Spielberg & Lucas discuss the future of Hollywood. Lucas made a wise financial move in selling the rights to his Star Wars characters for $4 gazillion:
Steven Spielberg on Wednesday predicted an “implosion” in the film industry is inevitable, whereby a half dozen or so $250 million movies flop at the box office and alter the industry forever. What comes next — or even before then — will be price variances at movie theaters, where “you’re gonna have to pay $25 for the next Iron Man, you’re probably only going to have to pay $7 to see Lincoln.” He also said that Lincoln came “this close” to being an HBO movie instead of a theatrical release….
Lucas and Spielberg told USC students that they are learning about the industry at an extraordinary time of upheaval, where even proven talents find it difficult to get movies into theaters. Some ideas from young filmmakers “are too fringe-y for the movies,” Spielberg said. “That’s the big danger, and there’s eventually going to be an implosion — or a big meltdown. There’s going to be an implosion where three or four or maybe even a half-dozen megabudget movies are going to go crashing into the ground, and that’s going to change the paradigm.”
Lucas lamented the high cost of marketing movies and the urge to make them for the masses while ignoring niche audiences. He called cable television “much more adventurous” than film nowadays.
“I think eventually the Lincolns will go away and they’re going to be on television,” Lucas said. “As mine almost was,” Spielberg interjected. “This close — ask HBO — this close.”
“We’re talking Lincoln and Red Tails — we barely got them into theaters. You’re talking about Steven Spielberg and George Lucas can’t get their movie into a theater,” Lucas said. “I got more people into Lincoln than you got into Red Tails,” Spielberg joked.
Spielberg added that he had to co-own his own studio in order to get Lincoln into theaters.
“The pathway to get into theaters is really getting smaller and smaller,” Lucas said.
Mattrick and Spielberg also praised Netflix, prompting Boorstin to ask Spielberg if he planned to make original content for the Internet streamer. “I have nothing to announce,” said the director.
New business models are evolving, and rapidly.