The Blockbuster Strategy

Is the "blockbuster" movie model a smart or failed business strategy for Hollywood?

In recent years some may wonder why sequels have habitually nudged its way onto the summer docket. The summer blockbuster is not as creative as it once was. With the yearly appearance of Marvel, Jurassic Park, Star Wars and other franchise films, it is clear that the blockbuster movie model is effective.

This model may not seem smart to those tired of the sequel machine but from the studio's point of view, it’s gold.

Yes, movies are being pumped out redressed and pumped out again. But that is where the money is. If smaller films draw smaller audiences albeit add to the creative and artistic value of cinema then maybe blockbusters is what they need to survive?

Studios are throwing billions of dollars into big budget products and advertising to ensure that their films will be audiences number one choice. This does not mean that the film will have the best plot, dialogue or cinematography but that it will have done the absolute best into making you think that it’s better than its box office competitors.

Smaller films appeal to a certain niche and smaller audiences. It is my train of thought that action and mild violence found in said blockbuster films, is a universal language that appeals to markets worldwide.

As stated in the Blockbuster Trap article, “Even the most diehard fans will not see more than a movie a week. You have to make sure it is your movie they see.” With this, it became clear to me that yes the blockbuster machine is still working but we, as audiences are a large part as to why they continue to exist and why the system works. The US continues to hold the number one spot in producing blockbuster films but it is international audiences that garnish the big bucks.

Studios take large risks because they produce high returns. The market for film is unpredictable so studios place their bets on films that have worked in the past, hence the sequel mania. The fan bases for franchises like Star Wars, Harry Potter and Marvel are unwavering and have a consistent thirst for more. More films + more merchandise = more revenue. This well-oiled machine has worked thus far but how long will it last? No one knows.

One could argue that with the predictable blockbusters churning out the same material year after year despite a subtle face lift eclipse the market will make it difficult for new and creative films to thrive. But that is not exactly true. The revenue from blockbuster films are a large part as to why smaller original films can exists. These films can not survive on their revenue alone. Although true cinema fans acknowledge that original films bring more to the cinematic table where art is concerned but the studios financial team, begs to differ.

Year after year the revenue from non-original films and or franchise films surpasses that of its opposites.

“In 2011, non-original films collected $6.6 billion at the box office, significantly more than the $3.5 billion grossed by original films. In 2012, non-original films captured over $7 billion of the total of $11 billion in grosses. There are no signs that the gap is closing anytime soon. Tellingly, of the 343 films that made more than $100 million at the box office in that decade, 150 — close to 45 percent — were based on an existing property.”

As audiences we may be experiencing déjà vu year after year but the numbers do not lie, for now. I predict that this formula will one day fail. With the access to Netflix and many other streaming sites we are able to view movies faster. Films are now made for such streaming services and skipping the box office entirely. With films being so accessible I predict that one day, a trip to the movies will be a thing of the past.

The way we view media has changed and so should the studios. With media at our fingertips data on what we watch, and what we are interested in is readily accessible. This precious data should be studied at length to determine what the next true and new blockbuster should be.

 These franchise films are relevant but it is time to place a bet on a wild card that the world has never seen. Now is the time to say goodbye to Arnold, because at last he will not be back.