Welcome to the blog of Dr. Lisa Burns' Media Studies senior capstone class (3:30 pm section) at Quinnipiac University. If you're looking for the latest on media industry trends and insightful media analysis, you've come to the right place!
Wednesday, March 17, 2021
Film Industry Blog 6, Question 2 (March 23rd)
How have the streaming
wars impacted the film industry? What does the increased competition from
streamers mean for filmmakers? And what does it mean for audiences? Limit: 6 responses
I believe that due to the pandemic, the film industry has struggled to get good box office numbers due to people not being able to go to the movies because of regulations and anxiety about COVID19 exposure. As more people turn to streaming, I think that film companies will need to do a lot of work and negotiating to generate revenue comparable to that earned through theater releases. The article "Studios Hold Out Hope for Theaters’ Return to Normalcy," discusses this issue, especially the financial loss from movies that were expected to earn high box office numbers that could not be released (McClintock, 2021). McClinktock highlights the reason for the delays being that the financial loss was less than what was projected for a streaming-only release; “the vast majority of big-budget event pics have seen their releases repeatedly pushed back amid ongoing theater closures in major markets and other locales, versus being sold off to a streamer or sent to an in-house streaming service...a $200 million movie capable of earning $1 billion...cannot achieve its full financial potential without a robust theatrical release” (McClintock, 2021). Without a model to increase revenue through streaming or direct-to-consumer release, film companies will continue to struggle and lose audiences who are currently only consuming content in their homes. The article "In Major Break from Tradition, Warner Bros. Moves to Debut All Its 2021 Movies Simultaneously on HBO Max and In Theaters," follows up on the general analysis by McClintock and discusses the results of a case where a production company (Warners Bros.) chose to release all of their planned blockbuster films exclusively via their struggling streaming service HBO Max up to December 2021 (Zeitchick, 2020). The backlash from this decision shows that despite the pandemic and the current preference for streaming, audiences still want the option to be able to go to the theatres. The move was also seen as a desire by the studio to benefit from the pandemic restrictions to boost HBO Max by attracting more viewers and ending contracts with struggling theater chains Cinemark and AMC (Zeitchick, 2020). In the end, both audiences and filmmakers rejected this solution as a sustainable and fair way to release films. Another article, “Cinemark CEO Sees Theater Chains Surviving U.S. Recession, Streaming Wars” assesses the ability of movie theater chains to survive the period of the pandemic, and argues that it is the creative quality of the movies, rather than temporary shifts in the economy, that ultimately control box office numbers, and that theaters will ultimately survive both the pandemic and the rise of streaming services (Vlessing, 2020). The CEO of Cinemark, Mark Zoradi pointed out the eagerness of people to be able to do activities in different locations; "Even with all the technological changes ... people still want to get out of the house," which he believes will limit the impact of at-home streaming services (Vlessing, 2020). I agree with him that audiences, especially after the pandemic, will be ready to go see movies in theaters again after having to spend so much time at home. However, I also think that the ability to stream new movies at home has opened up a source of competition the industry will need to take into account, especially as due to Warner Bros. and Disney+’s decisions people will get used to seeing movies available at the theaters at home.
McClintock, Pamela. "Studios Hold Out Hope for Theaters’ Return to Normalcy." The Hollywood Reporter. 27 Jan. 2021, https://www.hollywoodreporter.com/news/studios-hold-out-hope-for-theaters-return-to-normalcy. Accessed 20 Mar. 2021.
Zeitchick, Steven. "In Major Break from Tradition, Warner Bros. Moves to Debut All Its 2021 Movies Simultaneously on HBO Max and In Theaters." Washington Post. 3 Dec. 2020, https://www.washingtonpost.com/business/2020/12/03/warner-media-movies-hbo/?utm_campaign=wp_evening_edition&utm_medium=email&utm_source=newsletter&wpisrc=nl_evening. Accessed 20 Mar. 2021.
Vlessing, Etan. “Cinemark CEO Sees Theater Chains Surviving U.S. Recession, Streaming Wars” The Hollywood Reporter. 18 Sep. 2020, https://www.hollywoodreporter.com/news/cinemark-ceo-sees-theater-chains-surviving-us-recession-streaming-wars-1240728. Accessed 20 Mar. 2021.
