At lunches with Hollywood executives and meetings with studio staff over the past week, the question of what’s next for “backroom” has been a hot topic of conversation.
The industry is scrambling to figure out how to recreate the phenomenon of “Obsession” and “Backrooms,” the low-budget psychological horror movies from 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 it was a “big mistake” to rush to sign a deal with a YouTube creator.
“It’s no different than making a sequel. You’re riding on an existing trend,” Chernin said in an interview. “80% guaranteed to fail. It doesn’t involve originality or innovation. Your job is to innovate, your job is to look for fresh IP (intellectual property) and fresh opinions. It’s not about just jumping on the bandwagon.”
Chernin has a unique background that spans traditional Hollywood as well as being a YouTube creator. he ran fox’s He ran the film and television division from 1996 to 2009, overseeing box-office blockbusters such as “Titanic” and “Avatar.”
Chernin founded the private equity firm Chernin Group in 2010, which has backed many companies in the creator economy space, including Fullscreen and Tumblr. In 2022, he co-founded North Road, a global content studio. The company’s Chernin Entertainment division co-produced and co-financed Backrooms with independent film studio A24.
“We’re always looking for what’s new, what’s interesting, and where the world is going,” Chernin said. “I think my YouTube background gave me unique insight into making this film.”
Produced on a budget of just $10 million, “Backroom” was a particular success among younger viewers who were familiar with Kane Parson’s YouTube series, which served as the film’s inspiration. According to audience research by Comscore Movies and Screen Engine PostTrak, 86% of ticket buyers were under the age of 35 during the film’s first weekend in theaters.
Backrooms grossed over $100 million at the domestic box office in just six days, making it the highest-grossing domestic film in A24 history.
Producing movies based on established intellectual property is a well-known strategy in Hollywood, and superheroes, popular book series, and even toys like Barbie have proven to be a surefire way to draw audiences. Most of the best-performing films domestically since 2010 have been based on established IP, but box office experts have warned that audiences are experiencing series fatigue and some high-profile sequels are underperforming.
Although “Backroom” and Parsons had an established fan base, building a movie on YouTube content is unusual. Chernin said the concept feels authentic and fresh on the big screen, setting it apart from series from decades ago.
“Hollywood has been guilty of being a bit cynical and creating a manufacturing process that is essentially brand management and consistently feeding audiences a diet of sequels,” Chernin said. “One of the things that really resonated with me is that this feels like a film that uses young people’s intellectual property. What this film says more than anything is that audiences are looking for freshness. They want things that feel unique and original.”
Although box office receipts remain below pre-pandemic levels, the phenomenon of “Backrooms” and “Obsession,” which were filmed on $750,000 budgets and grossed more than $100 million domestically, has Hollywood insiders and analysts wondering how studios should change their strategies.
Eric Handler, a media and entertainment analyst at Ross, agrees that younger generations are becoming increasingly fatigued with movie franchises and sequels, as evidenced by the disappointing opening of the theatrical release. disney’s The latest Star Wars movie, The Mandalorian and Grogu.
“Young people still want to go to the movies. They like that communal 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 get me interested. Come up with an interesting concept that resonates with me and I’ll go.”
Handler said he now expects studios to cast a wider net for content. “There’s clearly an opportunity here, especially when you can make these films on a very low budget,” he said.
Chernin said the success of “Backrooms” is a sign that movie studios should take more risks.
“At the end of the day, risk is the lifeblood of success, and over the past decade Hollywood has fallen into a mindset where risk is seen as reckless,” Chernin said. “We have to find a way to do it with the right budget, but risk is important and risk is the greatest benefit in the world.”
