‘Backrooms’ producer Peter Chernin thinks Hollywood needs to change
For the past week, a single conversation has dominated Hollywood executive lunches and studio staff meetings: What will be the next “Back Rooms”?
The industry is trying to figure out how to replicate the phenomenon of “Obsession” and “Backrooms,” low-budget psychological horror movies directed by YouTube creators that have dominated the box office for the past two weeks.
But “Back Rooms” producer Peter Chernin, whose production company financed the film, said he thought the rush to sign deals with YouTube creators was “a big mistake.”
“It’s no different than making sequels. It’s like jumping on an existing bandwagon,” Chernin said in an interview. “I guarantee 80% of them will fail. It contains no originality, no innovation. Your job is to innovate, your job is to seek out new intellectual property [intellectual property] and fresh sounds. “This isn’t just jumping on a bandwagon.”
Chernin has a unique background that spans traditional Hollywood as well as the YouTube creator space. ran Fox’s From 1996 to 2009, his film and TV stints directed blockbusters like “Titanic” and “Avatar.”
In 2010, Chernin founded The Chernin Group, a private equity firm that backs many companies in the creative economy, including Fullscreen and Tumblr. In 2022, he co-founded North Road, a global content studio. The Chernin Entertainment division co-produced and financed “Backrooms” with independent film studio A24.
“We are constantly looking for what is new, what is interesting, and where the world is going,” Chernin said. “I think his YouTube background gave us unique insight into making this film.”
With a budget of just $10 million, “Back Rooms” has found particular success with younger audiences familiar with director Kane Parson’s YouTube series that inspired the film. According to an audience survey by Comscore Movies and Screen Engine PostTrak, 86% of ticket buyers during the film’s first weekend in theaters were under 35.
“Back Rooms” surpassed $100 million at the domestic box office in just six days, becoming A24’s highest-grossing domestic film ever.
Basing a movie on established intellectual property is a familiar strategy in Hollywood, where superheroes, popular book series and even toys like Barbie have proven to be a reliable way to attract audiences. Since 2010, many of the top-performing domestic productions have been based on established intellectual property, but box office experts warn that audiences are experiencing franchise fatigue and some high-profile sequels have flopped.
Although “Backrooms” and Parsons have a well-established fan base, creating movies based on YouTube content is unusual. Chernin said the concept felt original and fresh on the big screen, which made it different from decades-old series.
“Hollywood has been guilty of being a bit cynical and essentially creating a brand management type of production process, feeding audiences a steady diet of sequels,” Chernin said. “One of the things that really resonated is that this felt like a movie that was the intellectual property of young people. It says more than anything, audiences are looking for freshness. They’re looking for something that feels unique and original.”
While the box office is still behind pre-pandemic levels, the phenomenon of “Backrooms” and “Obsession,” which were shot on a $750,000 budget and earned more than $100 million domestically, has Hollywood insiders and analysts asking how studios should change their strategies.
Eric Handler, a media and entertainment analyst at Roth, agrees that younger generations are increasingly tired of franchises and sequels, as evidenced by the disappointing opening. Disney’s Star Wars’ latest installment is “The Mandalorian and Grogu.”
“Young people still want to go to the movies. They enjoy that communal experience, but they’re looking for something a little different,” Handler said. “They say you don’t need to make a $250 million movie to get my attention. Find me an interesting concept that suits me and let’s 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 “Back Rooms” is a sign that movie studios need to take more risks.
“Risk is ultimately the lifeblood of success. Over the last 10 years, Hollywood has adopted a mindset where risk is viewed as recklessness,” Chernin said. “You have to try to find a way to do it with the right budget, but risk is important, and risk is the greatest advantage in the world.”
