Is the Cinema Going the Way of Opera and Ballet?

Is the cinema industry broken?

Is the cinema becoming passe? Will it become an entertainment vehicle left to cinephiles and entrenched fans and bypassed by the average consumer?

These are valid questions, given the changing landscape of entertainment, and the movie industry's long-term survival is doubtful. Unless movie production becomes less expensive, and cinemas have a 45-day release window, the movies may go the way of the opera or ballet. 

That is why the movie industry should embrace and not fight AI and robotics in the production of films and their distribution. Without doubt, AI will have a massive impact on the film industry. The best answer in confronting these technological changes is not to fight them - as Hollywood is doing - but to embrace and use the tech advances to produce more product, at a lesser cost and with more creativity.

Gone is the heyday of the golden age of Hollywood. It is being replaced by algorithms, AI-generated actors, and robotic cameramen. Creativeity is the key to Hollywood's survival; if not, movies will be relegated to a passe entertainment vehicle used only by a few hard-core movie buffs and cinema historians.

Taylor Swift is Fighting a Losing AI Battle

Taylor Swift is applying for two trademarks seeking protection of her voice and one trademark to combat AI-generated images.

Taylor's trademark applications are a response to the unauthorized use of AI-generated images and voice. However, there are pitfalls to trademark infringement, as they cannot provide overall protection against every feature of a performer's brand.

According to Matthew Ashell, an expert in intellectual property law, say "I don't believe the trademark route will be very effective, except for rare circumstances. Additionally, these protections do not protect against AI-generated reproduction in any other country."

Taylor gets an A for effort, but the reality is that it will be very difficult, if not impossible, to prevent the use of voice or image. She is right in not wanting AI-generated voice or images of herself, and she speaks for anyone of notoriety, but there is no stopping AI-generated anything.

Oscars and Nobels are Trinkets Compared to the Breakthrough Awards

 

The Breakthrough Trophy

Scientists are the movie stars of the Breakthrough Awards. Started in 2012, these awards are given to researchers and developers in Life Sciences, Mathematics, and Physics. The recipients of which should be celebrated as national heroes.

The Breakthrough Awards carry a $3 million prize and are given for outstanding achievement and discovery that significantly advances human knowledge and improves life.

The Award winners are chosen by committees composed of previous winners, eliminating politics and favoritism. This year's Awards paid out $18 million to recipients at a ceremony whose guest list included tech titans to A-list movie stars. Yes, movie stars! This shows that Hollywood sees the writing on the wall and their fear of the changes to production, distribution, and exhibition that AI presents.

Robert Downey Jr.

This year, the Life Sciences Award was given to seven individuals for:

• developing the first FDA-approved gene therapy for an inherited disease
• discovering how the body switches from fetal to adult hemoglobin, including gene editing
• for the identification of a mutation that causes Alzheimer's and dementia

In Physics, the Awards went to scientists: 

•  developing the ultra-precise measurement of magnetism within our universe
•  for work on nuclear force and string theory

In Mathematics:

•  for breakthroughs in nonlinear evolution equations

Ben Affleck

The Awards were attended by Sam Altman, Sergey Brin, Mark Zuckerberg, Bill Gates, Ann Hathaway, Ben Affleck, Ron Howard, Robert Downey Jr., Naomi Watts, Zoe Saldana, Edward Norton, and Gal Gadot, to name a few.

My hope is that the Breakthrough Awards do not become an Oscar-like event. What these Awards represent is the best we have to offer in the evolution of mankind.

Celeb Litigation $$$$

 Every day, another scandal rocks H'wood and the entertainment industry. Lawsuits run amok and the cost of litigation is at all-time highs!

The going rate for a top legal advisor or judicator run from $500 - over $2,500/hour. At the elite end, firms charge, on average $2,000/hour for run-of-the-mill contract disputes to $3,500/hour for legal litigation, i.e. sexual scandals or other criminal charges.

