Welcome to the blog of Dr. Lisa Burns' Media Studies senior capstone class (2 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: 7 responses
Prior to the 2020 pandemic, streaming services transformed how moviegoers consumed media. Although the idea that streaming is killing the film industry has validity, there’s undoubtedly more nuance to the situation, especially when considering the current state of the film industry. As of now, filmmakers are challenged to deliver intriguing pictures for audiences, as audiences now have a variety of options for viewing entertainment.
In Sarah Whitten’s 2019 article, “Netflix isn’t killing movie theaters: Viewers who stream more also go to cinemas more”, the state of streaming in relation to the film industry was discussed. The article makes the point that in 2018, there was a 5% increase in the number of movie tickets sold, with 75 percent of the population seeing at least one movie in theaters (Whitten). The CEO of the Movie Picture Association of America, Charles Rivkin, drew the comparison that “everyone has a kitchen, but everyone still goes out to eat”, which at the time accurately represented the relationship viewers had with viewing content (Whitten). I chose to look at an article prior to 2020 about the streaming wars impacting film in order to understand how the pandemic was the catalyst for the current state of the film industry.
Currently, the relationship between streaming and the film industry looks very different. According to “Studio Profit Report: Netflix Reigns, Paramount and Sony Gain” by George Szalai, the pandemic caused the global box office revenue to drop 71 percent to $12.4 billion dollars. Meanwhile, quarantine caused viewers to flock to streaming services, seeing as there was a record increase of 36.6 million users for the year (Szalai). Studios began to adapt to the abrupt change within the industry, as major studio films were sent to streaming services along with theaters. A key film was Wonder Woman 1984, discussed in “2020's Big Plot Twist: How 'Wonder Woman 1984' Came to Upend Hollywood's Future”, with its debut on HBOMax after several delays from the pandemic (Keegan, Jarvey, McClintock). Streaming is the new avenue for films to be seen by moviegoers, as movie theaters are no longer an appealing option.
Since streaming services began releasing original content, there has been greater competition between them and the film industry. Netflix challenged filmmakers by creating critically acclaimed content such as The Irishman and Roma, which showed that streaming services are capable of creating quality films and shows. In general, the increased competition from streaming services causes filmmakers to push new, compelling content that viewers will want to watch over anything else. As stated in Jenny Coppola’s article, “What We Can Learn from Streaming Services About Audience Viewing Behavior”, the streaming wars “push brands to raise the bar creatively” in order to draw in audiences, whether it be competition amongst other streaming services or the film industry. Although streaming services were not originally taken seriously for their originals, now they are releasing some of the most high-profile content in the entertainment industry.
On the other hand, audiences currently have the power to shape their own content viewing experience. Viewers can decide from a handful of streaming services, as well as traditionally released films. Across multiple streaming services, $24.5 billion is spent annually on creating new content that audiences will be invested in (Coppola). Along with this, American viewers subscribe to an average 3.4 streaming services, which shows that audiences like several options for watching content (Coppola). Audiences benefit the most from the streaming wars, as brands compete with one another to make the best possible content, resulting in an abundance of high-quality films and series. As mentioned, the film industry also is competing with streaming services to get audiences in theaters (pre-pandemic), so they are looking for new ways to get audiences invested. Overall, the streaming wars have created new (high) standards for content, as audiences have to pick and choose what they want to watch over a handful of services, along with traditional movie watching.
Coppola, Jenny. “What We Can Learn from Streaming Services About Audience Viewing Behavior.” Wistia, Wistia, 3 Sept. 2019, wistia.com/learn/marketing/what-we-can-learn-from-streaming-services-about-audience-viewing-behavior. Rebecca Keegan, Natalie Jarvey. “2020's Big Plot Twist: How 'Wonder Woman 1984' Came to Upend Hollywood's Future.” The Hollywood Reporter, 24 Dec. 2020, www.hollywoodreporter.com/features/2020s-big-plot-twist-how-wonder-woman-1984-came-to-upend- hollywoods-future. 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. Whitten, Sarah. “Netflix Isn't Killing Movie Theaters: Viewers Who Stream More Also Go to Cinemas More.” CNBC, CNBC, 8 Apr. 2019, www.cnbc.com/2019/04/08/netflix-isnt-killing-theaters-people-who-steam-more-see-movies-more.html.
