I disagree that a flop means lost revenue. This is an industry that’s so adept at hiding income to avoid paying taxes, actors, and every other studio worker that dodgy accounting is known as ‘Hollywood Accounting’. Maybe we’re talking about different things. When I say Hollywood, I mean the movie industry as a whole.
Hollywood has failed to capture some income streams. From theatres, for example, as you say. But there’s still too much money to be made (and too much propaganda potential) for enough big money to leave that the problems of monopoly finance capital go away.
Also, YouTube ads are about the most random things. I don’t think I’ve ever seen an ad on YouTube for anything that I would actually buy. I’m not even nearly immune to ads, either. Show me a product that solves a problem for me and I’ll strongly consider it. Consciously and I’m sure subconsciously.
Google knows what I do for a living, where I live, and what I spend money on. Google also knows that I use YouTube primarily to watch videos in other languages. It’s not a secret to them. Yet they insist on trying to sell me products or services that have zero relevance to anything that I do. In English.
It makes me wonder if they’re even trying to profit through ads. I know the answer – no, not really – the advertiser is the customer, not me. It must be too complicated for them to realise that they could charge more for ads the more sales they led to.