Hollywood studios are increasingly turning to the internet in search of fresh content and new talent, shifting their approach to digital creators who come with built-in audiences. Rather than merely casting internet personalities in mainstream projects, studios are now acquiring fully developed ideas from online storytellers who have already cultivated fan bases. This trend has gained momentum following the success of films like “Obsession” and “Backrooms,” both originating from young digital-native filmmakers with sizable followings.

Industry agents note that these films demonstrated the type of authentic storytelling that resonates with younger viewers and can draw audiences to theaters. In response, creators such as Jordan Parsons and Parker Finn are developing sequels and new projects for established studios like A24 and Universal Film Group. Jordan Lonner, agent for filmmaker Patrick Barker at United Talent Agency (UTA), explained that Hollywood is beginning to embrace greater risk-taking to connect with younger demographics seeking originality and authenticity.

Agents also say this shift is empowering creators to retain ownership and creative control over their intellectual property. Ty Flynn, a partner at UTA, emphasized that creators’ deep understanding of their audiences makes them vital partners in shaping projects, rather than having studios exert full control. This evolving dynamic may offer content creators stronger negotiation leverage than ever before.

The growing comfort within traditional Hollywood to collaborate with digital stars is reflected in UTA’s diverse roster, which includes influencer-turned-filmmaker Mark Fischbach (known as Markiplier). Fischbach independently produced and distributed the horror film “Iron Lung,” which grossed about $50 million worldwide from a $3 million budget. Similarly, Creative Artists Agency is partnering with private equity to acquire companies led by creator talent.

Industry executives highlight that the range of available budgets—from low-cost indie films to mid-size and tentpole productions—is likely to expand as studios recalibrate risk strategies. Kori Adelson, president of North Road Films, which co-financed “Backrooms,” said lower-budget projects can afford to take bolder creative risks, while larger budgets necessitate more conservative approaches to recoup investments.

While digital-originated content is gaining traction, some analysts caution that replicating viral successes on a larger scale remains challenging for major studios with significant overhead costs. Paul Dergarabedian, a market analyst, noted that “Obsession” and “Backrooms” benefited from their modest budgets and organic development, conditions not easily matched by big-budget studios. L.A. entertainment lawyer Darrell Miller pointed out that major studios depend on blockbuster releases grossing over $1 billion globally to sustain their operations, which limits their willingness to take high risks.

Some creators, however, are opting to remain independent and internet-focused. For example, Luke Pounder and Tristan Tales of the L.A.-based group TalesVision have declined traditional studio offers to preserve creative autonomy and timeline flexibility. They plan to launch their own premium YouTube series later this year with Lion Forge Entertainment, illustrating a growing trend of creators using digital platforms not only as launching pads but as primary distribution channels.

Meanwhile, competition for digital-originated intellectual property continues to intensify. Warner Bros. recently secured theatrical rights for “Siren Head,” based on the online urban legend created by artist Trevor Henderson, who will executive produce the film. The project, to be directed by Brian Duffield, represents another effort to translate online fan engagement into traditional movie success.

As Hollywood adapts to these new realities, studios and creators alike appear to be negotiating new partnerships that blend internet-born authenticity with mainstream film production, signaling a shift in how stories are developed and brought to market.