You Don’t Need $200 Million To Make A Blockbuster Film Any More

from the community-funded-films dept

Walled Culture the book (digital versions available free) is about the incompatibility of the traditional copyright system with the digital world, and its failure to reward creators fairly. That raises the question of what might replace it, and the book’s last chapter offers one solution in the form of true fans. These are people who love an artist’s work and are happy to support it directly. This allows those works to be made available for no cost, since they have already been funded by fans. That, in turn, means creations can be shared – no need for punitive copyright infringement laws here – thus spreading the word about the artist, and bringing in new true fans and additional financial support.

This system is already working well for books, music and graphical art. But a common criticism of the approach is that it could never work for films, which therefore require copyright protection for them to be made. In support of that claim, people often point to the extremely large budgets of many films, often running to hundreds of millions of dollars. Clearly, the argument goes, such sums could never be amassed through the donations of true fans.

One issue with that argument is the widespread practice of “Hollywood accounting”, which Wikipedia explains as:

the opaque or “creative” set of accounting methods used by the film, video, television and music industry to budget and record profits for creative projects. Expenditures can be inflated to reduce or eliminate the reported profit of the project, thereby reducing the amount which the corporation must pay in taxes and royalties or other profit-sharing agreements, as these are based on net profit.

In other words, those huge budgets may not reflect the real costs of making a film, but are often a scheme for depriving people such as actors and others of their promised share of the profits by minimizing or even eliminating the latter. Moreover, a recent development certainly suggests that successful films do not requires such inflated budgets, discussed here on the BBC site :

Which film would you expect to be a summer hit – a family-friendly action-adventure which is based on tried-and-tested IP (intellectual property)? Or a creepy low-budget horror film dreamt up by a first-time director? Until very recently, most of us would have put our money on the first option.

But this summer, it’s looking as if low-budget horror will be triumphant, with two indie films, Backrooms and Obsession, vanquishing two megabudget extravaganzas, Masters of the Universe and Star Wars: The Mandalorian and Grogu.

The figures speak for themselves:

The difference between the appeal of tired IP and original movies is illustrated by this weekend’s US box office figures. Masters of the Universe, which derives from a 1980s Mattel toy range and cartoon about a loincloth-sporting, perma-tanned warrior prince, is a new release which made just $29m (£21.7m). The Mandalorian and Grogu, which came out in May, is faring poorly for a Star Wars film: this weekend it made $10m (£7.5m).

By contrast, Backrooms “took $81m (£61m) in the US on its opening weekend. It’s total in the US is now $135m (£101m).” Obsession did even better:

Not only did it have a healthy opening weekend, but it’s also the first film since ET the Extra Terrestrial in 1982 to have its takings go up rather than down in its second and third weekends in cinemas. Its total take is now $152m (£114m) in the US and $225m (£169m) globally.

Those figures are impressive, but what is really noteworthy is the gulf between the respective production costs of the two classes of film. According to the BBC article:

The budget of The Mandalorian and Grogu is reported to be $165m (£124m), and the budget of Masters of the Universe is reported to be $200m (£150m). Take into account the marketing costs, and those films have to make between $300m and $400m (or £225m and £300m) just to break even.

…

The budget for Backrooms, on the other hand: $10m (£7.5m). And Obsession? $1m (£750,000), tops. Suddenly, spending a fortune to make a fortune no longer seems like a winning formula.

The latter sum in particular is easily something that true fans’ funding could amass.

The dynamics behind the growing success of low-budget films – something the BBC article calls “a Hollywood earthquake” – are precisely the ones discussed in the closing chapter of Walled Culture the book. An article on the Guardian Web site puts it this way:

“Going to the movies has become a way to connect with friends and share the moviegoing experience in person. Somewhere you can turn your phone off for a few hours and just disconnect from the world,” says 22-year-old film TikToker Florence Rose.

It is about the sense of community, which lies at the heart of the true fans idea, one that extends beyond the cinema experience:

Apps such as Letterboxd – essentially the Goodreads of cinema – allow users to distil their reactions into sharp, ironic one-liners and scroll through the takes of other viewers. “Gen Z are yearning for community, and through apps like Letterboxd, which continues to see an increase in popularity, people can find that community of like-minded individuals and share their thoughts and feelings about films,” says Rose.

The rise of Letterboxd is indicative of the hunger for precisely this kind of community-based experience:

The platform, whose core audience is 18- to 24-year-olds, has grown from 1.7 million users in 2020 to 26 million in 2026, adding more than nine million since January 2025 alone. “When a movie is released in the cinema, online conversations are sparked, which drives more people to the cinema so they can feel like they can join in and be a part of those conversations,” Rose adds.

This move from the Hollywood-style blockbusters to low-budget films made by new directors – often emerging from the world of YouTube – and new production houses is great news for audiences eager for new experiences and a sense of community. It not only brings fresh talent to the art form, it also opens up the possibility of fan-funded films that manage the difficult trick of being thoughtful and popular.

Follow me @glynmoody on Mastodon and on Bluesky. Originally posted to Walled Culture.

Filed Under: community funding, films, funding, hollywood accounting, innovation, internet, movies