Most high-stakes cases began with an evergreen retainer, say $50,000 - which has to be replenished at a burn-rate of $2,500/hour, or 20 hours of work. If multiple attorneys are working a case, the retainer burn-rate could be only 10 hours. This doesn't include the cost of expert witnesses or administrative charges.

In most civil lawsuits involving contract disputes, or copyright infringements, the legal fees are the hourly rate plus a percentage of any settlement. In widely publicized cases, like the Harvey Weinstein sexual charges, his legal fees were $10 million and still counting.

 

Saudis Go Hollywood

 The Saudis are betting big on the entertainment industry, plowing billions into Hollywood studios and other entertainment endeavors. In Riyadh, the capital of Saudi Arabia, movies are a must for entertainment. They screen film well into the night (until 1 -2am) and pull in a mixed demographic.

 

Saudis flock to the cinema during Ramadan

Eight years ago, there were no cinemas in Saudi Arabia. Now, there are many multiplexes, film festivals (the biggest being the annual Red Sea International Film Festival), and esports arenas. Even during their current war with Iran, people are flocking to the movies as cinemas have remained open during the conflict.

The cultural change is due to Crown Prince Mohanned bin Salman (known as MBS to his friends), who is spending billions in overseas entertainment production and distribution. Including a $24 billion investment into the Paramount takeover of Warner Bros., about 25% of the whole merger cost. 

Although there is a lot of handwringing by some folks in Hollywood and Washington, I believe the Saudi investment will be passive - it's looking for long-term returns, and the entertainment industry, on a global basis, fulfills that requirement and sends a message to the world that the Kingdom is rebranding itself. 

Hollywood is currently hungry for cash, so the Saudi investments are welcomed and override any morality issues - and it's working. This past September, the inaugural Riyadh Comedy Festival took place. It featured Kevin Hart, Ball Barr, Dave Chappelle, and Pete Davidson. In December, the Kingdom hosted the Soundstorm Music Festival, which featured Cardi B, Post Malone, and Pitbull.

MBS's long-term strategy is to move the Saudi economy away from oil and into technology (the build-out of large AI data centers), tourism, and the media. 

In Saudi Arabia, there is no political participation by the populace, so entertainment provides an outlet for the Saudis, where 60% of the population is under 35.

Depp and Smith at the Red Sea Film Festival

IMO, the Saudis are making good, long-term investments in media. Entertainment is the one industry that has universal growth that crosses all economic and social sectors. The Saudis, through MBS, have a strategy, and it appears to be working.

Berlin to Host 3-Day Tribute to Michael Jackson

 

A three-day fan event is set to take place in Germany to celebrate "the man and his movie." From April 11th to 13th, this will be an immersive fan experience.

Events include the premiere of the biopic "Michael", which is scheduled for an April 24th release in the U.S..Also included will be panel discussions by the movie's cast and crew, and a gala wrap party.

The event is touted as a "Tribute to his music, his creativity, and the timeless magic he shared with the world." The film stars Jaafar Jackson, Michael's nephew.

The event is a collaboration between Paramount Pictures and the Jackson estate.

This should be a film worth viewing. I'll be going to see it.

Jim Lavorato

CinemaCon's Best in Show Poster Competition

 "Movie theatres are the one public place where you can openly cry or laugh and scream, and do it with strangers," says Graphic Designer Johanna Grief, this year's first-place poster winner.

2026 CinemaCon poster winner

The winning poster features an Art Deco motif surrounded by objects that pay homage to great films. Ruby slippers from "The Wizard of Oz", and 007's martini glass.

Greif won an all-expenses-paid trip to Las Vegas to attend the full CinemaCon agenda and meet the celebs attending. Additionally, her poster will be printed on T-shirts, which will be given to every conference attendee.

Winning poster flanked by second and third place winners

The poster contest started five years ago. Entrants must be employed at a movie theater from anywhere in the world. Greif is the manager at the North Bend Theatre in North Bend, Washington, about 45 minutes outside Seattle.

Congrats Johanna.

Why Are Movies Getting Longer?

 The length of an average theatrical movie has gotten longer and longer. Why?

Many films have what I call 'filler', unnecessary scenes or scenes that can be greatly shortened. You want the film to end, but it keeps going.

