As summer draws to a close, Hollywood is grappling with disappointing box office results that mirror the struggles of previous years. With domestic revenue barely surpassing last year's $3.67 billion, the industry's optimism appears to be fading fast.

Despite initial expectations for a booming season thanks to heavy-hitters like Superman and dino-franchise spectacles, the reality has been stark. The once-buzzing summer blockbuster list has left studios and theater owners reeling, as even revered classics like Universal's re-release of *Jaws* outshone new releases.

A Rollercoaster Season

The summer started strong, buoyed by major releases like Disney's live-action *Lilo & Stitch* and Paramount's *Mission: Impossible - The Final Reckoning*, which helped record a spectacular Memorial Day weekend. *Lilo & Stitch* notably crossed the $1 billion mark globally, becoming a standout success.

However, the euphoria was short-lived. After an optimistic start, ticket sales plummeted during the summer's second half. Analysts reported a stark decline, with just one weekend registering an uptick in revenue since mid-June, leading to an overall growth rate that has dwindled to a mere 5% year-over-year.

Changing Viewer Preferences

Interesting shifts in viewer habits could explain the downturn. Recent studies indicate a significant increase in the number of viewers preferring to wait for films to release on streaming platforms, with this figure rising from 25% to over 36% in just weeks. This growing trend appears to particularly affect mid-tier movies, which are struggling to draw audiences back to theaters.

As one studio executive put it, there seems to be a disconnect between the number of films being produced and the size of the audience willing to watch them in theaters. While some theater owners call for more content, it's evident that the landscape of moviegoing has changed.

International Performance Dwindles

In addition to domestic struggles, the international market is also showing signs of weakness. In a stark contrast to pre-pandemic years, foreign box office earnings for Hollywood films are dwindling, with significant markets reducing their share of revenue—Vietnam, for instance, has seen its Hollywood box office contribution drop from 50% to just 14%.

For franchises like *Mission: Impossible*, strong domestic performance isn’t enough to compensate for underwhelming international earnings, with totals significantly lower than previous installments.

A Mixed Bag of Successes

Despite the downturn, several films emerged as surprising successes, including *Weapons* and *F1: The Movie*, which flabbergasted industry insiders by eclipsing even Superman's box office shortly after release. *Lilo & Stitch*, as a beloved IP targeting family audiences, has performed remarkably well in both domestic and international markets, highlighting a continuing appeal for family-friendly films amid fluctuating viewer habits.

In summary, while the summer blockbusters fell short of expectations, the changing dynamics of film consumption and audience preferences present a challenging puzzle for Hollywood moving forward. With the future of cinematic releases hanging in balance, industry executives may need to rethink strategies and adapt to this new reality.