For the longest time, the entire cinematic world made it’s way through Hollywood.  That dream factory in the American southland was where all the money came from as well as being the focal point from which all pop culture stemmed from.  And the main reason why Hollywood grew to have this special place in our cultural development is because for the longest time, America was the undisputed leading market for all things in the world.  Because of America’s unique connection to the birth and development as film as an art-form, it’s no surprise that Hollywood’s output was specifically geared to appeal to a broad but specific American demographic.  Sure, there were budding film markets that grew up internationally during this same time, some with influential filmmakers of their own who would leave their own valuable mark on the industry as well, but to be a big deal of the world of film, you still had to play by Hollywood’s rules, and those were dictated by the demands of the American market.  But, in the last few decades, there has been a shift that has dramatically altered the way Hollywood does business.  As more and more nations have pulled themselves into developing and even prosperous economies, their film industries have grown alongside them, and Hollywood has taken notice.  Right now, film studios are thinking less about how a movie will perform domestically, and are instead focusing more on the international grosses.  And that is having an effect on what kinds of movies are getting made today.  The money is now no longer going towards movies that will play well just for the American market, but for the entire world.  And that includes your easy to translate fare, like the Transformers movie, the Fast and the Furious movies, and most anything that animated.  But. what is interesting right now is the ever increasing influence of one nation in particular, that not only is rising as a film market but is even challenging the American market as the largest in the world, which is greatly changing not only is changing Hollywood’s focus but is even shifting the way it does business as well; the ancient country of China.

China, for the longest time, was an almost zero factor market for Hollywood.  From the rise of Communism through the Cultural Revolution, China was a closed off nation that accepted nothing from the outside world; including movies.  Until Nixon opened up diplomatic relations in the 1970’s, China was a country that probably knew nothing about Hollywood, nor had seen all the advances that cinema had made in all that time.  But, in the years since, they’ve made great progress in establishing their own mark on the film industry.  For the longest time, the center-point for Chinese film-making was in Hong Kong, the one time British colony that was untouched by Communism.  From Hong Kong, the world was introduced to a whole new genre that was distinctively grown out of Chinese culture; the martial arts film.  And from these movies, we were introduced to the first Chinese movie star in Bruce Lee, who managed to achieve international fame even before China began to open itself to the rest of the world.  Martial Arts cinema did help to put Hong Kong on the map as a hub for film-making, and that in turn helped to develop a new class of Chinese filmmakers.  Names like John Woo and Zhang Yimou began to make an impact not only in their homeland, but worldwide as well.  And it wasn’t just Hong Kong that took notice of their talents, but Hollywood as well.  Woo eventually made his way stateside where he took his distinctive style that he honed on films like A Better Tomorrow (1986) and Hard Boiled (1992) and helped to redefine the American action thriller with Face/Off (1996) and Mission Impossible 2 (2000).  And though he began outside of China in the small but important Taiwan film industry, Ang Lee quickly became known for his mastery of multiple franchises, which became a skill that managed to make him the first Asian filmmaker to win an Oscar for direction.  And he too also brought a uniquely Chinese flavor to his films, best illustrated in his sumptuous martial arts epic, Crouching Tiger, Hidden Dragon (2000).

To put it in short terms, China not only made up for many missed years separated from the world of cinema due to their isolation, but they did so in a spectacular fashion, quickly leaving their mark.  But now, they are having an impact on cinema in a different way.  After opening up special capitalist districts within the traditionally Communist nation, the nation quickly became a booming trade market, which has seen their national wealth balloon to unprecedented levels.  Because of this, more than 2/3 of the over 1 billion people in China have moved out of poverty and into the middle class.  As a result, more Chinese citizens have the income available now to do a variety of activities, including going to the movies on a regular basis.  And this been where business has really boomed for the Chinese film industry.  Over a thousand new movie theaters have opened up across China in just the last couple years alone.  Though they still haven’t caught up to the total number of screens here in North America. they are closing that gap fast, because there are far more Chinese out there than Americans, and the demand for more screens is high.  For a long time, imported American films were the top draw for Chinese theaters, and still are (except Star Wars for some reason), but China’s own film industry has seen a boom in their box office returns as well.  When you look at each year’s top grossing worldwide releases, you’ll see a growing number of Chinese productions like Wolf Warrior (2015) or Operation Red Sea (2018) appearing on the list, grossing in the range of $500 million each.  And these films don’t even reach American cinemas at all, which shows you just how much money right now can be made in China alone at the box office.  And because of this, American studios are taking notice and rethinking their strategy for which films to make.  The regular American film-goer no longer has the maximum influence over the market; now it is shared with the Chinese, and an amalgam of all other film markets worldwide.

