Over the past week, one conversation has dominated Hollywood execs’ lunches and studio staff meetings: What’s next for “Backrooms”?
The industry is scrambling to figure out how to replicate the phenomenon of “Obsession” and “Backrooms,” low-budget psychological horror films made by YouTube creators that have dominated the box office over the past two weeks.
But “Backrooms” producer Peter Chernin, whose production company co-financed the film, said he thought the rush to sign deals with YouTube creators was a “big mistake.”
“It’s no different from making sequels. It’s jumping on the existing bandwagon,” Chernin said in an interview. “I guarantee that 80% will be failures. This does not imply any originality, it does not imply any innovation. Your job is to innovate and your job is to pursue new intellectual property [intellectual property] and fresh voices. It’s not just about jumping on the bandwagon. »
Chernin has a unique background that spans from traditional Hollywood to the YouTube creator space. He ran The fox film and television divisions from 1996 to 2009, overseeing box office heavyweights including “Titanic” and “Avatar.”
Chernin then founded a private equity firm, The Chernin Group, in 2010, which has backed a number of companies in the creator economy space, including Fullscreen and Tumblr. In 2022, he co-founded North Road, a global content studio. Its Chernin Entertainment division co-produced and co-financed “Backrooms” with independent film studio A24.
“We’re constantly looking for what’s new, what’s interesting, and where the world is going,” Chernin said. “I think the YouTube experience gave us a unique insight into the making of this film.”
“Backrooms,” with a budget of just $10 million, was particularly successful with younger audiences familiar with director Kane Parson’s YouTube series, which inspired the film. During the film’s first weekend in theaters, 86 percent of ticket buyers were under the age of 35, according to an audience survey by Comscore Movies and Screen Engine PostTrak.
“Backrooms” surpassed $100 million at the domestic box office in just six days, becoming A24’s highest-grossing domestic film ever.
Basing a film on established intellectual property is a familiar strategy in Hollywood, where superheroes, popular book series or even toys like Barbie have proven to be a reliable way to attract audiences. Since 2010, most of the top-performing domestic releases have been based on established intellectual property, but box office experts warn that audiences are starting to tire of franchises and some high-profile sequels have fallen flat.
Even though “Backrooms” and Parsons had an established fan base, creating a film about YouTube content is unusual. Chernin said the concept feels authentic and fresh on the big screen, which sets it apart from decades-old franchises.
“Hollywood has been guilty of being a little cynical and has essentially created a kind of manufacturing process of brand management, constantly feeding the public a diet of sequels,” Chernin said. “One of the things that really resonated is that this feels like a film with young intellectual property. What that says more than anything is that audiences are looking for freshness. They’re looking for something unique and original.”
While the box office still lags behind pre-pandemic levels, the phenomenon of “Backrooms” and “Obsession,” which were shot on a budget of $750,000 and also grossed more than $100 million domestically, has Hollywood insiders and analysts wondering how studios should change strategy.
Eric Handler, media and entertainment analyst at Roth, agrees that younger generations are increasingly tired of franchise films and sequels, as evidenced by the disappointing opening of Disney latest version of Star Wars “The Mandalorian and Grogu”.
“Young people still want to go to the movies. They love that community experience, but they’re looking for something a little different,” Handler said. “They say you don’t have to make a $250 million movie to interest me. Find an interesting concept that resonates with me and we’ll go for it.”
Handler said he now expects studios to expand their content network. “There’s clearly an opportunity here, especially if you can make these films on a very small budget,” he said.
Chernin said the success of “Backrooms” is a sign that movie studios should take more risks.
“Risk is ultimately the lifeblood of success. Hollywood has gotten itself into a mentality over the last ten years where risk is considered reckless,” Chernin said. “You have to try to find a way to do it with the right budget, but the risk is big, and risk is the greatest reward in the world.”