The streaming wars have had a profound impact on the film industry. Films are now more readily accessible to viewers than they ever have been, and filmmakers have more platforms and opportunities to make films. Although this seems all positive, there are negative effects that come along as well.
The main impact that the streaming wars have had on the film industry is that streaming films from home is becoming much more common, and going to theaters has phased out a bit. This is largely in part due to the pandemic -- the pandemic has made streaming numbers boom and has exposed far more people to the benefits of streaming.
According to Pamela McClintock, over the past year, “the overall entertainment business was saved by the strength of streaming and premium video on demand” (McClintock). Streaming platforms have seen a great increase in subscribers, and more people are seeing the benefits of streaming. As people get used to the positive sides of streaming, such as the comfort of being at home and the low cost of the streaming subscriptions, the appeal of theaters lessens. The industry is shifting greatly over to at-home watching and at-home releases due to the sudden increased popularity of streaming.
Increased competition between streaming services means way more opportunities for filmmakers to create films, due to the increase in release platforms and lower necessary production costs. However, streaming services’ benefits on the artistry side of filmmaking are offset by the sudden increase in competition. Julia Greenberg notes that “in the past 10 years, the number of indie filmmakers has grown substantially as the cost of making films has dwindled, making competition for distribution even more cutthroat” (Greenberg). Filmmakers have more opportunities than ever to make films, because the cost of filmmaking has decreased, and streaming services are a good outlet for distributing new, creative lower-budget film ideas. However, this also means that competition is heavy, and it is much more difficult to have films picked up.
In regards to audience members, the increase in streaming’s popularity means that films will likely be released at home more often, making viewing much more accessible. Steven Zeitchik mentions that Warner Brothers will “put all of its 2021 movies — a 17-title list that includes such highly awaited films as “Dune,” “In the Heights” and “The Matrix 4” — on HBO Max at the same time they play in theaters, upending a well-established business model in the hope of redeeming its flagging streaming service” (Zeitchik). Viewers will have far more opportunities to watch movies upon their initial release straight from their homes. This is positive in terms of accessibility, because those who do not wish to make the trip to the theater no longer need to. However, this also creates a negative effect for those who prefer the movie theaters. Tickets to see theatrical releases will probably cost much more, because the demand for going to theaters will lower, and the theaters will be desperate for funds when companies no longer want to pay for theatrical releases. Streaming has profoundly impacted all facets of the film industry, and it appears as if streaming platforms are making their way to the forefront, as theaters dwindle further.
Greenberg, Julia. “As They Take Over Sundance, Netflix and Amazon Are Ushering in a New Age of Indie Films.” Wired, Conde Nast, 28 Jan. 2016, www.wired.com/2016/01/netflix-and-amazon-offer-indie-filmmakers-hope-and-lots-of-money/.
McClintock, Pamela. "U.S. Box Office Fell 80 Percent in 2020 as Streaming Boomed." The Hollywood Reporter 18 March 2021, https://www.hollywoodreporter.com/news/official-tally-u-s-box-office-fell-80-percent-in-2020-as-streaming-booms
Zeitchick, Steven. "In Major Break from Tradition, Warner Bros. Moves to Debut All Its 2021 Movies Simultaneously on HBO Max and In Theaters." Washington Post 3 December 2020, https://www.washingtonpost.com/business/2020/12/03/warner-media-movies-hbo/?utm_campaign=wp_evening_edition&utm_medium=email&utm_source=newsletter&wpisrc=nl_evening
Doug Cahn The film industry is one of the most fluid industries globally, and I can’t really think of a time when it isn’t changing. Nowadays, it seems like there is not as much emphasis on movie theaters and the movie-going experience because of streaming wars. There should be a slight asterisk, though, because, with Covid, studios had to move a lot of things around and figure out how to show their movies for the 2020 slate. In the last ten years, it is crazy to think how many streaming services have changed. Thinking back to 2011, Netflix was in its infancy, and besides that, the only other streaming service around was CBS all access which was not heavily advertised. Today, if you are a company that doesn’t have a capable streaming service you lack, it will lose your studio some serious money. One of the biggest boosts to the streaming wars was in late 2020 when Warner Bros. came out and said all of their 2021 theatrical releases would also be released on HBO Max the same day. An article by the Washington Post regarding the Warner Bros. decision said, “By at least temporarily undoing the time-honored practice of “windowing” — bringing movies exclusively to theaters first — they could create