Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      The door to new network operators in South Africa is about to open

      The door to new network operators in South Africa is about to open

      2 November 2026
      Sales of new-energy vehicles is surging in South Africa

      Sales of new-energy vehicles are surging in South Africa

      2 November 2026
      Wild Coast lessons for South Africa's data centre boom - Claire Tucker

      Data centre developers risk a Wild Coast-style defeat

      2 November 2026
      South Africa wants a new space regulator

      South Africa wants a new space regulator

      2 November 2026

      Binance hackers using automated laundering ‘never seen before’

      2 November 2026
    • World
      John Ternus faces first big test as Apple CEO - John Ternus

      John Ternus faces first big test as Apple CEO

      2 November 2026
      Alleged Israeli spy company heavily targeted Starlink users

      How online ads were used to hunt Starlink users

      28 October 2026
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
    • In-depth
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
    • TCS
      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      26 October 2026
      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs - Réan van Niekerk, Metacom

      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs

      23 October 2026
      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf - Jason Oehley and Andre Den Hond

      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf

      22 October 2026
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
    • Opinion
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Editor's pick » How the film industry is imploding

    How the film industry is imploding

    By Editor25 August 2014
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    cinema-640

    In June 2013, at a University of Southern California event with George Lucas, Steven Spielberg predicted an implosion of the film industry. The failure at the box office of “tentpoles”, mega-budget movies that are designed with potential sequels in mind and anchor a studio’s release schedule, “are going to go crashing to the ground, and that’s going to change the paradigm”, he said.

    This may not seem to be happening, but Anne Thompson shows us in her interesting and illuminating new book, The $11 Billion Year, that the prediction has already come true. White House Down, After Earth, The Lone Ranger, Turbo and R.I.P.D. all tanked at the box office and the whole cinematic apparatus, the paradigm of production, distribution, exhibition and the technological, economic and political structures that underpinned it, have indeed changed.

    “In 2012, the US domestic movie box office delivered a record-breaking US$11bn, up 8,4% on the previous years,” Thompson writes. “If the record foreign box office is added to total it would have been a $35bn year.” But she goes on to show that “despite appearances, the movie business isn’t thriving. The seeds of the industry’s destruction were present in 2012.”

    The reasons for this that emerge from the book are dominated, unsurprisingly, by the influence of digital. The book shows how and why in 2012 the word “film” officially became an anachronism: by 2012 the changeover to digital was pretty much complete.

    What becomes clear from Thompson’s book is that the whole system has changed, at least as it pertains to the “global” film industry of the US.

    Movies are now made digitally. On one hand, this permits all kinds of additional special effects which can potentially make them very expensive; on the other hand, more personal dramas that don’t require much post-production can now be made on a micro-budget. As a result, in 2012, Sundance logged more than 4 000 feature submissions: the problem becomes one of finding screens for all these films.

    Screen conversions from 35mm to digital expanded globally from 16 000 in 2009 to 36 000 in 2010 and by 2012 the changeover was complete. Studios benefitted economically, but according to Thompson, many filmmakers “try to sock away a 35mm print of their films for safe-keeping as digital formats demand constant, expensive upgrading to the latest system”.

    The whole distribution system has changed too. It used to be that movies played in cinemas, then the film was made available after three or four months at a premium cost by video on demand (VOD). Then it would be sold and rented on DVDs, then showed on pay cable, and then made available on broadcast television all over the world. Now, there’s a rush to get everything to VOD as quickly as possible. Some films are made available on VOD before they are screened in cinemas, or bypass cinemas altogether.

    According to Thompson:

    Close to a quarter of the 2012 Sundance releases were made available concurrent with or before their theatrical openings on VOD outlets – cable iTunes, Hulu or filmmakers’ own websites.

    Josh Whedon’s In Your Eyes is an example of a film that bypassed traditional distribution structures and went to VOD on the very same day it was premiered at the Tribeca film festival. This is the type of distribution most cinema owners fear: it renders them obsolete.

    A bit of comparison. In 1982 Spielberg’s E.T. was the biggest box office success of its year. It was based on an original story and it stayed on screen for more than a year in America. It was a “four quadrant movie”, a film that is equally appealing to young, old, male or female, the kind that studios constantly chase after. Compare this to the top 26 films of 2012:

    Nineteen were based on some other property, eight were sequels, four were comic-book franchises, two were remakes, two were prequels, and seven were originals.

    Of course, this isn’t a herald of the death of cinema, but rather, as Thompson writes, “Spielberg and Lucas were basically calling attention to the end of the movie business in which they grew up”. Spielberg, as powerful a director as there is in Hollywood, struggled to get Lincoln made. It was a serious drama with no sequel potential. It wasn’t based on a comic book, and getting the money to make it had been so difficult he considered turning to HBO.

    Steven Soderbergh did indeed go to HBO to make the Liberace biopic, Behind the Candelabra. As a studio movie it would have cost $70m to make and the studios didn’t want to risk it, even with Matt Damon and Michael Douglas attached to star. It was made instead at HBO for $23m, won the Emmy, and was released theatrically outside the US.

    Oliver Smith, Martin Scorcese, Michael Mann, Neil Jordan and Spielberg himself now all routinely work in television. That’s where serious drama and comedy that isn’t aimed at adolescents are being made.

    What Thompson doesn’t explore are the aesthetic consequences of this. What might it mean to cut off romance, interiority, complex character psychology and so on from big screen presentation? Many might ask if it would matter if the bigger and smaller screens carve up different genres or different thematics amongst themselves, with spectacle relegated to the big screen, and more personal dramas to the smaller screen. But I think it matters a huge amount.

    If Thompson doesn’t answer this question, she does touch on many others that I have not addressed here. The £11 Billion Year was inspired by William Goldman’s The Season: A Candid Look at Broadway. What Thompson does is follow, in chronological order, the developments in film in 2012 from Sundance to the Academy Awards to afford herself and us a critical look at the state of the industry and the state of the art. And as her vividly entertaining and informative book makes clear in so many different ways, the prognosis is not good.The Conversation

    • José Arroyo is lecturer in the department of film and television studies at the University of Warwick
    • This article was originally published on The Conversation
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    George Lucas José Arroyo Steven Spielberg
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleDomo arigato, Mr Roboto
    Next Article DStv unveils low-cost HD decoder

    Related Posts

    Apple’s plan to challenge Netflix comes into clearer view

    11 October 2017

    Disney strikes back

    11 September 2015

    Jaws at 40: how it ate the horror genre

    28 June 2015
    Company News
    e-hailing

    Wanatu rebuilds on Google Maps to take its e-hailing service national

    2 November 2026
    Tracker: taking care of business for 30 years - Dillan Fernando

    Tracker: taking care of business for 30 years

    2 November 2026
    Build credibility before you ask for the meeting - Publishared, TechCentral, Michelle Losco

    Build credibility before you ask for the meeting

    2 November 2026
    Opinion
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    The door to new network operators in South Africa is about to open

    The door to new network operators in South Africa is about to open

    2 November 2026
    Sales of new-energy vehicles is surging in South Africa

    Sales of new-energy vehicles are surging in South Africa

    2 November 2026
    Wild Coast lessons for South Africa's data centre boom - Claire Tucker

    Data centre developers risk a Wild Coast-style defeat

    2 November 2026
    South Africa wants a new space regulator

    South Africa wants a new space regulator

    2 November 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter