Steven Spielberg Predicts Movie Industry Collapse

Steven Spielberg is making a shocking, but not really unexpected prediction, that the American movie industry may well be the next major American industry to be hit with an economic collapse and disaster.  Spielberg is beginning to see too many major films not making back their production money enough to repay the investment made to produce those films, resulting in the collapse of some major studios. MGM was a prime example, the company fell into bankruptcy where the last James Bond epic was long delayed while the company looked to find someone to buy the company so production could resume on the film.  Spielberg views the business model for many studios producing films as a flawed business model, with too much high investment for a risky return. The $200 million dollar loss taken by Disney for JOHN CARTER was viewed as one of the most startling big losses for the movie production business, sending shockwaves through the industry.

With rising production budgets as well as great uncertainty about the positive prospects for many films to make money, moviegoers could easily see sharply higher ticket prices soon or else much lower budgeted production movies as companies seek to hedge their bets against possible high risk financial collapse. 

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