The average run rate for a film in the 1990s was 106 minutes, in the 2000s, 114 minutes - a bit under two hours. Now, adding pre-show ads and trailers (which run about 20-30 minutes), the moviegoing experience averages 180 to 240 minutes (3 - 4 hours). Action films average the least amount of time, 128 minutes, but many films exceed even the 180-minute mark.

Lengthy films, some with intermissions, included 'The Godfather', 'Lawrence of Arabia',
'Schindler's List', and 'Gone with The Wind'.

IMO, the studios want the moviegoer to feel they are experiencing a major entertainment event. A good example is the 'Lord of the Rings: Return of the King', which ran 210 minutes. 

It may also be a trend with younger viewers, who think nothing of spending hours in front of a PC or iPad screen. Additionally, people may feel that if they pay for entertainment, they want to see something substantial for their investment in time and money. 

Still, these may just be excuses. Many classic films were two hours or less in length. 'Back to the Future', 'Jaws', 'Star Wars: The Empire Strikes Back', ' Jurassic Park', 'Spiderman'. 

Jim Lavorato

Head of C3-PO is Auctioned Off

 

The head of 'Star Wars' Droid C3-PO fetched $1 million at the annual Propstore auction. 

A relic of the past, but one that represents the technological disruption we are currently witnessing.

Other items generating top dollar were memorabilia from 'Jaws', 'Lord of the Rings', Pirates of the Caribbean', 'Top Gun', and the 'Batman' films.

Depp Launches 'Three Hearts' Rum

 

Johnny Depp and Steven Tyler at 'Three Hearts' launch

Celebs have been introducing branded merch for years, from movie stars to sports figures to online influencers. So, it is no surprise that Johnny Depp joined the party.

At a post-Oscars soiree, hosted by Aerosmith rocker, Steven Tyler, Johnny Depp made a very rare public appearance to launch his new rum, 'Three Hearts'.

Entertainment for the bash was Matteo Bocelli, son of acclaimed opera singer Andrea Bocelli.

Andrea and Matteo Bocelli

According to Depp, 'Three Hearts' was inspired by his "tattoos, and personal philosophy, with the brand's motto being - No Fear. No Malice, No Envy."

Aerial shot of Little Hall's Pond Cay, in the Bahamas

The rum is a premium Caribbean-inspired liquor that Depp founded with his long-time friend Bobby DeLeon. Depp owns a private island in the Bahamas, called Little Hall's Pond Cay. He has lived in the Caribbean area for decades. The island, about 45 acres in size, was purchased by Depp in 2004 for $3.6 million.

All the best, Johnny

2026 Razzie Awards

 As in past years, CMG presents an equal opportunity post to the Oscars and the Razzies. For those new to CMG, the Razzies or Golden Raspberry Awards are given to the year's worst in movies. 

For 2026, the Razies voting was as follows:

- Worst Picture: 'War of the Worlds'

- Worst Actor: Ice Cube, 'War of the Worlds'

- Worst Actress: Rebel Wilson, 'Bride Head'

- Worst Remake/Spinoff/Sequel: 'War of the Worlds'

- Worst Supporting Actress: Scarlet Rose Stallone: 'Gunslingers'

- Worst Supporting Actor: All Seven Dwarfs, 'Snow White'

- Worst Screen Combo: Seven Dwarfs

- Worst Director: Rich Lee, 'War of the Worlds'

- Worst Screenplay: 'War of the Worlds'

- Razzie Redeemer Award: Kate Hudson, 'Sing Sung Blues'

The Golden Raspberry Award

Razzies, like the Oscars, are voted on by Razzie members, but unlike the Oscars, which have closed voting by elite industry 'professionals', the Razzies allow any moviegoer to vote.

AI Is Everywhere in Asian Entertainment

 

As the U.S. film industry is locked in labor and legal battles over generative AI, the rest of the world is 'full speed ahead' in embracing the technology.

