Hollywood's Summer Box Office Revenues in 2025 Could See a Decline, However Fundamental Adjustments in Production Locations Must Be Considered
In the world of cinema, the summer season is traditionally a time for blockbuster releases and record-breaking box office numbers. However, this year, Hollywood is facing a challenge as the industry grapples with changing viewing habits, increasing costs, and anxiety about disappointing box office numbers.
One of the most significant changes can be seen in the performance of major films. For instance, the re-release of the classic film Jaws made $12.8m at the US box office, outperforming newly-released films like Caught Stealing and The Roses. Meanwhile, films like The Fantastic Four and Superman brought in $266m and $351m respectively in the US, lower than some previous superhero films. Ne Zha 2, on the other hand, made a staggering $2bn in China, despite barely making a dent in other countries.
The pandemic has undoubtedly played a role in these shifts, with a growing number of people opting to stay at home and wait for movies to appear on streaming services. This trend is reflected in the US ticket sales between May and the 1st September, which are fractionally down on last year, making $3.67bn in 2024 and $3.6bn in 2025.
The Hollywood Reporter published a piece suggesting this summer's box office performance has executives nervous, with only one film, Disney's Lilo & Stitch redo, making more than $1bn. The high costs of producing films are another concern. Marvel's upcoming film, Avengers: Doomsday, has a budget of $160m before any footage has been shot, and rumors suggest its budget could top $1bn. This means the film would need to make $2bn just to break even.
Director Gareth Evans was hired for Jurassic World: Rebirth due to his ability to make an $80m film look expensive, but the film still cost $180m. The high salaries of stars like Robert Downey Jr., expected to receive a compensation package of $80m or more for his role in Avengers: Doomsday, and the directors, the Russo brothers, said to be getting paid $80m for the film and its follow-up, Secret Wars, also contribute to the rising costs.
As the industry grapples with these challenges, there are calls for Hollywood to re-evaluate its formula for success. David Croye, boss of JustWatch, stated that the studio system will not fill the gap caused by the pandemic, and there's a growing trend towards streaming and home viewing. Cinema owners are unlikely to agree to lower ticket prices, especially for expensive attractions like IMAX screens.
James Cameron, known for his groundbreaking films, believes VFX artist costs need to decrease. However, competition among VFX houses has led to declining wages and working conditions among artists for years. There are those who believe using generative AI to replace jobs and depress wages further could be the key to saving the mainstream film industry, as suggested by Cameron's position on the board of directors at Stability AI.
In conclusion, the summer of 2024 is proving to be a challenging period for the Hollywood box office, with changing viewing habits, increasing costs, and anxiety about disappointing box office numbers. There are calls for Hollywood to look again at the formula for success, starting at the top of the food chain, not at the bottom. Whether this will lead to significant changes remains to be seen.
