Can Hollywood Fix Its Blockbuster Crisis?

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July 26 (Bloomberg) -- President Paul Dergarabedian discusses the summer movies winners and losers on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Hollywood, we have a problem.

The movie industry has produced six big budget disasters from will smith's afterbirth to johnny depp co the lone ranger.

Steven spielberg said that last month -- our friend from joins us now to sort it out.

It all, paradigm shift, or is this a short term anomaly?

I think when spielberg talks, you have to listen, because he knows the industry inside and out.

He had this preordained idea of how this summer were performed, particularly talking about a string of high-profile flops, which we have had.

The irony of this is that the summer box office is $300 million ahead of last summer.

Correct but is not driven by these blockbusters.

-- but it is not driven by these blockbusters.

It is it just the smaller, more creative movies that are doing better?

That is part of it.

We are seeing some of these smaller, independent films doing well.

But it is the films we have forgotten about, like iron and 3, over four hundred million dollars.

Fast and furious 6, another huge hit.

And the conjuring from warner brothers did so well last week.

We have some casualties, very high-profile casualties of this big blockbuster budget war.

It is creating the perception that hollywood is having a rough time right now, and it is true.

These movies that do not do well thought it hurts the entire industry.

Perception means a lot.

But when you run the numbers, the marketplace as a whole is looking pretty good.

And thankfully, the wolverine is opening this weekend and it will break this streak of big budget failures.

It will probably do up to $80 million this weekend.

But there are many perception issues going on right now.

We have movies with johnny depp and world -- will smith not performing.

I don't mean to diminish that would hollywood rather have box office sales up 10%, or would you rather have a string of hits that do not add up to a blockbuster summer?

Hollywood is trying to sort this paradigm shift out that could be coming.

It seems like with a new sheriff in town, pacific rim kind of looks like transformers.

Even the new superman kind of looked a little bit like transformers.

The big machines trying to conquer us all.

Why do we keep using the same formula?

40% of the box office comes from the summer movie season.

There is not a lot of risk taking going on.

Even the movies that are not sequels, what that is great because their original -- they are original content, so to speak, meaning they are knocked sequels.

But still, people start feeling like they have seen that movie before.

Will they reach into their pocket to start paying for that?

And a big star does not guarantee it is going to be a big hit either.

There are big concepts and and have to deliver on the promises of those concepts.

You do not want to break the bank on your budget, because you've got to make that money back to make more movies.

But you've got to remember, too, they're part of a large ecosystem.

Week after week, the reporting is about -- and it is true that we have had some very high- profile, big budget failures.

There will always be a few casualties.

It and they're piled up, like last week.

Two or three of them just did not do well.

This weekend, one very wide release.

A marble, but film opening with the wolverine.

-- a marvel comic book filled opening with the wolverine.

$1.9 billion so far in that rate -- that franchise.

It will get us back on track . you get interesting films out of that.

Why edgier in august?

It is the wind down of the summer.

Blockbuster fatigued is in full effect.

People want something a bit different.

Studios can take more of a risk, because it is not a front of the summer where it is from loaded with those high dollar films like iron and 3. it gives the audience more challenging fair.

Three years ago, district 9, which was directed by the the director that i direct a medium -- that directs elysium.

We used to call it the dog days of august because he would not necessarily get a lot of big revenue numbers out of that.

But you get into interesting, offbeat more challenging movies.

You get more challenging fair.

I'm ready for some wolverine.

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


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