long-lasting consumer implications. The changes might limit revenue for theaters even after people can return to them. In the longer term, it could further habituate Americans to receive their entertainment primarily at home.” (Zeitchik) The more streaming services that come to light will change the way people make films. A big way to judge how successful a film is how much money it makes at the Box Office and when you put all of the new movies on streaming services, there is a chance for lost money which will make the directors and producers very upset. A great example of this is when notable director Christopher Nolan spoke out against Warner Bros. choice to put all the 2021 releases on HBO Max “Some of our industry’s biggest filmmakers and most important movie stars went to bed the night before thinking they were working for the greatest movie studio and woke up to find out they were working for the worst streaming service.” (Porter) Even with directors like Nolan speaking out, the companies won’t be bothered by it because the viewership and audience growth are at an all-time high. In an article by the Hollywood Reporter, you can see how big the growth is in streaming services “The streamer accelerated its growth in 2020 thanks to stay-at-home orders in many parts of the world, adding a record 36.6 million users and ending the year with 203.6 million global subscribers. Revenue rose sharply, and its operating profit overtook all Hollywood giants’ studio units. Besides, Netflix swung to positive free cash flow for 2020 to the tune of $1.9 billion.” (Szalai) As long as the streaming companies continue insane growth, the studios will continue shifting their focus to them, and it is a shame that it might kill the movie theater experience.
Porter, Jon. “Christopher Nolan Isn't Happy with Warner Bros. over HBO Max Releases.” The Verge, The Verge, 8 Dec. 2020, www.theverge.com/2020/12/8/22162918/christopher-nolan-tenet-hbo-max-warner-bros-streaming-service-cinematic-releases. Szalai, Georg. “Studio Profit Report: Netflix Reigns, Paramount and Sony Gain.” The Hollywood Reporter, 5 Mar. 2021, www.hollywoodreporter.com/news/studio-profit-report-netflix-reigns-paramount-and-sony-gain. Zeitchik, Steven. “In Major Break from Tradition, Warner Bros. Moves to Debut All Its 2021 Movies Simultaneously on HBO Max and in Theaters.” The Washington Post, WP Company, 4 Dec. 2020, www.washingtonpost.com/business/2020/12/03/warner-media-movies-hbo/?utm_campaign=wp_evening_edition&%3Butm_medium=email&%3Butm_source=newsletter&%3Bwpisrc=nl_evening.
The streaming wars have impacted the film industry in a number of ways. Even though that this is part of a different question, COVID-19 has a lot to do with how the film industry was impacted while relating to the streaming wars as well. Over the last several months, the big streaming companies have been at constant battle with one another as to who can get the most subscribers and viewers and have the best content. While these services are all trying to outdo the competition from each other, the film industry is taking a hit. Each streaming service provides so much diverse content, that people might not feel as much of a need to go see movies in the theater the second they come out, unless it’s a huge title. With the effects of the pandemic as well, most people would much rather stay home than go to a theater surrounded by other people. 2020 was not a good year for many industries, but the film industry perhaps took one of the worst hits of all. According to an article on The Hollywood Reporter, subscribers for online services crossed one billion in 2020; that is a 26% increase from 2019 (McClinktock). Contrastingly, the MPA stated that the U.S. box office fell to $2.2 billion, which was an 80% decrease (McClinktock). A large part of this happened due to covid, yet it’s important not to underestimate the streaming services’ impacts as well. More than 86% of adults view their content on mobile devices, and it is very prevalent in the 18-24 age group (McClinktock). In 2020, we were introduced to a lot of Disney+’s content, HBO Max, Peacock, and now in 2021: Paramount+. Evidently, the top grossing box office releases from 2019 to 2020 declined heavily in total gross income. The top grossing movie for 2019, Avengers: Endgame, received a total gross income of $858,373,000 (Domestic Box Office for 2019). On the other hand, the top grossing movie for 2020, Bad Boys for Life, received a total gross income of $206,305,244 (Domestic Box Office for 2020). We’ve seen what the initial impact of the streaming wars with the help of the pandemic has done to the film industry over the past year, but how will the film industry fair in the future? According to an article on CBC, the film industry has plans to stay afloat during these tough times. In Canada, fans of films are allowed to rent movies for a certain fixed fee. For the new Wonder Woman movie that came out, people were allowed to rent the movie for $30 (Glasner). Also, a lot of streaming services are trying to release new movies directly on the services, generating money through the subscriptions, like the new Wonder Woman movie. The streaming wars have certainly done some damage to the film industry, but I believe the industry is resilient, and will be okay.
