Is there any connection between the substance of the Oscars and what they’re awarded for, and the meat of the Oscars award show? I don’t think there is. It’s been a couple years since I’ve watched the Academy Awards show, so this observation is a little stale. But the awards themselves are about dramatic, technical, and artistic accomplishments in the movies, whereas these play almost no role in the Awards show (outside of those little highlight reels for nominated films). The Awards show is about live performance — warmed-over standup, big musical productions — and celebrity-watching.
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For many, movies are about celebrity watching.
I guess that’s true, but the awards are purportedly awarded on the basis of other factors.
Related: this year the award show got less viewership than American Idol (source).