainment hub for your living room or bedroom, but Microsoft banked on current trends and market clearly failing to understand that many people are ditching ever climbing cable and satellite bills in favor for much lower cost alternatives, much like we’re currently ditching our home telephone service for mobile phones now. That Monday morning water cooler chat about what movies and programs watched over the weekend aren’t the same as they once were. I personally watch more YouTube and stream Netflix than watch television.
So could these two Hollywood giants truly envision the demise of their own industry? I think they’re pretty spot on. Independent film making is growing, however their distribution is still lacking. Producing feature films and television programming have become far less in cost as compared to let’s say 5 years ago thanks to innovations in digital equipment, recording, and editing, however the studios and corporations themselves are equally as greedy to monetize their products for maximum exposure and profits as quickly as they can, forgoing quality. When was the last time you went to a movie theater? Was it worth your $10-$15 USD per ticket? The public at large has spoken by not rushing out to view their content, avoiding the price premium to view it later for less money.
Source: The Hollywood Reporter