From the Hollywood reporter:
Steven Spielberg predicted an “implosion” in the film industry is inevitable, whereby a half dozen or so $250 million movies flop at the box office and alter the industry forever. What comes next — or even before then — will be price variances at movie theaters, where “you’re gonna have to pay $25 for the next Iron Man, you’re probably only going to have to pay $7 to see Lincoln.”
George Lucas agreed that massive changes are afoot, including film exhibition morphing somewhat into a Broadway play model, whereby fewer movies are released, they stay in theaters for a year and ticket prices are much higher. His prediction prompted Spielberg to recall that his 1982 film E.T. the Extra-Terrestrial stayed in theaters for a year and four months.
The two legendary filmmakers were speaking at the University of Southern California as part of the festivities surrounding the official opening of the Interactive Media Building, part of the USC School of Cinematic Arts.
Lucas and Spielberg told USC students that they are learning about the industry at an extraordinary time of upheaval, where even proven talents find it difficult to get movies into theaters. Some ideas from young filmmakers “are too fringey for the movies,” Spielberg said. “That’s the big danger, and there’s eventually going to be an implosion — or a big meltdown. There’s going to be an implosion where three or four or maybe even a half-dozen megabudget movies are going to go crashing into the ground, and that’s going to change the paradigm.”
Lucas lamented the high cost of marketing movies and the urge to make them for the masses while ignoring niche audiences. He called cable television “much more adventurous” than film nowadays.