In short
YouTube creators are disrupting Hollywood filmmaking and distribution, and the episode also pivots to how AI is changing film production.
Guests
Steven Zeitchik, senior editor of tech and politics at The Hollywood Reporter.
Guest backgrounds
Zeitchik covers tech and politics for Hollywood trade reporting; he discusses box office trends, creator-led media, and AI’s impact on film labor and workflow.
Key claims
Markiplier, Curry Barker, and Kane Pixels’ low-budget horror successes show that YouTube audiences and storytelling skills can drive theatrical-level results. Zeitchik argues the real disruption is new financing/distribution/marketing modes, not just “new talent.” He also claims AI will “slay” or heavily transform parts of the industry, especially physical sets and commodity content, while raising concerns about automating concept/design jobs.
Notable examples
Markiplier’s Iron Lung (self-financed, self-distributed; theater + exclusive YouTube Movies); Curry Barker’s Obsession (Focus Features record); Kane Pixels’ Backrooms (A24-like breakout). AI examples include Scorsese using AI for storyboarding, James Cameron’s cost-cutting goals, Matt Stone/Trey Parker’s deepfake use, and Darren Aronofsky’s AI-modeled Revolutionary War reconstructions criticized for uncanny visuals.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOThe Rise of YouTube Films
1:33 to 2:10
Discussion about the emergence of YouTube creators making successful films.
“New markdowns up to 70 % off are at Nordstrom Rack stores now.”
YouTube Creators' Success Stories
2:10 to 3:52
Exploration of how films like Iron Lung, Obsession, and Backrooms achieved success.
“Okay, Steven Zeitrich is the senior editor of tech and politics at The Hollywood Reporter, and we asked him here to tell us more about what Iron Lung, Obsession, and Backrooms have in common.”
The Appeal of Low-Budget Horror
3:52 to 4:52
Examination of the trends in low-budget horror films and audience expectations.
“Now, people who hear YouTube creators are making movies might think that these movies look like the Joe Rogan experience, but these movies do not look like the Joe Rogan experience.”
Understanding the Audience
4:52 to 6:10
Insights into how YouTube creators understand and engage with their audiences.
“And so you kind of marry the expectation of the audience with the talent of the filmmakers and you get this exact elixir that you're describing.”
The Disruption in Filmmaking
6:10 to 8:13
Discussion about how YouTube creators are disrupting traditional filmmaking.
“And so, you know, that's something that, again, I think Hollywood is probably right for that kind of sort of innovation, if you will.”
The Disruption in Filmmaking
12:29 to 13:11
Discussion about how YouTube creators are disrupting traditional filmmaking.
“There's no better time than today to update your wardrobe.”
The Disruption in Filmmaking
13:18 to 14:21
Discussion about how YouTube creators are disrupting traditional filmmaking.
“That's quince.com slash explained for free shipping and 365 day returns.”
The Impact of AI in Hollywood
16:01 to 18:00
Explore how Martin Scorsese and others are using AI in filmmaking.
“Marty, first of all, can I say, you're the reason I'm in this business.”
The Future of Filmmaking
18:01 to 21:05
Discuss the balance between human creativity and AI in film production.
“been warning about this for a while, is like, those are people's jobs, like in livelihoods.”
Darren Aronofsky and AI
21:06 to 23:59
Analyze Darren Aronofsky's AI-driven projects and their reception.
“he wanted to do historical reconstructions about the Revolutionary War and our founding fathers and mothers.”
Show all 11 chapters
AI: Savior or Slayer?
24:00 to 26:29
Evaluate the dual nature of AI's impact on the film industry.
“I've interviewed Guillermo about this, and he has come out and said, very eloquent guy, fuck AI.”
Transcript
Automatic transcript. May contain errors.0:00What are you up to this weekend? There's a new Spielberg out that's supposed to be nuts. What are you going to do? Full disclosure to the whole world. All at once.