At this year's Filmart, Asia's leading content market and media convention, held in Hong Kong, the emphasis was on everything AI: screenwriting, film production workflows, animation, full-length feature films, the issue of copyright infringement, and more.

"AI is transforming film and entertainment content production and reshaping the future of storytelling," said Candas Yeung, co-director of the Hong Kong Trade Development Council. "Reports indicate that a significant majority of movies now utilize some form of AI during production. We want to promote AI adoption between content creators and technology specialists."

The 30th Filmart had record attendance

Warner Bros. was the only major U.S. studio to attend Filmart. 

Kling AI, launched in 2024, is one of Asia's top generative video platforms, offering text-to-video and image-to-video AI tools. Kling has over 60 million creators using its products, who have generated over 600 million AI-generated videos. Although there is anxiety over the use of AI in the Asian film industry, it is much more open to AI usage, and they are not saddled with unions or guilds, as is the U.S. industry.

Hong Kong Convention Center

To me, it is not if but when and to what extent AI will be used in the film and entertainment industry. The technology cannot be stopped, so harnessing it and adopting its best uses will be the challenge.  

 

The Oscars...Who Cares?

 

The drop in 2019 and 2020 was due to the Covid impact

In 1998, over 55 million tuned in to watch the Oscars; this year, fewer than 18 million worldwide. The 2026 viewership was down 9% from last year. 

In a world of media dominated by YouTube, podcasts, and content streamers, the Oscars have lost the one thing that matters - eyeballs. The Academy has lost relevance and credibility, but Hollywood doesn't seem to recognize this. 

The Oscar is tarnished, and there's no fixing it
 

Bias, by the Academy, has existed for decades. Films that should have earned Best Picture have not. The Exorcist losing to The Sting, Saving Private Ryan to Shakespeare in Love, come to mind. Great Directors have also been shunned: Alred Hickcock, Stanley Kubrick, George Lucas, and Quentin Tarrantio never won Oscars. Additionally, there has been bias against certain genres: comedy, adventure, sci-fi, and horror, which are systematically rejected. Yet these are the films that support the cinema industry - they're not called tent-poles for the hell of it. 

Moviegoers have discovered that the Oscars do not reflect the best of the cinema, and when politics entered the show, its relevance vanished. Coupled with mediocre show productions and nominations skewed toward message movies, which may have merit but don't generate admissions. At the box office, the heavy lifting is left to animation and superhero franchises.

A great industry concept that lost its fan base. 

Another problem for the Oscars is the hosting. Past hosts had industry cred. Bob Hope, Johnny Carson, Billy Crystal, and Kevin Hart gave way to Whoopi Goldberg, Chris Rock, and Jimmy Kimmel. Conan O'Brien, the current host, tries hard but can't overcome the lackluster production and opinionated acceptance speeches.

To its credit, the Oscars outperforms the Golden Globes and Grammys. The Grammys had 14 million viewers this year, down about one million viewers from last year, while the Golden Globes saw 8.7 million views down 7% from 2025.

I don't think there's anything that can be done to salvage the Oscars from further decline. Hollywood lives in a bubble. It's a members-only club that views the cinema differently from moviegoers - they just don't get it.

Trump Administration and MPA Together Against Canadian 'Online Streaming Act'

 

Trump and Canadian Prime Minister Carney

The Motion Picture Association (members of which include all the major film studios and streaming companies) is heavily supporting the Republican-led, bipartisan 'Protecting American Streaming and Innovation Act'.

This piece of legislation takes aim at Canada's Online Streaming Act, a money grab, which forces U.S. digital media companies to finance, via cash payments, Canadian media content production.

The Trump administration aims to "counter Canada's digital trade barriers targeting American streaming companies and content producers."

The Canadian Act, passed in 2023, obligates U.S. digital platforms, like Netflix, Disney+, Amazon Prime, and even Spotify, to subsidize local Canadian film, TV, and music production. However, implementation has been held up by a Federal U.S. Court of Appeals.

Trump says he will sign the Act if passed by Congress, putting an end to the Canadian scheme.

Could India Be the Next Big Entertainment Market?