That worldwide gross number is now a bigger chunk of the pie than the domestic grosses, and that has greatly influenced which films are given the bigger percentage of attention in Hollywood.  We’ve seen in particular a steady decrease in things like romantic comedies, westerns, and period epics being made by Hollywood, because these movies tend to be expensive and don’t translate very well over in places like China.  But the things that do translate well overseas are big, loud action films, which rely less on witty dialogue and intricate plots.  Disney has excelled with Marvel films, as well as their many animated properties, and one only has to look at the fact that the country is now home to two Disney theme parks to see how well their brand has connected with the Chinese.  Other studios are finding their footing in different ways.  Paramount has connected with their Transformers films, with many of the recent chapters in the series intentionally setting their stories in China.  Warner Brothers has even gone further by investing in movies that really are motivated solely by the international market.  Guillermo del Toro’s Pacific Rim (2013) was disappointing at the domestic box office, despite critical praise, but it did extremely well in Asia, with China accounting for nearly $100 million extra in grosses alone, and that sole reason is why it received a sequel earlier this spring.  Another surprise was the film Warcraft (2016), based on the popular online multiplayer game.  By all accounts, the movie would’ve been considered a costly flop based on the domestic gross alone, and yet, it made a profit because of how well it did oversees, especially in China.  Despite what critics may think of these movies, the rising influence of a new class of paying customers out of China and elsewhere are dictating the projects getting greenlit by the choices they make at the box office.

What’s even more interesting, however, about Chinese rising influence on Hollywood is not just their increased profile as a film market, but also the fact that they are having an even more prominent presence right in the heart of Hollywood itself.  Many emerging billionaires coming out of China right now are not only investing more heavily in film-making, but they’re going as far as to purchase several little studios in Hollywood itself, making movies for American audiences in addition to their own.  This has recently manifested in the arrival of cross-cultural movies targeted to appeal to both countries.  One of the clearest examples of this is the recent release of The Meg (2018), a big budget monster movie where a team of scientists from all over the world cross paths with the giant prehistoric shark, Megalodon.  Though there’s nothing remarkable about the premise, it is interesting to note how much of the casting of the movie is reflective of the studio’s interest in appealing to both American and Chinese audiences alike, having British action icon Jason Statham and Chinese actress Li Bingbing sharing top billing, and with near equal amounts of the movie’s dialogue spoken in English and Mandarin.  What this shows is that China is looking not just for their own homegrown filmmakers and actors to do well over seas, but they’re even seeking out American talent to participate in their own distinctly Chinese films.  This has led to some confusion here in America, especially when it was revealed that all-American actor Matt Damon was going to appear in a movie called The Great Wall (2017).  Some cried foul and said that it was an egregious example of white-washing a Chinese movie, but in reality Damon’s role was specifically tailored by Chinese director Zhang Yimou to be filled by someone of European decent, as part of a larger ensemble that was dominated by native Chinese actors.  Unbeknownst to many, this was not white-washing, but a sea change in who was starting to call the shots in Hollywood, and the fact that A-listers from Hollywood like Damon and Statham were not just linked to domestic productions anymore really showed how much that change has already affected the business.

But dramatic shifts in the way that Hollywood conducts business is not without risks.  And considering the volatility of the Chinese economy, with it’s rapid growth beginning to show stresses and signs of potential collapses in some sectors, the ramifications for some chaotic downfalls spreading into Hollywood as well also increases, especially with more and more smaller studios being bought up by Chinese conglomerates and new billionaires.  In some cases, you have production companies either being started up or bought out by wealthy investors who know no one thing about how the film industry works, and yet are putting up a ton of money just to get their name into show business.  In these cases we see the most extreme cases of boom and bust from these Chinese investments.  This late August slate of new releases in particular represents the growing presence of Chinese money in Hollywood.  Would you have expected films like A-X-L, Kin, and The Happytime Murders to all have been Chinese productions.  Not a single one looks distinctively geared for an Asian audience, and yet each was co-financed by a Chinese production company.  Ironically, they are being beaten at the box office by a completely American production called Crazy Rich Asians (2018).  And it’s that lack of focus in knowing how to produce broader appealing movies that is the drawback to the increased investments coming from China.  One of the more troubling examples has been the case of Global Road Entertainment.  Once called Open Road Films (which produced the Oscar winner Spotlight), Global Road reformatted under the new management of Tang Media Partners, which is conglomerate run by Chinese-American billionaire Donald Tang.  Tang’s inexperience with running a film studio quickly became apparent as costly flops like Show Dogs, Hotel Artemis, and the fore-mentioned A-X-L have all lost the company money in very quick succession and the short-lived company is now in financial straights.   It’s not the case with all Chinese investments in Hollywood, but it certainly marks a cautionary sign of how quickly things can go awry once a new influx of money floods into the business.