0:16If the Mandalorian and his little buddy Grogu didn't already do it, Disclosure Day will officially kick off a big blockbuster summer for the movies. No one could stand between my men. We've got Sir No One. And home. We've got Woody and Buzz. We're finding more abandoned toys each day. We're downed! We've got Spider-Man, Supergirl. We've got one with Anne Hathaway in Dinosaurs. But all those big ones aren't necessarily what's got Hollywood abuzz. People are talking about movies with much smaller budgets, in particular Iron Lung, Obsession, and Backrooms, because they all have one thing in common.
0:53And if you don't know what it is, we'll tell you on today's Explained from Vox.
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2:06We come to this place. Today explained. Okay, Steven Zeitrich is the senior editor of tech and politics at The Hollywood Reporter, and we asked him here to tell us more about what Iron Lung, Obsession, and Backrooms have in common. And what they have in common is YouTube, by the way. It's been a pretty rollercoaster few weeks in Hollywood in terms of what's been taking the box office by storm, and that is a number of YouTubers. It really starts back in January with a creator named Markiplier, who did a film called Iron Lung. You do test this thing, right? This is the test. This movie made$21 million opening worldwide.
2:47Markiplier's Iron Lung has now almost earned$50 million worldwide. He self-financed this and self-distributed it, which is not normal at all. But the two big ones in the last few weeks are Obsession by Curry Barker. I love you so, so, so, so, so much. That blew the doors off the box office and has now become the highest grossing movie all time in the history of Focus Features. And then not long after that, we had Kane Parsons or a.k.a. Kane Pixels, who many listeners may know. He's got 3 million followers on YouTube for his creation back rooms. I found a place.
3:29And he put it all together, actually created a new film. And the film also, I think, will become, if it isn't already, the highest grossing movie ahead of films like Lady Bird and Midsommar. And I think Marty Supreme was the last domino to fall for A24. Got to be higher grossing than all of them. So a pretty big revolution going on.
3:52Now, people who hear YouTube creators are making movies might think that these movies look like the Joe Rogan experience, but these movies do not look like the Joe Rogan experience. In fact, if you didn't know that they were affiliated with some sort of YouTube creator, you might just assume they're your typical studio horror movie, right? Yeah, that's right. I mean, they're low budget horror. Obviously, Sean is a genre that's pretty time tested in Hollywood. You can go back to Paranormal Activity about 17, 18 years ago. Something's here. I feel it breathing on me. Go back to The Blair Witch Project almost three decades ago.
4:28Shaky camera. Some of your OG listeners might even remember seeing that in theaters. And so low-budget horror is a huge genre for Hollywood. People are used to seeing these movies that don't need any kind of fancy effects, don't need big stars. And, you know, let's face it, these are creators who are used to making things on a budget. it. If you go on YouTube and you watch what content creators are doing, you don't need to spend a lot of money to make it look good. And so you kind of marry the expectation of the audience with the talent of the filmmakers and you get this exact elixir that you're describing.
4:59And what is the talent of these particular YouTubers, filmmakers, Markiplier, Curry Barker, Kane Pixels? What are they particularly good at? Because I assume they're not deeply experienced filmmakers. Aren't some of these guys really young? Yeah. Well, Kane is actually 20. Mark's a bit older. He's in his late 30s. And Corey, I think he's in his mid to late 20s. You know, they're good at two things, one of which is kind of a staple for any filmmaker, any person who's ever directed a movie at Sundance. And that's just understanding the power of images, the power of storytelling. Some of them are a little bit more, maybe a little more visual.
5:34Some are a little more narrative, but like they get that. The other thing they understand that a lot of filmmakers don't or just don't have the opportunity to get is their audience. YouTube taught me through the comments that people are really smart. They'll pick up on things you didn't even intend. And you just kind of learn like, okay, a modern horror audience is actually very smart. So let's not treat them like they're dumb. You know, when this film comes out and when it's in theaters, I probably won't be going out and around. I'll be online monitoring. Being on that wavelength has been very helpful, I'd say, for just sort of being respectful to the audience.
