Over the past week, one conversation has dominated Hollywood executive lunches and studio staff meetings: What’s next for “Rooms”?
The industry is trying to figure out how to replicate the phenomenon of “Obsession” and “Backgrounds,” the low-budget psychological horror films directed by YouTube creators that filled the box office two weeks ago.
But “Backrooms” producer Peter Chernin, whose production company financed the film, said he thinks the rush to sign deals with YouTube creators is “a big mistake.”
“It’s no different than making sequels. It’s jumping on an existing bandwagon,” Chernin said in an interview. “I guarantee you that 80% will be failures. It does not involve originality, it does not involve innovation. Your job is to innovate, and your job is to look for new IP [intellectual property] and new words. It’s not just jumping on the bandwagon.”
Chernin has a unique background that combines native Hollywood and the YouTube creator space. He ran Fox’s movie and TV series from 1996 to 2009, directing box office juggernauts including “Titanic” and “Avatar.”
Chernin went on to found a private company, the Chernin Group, in 2010, which backed several companies in the creative economy space, including Fullscreen and Tumblr. In 2022 he founded North Road, a global content studio. Its Chernin Entertainment division produced and financed “Backrooms” through independent film studio A24.
“We’re always looking for what’s new, what’s exciting, and where the world is going,” Chernin said. “I think the YouTube platform gave us a unique insight into making this movie.”
“Back Rooms,” with a budget of just $10 million, found some success with younger audiences familiar with director Kane Parson’s YouTube series, which inspired the film. During the film’s first weekend in theaters, 86% of ticket buyers were under the age of 35, according to audience research conducted by Comscore Movies and Screen Engine PostTrak.
“Backrooms” crossed $100 million at the domestic box office in just six days, becoming A24’s highest-grossing domestic film of all time.
Basing a movie on an established IP is a common strategy in Hollywood, where superheroes, popular book series or toys like Barbie have proven to be a reliable way to draw an audience. Since 2010, many of the best domestic releases have been based on established IP, but box office experts warn audiences are getting franchise fatigue, and some high-profile sequels have fallen flat.
While “Backrooms” and Parsons have a proven 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 decades-old franchises.
“Hollywood has been guilty of skepticism and basically built a product management system, feeding viewers a series of fodder,” Chernin said. “One of the things that really resonates is that this feels like a movie with a young people’s IP. What that means more than anything is that audiences want something new. They want something that feels unique and real.”
While the box office is still lagging at prepandemic levels, the surprise “Backrooms” and “Obsession,” which was shot on a $750,000 budget and has earned more than $100 million domestically, have Hollywood and analysts questioning how studios should change strategy.
Eric Handler, a news and entertainment analyst at Roth, agrees that younger generations are growing weary of franchise films and sequels, as evidenced by the franchise’s disappointing opening. Disney’s The latest Star Wars offshoot is “The Mandalorian and Grogu.”
“Young people still want to go to the movies. They like that social experience, but they want something different,” Handler said. “They say you don’t need to make a $250 million movie to interest me. Come up with an interesting idea that resonates with me and we’ll go.”
Handler said he now expects studios to cast a wider net for content. “Obviously there’s an opportunity here, especially if you can make these movies 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 key to success. Hollywood has put itself in a mindset for the last 10 years where risk is considered reckless,” said Chernin. “You have to try and find a way to do it with the right budget, but risk is important, and risk is the biggest problem in the world.”
