Is Hollywood Broken?

Ask any studio executive or movie producer and they will tell you that the challenges they face today are more severe and complex then ever.  That the old models of making and selling movies are breaking down.

The issues range from a declining young movie audience, to a lack of diversity in content creation, to poor management at the studios, to inadequate audience measurements.  Many in the industry feel that the biggest issue is that it just costs too much to develop, produce, market, and release a movie - and most do not turn a profit. So, the ones that do make money must pay for the losers.  Today, it is all about the sequel and franchise.  And as the market changes the challenge to make a profit increases - a perfect example is the demise of DVD move sales.

Hollywood has to realize that there is a permanent change happening in viewing habits - which puts the current movie model at risk.  Young audiences of today are growing up with a different way of viewing and accessing content which puts 'big screen' viewing harder and harder to sell.  It is the blockbuster bruiser, high-impact/action films which drive today's cinema box office - and this trend will continue.  The top 25 movies generate 70% of the global box office.  The need to produce and distribute low budget, message dramas will continue to deteriorate and fewer movies will be produced - and this is a good thing!

The demographic shift that is occurring in the U.S., whereby the 18-34 segment of the population will be the largest and the Hispanic the fastest growing demand that changes be made.  On top on this is the fact that consumers have a lot of choice when it comes to what, when, and where to view content.

Hollywood may not be broken but it needs to change focus. The Oscars are a perfect example of how far out-of-date Hollywood is with the movie going public.

Just saying,
Jim