| "The Conjuring: Last Rites" gave movie theaters a needed jolt over the weekend with a much better than expected domestic opening of $84 million and a global take of $194 million, a franchise best and the latest success for Warner Bros. and its New Line Cinema banner. |
| But it will take more than supernatural scares to ease Hollywood's jitters after a weak summer movie season that exposed more challenges facing the traditional film industry. |
| Ticket sales fell slightly from last year's summer season, which for the movie business spans from the first weekend of May through Labor Day. Movies grossed $3.67 billion in the U.S. and Canada this summer, down 0.2% from the same period in 2024, according to data from Comscore. More importantly, it's still down from the pre-pandemic norm of about $4 billion, a disappointing result given that summer typically accounts for about 40% of annual grosses. |
| If you account for inflation, it's even worse. Adjusting for today's dollars, summer revenue was down 34% from 2019, meaning theater attendance was weaker than the topline revenue stats suggest. With actual attendance still impaired compared with the days before COVID-19, there's a growing sense that the industry's fears have come true: Audience habits have changed, and they're not going back. |
| The problem wasn't a lack of movies compared with last year. The effects of the pandemic and the 2023 writers' and actors' strikes have dissipated by now. |
| Rather, the issue was a shortage of big studio movies that audiences really wanted to see. The biggest release was Disney's "Lilo & Stitch" remake, which collected $424 million domestically. There was nothing like last summer's "Inside Out 2" or "Deadpool & Wolverine," which both generated more than $600 million in North America. |
| The problem of the shrinking overall audience could be due to multiple factors. |
| In particular, theater owners blame the shrinking of the theatrical window — the period of time a new movie is held back from home video after its big screen debut — to roughly 45 days from the previously standard 90 days. Audiences know they don't have to wait long before a new movie becomes available in their living room. That encourages them to save their money for only the biggest, Imax-worthy spectacles. The growing influence of Imax and premium large format screening may exacerbate that trend, as audiences choose between paying extra for a better "experience," or just waiting to see "F1 The Movie" on their couch. |
| There were plenty of sequels and reboots, but those often performed worse than prior installments, indicating that audiences were less enthusiastic about seeing another Marvel movie or rampaging dino feature. "Jurassic World: Rebirth" made $861 million globally, which was big, but still the series' smallest outing since 2001's "Jurassic Park III." Warner Bros.' "Superman" collected a healthy $614 million, but that was still less than 2013's "Man of Steel" ($670 million). |
| Superheroes didn't come flying to the rescue. Marvel's "Thunderbolts" put up a modest $382 million while "The Fantastic Four: First Steps" opened strong but collapsed in subsequent weeks for a total of $511 million worldwide, a middling outcome for the Disney-owned comic book universe. No wonder studios are increasingly looking at video games as a source of intellectual property for movie adaptations, as my colleague Sam Masunaga recently wrote. After all, Generation Alpha's list of favorite franchises is dominated by video game-related titles, according to a recent National Research Group report. |
| Another threat emerged as international audiences appeared to sour on some U.S. blockbusters. "Superman" and "Fantastic Four" grossed less abroad than they did at home, which is an unusual result for big-budget action flicks. |
| It's not clear why, but some explanations have been floated. China is no longer the reliable source of revenue that it once was, as audiences increasingly favor local-language productions. Some speculate that America's diminished standing abroad has contributed to audience fatigue. The quintessential Americanness of the Superman brand is also widely believed to be a factor in that film's underperformance outside the U.S. |
| Original animation struggled, as Pixar fielded its worst opening weekend ever with "Elio." To add insult to injury, Sony Pictures Animation's "KPop Demon Hunters" became a cultural phenomenon, but only after first launching on Netflix. |
| The rest of the year has some major releases, but they're not expected to bring the business back to full strength. September is usually a slow month for moviegoing, "Last Rites" notwithstanding. Disney's "Zootopia 2," Universal's "Wicked: For Good" and James Cameron's "Avatar: Fire and Ash" will probably do huge business. But while individual films can do well, the overall picture isn't so rosy. |
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| Artificial intelligence company Anthropic agreed to pay $1.5 billion to authors and publishers to settle a lawsuit that accused the company of illegally using written work to train its chatbot Claude. |
| The topline figure is the largest known settlement for a copyright case, equating to $3,000 per work for an estimated 500,000 books, The Times' Queenie Wong reported. |
| But the case was not an outright win for authors worried about AI being trained on their published material. Far from it. |
| U.S. District Judge William Alsup of San Francisco ruled in June that Anthropic's use of the books to train the AI models constituted "fair use," meaning it wasn't illegal. Fair use is a doctrine that allows for the limited use of copyrighted materials without permission in certain cases, such as teaching, criticism and news reporting. It's an essential part of AI companies' defense against copyright infringement claims. |
| The real problem for Anthropic was that the startup had illegally downloaded millions of books through online libraries. So the piracy was the true sin in this case, not the training of AI on books without permission. |
| Anthropic pirated at least 7 million books from Books3, Library Genesis and Pirate Library Mirror, online libraries containing unauthorized copies of copyrighted books, to train its software, according to the judge. However, it also bought millions of print copies in bulk and scanned them into digital and machine-readable forms, which Alsup found to be in the bounds of fair use. |
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Finally ... |
| Listen: Zach Top's "Ain't in It for My Health," for throwback country goodness. |
| Read: Amy Nicholson's review of "The Wizard of Oz" at Sphere in Las Vegas. |
