TODAY   |  June 14, 2013

Spielberg, Lucas warn of Hollywood ‘implosion’

Legendary directors Steven Spielberg and George Lucas spoke about the future of the movie industry during a panel at the University of Southern California, warning that the failure of mega-budget movies will change the movie industry paradigm. E!’s Jason Kennedy reports.

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>>> well, is hollywood headed for a melt down? two legend dare directors are sounding the alarm this morning.

>> they say while it's an exciting time to make movies the industry must adapt now to survive. here's jason kennedy with the story.

>> reporter: the visionaries that brought us star wars and indiana sta indiana jones are scripting a rough road ahead for hollywood.

>> there will be an explosion where the mega budget movies will crash into the ground and that will change it again.

>> the comments made during a panel discussion for the school for cinematic arts called to mind movies like john carter . last year's martian epic only took in about 73 million at the box office . one major expense, landing a big name star. tom cruise took him $75 million in 2012 . leo and adam sandler made 37 murder in the second degree not too far ahead of kristen stewart and cameron diaz . but star power doesn't mean gold. consider will smith , his latest struggled in it's opening weekend coming in third place. but spielberg and lucas say don't write off the summer blockbuster just yet.

>> they'll try to make fewer and fewer and make the ones that are the safest bets.

>> with fewer movies in theaters the movie going experience has to change, to be more like seeing a broadway show .

>> you're going to end up with fewer theaters, bigger theaters with a lot of nice things. going to the movie is going to cost you $50, maybe $100, maybe $150.

>> they make a good point.

>> a dismal warning. but it's a problem you start spending 200 $50 million to make a movie in the first place.

>> that should be a read light.

>> exactly.

>> you want to spend more money to fix it. anyway,