In a lot of cases, Hollywood is going to end up compromising a lot of things in order to work with the new Chinese economy.  In most ways, an improved alliance is a good thing.  Increased cultural exchange is going to help both China and America live in better harmony, as well as benefit each other financially.  But, there are aspects that Hollywood is going to have to come to terms with the more they of the global giant in their community.  One is the fact that a large part of their investment is coming from a nation with not the greatest human rights track record.  The Communist nation’s lack of freedoms for things that liberal Hollywood holds dear, like free expression and human rights, are going to make many future agreements a little tumultuous.  Some very anti-Chinese government pet causes of Hollywood celebrities in the past, like a “free Tibet”, may sadly have to be compromised as China becomes increasingly in charge of where the money goes in the business.  I think that’s why you see some avenues of Hollywood remaining cautious through all of these changes, and that’s leading to a whole new face in the industry itself.  I wouldn’t be surprised if Disney and Fox’s merger was in some way motivated by some of this, as neither company wants to face a hostile takeover by an international conglomerate and feel that they are better suited pooling their resources together to stay independent as a distinctly Hollywood institution.  It’s hard to say, but the clear indication is that by becoming the fastest growing film market in the world as well as one of the wealthiest, China’s impact on Hollywood and Cinema in general will be felt for many years to come, and in many cases, will be a permanent change.  And to face this sea change, Hollywood has to adjust alongside it, otherwise China’s red wave of influence will leave much of it washed out and buried.

It’s hard to say if a greater Chinese influence on cinema is going to be a plus or a negative for the industry just yet.  On the one hand, Chinese filmmakers and actors are gaining much more notoriety than before, and more and more Chinese people are seeing the benefits of a vibrant film culture in their lives as many of them are increasingly going to the movies each week.  Hollywood is no longer undervaluing the Asian audiences either, and are far more willing to invest in movies that have a distinct Asian perspective to them.  The cross pollination between cultures is also a positive outcome, as the once isolated nation grows more comfortable with seeing America as a partner rather than a threat, and vice versa.   At the same time, China’s volatility also runs the risk of creating a more chaotic state in the film industry, as many start-ups from enthusiastic but inexperienced investors can’t sustain for very long in Hollywood, and that in turn creates a lot of uncertainty for the industry in general.  Despite the costs, it’s a trend that can’t be avoided.  We are going to be seeing a lot more co-productions with China in the years ahead, with multi-national movies like The Great Wall and The Meg becoming more and more common.  And Open Road Entertainment’s quick downfall is not an indication of all Chinese investments going sour.  There’s companies like the Huayi Brothers, who have found success with a diverse slate of releases both big and small, including movies just for Chinese audiences and American audiences, like Journey to the West and the Bad Moms series.  American companies are even looking to target China’s market specifically, with Horror film producer Jason Blum announcing a new slate of films through his Blumhouse Pictures specifically made for Chinese audiences.  And it’s not just China alone that Hollywood wants to focus on, but other emerging economies like India and Latin America as well, though their vibrant film industries have been around far longer than China’s.  It’s the fact that China’s growing industry is so fresh and unexplored and yet insanely wealthy at the moment that has made the whole film industry take notice all of a sudden.  China is a serious player in the game right now, one that may even eclipse that of Hollywood’s home base of America in the years to come, and it will be interesting to see what becomes of this industry down the road as a result.

It’s been a consistent struggle ever since the dawning of the film industry.  No matter what era we live in, you will see a broad disconnect between the kinds of movies that general audiences like, what professional critics like, and what people in the industry like.  And for the most part, these differences are inconsequential and really just come down to a difference in personal taste.  But, Hollywood is also an industry that rewards itself every year, and wishes to either rank or crown certain movies as more honorable than the rest.  And it’s only then that these rifts in personal taste extend into more heated arguments.  Beginning in 1927, the Beverly Hills based Academy of Motion Picture Arts and Sciences began the tradition of honoring the top achievements within their industry each year, creating one of the most coveted awards in the world in the process; the Oscar.  Though it started humbly enough as a banquet at the ballroom of the Roosevelt Hotel in Hollywood, the Academy Awards have since evolved into the biggest prize within the industry, as well as the focus of much of the studios’ efforts and resources.  Oscar campaigning has become an industry within itself, and has only grown to have more influence over both how the industry operates, but also with how the movie-going public responds to all of it.  Movie critics suddenly have more sway now because their consensus over the quality of each new film gives the industry a better sense of what is worthy of nominating and which films will better find an audience.  But there is one problem with that; critics are audience members too, and not one unanimous voice, and some of their personal tastes often clash with what the average audiences want to enjoy, and what the industry itself wants the public to enjoy.

