The movie's shit. He obviously knows it. But he needs to say it makes him laugh to maintain what's left of his shitty network in Hollywood.
And, of course, instead of explaining what made him laugh or what makes the film genuinely good, he obfuscates by talking about little girls dancing in the theater.
Subtext: "It doesn't matter if the movie's shit as long as it panders to chicks. Yes, I have no penis, and my balls were already chopped off and eaten by Geneane Garofalo years ago, but you can trust me on this."
