Renamed the Blockbuster Hollywood Christmas Spectacular and produced by Bob Bain, the parade was nearly completely dispensed with for pre-recorded and rehearsed spotlights in the vein of NBC's popular Macy's Thanksgiving Day Parade, pre-recorded musical performances from LeAnn Rimes and Destiny's Child to promote their new holiday albums, along with much lower wattage star power, as most of the celebrities highlighted were either older or lower-tier actors exclusively starring on NBC series.
Inexplicably, the special ended with a completely unrelated stunt involving a 170 foot (52 m) fall by stuntperson Mikal Kartvedt off a 12-story building to promote the Blockbuster-exclusive home video rental release of the film XXX (the actual parade would air without any of the Bain-produced elements on Christmas morning on KCOP-TV).
[2] The following year, the Hollywood Chamber of Commerce announced it would discontinue airing the parade on KTLA and other Tribune Broadcasting stations due to rising production costs.
In March 2007, the Hollywood Chamber of Commerce decided to end the parade's run due to lack of celebrities and a loss of $100,000 for the 2006 production, which The Associated Press said cost about $1 million to mount.
The parade has since been produced annually by Associated Television International, which then coordinated airings on the Hallmark Channel, and in traditional syndication in later years.
Instead, a TV special titled The Hollywood Christmas Parade Greatest Moments premiered on December 4, 2020 on The CW.