I’ve obviously been saying this for a long time, but I do believe the future writers, directors, and producers of the world are making films on YouTube. Two recent films are proving my point. The first is Kane Parsons’ Backrooms (A24), which made $144M in its first six days and became the highest-grossing domestic film in A24’s history. The second is Curry Barker’s Obsession (Focus Features/Blumhouse), which has generated $150M during its three-week run. The last few weeks have been incredibly telling for the film industry, proving that you don’t need a massive budget or a traditional Hollywood path to tell stories people want to see on the big screen. I’ve written about this before: Hollywood isn’t dying, it’s just changing.
Making More With A Lot Less
If Hollywood wants original films to remain viable in theaters, budgets have to come down and the industry needs to figure out how to tell new stories without spending $250M every time. Both Backrooms and Obsession were produced on relatively small budgets. Backrooms reportedly cost around $10M to make, while Obsession was made for just $750K before its distribution rights sold for $15M, generating huge returns for both projects. Compare that to a recent blockbuster like The Mandalorian and Grogu, which reportedly cost $250M to produce and has only generated $252M at the box office.
Hollywood studios have spent hundreds of millions of dollars trying to figure out how to get kids off TikTok and into theaters. Parsons and Barker understood the assignment: make movies about stories the next generation actually wants to see. The next wave of Hollywood directors already understands internet culture, grassroots digital marketing, and how to build audiences that genuinely care about their projects. Although Backrooms wasn’t an original idea, Parsons did a great job translating a popular piece of internet lore into a theatrical film. Markiplier’s Iron Lung is another example that got all of this right. Yes, I expect this trend to continue, but I don’t think there’s an infinite number of Parsonses and Barkers on YouTube. There’s a handful of creators who will become our generation’s filmmakers.
Distribution Is Changing Too
Another interesting thing happened this week: Markiplier’s Iron Lung went to VOD (video on demand) on YouTube. That isn’t particularly surprising given that he built his career on the platform, is distributing the film independently, and has been vocal about wanting YouTube to be a legitimate distribution channel for movies. The situation is different for A24, which has a first window deal with Warner Bros. Discovery that sends its theatrical releases exclusively to Max after their theatrical run. The next generation of internet-native filmmakers is going to use the theatrical system differently. They’ll make movies for a fraction of the cost, build audiences online, and increasingly turn to YouTube as the first place audiences can buy or rent their films.
The Big Takeaway
Hollywood isn’t dying, it’s just being rebuilt by people who grew up on the internet. The next generation of filmmakers already understands online communities, digital distribution, and how to build an audience before a movie ever reaches theaters. They’re making films for a fraction of the cost, telling stories that resonate with younger audiences, and increasingly viewing YouTube as a legitimate distribution platform.
Alright, we have to talk about the new viral pineapple trend. It’s even going so far where people are buying mass quantities of Costco pineapple jars to make the viral snack. Expect to see this dominating your feed this summer, we have to get our hands on some blue razz pineapple.
Instagram Announces Instagram Plus
This is separate from Meta Verified, will people pay for subscription on Instagram?
Hollywood Reporter Picks The YouTubers WIth Box Office Potential
Which creators will be the next Parsons or Carter?
The Woodhalls Get Their Own Chipotle Bowl
Good excuse to get Chipotle again this week.
