Can Hollywood Survive the Demise of its "Blockbuster" Filmmaking Model?

As I have remarked many a time (because the claqueurs and courtiers of the entertainment press are so much in denial about this) what Hollywood has been looking at since 2023 is a crisis not just of the superhero film ("I Don't Wanna Hear About No Superhero Fatigue!"), even if that is the most conspicuous aspect of the situation, but a crisis of its filmmaking generally--and in particular a crisis of the high concept model that has prevailed since the 1970s that has so come to center on franchise-driven sci-fi-inclined action movies, and lavish animation tending toward family audiences and musical comedy.

Accordingly, while others are asking "Can the Studios Retool their Superhero Movies so they can be Winners Again?" I think it more worthwhile to ask "Can Hollywood Survive the Demise of its Filmmaking Model for the Last Half Century?"

That question leads to two others, namely "Can Hollywood Survive the Collapse of Theater-going?" and "Can Hollywood Survive the End of its Global Dominance?"

Why does the question of the blockbuster model lead to the others? Where "Can Hollywood Survive the Collapse of Theater-Going" is concerned the simple answer is that since the advent of television plunged Hollywood into crisis in the 1950s, and sent theatergoing plummeting (between 1948 and 1969 Americans went from going to the theater thirty times a year to doing so just four times a year, which has remained the average), the kind of movie we identify with the blockbuster is what has kept Americans going to theaters at all--with its one last card left to play the offer of big-screen spectacle, mainly of the sci-fi action-adventure and splashy animated extravaganza types.

Consider what this means in actual dollars and cents terms. In the years before the pandemic (2015-2019) domestic ticket sales came to about $14 billion a year in today's terms, half of which money the studios got--with this increasingly coming from the blockbusters (the top ten movies alone accounting for about two-fifths of the ticket sales by the end of that period). Those theatrical successes, one should add, were also the basis for big earnings from post-theatrical revenue, as with streaming and home entertainment generally (which often added almost as much to a movie's bottom line as the studio's cut of ticket sales); and money from spin-offs and merchandising; while the domestic earnings were typically more than matched by what the movies made overseas in the case of these kinds of films.

As the studio executives learned the hard way after many, many losses, the economics of straight-to-streaming releases simply do not allow for that kind of money-making--such that they found that funding blockbuster-budgeted straight-to-streaming releases did little but run up their debts, and have since tended toward smaller projects in that medium (to the point of finding a Batgirl, too small for theaters, too pricey for streaming, and just burying the movie). Indeed, streaming success often seems a reflection of cinematic success. (For all its undeniable failures, where would Disney Plus' line-up be without the cinematic success of Star Wars and Marvel?) Certainly it says something that people will watch a streaming spin-off to a cinematic hit, but that tying a theatrically released movie too closely to a streaming show is self-defeating (as Marvel demonstrated time and again, with Dr. Strange 2, and Captain Marvel 2).

In short, without the blockbuster studios have little to keep people coming to theaters--while without the money to be made from the theatrical release and all to which it can lead the blockbuster makes little economic sense--leading to the second question "Can Hollywood Survive the End of its Global Dominance?" For the blockbuster was Hollywood's area of "comparative advantage" relative to the rest of the world's film-making. Others could make, for example, a small domestic drama or romantic comedy that would play in their home market just as well as Hollywood fare of the type, or even better because it was made just for that country and its culture. They could not match Hollywood's big budgets and the spectacle they bought with any regularity until at least very recently (when the growing wealth of China's domestic market, and the determination of the Chinese government to develop this particular industry, had the country backing such movies), all as Hollywood retained a global advantage with regard to stars, franchises, business relationships and the rest. Without the blockbusters Hollywood has that much less to offer the rest of the world--and becomes just one more movie-making outfit on a planet full of such outfits clamoring for an audience that are in other ways no less dynamic, and perhaps more so. (Consider, for instance, the successes that Japanese animation, or Korean film and television, have enjoyed in the international market as of late.)

Can Hollywood survive the demise of its model for making big hits, generally and in relation to its position within a global cinematic marketplace? Yes . . . but most likely as a shadow of its former self, a much-reduced industry living on smaller productions with ever less cachet than before outside North America; a bigger version of, for instance, British film and television, rather than the Center of the Media Universe that it was in its twentieth century glory days. The result is that for Hollywood overcoming the crisis of its model in one way or another--either finding a way to keep that model viable, or finding a substitute that similarly plays to its strength--has the highest of stakes, all as they are led by, well, not heroes to "match the mighty hour." Indeed, I can picture a couple of decades from today Tinseltown's executive suites packed with old men and women mentally stuck in a past more congenial to their sense of self-importance, or grumbling bitterly about how things were "Back in my day," until they drive to distraction the younger persons around them holding what remains of the industry together.