Works Cited
McClintock, Pamela. “U.S. Box Office Fell 80 Percent in 2020 as Streaming Boomed.” The Hollywood Reporter, 18 Mar. 2021, www.hollywoodreporter.com/news/official-tally-u-s-box-office-fell-80-percent-in-2020-as-streaming-booms. Glasner, Eli. “Streaming Has Changed the Movie Game - but Expect to Pay More for the Convenience | CBC News.” CBCnews, CBC/Radio Canada, 28 Dec. 2020, www.cbc.ca/news/entertainment/streaming-warner-bros-movie-theatres-1.5845820. “Domestic Box Office For 2020.” Box Office Mojo, www.boxofficemojo.com/year/2020/?grossesOption=calendarGrosses. “Domestic Box Office For 2019.” Box Office Mojo, www.boxofficemojo.com/year/2019/?ref_=bo_yl_table_3.
Due to the pandemic, movie theaters around the world were forced to close. As result, many individuals turned to online services which crossed one billion to top out at 1.1 billion which is a 26% gain over 2019 (McClintock). People are eager to stay entertained and especially during a pandemic. Sadly, in 2020 the box office fell to $2.2 billion with the global box office revenue tumbling $12 million (McClintock). However, the entertainment business was saved by streaming and premium video and the total theatrical and digital/mobile in the US was $32.2 billion. I also think that streaming services did save the studios as many studios sold off smaller and mid-range titles to streamers (McClintock). With movie theaters especially struggling to pay expenses, selling off titles that would not have brought in huge crowds to theaters anyways is a smart way to stay floating.
The challenges that the year has brought especially staying inside has resulted in many being forced to watch movies on their own devices. The good news is that “audiences never lost their appetite to enjoy the theatrical experience” (McClintock). As time goes on individuals and movie productions have learned how to deal with the pandemic in safe ways. For example, we have seen the boom in drive-in movie theaters which I have been to a couple of times myself. Bringing your own snacks as well as having the comfort of your car has been a huge selling point for me. Knowing you are not in contact with other individuals helps you relax while enjoying the movie or show. However, Studios still remain hopeful that individuals will start to return back to movie theaters once the vaccine is rolled out (McClintock). A motivator that is placed is all the new movies that are waiting to be released. As the article states that “studios have delayed the vast majority of their major releases until movie theaters are back in business” with the reasoning that theatrical releases are the biggest source of revenue on these titles (McClintock). Reading this I wonder if this is true. Just as the article states that releasing big names may not be great noting how poorly Wonder Woman 1984 did.
Looking back and going to late movie premieres used to be so fun, however, I really question if anyone is going to feel that comfortable in large crowds in movie theaters. It is reported that 71% of consumers said they would not be comfortable going to a theater and only 18% of U.S consumers have attended a movie theater since the COVID-19 pandemic has begun (Spangler). I personally think movie theaters are going to take time to get customers flowing in again. However, I do think that releasing new and big titles will be a huge motivator for people in thinking of going. I am definitely missing movie theaters and can't wait for the return!
Works Cited
McClintock, Pamela. "U.S. Box Office Fell 80 Percent in 2020 as Streaming Boomed." The Hollywood Reporter 18 March 2021, https://www.hollywoodreporter.com/news/official-tally-u-s-box-office-fell-80-percent-in-2020-as-streaming-booms
McClintock, Pamela. "Studios Hold Out Hope for Theaters’ Return to Normalcy." The Hollywood Reporter 27 January 2021, https://www.hollywoodreporter.com/news/studios-hold-out-hope-for-theaters-return-to-normalcy
Spangler, Todd. “Most U.S. Consumers Still Uncomfortable Going to a Theater in Next Six Months, Survey Finds.” Variety, Variety, 10 Dec. 2020, variety.com/2020/digital/news/movie-theaters-covid-consumers-uncomfortable-1234846743/.
