Are We Seeing the Death of the Blockbuster?

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Sept. 20 (Bloomberg) -- President Paul Dergarabedian discusses the death of the blockbuster with Trish Regan and Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

What is really going on?

I think there is a shakeup going on in the wake of a summer that had very high profile films that did not live up to expectations.

That put a spotlight on the budgets of films, which were highly publicized.

Lone ranger had a very high budget.

When you are under this microscope, as pointed out earlier, with big budget action films that did not live up to the promise of their marketing, stars, and concept, you have a lot of scrutiny going on as to what the thought process is behind some of these movies, and putting them into production.

A very expensive proposition.

The irony is, despite what steven spielberg said about the implosion, and he was right.

There were five profile flops.

But the summer box office was up 10%. for all the high profile flops, there were a lot of films that did better than expected.

That did not get the attention, but those were not put in the spotlight.

Was and that a function of higher ticket prices?

That is part of it.

But to be at record revenues in the face of all lot of films not doing well is pretty impressive.

And for the theatrical side of the business to be pretty robust right now, with "iron man," "fast and furious," and other base hits this summer, this is an industry that is here to stay.

If studios have to make better choices about what movies they are going to make and how much they spend on them.

So often, big budget films have the opportunity or potential for a lot of success.

They could do really well on them, as they did on the pirates of the caribbean franchise, or they could not do so well on them, as we have seen.

How do you make that decision?

Do you really want to forgo the upside you could get out of one of these?

That is a great way to frame this.

Bet big to win big.

Studios, particularly in the summer, where it is the most intense, competitive time of the year, you have to put it all on the line.

You have to spend big bucks on the production side and the marketing side to get attention in this very intense, intensely competitive in the summer and holiday season, when you have "the hobbit" and other big films -- it is one of the toughest businesses, e as you do not know how films are going to do until you release them in the market lace and hope audiences will embrace them.

If you spend $200 million on a western, chances are, you are not going to get that money back.

A lot of films this summer looked like films released earlier in the year, especially action movies.

Others did really well, like "fast and furious." it is a crapshoot every summer, but probably the most high- stakes gamble of any side of the entertainment business.

The numbers are so big.

Do you think this is a ringing of the bell, and we are going to see some smaller budget indie- type films, woody allen type stuff?

I think nothing is going to change in the summer.

This is the thing.

Nothing is going to change.

Next summer, we will see big- budget block esters.

But films like "blue jasmine," which had a micro-budget and is doing great business.

"the butler" did not cost much and is doing great business.

The bread and butter of the fall movie season, the oscar season.

He have great product over the

This text has been automatically generated. It may not be 100% accurate.


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