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Originally Posted by Richard Dickson
Star Wars didn't cause the blockbuster mentality, it was the studios' reactions to it that did. But it did awaken studios to the possibility that science fiction films could be profitable
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A lot of people are quick to attribute the blockbuster mentality to Star Wars because it is a simple answer to the question of how it arose in the first place. There is actually another cause and I believe the industry would be virtually the same today with or without Star Wars.
First Star Wars was not the first in the trend of big budget special effects heavy action pictures that carried with it a high expectation of return on investment. Star Wars come out shortly after the disaster cycle that featured such small intimate movies like The Poseidon Adventure, The Towering Inferno, Airport, and Earthquake. Six months before Star Wars' release, Dino De Laurentiis released a big budget remake of King Kong. Superman The Movie was already in production two months before Star Wars had been released.
Around this time, there were other technological innovations that not only influenced what was being put on screen but changed the way in which the films were getting to its audience. Prior to the late 70s, early 80s, you either saw a movie in the theater or not at all. If and when a movie got to television it was in a severely edited form with frequent commercial interruptions. The advent of home video and premium cable service gave movies a second life. Now audiences have two options: (1.) see it in the theater or (2.) wait for the DVD. This really comes down to an evaluation of whether a movie is worth seeing in the theater.
That evaluation is based on the event-worthiness of the movie in question. Usually this comes down to the amount of spectacle happening on screen. Most people aren't going to want to drag the whole family out to the theater unless the movie is sufficiently big enough to justify the time and expense. And given the short amount of time even the most successful blockbuster spends in theaters (as compared to 20-30 years ago) a small movie with a limited audience is not worth the money to market as a theatrical release.