The big movie studios are undergoing something like the same stresses the American middle-class has experienced over the last two decades: They’re seeing radical increases in the cost of living (for them actor salaries and marketing costs), increased competition from globalization and cheap labor (in the form of cable TV, internet streaming services, and amateur videomakers), yet they’re suffering from stagnant income (meaning that total movie revenues are more or less flat).
The analogy goes a step further: Just as America has witnessed rising income inequality, the same phenomenon has hit Hollywood movies. Movie revenues aren’t growing much, but a smaller and smaller percentage of movies are claiming a larger and larger share of the total pie. Which movies are the 1 percent in this analogy? Comic book movies.
And so, the argument goes, at some point the studio system is going to blow up because its model simply isn’t sustainable and–more importantly–because the executives in charge of the business haven’t been capable of figuring out how to evolve with the market.
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