6:07They know what they respond to. They know what they don't respond to. If something isn't working, they can pivot on a dime. And so, you know, that's something that, again, I think Hollywood is probably right for that kind of sort of innovation, if you will. And these guys are bringing it to them in spades. And are they making good movies or is it just that, hey, our audience is loyal and they'll do whatever we ask them to do? You know, it's funny. Before these movies came out, I kind of had the same question. And I'm like, look, is this is this just sort of a brand play and is this just will follow you to to wherever?
6:37Now, I should say there are plenty of franchises, film franchises that studios put out, which we will remain nameless because, you know, I don't want to upset any of my sources. But, yeah, I think listeners can use their imagination on what those are. I'm hearing, like, lightsabers and superheroes, like, crashing into stuff. I can either confirm or deny what you're talking about, Sean. I am a flop. But look, a lot of franchises can come up with great installments, can be long in the tooth and still get fans even when they're not as great anymore. That all happens. I think that is a big fear here, that this is just the filmmaker is his or her own franchise.
7:18I think what's been striking is that each of these films has a vision. Now, it may not be everyone's vision. I'll tell you just kind of from my own perspective. You know, you watch Obsession. That feels to me like a fairly traditional narrative thriller and it plays that way.
7:36You saw the reviews kind of reflect that. You watch Backrooms if you're not maybe extremely online, if you're not an Alpha Gen Z type person who's kind of used to seeing these few-minute mysterious memes. It's beautiful. Am I right? Hello? That movie, to me, resonated in a different way. But what's been striking to me is that it's not like the movies are doing well simply because of their filmmakers. They're doing well because of their vision. Whether you like that vision, of course, that's up to you. And you called it a disruption, the success of these three films, and in some cases, the enormous success of, say, Back Rooms.
8:17Tell me about the disruption. We'll start with the first one that came out back this winter, the Markiplier film, Iron Lung. This guy self-distributed his movie. Now, admittedly, he has 38 million followers or something in that vicinity, and he's been doing this a long time. I make an ungodly amount of money and it feels unfair. My channel has had 17 billion views. That is, that's insane. Yes, that's what I'm saying. But to really go out there with no marketing support whatsoever and just kind of say, I'm going to put in theaters myself. He made, I think,$40 million here in the U.S.,$10 million overseas.
8:53You had a unique profit sharing model with the cast and crew. So I basically, I took their salary that I paid them for the production days. and I said like I'm going to apply that again as a bonus and so just like whatever your salary was it's now doubled and then the other thing he did that was super interesting is he said you know what instead of selling it to a Netflix or an HBO or so one of these you know platforms that has been buying movies for years I'm going to put it out myself on my platform on YouTube. Iron Lung is now available exclusively on YouTube so you can click the link that's up there down there or even on my face to go find it on YouTube movies.
9:27Don't know what YouTube movies is? It's where you can buy or rent movies on YouTube. Didn't know you could do that? Well, you can. Five bucks to rent, 10 bucks to buy. And again, YouTube, that's the kind of thing where YouTube lets you keep a very big chunk of that change. Obviously, their business model is not to buy stuff, buy libraries the way Netflix does. So he's kind of a disruptor to me, Markiplier, on both ends, where he put it out in theaters on his own and put it on YouTube, kind of kept it exclusive there. If we're talking about Barker and Parsons, I would say they're partial disruptors.
9:58I mean, certainly just the very fact that they made these movies and that distributors took a chance on them in the way that they did is disruptive. But I would caution folks who say, and believe me, I've encountered it even at my own publication and plenty of sources, too, are like, well, this is just the new film school. You know, this is just people, you know, or the new film festival world where it's like, OK, we've always found, you know, the industry, the machine, if you will, has always found like talent in new places. And this is just another one. Let's not assume the business is just going to continue as usual with just one more new way to find talent.
