Steven Spielberg says big budget flicks will cost viewers more

Steven Spielberg predicts that movie-goers will have to pay a premium to see big budget films like Iron Man.

But smaller budget movies like his Oscar-winning drama Lincoln will cost audiences a fraction of the price, according to the Oscar winning filmmaker.

Speaking at a special event to mark the opening of the new School of Cinematic Arts building at the University of Southern California, the director said the movie industry was in danger of self-destructing, Stuff.co.nz reported.

According to the Hollywood Reporter, he said that there's going to be an implosion where three or four or maybe even a half-dozen megabudget movies are going to go crashing into the ground.

The result would be a two-tier price system for movie tickets.

People will have to pay 25 dollars for the next Iron Man, and only 7 dollars to see Lincoln, he said.

Spielberg was joined at the event by Star Wars creator George Lucas, another director charged with fuelling Hollywood's appetite for expensive blockbusters.

Lucas agreed that the film industry would change, and predicted fewer movies would be made but would stay in cinemas longer, for up to year.