As streaming services gain prevalence in today’s society, they are causing both positive and negative changes to the film industry’s conventional format.
Most people are familiar with the countless streaming services that have started to flood the market. Hulu, Amazon Prime Video and Netflix have been the main competitors reaching for a presence in the industry, but with the introduction of streaming services from Disney and Apple, it’s no secret that everyone wants a piece of the successful streaming model.
The impact of COVID-19 on movie theatres has accelerated two preexisting trends: More people are staying home to enjoy movies and other entertainment, and more studios and media distributors are developing their own direct-to-consumer streaming services. While theatres have suffered heavily from stay-at-home norms, studios have also been deeply challenged. Productions were halted, some of the most anticipated theatrical premieres were postponed,1 and more top studios had to forgo theatrical releases altogether and go direct to consumers to generate at least some income.2 After the pandemic is over, it is unclear what role movie theatres will play in consumer entertainment or to what extent the existing system of releases will have been disrupted.
"Streaming has definitely changed the industry, especially in this last year where theatres have been shuttered because of the pandemic. It's only going to continue. Streamers are always going to be there. And they're putting more and more money into not only acquiring products but also paying for and producing their own content. It's an easier avenue for people to even get content out there. It's a little easier to get content through a streamer as opposed to getting it in a theatre. It's great to give artists so many more opportunities to show their work. That's the most important part. If the world was dominated by just movie theatres, just getting those screens for small independent films would have been very difficult.”
- Arizona State University film professor Chris LaMont
Film is not dead, not even dying in fact. It is growing significantly in most regions in the world while proving stubbornly stable in the US. It is understandable to be concerned about the present but to ignore the data because it does not match the narrative is shortsighted.
"There is a magic carpet ride you go on when you go into that theatre and the shared collective experience of everyone around you experiencing this thing. This magic -- there is nothing better than that. I think there are certain films that people will always want to see in a theatre. We're talking about these big action movies. I think there are going to be people who will always go see them in a big theatre."
- Los Angeles-based entertainment attorney Jaia Thomas, who is also the founder of Diverse Representation.
According to BoxOfficeMojo.com, 2018 was a record-breaking year at the box office with nearly $12 billion in revenue, and 2019 wasn't far behind. But in 2020, with the pandemic, that number plummeted more than 80% with roughly $2 billion in revenue.
But as more people get vaccinated and start to venture out more, experts predict theatres will also see a rebound.
While it is easy to assume that streaming services are to blame for the steep drop in the box office attendance numbers, a study conducted by EY’s Quantitative Economics and Statistics group, found that people who go to movies in theatres more frequently also consume more streaming content. In fact, people who skipped the movie theatres also tended to avoid watching copious amounts of shows and films on streaming services.
In the present day, Netflix and Amazon are bringing cinematic quality work from high-profile filmmakers and performers directly to their customers, which is often far quicker than the traditional home entertainment release after a theatrical run, and generally bypasses theatres altogether. The medium of cinema has evolved, and if the pace and evolution of movie theatres start to match the needs of consumers in affordability, convenience and comfort, streaming services might not ‘takeover’ as many filmmakers fear. But surely, streaming services can’t be continued to be viewed in a negative light.
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