10:31I'm saying there's going to be new modes of distribution, new modes of financing, new modes of marketing that go beyond just, hey, do you find your director at a festival or online? Everything seems to be trending to YouTube or bending to YouTube's will, be it, you know, sports or be it podcasts or or even like TV now with YouTube TV. YouTube is the place to be. Why do these young filmmakers want to be in movie theaters? I mean, I feel like we on this show even have been talking for years about whether movie theaters are going to make it. We have any idea how many theaters in the country across the world have have permanently shut down?
11:11And now it looks like they might be having a big year with Odyssey and Toy Story and Dune. But why do these guys want to be in that space? There is money. People are paying 15, 20 bucks a pop. But there's also a lot of prestige and a lot of audience value that comes with it. I mean, I talked to an executive at YouTube about this. And they were saying that, look, you know, we've seen this with creators for years. Their fans want to gather. You know, they may want to gather at VidCon. They may want to gather at a concert. They may want to gather at a book signing, at some other kind of creator event.
11:45And theaters, even though obviously the creator is not physically there with them, it's just an extension of that same idea.
12:02Okay, so Hollywood is learning to love YouTube. And after a lot of kicking and screaming, it's getting ready to friend AI too. We'll do that disruption with Steven next on Today Explained.
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16:01I don't know what today it's playing. Things she's doing. She's disrupting. Let's start with Martin Scorsese. Marty, first of all, can I say, you're the reason I'm in this business. Who the fuck are you? And what are you trying to say? There was a big actor's strike just a couple years ago in Hollywood, and one of the biggest issues was AI, And AI was the boogeyman who was going to, you know, come for all of our identities and our intellectual property. And now you've got like the most perhaps illustrious living director saying, you know, I'm going to mess with AI. If you have a tool like this, you could figure it out much, much quicker.
16:41And you could save production time and also less wear and tear on the crew. How did that happen? What happened? What is he saying? What's Marty saying? All right. So I have kind of two thoughts about this and they're sort of opposite. say one is like everybody needs to chill and the other is everybody can freak the fuck out no look here's the thing with scorsese the part where everybody needs to chill is this guy's been using tech for a while anyone who saw the irishman uh was it seven years ago now knows how he used the aging technology he was on the cutting edge of that de nero was 75 and pacino a sprightly 79 appear at different ages spanning decades which is accomplished with vfx and makeup but it's the digital de-aging work that has already been the focus of much curiosity.
17:21I think it's the first time this kind of thing is done for this type of narrative film, this type of character film. For the most part, actors are okay with that. So in that regard, I think people may need to chill. Where they may be needing to freak out and freaking out even more than they already are is, Scorsese says, yeah, I'm going to use this tech to figure out my films from a storyboarding perspective. This conveys a cinematic, a cinematic intelligence, not necessarily painting, not necessarily literature. You know, it's cinema. So that's the great thing about this tool. The thing that's kind of crazy about it, and I've talked, I have some sources on this front who've been warning about this for a while, is like, those are people's jobs, like in livelihoods.
18:06There are concept illustrators and designers and folks who are kind of, you know, figuring out the look and feel of a film long before the first camera starts rolling. That is a whole class of job in Hollywood. What he's essentially saying is like, we don't need this group of people anymore and we can automate that. And I think once you start automating that part of the process, what you're really saying is nothing is off limits. And that's not even a slippery slope. That is like a flat wall. That is right down to, all right, so what's next? And it's not just Marty. I mean, there are other names in Hollywood who are saying, yeah, AI, let's engage.