One thing that has become abundantly clear in recent years is that the industry has become less concerned with overall box office when it comes to selecting the best films of the year, and for the most part, the big winners at each year’s Oscars are small, independent dramas that most often earned their way up to the podium due to critical approval.  In general, most of the movies that do win Best Picture at the Oscars, as well as many of the other top accolades, are often deserving of the honor.  But, too often now, they are films that become quickly forgotten as the industry itself moves in different directions.  Can many of you out there say off the top of your head which movie won Best Picture five years ago?  If you’re someone like me who watches the industry closely each year, you probably can, but the average moviegoer likely does not nor do they care (the answer was 2013’s 12 Years a Slave by the way).  In the end, most audiences go to the movies to be entertained, and not to witness a future awards winner.  And more than likely, what ends up being entertaining might not be awards quality material.  Look at some of the biggest franchises in recent years like Fast and the Furious, Transformers, and Jurassic World; all international juggernauts that are perfectly capable of grossing a billion worldwide easily, and yet if you asked for critical opinion on each, you’ll get nothing but disdain.  Despite what ends up being good for the industry’s bottom line, these critically panned franchises can easily be dismissed by the Academy, but then comes the problem when a studio movie is a box office hit, and is a critical darling.  At this point, the Academy is forced into the awkward position of rethinking their brand, which they have so intently cultivated around the aura of prestige.  It raises the question to them whether or not something commercial should be in contention with lesser seen films that may benefit more from what is commonly called the “Oscar boost.”

In order to not be seen as giving an unfair advantage to big studios over smaller production companies, the Academy has largely chosen to distance itself from the commercial side of Hollywood and focus on the more prestiege side of the industry, which is their perogative to do so.  But, the Academy is also faced with the unfortunate aspect that their choice to reward smaller, lesser seen films has resulted in a smaller audience for their own televised broadcast.  The ratings for this year’s Oscars telecast was the lowest of this decade, and this has put the Academy into a position of reevaluating their strategy as an institution.  The Academy has made several smart choices in recent years, like expanding their membership to include more diverse representation both in age and cultural make-up.  But, the lower ratings have also forced the academy to face the reality of popular entertainment being deserving of their top honors and this has led them to making some not so wise choices.  Just this week, the Academy announced that they were making big sweeping changes to their future Oscar ceremonies.  The first change was that below the line categories were no longer going to be televised, and were instead going to be handed out during the commercial breaks and announced later in the show in an edited compilation, all in an effort to reduce the show to a quick 3 hour run-time.  Below the line film industry professionals rightly called foul, as they saw this as a move to focus more on the celebrities being honored rather than the hard working behind the scenes people who never usually get the same spotlight.  The other controversial move was to announce a new category for Best Popular Film, which the Academy sees as a way of recognizing movies that they often ignore, as a means of bringing back the movie going public who will be more familiar with the movies in this category.  Again, this new category was immediately scrutinized for it’s lack of clarity and it’s in many ways dubious dismissal of popular movies in general.

The Motion Picture Academy has had to face the unfortunate reality in recent years that they are slow to evolve with the rest of the industry.  While it is noble to shine the spotlight on movies that often go unseen by honoring it with a prestigious award, the Academy has done so by stacking the odds more in the favor of what they deem worthy rather than what is more deserving.  A large part of the Academy’s problems has been an aging roster of voters, whose personal tastes have tended to clash more often with the average movie going public, which to their credit, the Academy has made strides towards changing.  But, even still, for a commercially popular film to break through and appeal to the Academy’s higher tastes, it has had to be so good that it couldn’t be ignored.  This has managed to happen before, with box office behemoths like Titanic (1997) and The Lord of the Rings: The Return of the King (2003) winning Best Picture in their respective years, but it often rarely happens.  Sometimes the Academy’s stringent adherence to prestige has resulted in a backlash, as was the case when Christopher Nolan’s The Dark Knight (2008) was denied a nomination for both Best Picture and Best Director for it’s year, categories that it might have had a solid chance of competing in.   But, because it was both a Super Hero film and a sequel, it didn’t fit within the Academy’s typical mold, and was left out; though Heath Ledger’s performance as the Joker couldn’t be ignored, and was honored with an Oscar.  Audiences expressed their displeasure at the exclusion of the Dark Knight and that added pressure did lead the towards changing their rules, extending the Best Picture race from a field of five nominees to a maximum of ten; ensuring that blockbusters like Dark Knight would have a better shot in the future.  But even despite this capitulation, the Academy still has struggled with having an answer for addressing this popularity problem that is driving down their television ratings and plaguing their relevancy within the industry.