 

Bollywood and Beyond

Kelly Day, VP of Amazon/MGM and Prime Video, says of India, "By far one of the most important markets anywhere in the world, which gets bigger and better every year."

With its huge fanbase, depth of audience engagement, and the production of Indian originals, the Indian market is primed for world dominance. There seems to be growing and widespread acceptance of Indian content, which is global. There will be more roll-out of Indian films by major studios and distributors, and more film production, be they Indian centric or other genres.

English is no longer the default language of choice for global storytelling as local language content is on the increase.

In addition to Indian production, Korean K-dramas and Japanese anime and manga-to-live-action film adaptations have strong international momentum.

Disney Gets New CEO and It's a Major Shift

 

Josh D'Amaro and Bob Iger

Bob Iger is finally passing the torch to a new CEO. The incoming Disney top man will be Josh D'Amaro, who was formerly Disney's Head of Parks, Cruises, and Consumer Products.

In his acceptance speech, D'Amaro stressed that Disney+ will be the force connecting with consumers worldwide, not the Disney filmmaking side. He also wants to push ESPN Unlimited, which was intro'd last summer as the best sports caster in the world.

D'Amaro stated, "The company's divisions will work in concert as 'one Disney'."

Mike Cavanagh and Brian Roberts of Comcast/Universal

Josh D'Amaro will be the third new CEO to head up a major media company. He follows David Ellison, who heads Skydance/Paramount and will soon also include Warner Bros., and Mike Cavanagh, who took the reins at Comcast/Universal as co-CEO with Brian Roberts.

Larry Ellison, Founder and CEO of Oracle, with his son David

These three individuals, D'Amaro, Ellison, and Cavanagh, will oversee mass media on a global scale. All are pragmatic, no-nonsense business-first managers who, for better or worse, are not advocates of introducing or pushing for social issues into company policies. Political correctness is out, and consumer/fan centrism is in. 

Deneuve's New Book on Monroe

 Iconic French actress Catherine Deneuve authored a book entitled 'Marilyn Cherie.' It will be published in May to coincide with the 100th birthday of Monroe. 

Deneuve and Monroe

The book is about Monroe as a person and not a celebrity. She delves into the profound impact Monroe had on her life. The book includes many photos of Monroe not previously published.

Deneuve is a long-time fan and devotee of Monroe, who influenced her on-screen work and approach to acting. "So beautiful, so open, almost unknown. So generous with her body, but so child-like, which never makes her seem indecent. The actress whose films I have seen over and over and are precious to me," writes Deneuve.   

Deneuve, now 82, considered Monroe her mentor

The book's photos are owned by Sabastien Cauchon and taken from his private collection. This is a must-have book for every Monroe or Deneuve fan.

By: Jim Lavorato

Paramount Takes Warner Bros. - Good/Bad for the Cinema?

Paramount Takes Warner Bros.

On 2/26/26, the drama over the acquisition of WB ended with their acceptance of Paramount's $31/share bid. Netflix was out! This now begs the question: Is this good or bad for movie theaters?

Hollywood has been schizophrenic on the issue. First, when it appeared that Netflix would be the likely acquirer, Hollywood panicked. Filmmakers, actors, guilds, and unions were united against Netflix gobbling up WB. Their worry was the fear of a very short, or worse, non-existent theatrical release window. Now, the panic that Paramount will need to vertically integrate WB operations into its own will ensure massive layoffs at WB, compromising creativity and production. Neither is nor was true.

The issue that concerns me is what impact a massive media company has on the cinema.

Paramount will be huge. It currently consists of: Paramount Pictures, CBS Television and Sports, Showtime, Paramount+, Pluto TV, BET+, Nickelodeon, Miramax, and Paramount Automation. With the WB acquisition, it will add: WB Pictures, HBO, HBO-MAX, New Line Cinema, Castle Rock Studios, Spyglass Media, Cartoon Network, Turner Classic Movies, Cinemax, TNT, WB Theme Parks, DC Comics and publications, Discovery Network, TBS, HGTV, Animal Planet, Food Network, and CNN. WB employs over 35,000.  This is massive, and it will require significant operational cost-cutting for Paramount/Skydance to reduce its debt load, which will exceed $76 billion post the WB takeover.

