Movie theaters have been at the mercy of public closures due to the COVID-19 pandemic, but have been opening up for the first time with new releases. The transition comes with changes in how theaters are working with streaming platforms to decide how these releases will be shown to the public.
As theaters continue to reopen, let's explore how they are integrating with streaming platforms to change how the industry is run after the pandemic.
What Happened to Theaters During the Pandemic?
The forced closure of public buildings while the world rebounded from one of the worst pandemics in recent history caused ripples throughout the economy. One of the mainstays of American culture, the movie industry, was hit hard by the closures and struggled to stay afloat while things returned to normal.
While fighting to stay alive, theaters and movie studios made unprecedented collaborations with streaming services like Netflix and HBO Max to change how we consumed new releases. This was due to the fact that people have been enjoying movies from under their bedsheets instead of reclining movie chairs.
New movie releases were, for the first time, shown directly to subscribers of streaming platforms before spending time on the big screen. These same-day movie releases helped studios get their movie investments in front of people's eyes without having to delay the release.
This new collaboration forced a change in the viewing window. Before, theaters required studios to keep their movies on the big screen for at least 90 days before taking it to streaming platforms. Now, this waiting window is in talks to be reduced to as low as 45 days, depending on the movie. This is not ideal for theaters that want a popular movie to stay in their building for as long as possible to capitalize on the hype.
The end result? An increased competition between theaters and streaming platforms, who both want a new movie as soon as it is released.
How Theaters Are Shifting Focus to Compete With Streaming
For the first time ever, theaters have been forced to enter the streaming game. Not as competition to huge streaming giants like Netflix and Amazon Prime, but more as a supplement to what they are already doing.
Most theater chains have a loyalty subscription service that rewards frequent customers with various prizes and special viewings. As part of that subscription, these chains are releasing a new perk that allows you to stream a new movie right from your home.
Chains like Alamo Drafthouse, Southern Theatres, and AMC all have their own streaming platforms where subscribers can rent films from the five major studios.
As more theaters broker deals with major studios, it's clear that the way movies are released to the public will change now that streaming has become such a major player in the entertainment industry.
The Future of Major Movie Releases
Plans for how new movies are released are still being negotiated, so the role of theaters in American culture is still up in the air. How long a movie will stay in theaters before it's released for rent or purchase will fluctuate until studios find a sweet spot where they can make the most money.
The rise of streaming platforms during the pandemic has forced a change in the power between theaters, streaming platforms, and studios. Now, more than ever before, streaming platforms have a larger voice in negotiations and will have a significant opinion in how the transitions back to cinemas end up happening.
As theaters enter the streaming business and allow loyal subscribers to have access to newer movies before they hit streaming platforms, it could keep the doors open for now.
Movie Theater Success Depends on Streaming
People have been forced to stream new movie releases, putting theaters at a significant disadvantage. Theater have bounced back by entering the streaming game themselves and negotiating new deals with major studios. Until theaters get back to reopening, you can still watch movies online with friends or family from the comfort of your home.