This comment has been removed by the author.
ReplyDeleteGabriela Alvares
ReplyDeleteFilm Industry Blog 6
I believe that due to the pandemic, the film industry has struggled to get good box office numbers due to people not being able to go to the movies because of regulations and anxiety about COVID19 exposure. As more people turn to streaming, I think that film companies will need to do a lot of work and negotiating to generate revenue comparable to that earned through theater releases. The article "Studios Hold Out Hope for Theaters’ Return to Normalcy," discusses this issue, especially the financial loss from movies that were expected to earn high box office numbers that could not be released (McClintock, 2021). McClinktock highlights the reason for the delays being that the financial loss was less than what was projected for a streaming-only release; “the vast majority of big-budget event pics have seen their releases repeatedly pushed back amid ongoing theater closures in major markets and other locales, versus being sold off to a streamer or sent to an in-house streaming service...a $200 million movie capable of earning $1 billion...cannot achieve its full financial potential without a robust theatrical release” (McClintock, 2021). Without a model to increase revenue through streaming or direct-to-consumer release, film companies will continue to struggle and lose audiences who are currently only consuming content in their homes.
The article "In Major Break from Tradition, Warner Bros. Moves to Debut All Its 2021 Movies Simultaneously on HBO Max and In Theaters," follows up on the general analysis by McClintock and discusses the results of a case where a production company (Warners Bros.) chose to release all of their planned blockbuster films exclusively via their struggling streaming service HBO Max up to December 2021 (Zeitchick, 2020). The backlash from this decision shows that despite the pandemic and the current preference for streaming, audiences still want the option to be able to go to the theatres. The move was also seen as a desire by the studio to benefit from the pandemic restrictions to boost HBO Max by attracting more viewers and ending contracts with struggling theater chains Cinemark and AMC (Zeitchick, 2020). In the end, both audiences and filmmakers rejected this solution as a sustainable and fair way to release films.
Another article, “Cinemark CEO Sees Theater Chains Surviving U.S. Recession, Streaming Wars” assesses the ability of movie theater chains to survive the period of the pandemic, and argues that it is the creative quality of the movies, rather than temporary shifts in the economy, that ultimately control box office numbers, and that theaters will ultimately survive both the pandemic and the rise of streaming services (Vlessing, 2020). The CEO of Cinemark, Mark Zoradi pointed out the eagerness of people to be able to do activities in different locations; "Even with all the technological changes ... people still want to get out of the house," which he believes will limit the impact of at-home streaming services (Vlessing, 2020). I agree with him that audiences, especially after the pandemic, will be ready to go see movies in theaters again after having to spend so much time at home. However, I also think that the ability to stream new movies at home has opened up a source of competition the industry will need to take into account, especially as due to Warner Bros. and Disney+’s decisions people will get used to seeing movies available at the theaters at home.
Gabriela Alvares
DeleteFilm Industry Blog 6
Works cited
McClintock, Pamela. "Studios Hold Out Hope for Theaters’ Return to Normalcy." The Hollywood Reporter. 27 Jan. 2021, https://www.hollywoodreporter.com/news/studios-hold-out-hope-for-theaters-return-to-normalcy. Accessed 20 Mar. 2021.
Zeitchick, Steven. "In Major Break from Tradition, Warner Bros. Moves to Debut All Its 2021 Movies Simultaneously on HBO Max and In Theaters." Washington Post. 3 Dec. 2020,
https://www.washingtonpost.com/business/2020/12/03/warner-media-movies-hbo/?utm_campaign=wp_evening_edition&utm_medium=email&utm_source=newsletter&wpisrc=nl_evening. Accessed 20 Mar. 2021.
Vlessing, Etan. “Cinemark CEO Sees Theater Chains Surviving U.S. Recession, Streaming Wars” The Hollywood Reporter. 18 Sep. 2020, https://www.hollywoodreporter.com/news/cinemark-ceo-sees-theater-chains-surviving-us-recession-streaming-wars-1240728. Accessed 20 Mar. 2021.
Alyssa Murphy
ReplyDeleteThe streaming wars have had a profound impact on the film industry. Films are now more readily accessible to viewers than they ever have been, and filmmakers have more platforms and opportunities to make films. Although this seems all positive, there are negative effects that come along as well.