Ellison will be managing a huge media giant

David Ellison, CEO of Paramount/Skydance, vowed that 30 feature films will be destined for the silver screen each year. That means a feature is released every 12 days. Hmmm...that's a lot.

In summary, I believe the Paramount takeover of WB is better for cinemas vs. a Netflix purchase. If Ellison lives up to his promise of 30 features per year (in 2025, Paramount and WB combined had 28 major releases) and provides a 45-day theatrical release window, it will be beneficial to movie theaters. We'll wait and see. 

By: Jim Lavorato

Largest Ratings Split in Rotten Tomatoes' History

 You may have already heard or read that the documentary 'Melania' received a 6% critics' approval rating while scoring a 99% audience approval rating. This is the biggest disparity between critics and audience ratings for a movie in Rotten Tomatoes' history.

The 'Melania' numbers are real. "There is no manipulation of the audience reviews", stated a Rotten Tomatoes spokesperson, "These reviews are verified, meaning it has been certified that users bought a ticket to the film through Fandango."

The critics' reviews were harsh, and if it wasn't for several publications that gave the movie favorable marks, the score would have been zero! Obviously, the critics are biased, anti-Trumpers, but this type of bias is really unacceptable in an honest critique of any film.

So far, the film has grossed about $10 million and is a clear box office success. Its $7.5 million opening weekend gross was the best showing for a documentary in at least 10 years.

There is such a political dichotomy in the U.S. that films, like 'Melania', become metaphors for this ongoing polarization. The mainstream media is anti-Trump; we all know this; however, this movie, with a 99% audience approval rating, can't be all about politics. 

I viewed 'Melania,' and as documentaries go, it wasn't bad. It was well directed, with great visuals, a very diverse soundtrack, and gave me a peek under the tent regarding the country's 'royalty' on both sides of the aisle. For this, I gave it an 80% approval rating. 

  

Hollywood Spends Big in Washington

 

Big media and big tech are pouring millions into lobbying to get Congressional access regarding AI and IP issues. 

The Hollywood studios and streamers are bowing at the altar of influence, as the game changed last year. AI, the biggest technological game-changer to come down the pike, raised its disruptor potential. In the past, media lobbying centered on tax policy and copyright laws, but AI changed all that. Big media is battling big tech over how legislation regarding AI is drafted and passed into law. 

On the flip side, there is the merger and acquisition game for further concentration in the media industry. A perfect example is the current battle between Paramount and Netflix regarding the takeover of Warner Bros. Both Paramount and Netflix have been pouring millions into lobbying both Congress and the Administration. 

According to published reports, every major entertainment and tech company has placed Ballard Partners on retainer. Ballard is a lobbying firm that is cozy with the Trump Administration. Followed by Millar Strategies, another lobbying giant. For example, according to the U.S. House and Senate Lobbyist records, in 2025, Comcast spent $13 million, Paramount - $8 million, and Fox - $5 million. These payments were dwarfed by big tech. Meta (Facebook) spent $26 million, Amazon- $18 million, and Google - $13 million.

In 2026, these numbers will rise exponentially, and there will be more players in the game. AI is just getting started, so there are lots of rules and regulations that need to be passed into law and then enforced.

AI is the biggest business, economic, health care, and lifestyle disruptor in all of human history. Remember, technology can not be stopped; it cannot be controlled.

Hollywood Launches Big Anti AI Campaign

 Entertainment industry writers, actors, musicians, and others have launched the Human Artistry Campaign (HAC) (code name: 'Stealing Isn't Innovative'), which is demanding licensing and opt-out mechanisms for human-created work.

The HAC blasted tech companies for developing generative AI, which is based upon "the mass theft of human creative works to produce tools that could theoretically compete with real creatives." The Campaign debuted with over 700 supporters and an ad in the New York Times.