One thing that I see is that the issue is not with too few nominations being made available, but perhaps there being too many awards.  One thing that the Academy has done over the years is create specialized categories that doesn’t particularly honor a specialized trade within the industry, but rather honors a specific type of movie.  These categories spotlight films that fall under the classification of Foreign, Documentary, and Animated.  As is often the case, some of the best movies of the year often are representative of these three categories, and in many ways are deserving of being labeled the Best Picture of the year.  And yet, these categories at the Academy Awards end up being the only place that these movies are recognized in.  Only rarely do we see a film from any of these categories rise above and earn a Best Picture nomination; in fact, within the entire history of the Academy Awards, not one documentary has ever been nominated for Best Picture.  For a lack of a better term, these categories have become “ghettos” within the Oscars, as a way of honoring a specific movie while also keeping it out of contention for the top award so that the more typical films get a better shot.  And with a new “Popular” category, the Academy is again creating a sub category to “honor” movies that otherwise it would completely ignore while at the same time stacking the odds better in favor of the prestige flick.  It’s quickly been described as a millennial’s “participation” award, to show that they are spreading the wealth around by giving even popular movies an award.  But spreading the wealth would only apply if each award held the same value, which they don’t.  While each film that wins in the Foreign, Animation, and Documentary categories are usually deserving of the honor, they absolutely should also be contenders for Best Picture as well, and their often sure bet wins in these categories often makes the Academy believe that they’ve given them enough already.  Doing this with a category specifically meant for “Popular” movies would only make the disconnect between the Academy and the movie-going public even greater than it already is.

The term “popular” is also too broad, and can be used to lump all sorts of different types of movies into one category, mainly if they don’t fall under the guise of a prestige flick.  Which leads to another problem with the Academy’s disconnect with popularity, which is their very specific idea of what makes a film fall into the category of “prestige.”  A prestigious film is often a finely crafted drama, often historical, focused very intently on the quality of it’s own writing and performance, and most often has a statement to make; political or otherwise.  These movies often have been dubbed “Oscar Bait,” and far too often you’ll find Hollywood easily taking the bait every year, no matter how manipulative it may be.  There are those years where an outsider voice does pierce through and receives the Oscar recognition without resorting to baiting the Academy, but more often the case will be that in order to get that coveted Award, you’ll have to compromise your vision and appeal to the Academy’s very narrow tastes.  That’s why Steven Spielberg has had better luck at the Oscars with movies like Schindler’s List (1993) instead of with Raiders of the Lost Ark (1981) and E.T. The Extra Terrestrial (1982), because one is a historical drama and the others are seen as “popcorn” genre flicks.  Spielberg certainly deserved his win for Schindler’s List, but his style of film-making had to change dramatically from what we were used to seeing from him before in order for him to win the award.  And he’s not the only filmmaker whose had to change in order to play the Academy’s game.  Historical epic Titanic was a wild departure for director James Cameron, who had cut his teeth with action flicks like The Terminator (1984).  The David Fincher who directed with flashy style with Seven (1995) and Fight Club (1999) was easily dismissed by the Academy for years, but the more subdued approach he gave to movies like The Curious Case of Benjamin Button (2008) and The Social Network (2010) brought him into their good graces.  There are also the countless times where comedic actors try to go serious in order to get their recognition (Robin Williams in Good Will Hunting, Steve Carell in Foxcatcher).  While none of these moves translates into sub-par work, it still shows that artists are less free to make the movies they want to do and still get the Academy’s seal of approval.  And thus that line between popular entertainment and prestigious entertainment becomes more apparent.

Even though I’m piling onto the already notorious reputation of an already disgraced man, but this is yet another way that I feel mega-producer Harvey Weinstein has ruined the film industry.  On top of all his sexual misdeeds, Weinstein was also a bully when it came to campaigning for the industry’s top honors.  His aggressive campaigning on behalf of the movies from his Miramax and Weinsetin Company labels often crossed into borderline illegal territory.  The Academy has even had to combat his influence over their voters by changing many of their rules regarding awards campaigns.  This was especially the case after the surprise upset where his period dramedy Shakespeare in Love (1998) won over the heavily favored Saving Private Ryan (1998) that year.  It was later revealed that many of the voters were swayed by the aggressive marketing push that Weinstein had orchestrated, and not by the fact that they liked it more than Private Ryan.  But even despite the Academy’s attempts to make the field fairer for all nominees, Weinstein’s influence never the less took hold; most effectively so in redefining the idea of the prestige film.  You look at the difference between awards winners before Weinstein came to prominence and those after; particularly in the 90’s.  In that decade, there was a fair mix of popular blockbusters winning Best Picture (The Silence of the Lambs in ’91, Forrest Gump in ’94, and of course Titanic in ’97) alongside smaller films (Unforgiven in ’92, The English Patient in ’96).  But since the turn of the millennium, it’s been prestige ever since, with Shakespeare in Love’s upset marking that turning point.  Weinstein’s goal was to not so much help prestigious movies have a better shot at the Oscars, but to make his own style of prestigious Oscar bait the ideal for Academy voters, and sadly far too many bought into that.  Not all of them were bad or undeserving, but too often these types of movies pushed out more deserving flicks; like when Weinstein’s The Reader (2008) took the slot that should have belonged to The Dark Knight.  Though Weinstein has gratefully been exposed as a monster, and has been shut out of the Hollywood altogether, his legacy continues and the Academy’s latest move feels like a holdover from an era that made it easier for people like him to win over others.