The main impact that the streaming wars have had on the film industry is that streaming films from home is becoming much more common, and going to theaters has phased out a bit. This is largely in part due to the pandemic -- the pandemic has made streaming numbers boom and has exposed far more people to the benefits of streaming.
According to Pamela McClintock, over the past year, “the overall entertainment business was saved by the strength of streaming and premium video on demand” (McClintock). Streaming platforms have seen a great increase in subscribers, and more people are seeing the benefits of streaming. As people get used to the positive sides of streaming, such as the comfort of being at home and the low cost of the streaming subscriptions, the appeal of theaters lessens. The industry is shifting greatly over to at-home watching and at-home releases due to the sudden increased popularity of streaming.
Increased competition between streaming services means way more opportunities for filmmakers to create films, due to the increase in release platforms and lower necessary production costs. However, streaming services’ benefits on the artistry side of filmmaking are offset by the sudden increase in competition. Julia Greenberg notes that “in the past 10 years, the number of indie filmmakers has grown substantially as the cost of making films has dwindled, making competition for distribution even more cutthroat” (Greenberg). Filmmakers have more opportunities than ever to make films, because the cost of filmmaking has decreased, and streaming services are a good outlet for distributing new, creative lower-budget film ideas. However, this also means that competition is heavy, and it is much more difficult to have films picked up.
In regards to audience members, the increase in streaming’s popularity means that films will likely be released at home more often, making viewing much more accessible. Steven Zeitchik mentions that Warner Brothers will “put all of its 2021 movies — a 17-title list that includes such highly awaited films as “Dune,” “In the Heights” and “The Matrix 4” — on HBO Max at the same time they play in theaters, upending a well-established business model in the hope of redeeming its flagging streaming service” (Zeitchik). Viewers will have far more opportunities to watch movies upon their initial release straight from their homes. This is positive in terms of accessibility, because those who do not wish to make the trip to the theater no longer need to. However, this also creates a negative effect for those who prefer the movie theaters. Tickets to see theatrical releases will probably cost much more, because the demand for going to theaters will lower, and the theaters will be desperate for funds when companies no longer want to pay for theatrical releases. Streaming has profoundly impacted all facets of the film industry, and it appears as if streaming platforms are making their way to the forefront, as theaters dwindle further.
Works Cited:
DeleteGreenberg, Julia. “As They Take Over Sundance, Netflix and Amazon Are Ushering in a New Age of Indie Films.” Wired, Conde Nast, 28 Jan. 2016, www.wired.com/2016/01/netflix-and-amazon-offer-indie-filmmakers-hope-and-lots-of-money/.
McClintock, Pamela. "U.S. Box Office Fell 80 Percent in 2020 as Streaming Boomed." The Hollywood Reporter 18 March 2021, https://www.hollywoodreporter.com/news/official-tally-u-s-box-office-fell-80-percent-in-2020-as-streaming-booms
Zeitchick, Steven. "In Major Break from Tradition, Warner Bros. Moves to Debut All Its 2021 Movies Simultaneously on HBO Max and In Theaters." Washington Post 3 December 2020,
https://www.washingtonpost.com/business/2020/12/03/warner-media-movies-hbo/?utm_campaign=wp_evening_edition&utm_medium=email&utm_source=newsletter&wpisrc=nl_evening
Doug Cahn
ReplyDeleteThe film industry is one of the most fluid industries globally, and I can’t really think of a time when it isn’t changing. Nowadays, it seems like there is not as much emphasis on movie theaters and the movie-going experience because of streaming wars. There should be a slight asterisk, though, because, with Covid, studios had to move a lot of things around and figure out how to show their movies for the 2020 slate. In the last ten years, it is crazy to think how many streaming services have changed. Thinking back to 2011, Netflix was in its infancy, and besides that, the only other streaming service around was CBS all access which was not heavily advertised. Today, if you are a company that doesn’t have a capable streaming service you lack, it will lose your studio some serious money. One of the biggest boosts to the streaming wars was in late 2020 when Warner Bros. came out and said all of their 2021 theatrical releases would also be released on HBO Max the