Hey everyone, welcome to this emergency podcast. It is one of the biggest weeks in YouTube history. We are not in our studio. >> We are in Montana. It is not in fact an emergency. We are fully safe. We are fine. [laughter] >> Okay, but this is a episode that we felt like or just a conversation we felt like we had to have because of the magnitude of what's happening with YouTube creators in Hollywood right now. >> The YouTube revolution has officially come for Hollywood. Backrooms the number one movie in the world right now. It's a direct result of doing this work on YouTube. >> You have Kane Parsons with Backrooms. You've got Curry Barker with Obsession. And before that, you have Markiplier with his film Iron Lung. All of these films have exceeded expectations and shocked people at the box office. And they're all made by YouTubers. >> Now to add to this crazy week of YouTube and Hollywood, exactly 1 week ago, we threw the Hollywood Creator Summit on the Fox studio slot. We had 630 creators there, all talking about the future of Hollywood. We had people on stage like comedian Tom Segura as well as Markiplier to talk about the success of Iron Lung. >> We also had the UCLA band as well as a guy from Red Bull who almost ran over Samir. >> Show business. >> This conference had everything. >> Now I bring that up because we are going to be releasing the stage sessions on this channel, including our conversation with Markiplier, which is about this topic exactly. >> Okay, so let's go through all three of these milestone films, talk about their stories, and what we've learned from the success of these films. Number one, Kane Parsons and Backrooms. >> For people who don't know, give us a quick rundown of how Backrooms came to be. >> Okay, 2019, someone posted anonymously on 4chan, they posted a photo of a furniture store in Wisconsin undergoing renovations. If you don't know the story of Backrooms, that's a really strange place to start. Someone leaves a comment that says, "This room looks like, if you no clip." >> You want to explain no clip? >> In the video game world, when you basically go off a map like you kind of glitch out, go through a door, and end up off a map, that's no clipping. >> You're in no man's land. You're in the in-between. >> So, that comment sparked the community to create all of this lore. They created multiple Reddit threads going in different directions, building the story from this one photo and this one comment. So, Kane Parsons was a fan of this community, and when he was 16 years old, he released an 8-minute video that he made using Blender, which is 3D animation software, to create this found footage style horror movie. >> So, this 27-year-old assistant finds it on YouTube, shows it to their boss, and they end up signing Kane to turn this into a feature. And shortly thereafter, A24 gets involved, and they make this into the movie that just came out. He's 19 when they shoot the movie, and he's now 20 years old when it's released. >> And he was five when we first started on YouTube. >> Wow. >> [laughter] >> Crazy. >> Isn't that crazy? >> That's crazy. >> The fact that Backrooms started from an anonymous post on 4chan and then was discovered by an assistant of someone in Hollywood early on proves that YouTube is one of the most powerful places for filmmakers to start their career because even if it feels like the most obscure, niche part of the internet, you never know who is watching. And who could reach out and completely change your life. >> So, the film was made for just about $10 million, and within the first weekend, it made over $118 million worldwide. >> So, I think the natural question would be like, wait, how? Why? Why did this Backrooms thing take off so much? And what we've been talking about is that it is internet collaborative IP. Meaning, this is a story that is built by this generation. It is not IP like Star Wars or Jurassic Park or Spider-Man that is already pre-existing and that the studios are telling us we should go and see. It is IP that is for the people by the people essentially. >> It is an interactive story that was built over time that you feel a part of if you were there, which makes you want to go and see it and celebrate it. Because the people made the story. >> And by people we're actually largely talking about Gen Z. Exit polls showed that a large percentage, I think like 50% >> Exit polls? >> Yeah, similarly. >> Who Who exit polls? >> Clearly I read exit polls. >> Exit polls? >> were some polling outside of the theaters. >> Have you guys ever been polled when you walk out of a movie theater? >> According to exit polling, 50% of the film's domestic audience was under the age of 25 and 44% was under the age of 21. >> Colin went full newscaster. Exit polls are showing that Gen Z loves the movie. >> Well, all I'm saying is that when we're talking about people, we're talking about young people. And I think there was a big narrative out there that Gen Z would not go to the movies because they're just sitting at home on their phones and their computers, that's all they care about. But that is not true. I think this showed that these people actually want to get together and they want to be in person as long as it's IP that they actually care about. >> All right, Obsession by Curry Baker. So, Curry Baker has been a sketch comedy creator on YouTube and TikTok for some time now. Him and his filmmaking partner Cooper Tomlinson make really funny and kind of cinematic sketch comedy across the platforms and they were having success with it. They then decide to make a horror film in August 2024. Cost them 800 bucks to make and they upload it to their YouTube channel. So, they get approached to see if they have any other scripts and they're like, yeah, we do. They raise the money just about $750,000 and shoot this movie Obsession in 20 days. >> It can take us like a whole month to make a podcast sometimes. That's That's like frustrating. >> The movie gets picked up by Focus Features for $15 million. Blumhouse Productions, a classic horror house, gets involved in distributing it just days before it goes out. It gets widely distributed in movie theaters and quickly makes 148 million dollars. A movie that cost just about a million dollars has so far, in under 1 month, made 148 million dollars. >> And didn't it beat out Star Wars Mandalorian? By a ton, and which had like a much higher budget, obviously. >> So, the new Mandalorian cost 265 million dollars. >> We're good. We're safe. >> all good. We're We're just podcasting. So, the new >> [laughter] >> So, the Mandalorian, all in, cost around 265 million dollars between marketing and production. And so far, it's made 247 million dollars worldwide. So, an impressive amount of >> insane? >> It's an impressive amount of money to make, but like it cost so much money to make. >> insane to spend that much money on a movie? >> Yes. So, let's talk about the lesson with obsession. Everyone's amazed about the small budget. But the thing that really amazed me was something that he said in an interview. When someone asked him, "What did years of making for YouTube and TikTok teach you about filmmaking?" And he said something along the lines of, "When you're making for the internet, the audience is begging to leave, and you have to convince them to stay." That the internet filmmaker understands that point extremely well, that you are not entitled to anyone's attention. You have to earn their attention every few seconds of your story. Classically in Hollywood, they're like, "If George Clooney's in the movie, and Ryan Gosling's in the movie, and we spent all this money, you will come, and you will buy a ticket, and you will watch it." But that's not true. It's just Is the story good? Is it compelling? Does it capture my attention or not? And the young crop of filmmakers who grew up on YouTube, they've had no choice but to learn how to capture your attention. They may not have experience making movies with massive crews and big budgets, but they have a ton of experience making things, putting them out, and immediately getting feedback from an audience. Okay, and now Markiplier with Iron Lung. Markiplier has almost 40 million subscribers. He's been making YouTube videos for what, 20 years? >> Also, just like a really nice guy. First time we met him was last week. >> Very kind. >> Just a really sweet dude. >> So, he plays this video game on his channel Iron Lung. It is an indie horror video game about a guy trapped in a submarine in a sea of blood. He falls in love with the story, ends up getting the rights by reaching out to the creator of the game, and decides that he wants to turn it into a movie, and that he's going to self-finance it himself. He's going to write it, he's going to direct it, he's going to act in it. And so, he embarks on that journey, and he brings his audience along with the project. >> So, Mark ends up spending just around $5 million all in to make the movie, and the movie ends up making $52 million when he releases it. >> What's amazing though, is he did it fully independently, and he got it into theaters by himself. He made a partnership with a distribution company that wanted to put it in what, like 30 some odd theaters? >> 50. >> 50 theaters originally. And he was like, "My audience isn't going to be happy. They're going to want to go see it." He had the audience call theaters to actually get the movie in their local theater. And then eventually, it was distributed in over 4,000 theaters across the US and made $52 million. >> And was just released actually for purchase on YouTube as part of YouTube movies. >> So, when we were speaking with Markiplier on stage at the Hollywood Creator Summit, I asked a question and I implied that he made the movie like a YouTube video. He wrote it, he acted in it, he directed it, he did everything himself. And he sort of said, "I'm going to stop you right there." And he made sure to acknowledge everyone that helped him. >> I will never be as good as them. Uh, their departments, I'll never be able to make those kind of practical effects, the costume choices, the set design. But, I know enough about all those processes so that I can communicate effectively with the rest of the crew. And that's the biggest lesson that YouTubers can have when they're interfacing with other crews is like, you may be really good at what you do. They've been doing that one thing for as long as you have been doing it, sometimes longer. Uh and that can give you an incredible advantage if you can then conversate with them enough that you can get them on the same page with the imagination in your head. >> And I think that's one of the most important takeaways right now for me at this moment when YouTube is colliding and collaborating with Hollywood. The people in Hollywood who are looking for jobs, they are the linchpin of this entire movement. These people who have dedicated their lives to learning very specific crafts within this industry that I do not understand and that a lot of us as YouTube creators do not understand. They are one of the biggest reasons why YouTubers can have the success that they're having right now. So, for all of the conversation about how Hollywood is dying, sure, Hollywood is not the same that it was, but I don't think it's dying. I think it's just going through an evolution. It's looking different. It is collaborating with these people who are finding audience first and who have a vision. And who are really good storytellers. Like who have really learned how to tell a great story. I think that's really exciting. The internet storyteller getting to work within the Hollywood infrastructure is now producing things like Backrooms. >> And Kane Parsons had a ton of really talented people around him. Curry Baker had a ton of super talented people around him. He said that he had never really made a film with a budget, period. >> Yeah. >> And even Mark E Miller who did so much himself had really talented people around him who don't make YouTube videos for a living, and that's super super valuable. >> I love that this is happening. I just feel so energized by all of it. And it also just re-energizes me about YouTube. Something that Colin and I talk about all the time is that YouTube is the ticket to the extraordinary. Like when you upload a YouTube video, you just don't know who's watching, you don't know what could happen. You could end up in Montana. You could end up anywhere. You could end up making a movie. So, I just feel like incredibly energized by this moment. Uh and I hope you guys do, too. Cuz this is a really, really special time. >> And if you're making things and you feel like no one is watching, we've been in those periods of time. That's happened to us. That's happened to all of these filmmakers who are having all this success. It just means that you're learning, you're getting better. And again, you never know who's watching. >> All right, if you guys have seen the movies, let us know. We're going to watch Obsession tonight, actually. >> Yes. >> We got a screener. Can I say that? >> I don't know if you can I don't know if you can say that. It's not like it's like illegal. >> Also, is it too scary to watch it like in out in the woods? >> Probably. Yeah. >> Okay. >> But we got to do it. >> Okay. All right, let us know what you guys think about the movies that came out. Let us know what you think about this moment in Hollywood. We'll see you. Thanks for watching this emergency pod.