The HAC comprises a mix of unions representing creators, artists' rights groups, and trade associations, including the Writers Guild of America, the Recording Industry Association, and the NFL Players Association, to name a few. 

As I've written ad nauseam, technology can't be stopped; everyone must adapt to its use and what it brings to society, including entertainment. The entertainment industry elites want to retain their power and control over entertainment creation, but this is a losing battle. AI-generated entertainment will become a large part of what consumers view and interact with. Its creation is much less expensive, more efficient to produce, and, in many cases, superior to the entertainment that is being produced and distributed now.

The Human Artistry Campaign smacks of a movement to preserve the status quo and keep income and profits flowing to the current entertainment gatekeepers. 

By: Jim Lavorato   

'Image' is Everything

 For the Hollywood glitterati, 'image' is everything. Being invited to an awards show and walking the red carpet. Being seen at the right night spots and restaurants. Back-slapping and hob-nobbing with the right crowd.

Now, going to breakfast at the right diner is the latest place to see and be seen - enter Max & Helen's. Owned by Phil Rosenthal, star of the Netflix food show "Somebody Feed Phil," an eight-hour wait line is common. Breakfast is a pilgrimage for the Hollywood set.

The wait-line to get into Max & Helen's is eight hours on weekends and six hours on weekdays. It's the longest wait for a table in LA. However, diners don't wrap around the block; they simply register with the host and are given an accurate return time. You can go view a movie or put in a shift at work before being called to your table - reservations are not accepted. 

With only 40 seats, the diner can't even accommodate Phil's friends or family members on a 'Can you get me in' request. 

The menu is pretty much normal breakfast fare with some lunch and dinner options.  Would I wait eight hours for a call to breakfast? NO. Sorry, Phil, no omelet is worth that long a wait.  

Jim Lavorato  

Cinema Mucho Gusto's 2026 Cinema Industry Predictions

Each year, CMG forecasts the major events impacting the cinema industry over the next year. For 2026, the changes will be profound. 

•  The U.S. box office will exceed $10 billion in 2026, while global admissions, fueled by Hollywood releases, will exceed $35 billion. The cinema is back and will be stronger than ever.

Just a few of the 2026 releases

•  Micro-dramas will continue to grow exponentially in user popularity. With 40% of viewers being 18-45 males, the emphasis of these short-form soap operas (with minimal subscription fees) will be on action and sci-fi content. Check out ReelShort, DramaBox, and FlairFlow, to name several.

•  The face of Hollywood is changing. The industry will continue to consolidate with a slew of new CEOs, which will change how studios operate. David Ellison at Paramount (and possibly Warner Bros. if Netflix doesn't win the bid), Lachlan Murdoch at Fox, Mike Cavanagh at Comcast/Universal, and a new head at Disney (yet to be announced).

David Ellison - The young bloods take over Hollywood

•  2026 will debut the first AI-generated movie star to be featured in a first-run film. Whether it will be accepted by mainstream moviegoers (let alone mainstream Hollywood) is iffy. Exceptional AI-generated content will go viral and be viewed by millions.

Tilly Norwood, the first AI-generated movie star

• In early 2025, California passed a law expanding the film and TV tax credit program by $750 million. However, the changes in the tax program have come too late. There are simply too many film/TV production sites (both in the U.S. and overseas) that offer significantly lower labor and material costs than those in California. 

• YouTube will remain the King of all media. In 2026, not only will it retain its throne, but also become the largest pay-TV platform in the U.S. YouTube currently has 125 million subscribers to its Premium and Music channels. Primetime and Sunday Ticket platforms will be added in 2026. Without doubt, YouTube will be the biggest source of entertainment, creator programming, pay TV, and user/subscription dominance in the world.

Google has it all: YouTube, AI, Waymo, Search, Cloud

• Disney will purchase Taylor Swift's production and events company for a cool $4 billion. Disney+ will become the exclusive home to Swift's content, over which Taylor will continue to retain full creative control and veto power. Her music is not being sold, but Disney will have first dibs on all properties and will distribute the first animated movie musical featuring Swift songs.

By: Jim Lavorato