The Academy has to wake up and realize that the answer to making their broadcasts more popular with audiences is to not create a separate category for just “popular” films, but rather embrace the idea that popular movies can be prestigious too.   One thing they should do is to change their notions of what constitutes prestige and what doesn’t, as the Weinstein influence has clearly made that term too specific to be fair to all.  If you look at the industry as a whole, you can see that movies that have lasting power in our culture tend to come from a more commercial beginning and that as often is the case become the ones that influence the next generation of filmmakers and film-goers the most.  Just because a movie is “popular” doesn’t make it not important.  You look at this year in particular, where the most socially groundbreaking film to be released in theaters was not a indie drama, but instead was a Super Hero movie from Marvel Studios; the blockbuster phenomenon Black Panther (2018).  Black Panther hit the culture with such an impact early this year, appealing to an often overlooked demographic that has felt underrepresented by Hollywood and even brought timely issues of social justice and racial inequality to American cinemas in a bigger way than most independent dramas could ever do.  It’s that kind of impact that the Academy would be foolish to ignore when the next round of Oscar voting starts, but by creating this Popular Film Oscar that it is mostly likely going to be a shoe-in for, the Academy will mistakenly believe that they’ve given it just enough.  It’s these movies that make a difference in society, and if the Academy wants to be seen as being in touch with the culture today, they shouldn’t try to marginalize a movie like Black Panther into a “separate, but equal” category.  Popular and prestige are not exclusive, they can be the same thing.  Think about previous years where the Academy got it wrong; we forget about American Beauty from 1999, but we still remember The Matrix, Fight Club, and The Iron Giant from that same year, because of their cultural impacts.  The Academy’s move to boost diversity in membership is a good start, and has shown itself in a more open attitude towards genre flicks lately, with The Shape of Water (2017) becoming the first Sci-Fi Best Picture winner in history.  But the “Popular” Oscar would be a foolish step backward that I hope doesn’t become a new tradition for the Awards, because it’s exactly the kind of “behind closed doors” move that closed off the organization from the regular movie audience in the first place, and put them in the current state of irrelevancy that they now find themselves in.

Ever since the first roll of celluloid ran through the mechanisms of the first projector, the medium of film has always been for the purpose of drawing an audience.  And with the advent of cinema, a new industry built up to serve the needs of accommodating those audiences.  Concert Halls and Opera Houses gave way to the movie palaces of early Hollywood, and then later expanded into the local neighborhood multiplex capable of screening multiple movies to thousands of people per day.  The movie theater is almost as synonymous with the identity of Hollywood as the studio lot itself.  It’s no mistake that Hollywood’s most visited landmarks are both the Hollywood sign and the Chinese Theater.  And yet, movie theaters have always had to struggle to compete with newer ways to consume media.  First it was television, which brought the experience of watching a movie into the living room.  Then came home video, which gave the viewer the choice of watching a movie on their own time.  Now, streaming services have become the biggest threat to the well being of the movie theater industry, as on demand media allows the viewer to take movies on the go and watch from pretty much everywhere.  Not only that, but streaming channels like Netflix and Amazon are actively trying to compete with major studios for exclusive content, taking even blockbuster level entertainment away from cinemas and puting them on their platforms.  But, if there is one constant with the movie theater industry over the years, it’s their continued efforts to adapt to new challenges as they compete for audience attention.  Some theaters adapt better than others, but the ones that do make the most effort to change are also the most innovative and create some of the most long-lasting changes in the way we watch the movies.

Having worked in the movie theater business myself for 4 1/2 years while I was attending college, I witnessed some of those changes take hold and become the new standards in the industry.  Probably the biggest one I witnessed was the conversion to digital projection.  When I started, all our movies still ran on celluloid on every screen, until one day we received our first digital projector.  This allowed us to screen movies for the first time in 3D, which became a big draw for our little theater for a while.  Around the time that Avatar (2009) roared into theaters, the necessity for digital projection became paramount and eventually every projector in the theater was replaced with the digital model.  The 3D craze died down in the decade since, but digital projection was here to stay, and this is an evolution that wouldn’t have happened had the market not shifted so quickly.  3D and digital projection are only some of the many innovations that have come out of competition with other media platforms; others include Widescreen, Drive-In, surround sound, IMAX, and even reclining chairs.  Some chains of theaters even draw inspiration from their competitors, like how the Alamo Drafthouse chain in Texas has brought the concept of Dine-In theaters to public attention, something that you see available in other places now through some of the larger theater chains.  While all these innovations help to make the movie going experience more special, they also come at a higher price, and sometimes they aren’t enough to pull their audience away from the comforts of their own home for very long.  The sad truth is that movie theaters are constantly in an uphill battle to prove their worth in a time where convenience dictates peoples attention.  So, after trying so many ways to make the experience of watching a movie more worthy of the price of a ticket, theaters are looking for a different kind of innovation today; one that affects the way we buy tickets in the first place.