same day. An article by the Washington Post regarding the Warner Bros. decision said, “By at least temporarily undoing the time-honored practice of “windowing” — bringing movies exclusively to theaters first — they could create long-lasting consumer implications. The changes might limit revenue for theaters even after people can return to them. In the longer term, it could further habituate Americans to receive their entertainment primarily at home.” (Zeitchik) The more streaming services that come to light will change the way people make films. A big way to judge how successful a film is how much money it makes at the Box Office and when you put all of the new movies on streaming services, there is a chance for lost money which will make the directors and producers very upset. A great example of this is when notable director Christopher Nolan spoke out against Warner Bros. choice to put all the 2021 releases on HBO Max “Some of our industry’s biggest filmmakers and most important movie stars went to bed the night before thinking they were working for the greatest movie studio and woke up to find out they were working for the worst streaming service.” (Porter) Even with directors like Nolan speaking out, the companies won’t be bothered by it because the viewership and audience growth are at an all-time high. In an article by the Hollywood Reporter, you can see how big the growth is in streaming services “The streamer accelerated its growth in 2020 thanks to stay-at-home orders in many parts of the world, adding a record 36.6 million users and ending the year with 203.6 million global subscribers. Revenue rose sharply, and its operating profit overtook all Hollywood giants’ studio units. Besides, Netflix swung to positive free cash flow for 2020 to the tune of $1.9 billion.” (Szalai) As long as the streaming companies continue insane growth, the studios will continue shifting their focus to them, and it is a shame that it might kill the movie theater experience.
Porter, Jon. “Christopher Nolan Isn't Happy with Warner Bros. over HBO Max Releases.” The Verge, The Verge, 8 Dec. 2020, www.theverge.com/2020/12/8/22162918/christopher-nolan-tenet-hbo-max-warner-bros-streaming-service-cinematic-releases.
Szalai, Georg. “Studio Profit Report: Netflix Reigns, Paramount and Sony Gain.” The Hollywood Reporter, 5 Mar. 2021, www.hollywoodreporter.com/news/studio-profit-report-netflix-reigns-paramount-and-sony-gain.
Zeitchik, Steven. “In Major Break from Tradition, Warner Bros. Moves to Debut All Its 2021 Movies Simultaneously on HBO Max and in Theaters.” The Washington Post, WP Company, 4 Dec. 2020, www.washingtonpost.com/business/2020/12/03/warner-media-movies-hbo/?utm_campaign=wp_evening_edition&%3Butm_medium=email&%3Butm_source=newsletter&%3Bwpisrc=nl_evening.
Adam Tollin
ReplyDeleteMedia Trends Blog 6
The streaming wars have impacted the film industry in a number of ways. Even though that this is part of a different question, COVID-19 has a lot to do with how the film industry was impacted while relating to the streaming wars as well. Over the last several months, the big streaming companies have been at constant battle with one another as to who can get the most subscribers and viewers and have the best content. While these services are all trying to outdo the competition from each other, the film industry is taking a hit. Each streaming service provides so much diverse content, that people might not feel as much of a need to go see movies in the theater the second they come out, unless it’s a huge title. With the effects of the pandemic as well, most people would much rather stay home than go to a theater surrounded by other people.
2020 was not a good year for many industries, but the film industry perhaps took one of the worst hits of all. According to an article on The Hollywood Reporter, subscribers for online services crossed one billion in 2020; that is a 26% increase from 2019 (McClinktock). Contrastingly, the MPA stated that the U.S. box office fell to $2.2 billion, which was an 80% decrease (McClinktock). A large part of this happened due to covid, yet it’s important not to underestimate the streaming services’ impacts as well. More than 86% of adults view their content on mobile devices, and it is very prevalent in the 18-24 age group (McClinktock).
In 2020, we were introduced to a lot of Disney+’s content, HBO Max, Peacock, and now in 2021: Paramount+. Evidently, the top grossing box office releases from 2019 to 2020 declined heavily in total gross income. The top grossing movie for 2019, Avengers: Endgame, received a total gross income of $858,373,000 (Domestic Box Office for 2019). On the other hand, the top grossing movie for 2020, Bad Boys for Life, received a total gross income of $206,305,244 (Domestic Box Office for 2020).