18:45Who are they? Yeah, well, look, Jim Cameron, I mean, I think predated Scorsese by a couple of years. If we want to continue to see the kinds of movies that I've always loved and that I like to make and that I will go to see big effects heavy, you know, CG heavy films, we've got to figure out how to cut the cost of that in half. Totally. Now, that's not about laying off half the staff at a VFX company. That's about doubling their speed to completion on a given shot. With the brutalist and Brady Corbein in the Oscar race, all that was used for, he used it for a little bit of like accent tinkering so Adrian Brody could sound more Hungarian.
19:19I actually talked to Matt Stone. He and Trey Parker, the South Park guys, using it in partnership to do things we haven't seen done before. There's a Trump deepfake they used on their own show. Hi, kids. I'm Donald Trump, your president, and I'm going to read you a story. I mean, there is a lot of stuff coming in from all angles. I think what we need to do, Sean, is just distinguish it between, you know, where are we automating art and where are we taking something that could be done by humans and is just being done either just as well or more likely not as well by machines to save money or for whatever reason.
19:59And that to me, you know, whether you want to call it slop or just kind of like, you know, the incentivization trend, like that to me is where we really have to be careful. Matt Stone said to me, he's like, I don't want it to do anything that humans can do because the reality is like, we have humans who can do that. Well, we don't need a technology to just kind of replace them. I want to see it do something that a human can't do. Like that feels like the tool aspect of it and not the automation replacement aspect. So I just, I don't know, I guess AI gets all sort of lumped into the same bucket in Hollywood, but I feel like there are distinctions.
20:31You know, he's no Martin Scorsese, but Darren Aronofsky, who people love, you know, he's behind movies that you may have seen like Noah or The Whale or many years ago, Requiem for a Dream, Pi. I think he made a fully AI movie, right? Did anyone see it? Did anyone like it? Well, Aronofsky is a faceted case. And as you noted, I mean, he's a great filmmaker, Black Swan, perhaps his biggest hit and just beloved for the kinds of movies Mother, a favorite of mine. I mean, he is an incredible filmmaker. What he decided to do was basically, he wanted to do historical reconstructions about the Revolutionary War and our founding fathers and mothers.
21:13And he partnered with Time Magazine and he kind of created this web series called On This Day that essentially in honor of America's 250th, went back and recreated moments of American independence. And he said, I'm going to do it all in model. In America, the law is king. Now, he got pilloried online when it came out this winter. Look at the way Benjamin Franklin looks in this fucking trailer. He looks like Gollum if he went to a boarding school. His entire career about humanity. Let's strip it away. I have lost all my respect for Darren Aronofsky. Some of it was very Uncanny Valley-ish. We are now the troops of the United Colonies of North America.
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21:55And look, to me, he was trying something that I think it was like the greatest work. Was it his greatest work? Far from it on either score. That said, are there going to be filmmakers, young filmmakers, people who don't have the budget, people who are starting out, who literally would not have the chance to make this movie, who make something super cool in model and maybe it leads to something else or maybe it's just interesting on its own? I think that will happen, too. So both things can be true. That's, I guess, what's more interesting here. Or maybe the great innovation won't be coming from Martin Scorsese, who I think is like well into his 80s, or Jim Cameron, who's getting a little tired with those Avatar movies, or an Aronofsky, who's always been interested in trying new things.
22:34But maybe it's going to be coming from someone who doesn't have the cachet, doesn't have any funding, who really just starts innovating with these tools. Well, it's interesting. at the Hollywood Reporter, we did an AI issue. And then one of my colleagues interviewed Gossip Goblin, who some listeners may know. He's got about a million plus followers online. I know you, boss. No, I don't think so. He's a pure AI creator, kind of a genre Guillermo del Toro type, but using AI. Not really my speed. It's kind of very baroque. But there's real vision. He spends months storyboarding, like hitting plot points, outlining, and then eventually, you know, shooting, which again is a misnomer, but like generating these, these, these scenes and these moments in the model.
