Many lamented the COVID-19 pandemic as the final nail in the coffin for the already struggling movie theater industry. In 2020, the domestic box office lost $5 billion, as there was a 66% decline in theatrical releases. However, nearly two years into the pandemic, movie theaters and the film industry at large are coming back. It seems reasonable as the pandemic wanes that a larger portion of the moviegoing base will be willing to return.
“Spider-Man: No Way Home” just became the fourth-highest domestic grossing movie in history, eclipsing $700 million. Even as theaters receive box office hits like “Spider-Man,” there are still concerns over the older demographic of moviegoers. A YouGov poll found that 39% of Americans aged 45 to 64 were less likely to attend theaters, citing COVID variant concerns. This certainly hurt movies targeted at an older demographic such as Steven Spielberg and Tony Kushner’s “West Side Story,” which flopped domestically.
The pandemic certainly has shaken the movie theater industry; however, when people say movie theaters are dying, the pandemic really isn’t to blame. The advent of streaming has dominated the film industry. Consumers don’t have as much incentive to pay money to go out to the theater when they can watch from home. Studios have continually adapted to the at-home viewing experience. While movies used to commonly get 90-day runs in the theaters, those have been reduced to 45.
In addition, movies are going straight to streaming. For example, in 2020, Warner Bros released its entire slate on HBO max and in theaters at the same time. This limited the potential for box office success as much of the audience watched from home. The pandemic aided this trend, as it provided an excuse for big studios to have their content run on streaming services instead of movie theaters.
The past couple of years haven’t shown the end of the movie theater industry, but how it needs to move forward. It won’t have the market share it once had, but that doesn’t make it unimportant. “Spider-Man” clearly shows young people still want to see movies on the big screen. The big superhero and action movies are a spectacle the public still appreciates going to the theater to see.
Streaming is dominating the mid-budget films that don’t feature major effects or longtime beloved characters. Movies like “The Last Duel” or “Last Night in Soho” flopped in theatrical runs. Even though both of these pictures had star-studded casts, they weren’t targeted toward young people — the primary moviegoing base right now.
Mid-tier movies are served far better on streaming, where it requires less of the viewer to go out and see it. “Don’t Look Up” is a good example of this; premiering on Netflix, it became immensely popular and received strong awards consideration. Such success would have been unlikely given a major theatrical release. To be successful, studios need to run big blockbusters appealing to a young audience in theaters.
The advent of streaming has had some positives on the film industry. As Netflix, Amazon and Apple start to produce more and more movies, it has provided greater access to people throughout the country. The streaming services have focused on distributing lower-budget movies attempting to make Oscar runs. “The Power of the Dog,” which aired on Netflix and got 12 Oscar nominations, is a good example; or Chloe Zhao’s “Nomadland,” which streamed on Hulu and won Best Picture last year.
These movies would be inaccessible to most in past years, as they would largely run in Los Angeles and New York theaters for award consideration. Now, anyone can enjoy them and stay plugged into the industry.
Streaming also provides more opportunities to low-budget filmmakers who might struggle to make money having their movies play in theaters. Streaming can buy and distribute these movies cheaply so they receive an audience and the filmmaker can make a living.
The pandemic has accelerated streaming’s takeover of the film industry. Studios must target films to a younger audience because that’s what is performing well in theaters. All in all, it’s unfair to categorize movie theaters or the film industry as dying after two years of a brutal pandemic and monumental shift into the digital age. However, it’s integral that the industry embraces these changes to create another 100 years of great cinema.
Art House Convergence is committed to supporting local cinemas during this challenging time. You can donate at http://www.arthouseconvergence.org/.
Edited by Cayli Yanagida, cyanagida@themaneater.com
