Judd Apatow posits the disappearance of culture-defining comedies is a business model problem. Previously, a film like 'Anchorman' could double its box office with DVD sales, ensuring profitability. When streaming killed that secondary revenue stream, mid-budget comedies became a much riskier investment for studios.
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According to Judd Apatow, audience trust is fragile momentum. A single bad joke, especially a big, silly one, can make the audience question the filmmakers' competence. This momentary loss of faith is enough to make the following jokes in the sequence fail, even if they're well-written.
Andy Richter observes that a scarcity of acting work is forcing his peers to start podcasts. What was once a niche medium is now a go-to career move for established comedic actors who are underemployed due to industry shifts, strikes, and consolidation, highlighting a major change in how talent views new media.
Hollywood's current crisis is self-inflicted, stemming from a decades-long failure to adapt its business models and economics. Instead of innovating to compete with tech-driven services like Netflix, the industry persisted with inefficient structures and is now blaming disruptors for inevitable consumer-driven changes.
Judd Apatow argues initial reviews and box office numbers are fleeting metrics. The real test is a movie's long-term staying power. Films that flopped initially can become beloved classics a decade later, proving their value through sustained audience engagement on streaming platforms.
The cynical take on the Netflix-WB deal is that Netflix's true goal is to eliminate movie theaters as a competitor for consumer leisure time. By pulling all WB films from theatrical release, it can strengthen its at-home streaming dominance and capture a larger share of audience attention.
As major studios pull back from theatrical releases, a new opportunity emerges for cinemas. They can pivot from showing new blockbusters to becoming "revival houses" that program classic, niche, and cult films. This caters to audiences seeking curated, communal experiences beyond at-home streaming, as seen with the rise of anime screenings.
The media industry's economics have inverted. The greatest career and financial opportunities are no longer in big-screen cinema but on the smallest screens (mobile). This mental model suggests that professionals' returns on human and financial capital are highest when creating content for mobile-first platforms, not traditional film.
By framing Dropout as a "comedy SaaS," the CEO simplifies the business to its core transaction: subscribers pay a monthly fee for laughs. This mindset avoids the operational complexities and stakeholder demands common in traditional media companies, focusing purely on the creator-audience relationship.
The common mantra 'go woke, go broke' is backward. US media revenue cratered 75% due to the internet's rise. This financial brokenness forced extreme message discipline ('wokeness') as a desperate survival strategy to retain jobs and a shrinking audience base. Financial collapse preceded the ideological shift.
The entertainment industry's resentment towards Netflix is misplaced. Swisher argues that studios are in decline because they failed to modernize, lean into technology, and listen to consumers. Netflix simply capitalized on the industry's inefficient and outdated business models by building a product people wanted.