Drawing inspiration from it’s current competitors (Netflix and Amazon), the movie theater business is trying a new tactic to bring people back to the cinema; a subscription plan.  Just like how Netflix allows for unlimited streaming of their content for a low monthly fee, movie theaters are now considering doing the same, which would greatly alter the way ticket pricing is done within the industry.  Enter the innovators behind this concept; the MoviePass subscription service.  Launched in 2011, MoviePass gave subscribers the opportunity to select one movie a week to watch for the low fee of $10 a month.  Now the average movie goer usually watches one or two movies a month, so for anyone (like me) who watches more than that each month, this was an incredible deal.  Each member would get their own debit card which would be pre-loaded with the value of the ticket once it was selected through the online app, and then that member would use the card to pick up their ticket at the box office, basically seeing the movie on the MoviePass company’s dime just as long as they kept paying their fee each month.  For the cinephiles, this was a dream come true, because now they could watch as much as they wanted without breaking the bank.  There was resistance from major chains like AMC and Regal, who believed that the business model for this was unsustainable and reckless; and yet they themselves are now trying their own subscription based services in response.  Regardless of the skepticism that MoviePass has faced over it’s business model, there is no question that they are having an effect.  2018’s box office is already the highest in history, and that includes a significant boost in ticket sales as well; not just with prices.  People are going to the movie theaters again, and this may be due to the MoviePass influence.  In just a short amount of time, this service has already moved the industry in a new direction.  There is only one problem, though; they might live long enough to see the lasting effect of their influence.

As of this writing, MoviePass is in dire economic straits as their business model is starting to prove to be unsustainable as many people feared.  According to Deadline Hollywood in May 2018, the company only had enough funds to remain solvent for the next three months, which means a moment of reckoning is coming in the next couple weeks as the deadline nears.  Primary among all the concerns is the fact that MoviePass’ low subscription fee didn’t justify the amount of money spent on the access the membership allowed.  People who used the service were watching more, but they weren’t spending more.  Theater chains and movie studios have always taken a percentage off of the price of a ticket, with studios collecting the majority share and theaters balancing their take with profits off of concession purchases.  MoviePass would get an even smaller percentage off of those numbers, and yet their profits remained low or non-existent because they were giving such a bargain out to their subscribers.  Now, it’s not unusual that a company builds itself up through accruing debt in it’s early days.  Netflix is still running up high debt as they cobble up expensive content for their service, and that has made their brand more valuable over time as their service becomes more desired for newer subscribers who wants to see their many exclusives.  MoviePass, despite an astounding rise in subscribers over the last couple years, still isn’t seeing enough growth to justify the spending that they are putting into their service, and as a result, they are now hemorrhaging funds.  Their parent company, Helios & Matheson Analytics was hit with a massive trade-off in March of this year, which saw their stock freefall and the value of MoviePass dwindle down to cents on the dollar.  As a result, MoviePass was forced to change their subscription plans, which irked long time members, especially when they attempted to make the changes stealthily.  Now, MoviePass not only has lost confidence with investors, but also with it’s once faithful member base, and this has left it in the most dire of straits.

MoviePass may not survive to the end of this year, but it’s impact will still leave a mark on the industry as a whole.  As stated earlier, AMC and Regal are already trying out their own services based on the MoviePass model, with payment plans that probably will be more sustainable in the long run.  MoviePass, for all it’s faults, did address something very important that was affecting the industry as a whole, which was the often out of control movie ticket prices.  This is an industry wide issue that extends beyond the movie theaters and goes all the way to Hollywood itself.  One thing that has become a problem for the industry over the years has been the ballooning costs of movie productions.  Whether it’s to finance the enormous salaries of the all star casts, or to pay for costly visual effects, or to “fix” problems found in post-production with re-shoots, movies have become far more expensive to make, and that cost translates into more premium ticket prices as they studios try to offset the damage to their bottom line.  As a result, we’ve significant decline over the years in the number of tickets sold.  Sure, box office numbers remain high, but when adjusted to inflation, you’ll see that movies today are attracting fewer viewers today than films released decades ago.  The types of movies that make money today are also representing a narrower field, typically falling into the action adventure or horror genres.  And that’s because people today will only go out to the movie theater if the film looks worthy enough of the high ticket price.  This changed very much with MoviePass’ help, as more people were willing to go to the movie theater to see any type of movie; something that was especially beneficial to the alternative independent film market.  It still hasn’t addressed the bigger problem of out of control movie production costs, but the fact that the less typical films are bringing people to the movie theaters as the ticket price factor has been eliminated  is something that is becoming a good overall change in the industry.

