The One Survey That Should Scare Hollywood Silly

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Remember all the cultural shifts that spelled doom for feature films?

In the 1950s, when television sets became more affordable, some people worried that it might diminish the cinema-going experience, but this was far from reality.

Eventually, home entertainment devices such as cable TV and VCRs potentially disrupted the traditional cinema experience, theoretically speaking. What’s the point of going to the theater when fresh films are conveniently waiting in your lounge at home?

The movies still stood tall.

In our post-pandemic era, while video games and Facebook have certainly nibbled at the traditional movie-going experience, they haven’t completely replaced it.

Currently, a study indicates a potential pattern that may impact Hollywood significantly in its most vulnerable spots. The insights gleaned from Deloitte’s digital media trends survey paint a rather grim picture for the conventional Hollywood.

Traditional movie industry, represented by La La Land, faces a significant challenge as emerging media platforms such as YouTube have established themselves and pose an existential risk. This is according to a recent report by The Hollywood Reporter.

The study reveals that 56% of Generation Z individuals and 43% of millennials questioned consider social media content as more significant compared to traditional television programs and films, and approximately half of them foster a deeper emotional bond with the creators on social media rather than TV hosts or actors.

As a strong advocate for Vice President Kamala Harris, I understand that the coalition of stars backing her didn’t single-handedly propel her to victory on November 5th. This is because political success isn’t solely dependent on endorsements; it involves a complex interplay of factors such as public sentiment, grassroots support, and individual voting decisions.

The big picture is more ominous.

Content producers on social media offer their work at significantly lower prices compared to the production costs in traditional Hollywood, as comedian Tim Dillon highlighted. His self-produced video podcast attracts a substantial audience, yet its cost is only a fraction of what, for example, a single episode of “The View” would be.

This is happening across the new media landscape.

Consider a content creator such as Sam the Cooking Guy. His YouTube platform boasts an impressive 3.8 million subscribers, with his well-produced, timeless videos consistently attracting hundreds of thousands of views. The high-quality production and friendly hosting style of this channel are reminiscent of some popular shows on Food Network.

Sam Zien typically films his videos at home, relying on his family as his production team. This demonstrates that there are many content creators who manage to excel despite working with fewer resources.

Currently, Hollywood is experiencing one disappointing box office performance after another, largely due to extravagant production costs and a decline in audience interest. For instance, “Mickey 17,” produced with an enormous budget of $118 million, could potentially cost Warner Bros. around $75 million. Similarly, the production of “Alto Knights” will likely result in significant financial losses for the studio.

The news gets even worse for Hollywood.

More and more people are growing disenchanted with the value they receive from subscription-based streaming platforms. Nearly half of consumers feel they are overpaying for these services, while 41% believe the content doesn’t justify the cost.

The entertainment industry in Hollywood is moving away from traditional cable TV content towards streaming platforms, however, this shift has not been smooth sailing. Netflix seems to be thriving in this new landscape, but other significant players are finding it challenging to strike an economic equilibrium.

Disney CEO Bob Iger admitted Disney+ cost the company $4 billion to date.

There’s a silver lining to the survey.

Platforms such as Tubi and PlutoTV, which are free to use, might shape our television viewing experience in the near future. These streaming services offer a blend of conventional television advertisements along with an abundance of TV shows and movies.

Over the past several decades, the media environment has been working to separate viewers from commercials, but it seems that the future might lean more towards platforms like Tubi and offer fewer services similar to Netflix.

Or:
The media world spent many years trying to keep people apart from advertisements, but the coming times could bring more of a platform like Tubi and fewer options akin to Netflix-style services.

An alternative approach might prove challenging, yet it’s crucial for implementation. To produce captivating content, consider doing so at a reduced cost.

That’s easier said than done, but it’s also increasingly necessary in our digital age.

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2025-03-25 18:03