We’ve seen what the initial impact of the streaming wars with the help of the pandemic has done to the film industry over the past year, but how will the film industry fair in the future? According to an article on CBC, the film industry has plans to stay afloat during these tough times. In Canada, fans of films are allowed to rent movies for a certain fixed fee. For the new Wonder Woman movie that came out, people were allowed to rent the movie for $30 (Glasner). Also, a lot of streaming services are trying to release new movies directly on the services, generating money through the subscriptions, like the new Wonder Woman movie. The streaming wars have certainly done some damage to the film industry, but I believe the industry is resilient, and will be okay.
Works Cited
McClintock, Pamela. “U.S. Box Office Fell 80 Percent in 2020 as Streaming Boomed.” The Hollywood Reporter, 18 Mar. 2021, www.hollywoodreporter.com/news/official-tally-u-s-box-office-fell-80-percent-in-2020-as-streaming-booms.
Glasner, Eli. “Streaming Has Changed the Movie Game - but Expect to Pay More for the Convenience | CBC News.” CBCnews, CBC/Radio Canada, 28 Dec. 2020, www.cbc.ca/news/entertainment/streaming-warner-bros-movie-theatres-1.5845820.
“Domestic Box Office For 2020.” Box Office Mojo, www.boxofficemojo.com/year/2020/?grossesOption=calendarGrosses.
“Domestic Box Office For 2019.” Box Office Mojo, www.boxofficemojo.com/year/2019/?ref_=bo_yl_table_3.
ReplyDeleteHarriet Rice
Due to the pandemic, movie theaters around the world were forced to close. As result, many individuals turned to online services which crossed one billion to top out at 1.1 billion which is a 26% gain over 2019 (McClintock). People are eager to stay entertained and especially during a pandemic. Sadly, in 2020 the box office fell to $2.2 billion with the global box office revenue tumbling $12 million (McClintock). However, the entertainment business was saved by streaming and premium video and the total theatrical and digital/mobile in the US was $32.2 billion. I also think that streaming services did save the studios as many studios sold off smaller and mid-range titles to streamers (McClintock). With movie theaters especially struggling to pay expenses, selling off titles that would not have brought in huge crowds to theaters anyways is a smart way to stay floating.
The challenges that the year has brought especially staying inside has resulted in many being forced to watch movies on their own devices. The good news is that “audiences never lost their appetite to enjoy the theatrical experience” (McClintock). As time goes on individuals and movie productions have learned how to deal with the pandemic in safe ways. For example, we have seen the boom in drive-in movie theaters which I have been to a couple of times myself. Bringing your own snacks as well as having the comfort of your car has been a huge selling point for me. Knowing you are not in contact with other individuals helps you relax while enjoying the movie or show. However, Studios still remain hopeful that individuals will start to return back to movie theaters once the vaccine is rolled out (McClintock). A motivator that is placed is all the new movies that are waiting to be released. As the article states that “studios have delayed the vast majority of their major releases until movie theaters are back in business” with the reasoning that theatrical releases are the biggest source of revenue on these titles (McClintock). Reading this I wonder if this is true. Just as the article states that releasing big names may not be great noting how poorly Wonder Woman 1984 did.
Looking back and going to late movie premieres used to be so fun, however, I really question if anyone is going to feel that comfortable in large crowds in movie theaters. It is reported that 71% of consumers said they would not be comfortable going to a theater and only 18% of U.S consumers have attended a movie theater since the COVID-19 pandemic has begun (Spangler). I personally think movie theaters are going to take time to get customers flowing in again. However, I do think that releasing new and big titles will be a huge motivator for people in thinking of going. I am definitely missing movie theaters and can't wait for the return!
Works Cited
McClintock, Pamela. "U.S. Box Office Fell 80 Percent in 2020 as Streaming Boomed." The Hollywood Reporter 18 March 2021, https://www.hollywoodreporter.com/news/official-tally-u-s-box-office-fell-80-percent-in-2020-as-streaming-booms
McClintock, Pamela. "Studios Hold Out Hope for Theaters’ Return to Normalcy." The Hollywood Reporter 27 January 2021,
https://www.hollywoodreporter.com/news/studios-hold-out-hope-for-theaters-return-to-normalcy
Spangler, Todd. “Most U.S. Consumers Still Uncomfortable Going to a Theater in Next Six Months, Survey Finds.” Variety, Variety, 10 Dec. 2020, variety.com/2020/digital/news/movie-theaters-covid-consumers-uncomfortable-1234846743/.