The industry as a whole needs to reevaluate the way it produces media for mass consumption.  Typically the bigger the movie is, the more likely it’s supposed to draw an audience, but this has not always been the case.  Huge box office flops like Speed Racer (2008), The Lone Ranger (2013), and last year’s King Arthur: Legend of the Sword (2017) prove that no amount of money you throw at a film is going to save it from failure.  But, the industry has been slow to follow trends, and many movies often come out too late to leave an impact as a result.  You only get a tiny sliver of time to become a hit at the box office.  Many classics that we revere today in fact found their audience afterwards on home video, like The Big Lebowski (1998) and The Iron Giant (1999), which shows that trying too hard to push a movie into success in the movie theaters is also not a cost-effective measure either.  The often less factored in aspect of the industry that also bleeds studios dry is the marketing of these movies.  Marketing budgets often can exceed the cost of the movie itself, especially when the studio knows that it has a bomb on their hands, and this makes it even more damaging when the marketing fails to bring the audience to the movie theater.  With a different pricing structure in place, like what MoviePass brought, people’s decisions on what they want to see can in effect change the way these movies are marketed too; perhaps in a way that may help the studio save some money.  One thing that would help is to consider balancing out what ends up in the theater with more modestly budgeted movies.  The kind of movies that wouldn’t have been cost effective before could see new life with a subscription based plan, so that the viewer doesn’t feel bad about wasting money on catching a movie first in the theater, instead of waiting for it to show up on TV.  Instead of trying to convince people that every movie is a “must see,” it might work better in the long run to present a “check this out” method of selling their movies.

What works so well for services like Netflix is the fact that they’ve made their service itself a must see destination.  Upon the viewing of every movie their audience wishes to see, they also offer up a dozen suggestions for something else, based on an algorithm designed into their database that analyzes our viewing patterns.  This kind of servicing could be valuable to a movie theater service like the one MoviePass runs, because it goes much further than what the regular trailer or teaser poster in the lobby can do to generate hype for each movie.  When a person uses a subscription service that takes the pain out of buying multiple tickets each week, they are more inclined to learn about what else is available to see.  That’s when suggestions similar to Netflix’s can be helpful in attracting people’s attentions to movies they otherwise would have skipped.  Movie theaters in general can target more directly to each viewer, and this isn’t just limited to other movies available.  Loyalty programs can allow them to save a little on concession snack that they otherwise would have skipped out on, which would greatly help the theaters make up the extra cost of running the subscription plan.  Netflix’s success comes out of the fact that they’ve figured out the best way to bring in new subscribers, and that has enabled them to spend so much on exclusive content, without spending too much extra on costly promotion.  In a market where theaters are competing with a service that is proving more cost effective in reaching an audience without the need of heavy marketing, this is absolutely the desired direction that they must go in order to remain relevant.  It may be too much of a bargain to make sense right away, but as membership increases and loyalty programs become more generous and effective, you’ll see a whole new life brought into this aging industry.

If anything, MoviePass could stand out through history as a trendsetter rather than an industry standard.  Most likely it will remain a cautionary tale of how not to grow a business, but even still, it’s legacy will be felt for years to come.  Already, it is beginning to create an effect on out-of-control ticket pricing and making Hollywood reevaluate how much they should spend on each film.  Is it something that is going to become an industry standard?  That we don’t know yet, but it will become an alternative that will in some way change how we go to the movies.  And in the end, this is something that reflects the long standing tradition of the movie theater industry working against the current with regards to appealing to audiences taste.  For a lot of people, it seems undesirable to leave their homes and fork over $15 to watch a mediocre movie in a room full of strangers; even worse if those strangers are also loud and obnoxious.  If a low monthly fee is all that it takes to get that same person to consider seeing one movie or more a month despite all that, then this is a service that will greatly help the movie theater survive in the long run.  MoviePass tried their best to make it work independently, but this will ultimately be something that the theater chains themselves will carry through into the future.  Sure, a lot of MoviePass’ problems arose from a poorly planned out business structure, and also the way it alienated itself from movie theaters who did business with them and subscribers who were unhappy with the unannounced price hikes, but the concept behind their service is something that movies need right now.  We needed something to balance the out of control costs that were starting to damage both the movie studios and the film industry, and while MoviePass was not a fix all solution, it nevertheless made the industry as a whole take note and begin to reevaluate.  So, in a couple of weeks, we will know if MoviePass subscribers will still be able to enjoy the same benefits as before, or if they’ll have to sign up for something new, or go back to watching movies at home like they used to do more often.  In any respect, I would love to see MoviePass or something like it become more of a standard within the industry, because it’s bringing people back to cinemas as a whole, and as a fan of the movie-going experience, I see this as a great thing for the future of movies.