Steven Spielberg and George Lucas in a talk at USC this week highlighted the changes in film production and distribution. In a story reported by the Hollywood Reporter, they spoke of the challenges of runaway production and marketing costs coupled with the difficulty of getting theatrical release. Spielberg said:
“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 mega-budget movies are going to go crashing into the ground, and that’s going to change the paradigm.”
The cost of the production is high, but so are the major marketing campaigns that go with them. For example, Man of Steel the new Superman film is estimated to have cost $225 million to produce and an additional $150 million to market. While it is expected to do well, it is easy to see that the financial stakes taller than the highest building for major blockbusters.
The good news is creative possibilities opening for films targeted to niche and television audiences.