23:21We're not encumbered by the fact that like we would need to raise, you know, 50 to$200 million to tell this story. You know, there is an argument that someone like that is going to emerge and do they exist only kind of in this online AI film world? Do they crossover, I don't know. But certainly there's a lot of potential there. I think this trend of creator-driven filmmaking and AI efficiency are going to emerge. And who the hell knows what's going to emerge? But it's going to be fascinating. You know, it's funny you mentioned Guillermo del Toro because I believe he is one of the holdouts here, right?
23:52He's a filmmaking purist who says, get that AI away from me. It's giving me the ick. Is he increasingly alone in that ideology? You know, it's funny. I've interviewed Guillermo about this, and he has come out and said, very eloquent guy, fuck AI. He said it multiple times. I don't know of any artist that raised their hand and said, we need AI. Nobody. It's somebody that stepped into the middle of the party, sharted, and now wants to be applauded for. If you look at some other big creators, Vince Gilligan, who of course did Breaking Bad and now has Pluribus on Apple TV. In fact, I think he's got a little credit line at the end of Pluribus saying, you know, made by humans.
24:39I mean, these are people who are drawing lines in the sand, very established people. And I don't know, are they alone? Maybe, maybe not. Like, I think there is a pretty big camp in legacy Hollywood, at least, and pretty high-end filmmakers who, you know, will say, I'm not really going to use it. But, you know, you see that with technology in general. So I think that camp is going to be significant, but will they be dominant? I'm not so sure. Well, your piece about AI in Hollywood for The Hollywood Reporter was called Savior or Slayer? What AI is doing to Hollywood. Unfortunately, I got to the end of it and you never clearly said whether it was Savior or Slayer, but that's okay because maybe you didn't come up with that headline.
25:21But can I ask what the vibe is out there? Yeah. I cannot even claim any plausible deniability there, Sean, because I did come up with that headline, mostly because I like the rhyme. But like any good news analysis, essay writing journalist, I gave you all sighs and left you completely unsatisfied with what the answer is. I think where I ended up is I think it is going to slay huge parts of the industry or at least transform them. I think a lot of physical sets will not be the same. And I think a lot of, again, call it human slop or call it more commodity content, I think will have a strong, strong AI component.
25:59Do I think that's going to happen for every one of those shows or movies or let alone for the higher, more tour-driven ones? Absolutely not. In five years and then in 10 years, is more content we watch going to be AI-led or human-led? I suspect it's going to be more AI than human, at least in terms of how assisted it is. That doesn't mean there isn't a human at the helm. But in terms of was there AI involved in the making of this episode or this film? And to a pretty significant extent, I think more often than not, the answer in a few years is going to be yes.
26:43Steven Zajicic, as you heard, writes for The Hollywood Reporter, but he also has a sub-stack if you're into that sort of thing. It's all about tech and AI, and it's called Mind and Iron. Peter Balinon-Rosen was our mind today. Jenny Lawton was our iron. Patrick Boyd and David Tadashore were not only in the mix, but on it. Gabriel Donatov was on facts. Ariana Espuru, Dustin DeSoto, Kelly Wessinger, Hadi Mawagdi, Daniel Hewitt, and Miles Bryan also make the show. Avishai Artsy, Amin Al-Sadi, Jolie Myers, and Miranda Kennedy help run it. Breakmaster Cylinder scores. Noel King is my co-star. I'm Sean Ramos from Today Explained is distributed by WNYC.
27:23The show is a part of the Vox Media Podcast Network, which you can learn more about at podcast.voxmedia.com. And if you don't like hearing ads on this show, you can get around them by going to vox.com slash members.
From the publisher
It's blockbuster season, but low-budget horror films from YouTubers — like Iron Lung, Obsession, and Backrooms — are what's got Hollywood talking.
This episode was produced by Peter Balonon-Rosen, edited by Jenny Lawton, fact-checked by Gabriel Dunatov, engineered by Patrick Boyd and David Tatasciore, and hosted by Sean Rameswaram.
A still from the movie Backrooms. Courtesy A24 Films.
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