Over at Cracked David Wong and Tom Reimann argued that 1995 film Waterworld transformed the movie industry:

• The film was over budget to the tune of $175 million – making it the most expensive film in history at the time.
• It was a disappointment at the American box office, failing to make back its cost of production.
• But it was a smash hit overseas – as a mindless action flick people from all cultures could enjoy it, even if they didn’t speak the language or understand the cultural references.
• That taught Hollywood that the real money was in making films that appeal to people all over the world – rather than deeper more introspective films.
• Thus while in the past films rarely made international debuts – usually only if they were already successful in the American market – these days they open everywhere at the same time.
• American moviegoers have seen the quality decline which is why theater attendance and domestic box offices have been falling.
• But global revenues are up boosting movies like Transformers and Iron Man 3.

Read about the economics of the industry, why this is a natural consequence of globalization, how television is now the place to go for quality and more over here.

Source: Cracked