It’s been a turbulent year for Hollywood at the box office. For every Project Hail Mary, there was a Masters of the Universe, and for every Toy Story 5, there was a live-action remake of Moana. In its second weekend, the comic book superhero film Supergirl fell behind a George Washington biopic. Meanwhile, two low-budget horror films from young YouTube creators became the breakout hits of the summer.
Chiwetel Ejiofor in Backrooms – A24, YouTube
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Speaking to Variety about the theatrical box office’s ups and downs in 2026, Blumhouse founder and CEO Jason Blum argued that studios lost sight of what audiences actually wanted. His comments come as theaters enjoy one of their strongest years since 2019, fueled by a string of original and broadly appealing hits.
Big Franchises Stumble
Two of the year’s biggest box office disappointments were Disney and Lucasfilm’s The Mandalorian and Grogu and Amazon MGM Studios’ Masters of the Universe. On paper, both seemed positioned to generate cross-generational appeal by reviving established franchises. In reality, many moviegoers chose other options—or skipped the theater altogether.
The underperformance of those films, highlighted by Variety, has led some observers to describe some aging franchises as “rickety” and past their prime. Meanwhile, the standalone horror films Obsession and Backrooms, both produced by Blumhouse Atomic Monster, demonstrated remarkable staying power.
Blum Says Studios Chased the Wrong Movies
Box office analysts noted that Gen Z helped drive both films’ success. That accomplishment is perhaps even more remarkable given that younger audiences have more entertainment options than ever before.
“The audience was out there; it’s just that we were making the wrong movies for them,” Blum said.
Inde Navarrette as Nikki and Michael Johnston as Baron Bailey in Obsession – Focus Features, Blumhouse Productions
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In retrospect, Blum’s explanation for Hollywood’s recent slump—and its recovery—seems remarkably straightforward. While YouTube commentators such as Critical Drinker have long argued that studios prioritized “The Message” over storytelling in an effort to appeal to an audience that ultimately failed to materialize, Blum’s remarks suggest a growing awareness inside Hollywood that making movies for audiences who actually want to see them is what sells tickets.
However, Blum also cautioned against drawing the wrong conclusion from the success of Obsession and Backrooms.
Success Can’t Be Manufactured Overnight
Obsession was written and directed by Curry Barker, while Backrooms was directed by Kane Parsons. Both filmmakers are in their twenties and built audiences on YouTube before making the leap to feature films.
Since the success of their respective movies, Hollywood has increasingly looked to YouTube creators and internet-born stories for new intellectual property. Among the projects in development is a feature film adaptation of the YouTube horror series The Mandela Catalogue, which is being produced by Steven Spielberg.
Curry Barker speaking to AFI Conservatory Fellows – American Film Institute, YouTube
However, Blum argued that creating successful films requires far more than simply replacing established Hollywood talent with popular internet personalities.
“It’s not just about finding people who are popular on YouTube or TikTok and throwing a bunch of money at them,” Blum said. “The directors of Backrooms and Obsession toiled over their scripts for years. You can’t rush things. The movies have to be good, and that takes time and effort.”
Whether Hollywood ultimately embraces Blum’s broader message remains to be seen. But the head of the studio behind two of the year’s biggest surprise hits is now echoing a point many moviegoers have been making for years: audiences will show up—they just have to be given movies they actually want to watch.
What do you think caused the Hollywood slump? Sound off and let us know!
