The tradition of the midnight movie is a peculiar one, highlighting the intersection between commercial and arthouse exhibitionist cinema. Typically, what starts out as a countercultural product eventually gets adopted, appropriated, and normalized by the mainstream markets. The excitement, fervor, and idiosyncrasies of the underground craze become appealing to masses, marketed to them, and become “played out”. Rarely can the two versions, independent or commercial, exist simultaneously. The midnight arthouse movement is very much alive and well decades upon decades after its arrival on the scene, despite tentpole studios having their day with midnight blockbuster releases.
Source: https://movies.mxdwn.com/feature/feature-the-midnight-movie-and-nocturnal-participation/