So far in 2026, the Hollywood box office to this date has been encouraging, showing just about a 12 percent increase over this same point last year. While certainly encouraging for Hollywood, the studios might need to take a pause to do some analysis, as there are indicators that a significant shift is taking shape in the marketplace.
Looking over the top films of the year so far, there is a telling trend on the list; upstart efforts are not only enjoying success; they are delivering a significant impact. This should serve as a harbinger to the studio system that change is afoot, right now.
Currently in theaters, some surefire hits are not delivering the goods. A month ago, Star Wars: The Mandalorian and Grogu opened and performed well enough, coming in just shy of $100 million on its opening weekend. By week two, the film fell off the table, losing 70 percent of its audience, and then things continued to worsen. By its third weekend, the title dropped nearly 1,000 screens, something previously unheard of in a property from the Star Wars/ Disney stable; that studio normally would have its screen totals locked for a month.
Also struggling is Masters of the Universe, the latest attempt to bring the He-Man franchise to theaters. With a budget on par with the Mandalorian film, it is struggling even more. Both films are looked at as becoming money losers for the studios, but that alone is not the surprise. It is that ticket sales remain brisk despite established properties falling flat.
This is because 2026 is showing that upstart productions by no-name creators, operating on scant budgets, are delivering movies people want to see, and the results are more than turning heads; they may be turning Hollywood on its ear.
A few months back, I was on the Hollywood In Toto podcast, and I discussed the prospects of these kinds of films with host Christian Toto. We covered how movie audience tastes had been evolving as a result of the COVID lockdowns, and the new generation of ticket buyers being those weaned on YouTube and TikTok. I commented on how they appeared poised to be the new generation of movie creators, with the only challenge being studios willing to distribute their content.
These creators now appear to be making their breakthrough into the marketplace. Things began early when, in January, one feature found success. Iron Lung came out to little Hollywood fanfare, but it found an audience while being produced largely by a one-man entity, Markiplier. This is the moniker for YouTube success story, Mark Fischbach. Adapting the plot from the video game of the same name, Markiplier funded, produced, and even released the film himself.
He managed to generate a word-of-mouth push for screentime, and ultimately, his film appeared on over 3,000 screens. On a budget just under $5 million, it grossed ten times that amount. Impressive, but not all that shocking. But the shocks would arrive as the summer blockbuster frame opened.
Focus Features took a small risk on a cheap horror option called Obsession, made by YouTube sketch comedy performer Curry Barker. After making a horror short film on his video channel, he was approached by producer James Harris about adapting that concept, but instead, Curry pitched a new idea, about a prospective lover using a mystical object to gain affection.
You only get one wish.✨
— Focus Features (@FocusFeatures) May 22, 2026
Join Focus Insider to enter: https://t.co/H4p4VgZgmX pic.twitter.com/5UEKu2k5vS
After a film festival debut last fall, Focus Features secured the rights and released Obsession on May 15. The film stunned industry experts, who projected an $8 million haul for the weekend; it more than doubled that figure. Then the unusual return occurred as the film promptly increased that total on its second weekend, and then beat that figure in week-3. To date, this film has pulled just about $200 million domestic, and another $100 million internationally – on a budget of $750,000.
Right behind that came 'Backrooms, the release from 20-year-old Kane Parsons. As a teenager, Parsons created a web series by the same name, about a person entering a realm of empty spaces. Production companies came calling, and studio A24 headed the group, giving Parsons directorial control and a budget of around $10 million. Then something happened.
REVIEW: 'Backrooms' Is Everything I've Wanted in a Movie, and Everything Hollywood Left Behind
Projections for the film had it opening with a surprising $20 million debut. It promptly went on to break the $80 million mark in its first weekend, making for A24’s best-ever debut, and Parsons became the youngest director ever to have the #1 film in theaters. In just over two weeks, it has grossed over $250 million globally.
All told, across three pictures, you have $600 million in business, off of barely $15 million in shooting budgets. These were delivered by completely unproven creators, working off of content they crafted online. Original properties are catering to an audience seeking out methods and genres that appear foreign to Hollywood, and they are striking a vein of business.
As AI becomes more prevalent and the ability to craft visuals and tell stories that rival what the big Hollywood players put out, these could be the types of motion pictures that rule theaters. The majors should recognize this threat as smaller outfits like A24 are looking at these fertile environments for product and talent, and they are beating them in their own arena. Hollywood could be a completely different entity in a very short period of time.
Editor’s Note: Hollywood, academia, and liberal elites are out of touch with the average American.
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