The streaming wars has impacted just about everyone’s lives at this point, along with massively affecting the film industry. Especially with the pandemic, society is becoming more inclined to watch a movie from the couch, rather than pay more to view in a theater. Movie theaters was one of the industries that got hit the worst during COVID-19. There was not much they were able to change when it came to people being paranoid about leaving their houses.
This is a massive adjustment for filmmakers. For example, Warner Bros. has moved all of their movie debuts to HBO Max. This is a pretty new tactic from such a movie giant and could possibly influence other entertainment companies to do the same. In an article by the Washington Post, author Steven Zeitchik states, “The changes might limit revenue for theaters even after people are able to return to them. In the longer term, it could further habituate Americans to receive their entertainment primarily at home” (Washington Post). Of course, it is important that HBO Max is receiving rights to movies in 2021, but the influence for the future is the bigger factor here. Movie theaters have been a such an established business for years and is now very in doubt of becoming close to obsolete. Due to the amount of people receiving vaccines the theatre business is projected to get back on its feet, however this could be the beginning of the end for theaters.
As far as audiences go, they are the most important piece of this puzzle. After being stuck in the house for six or so months, it become easier for people to enjoy the comfort of their own home. If people are more prone to enjoying entertainment from the couch, movie studios and film makers are going to begin to recognize that. In 2020, global box offices dropped 71% and domestic revenue of cinemas dropping 80% . On the other hand Netflix’s profit and revenue are up 77% and 24% respectively (Hollywood Reporter). If these trends continue we may see a massive change in the way filmmakers distribute their content.
Although streaming services definitely got the better end of the stick in the past calendar year, CEO of the National Association of Theatre Owners, sees a tons of room for improvement. In another article in the Hollywood Reporter, John Fithian stated, “The studios have delayed the vast majority of their major releases until movie theaters are back in business for a very simple reason. A theatrical release is their biggest source of revenue on these titles, and they cannot be profitable without such a release,” (McClintock). With the normalcy of society coming sooner or later, big movies will begin to release and premiered in theatres.
Some anticipated movies in 2021 according to Variety.com include “Zola”, “The French Dispatch”, and “Cow”. Studios are hopeful that some of the bigger names in this next year, will bring them back to normal. It will be very interesting to see what filmmakers and audiences prefer after the world practically turned upside down.
Davis, Clayton. “Directors Whose Work We're Excited to See in 2021.” Variety, Variety, 26 Jan. 2021, variety.com/lists/directors-anticipated-movies-2021/andrea-arnold-cow/. McClintock, P. (2021, January 27). Studios Hold Out Hope for Theaters’ Return to Normalcy. The Hollywood Reporter. https://www.hollywoodreporter.com/news/studios-hold-out-hope-for-theaters-return-to-normalcy Szalai, G. (2021, March 5). Studio Profit Report: Netflix Reigns, Paramount and Sony Gain. The Hollywood Reporter. https://www.hollywoodreporter.com/news/studio-profit-report-netflix-reigns-paramount-and-sony-gain Zeitchik, S. (2020, December 4). In major break from tradition, Warner Bros. moves to debut all its 2021 movies simultaneously on HBO Max and in theaters. Washington Post. 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
Caleb Wood The number one way that the streaming wars have affected the film industry is the shift in importance to these streaming platforms. With the inability to have theatrical releases the industry was forced to adapt and that meant putting all of their focus into streaming. This is why we have seen such successful years for Netflix, Hulu, Disney+, HBO Max, and more. I believe the success of these platforms show how they are the new powerhouses of the film industry. During 2020 Netflix added a record 36.6 million subs, and finished the year with over 200 million. They also recently announced to have roughly 500 projects in post production or ready for release (Szalai). The fact that Netflix has this capability speaks for itself. There has certainly never been a studio that has released that many projects in one year, and I believe this has resulted from both their success, but also the pressure they face from the streaming wars. I believe Netflix’s numbers alone show how streaming has become the top dog and is here to stay, however almost all streaming platforms have seen immense growth over this past year. Most impressive to me was that for the very first time subscribers to online services broke one billion after having topped out at 1.1 billion in 2020 (McClintock). This growth was a 26 percent gain from 2019, and I would surely predict that this number will continue to steadily rise over the next few years. As a result of the pandemic coinciding with the streaming wars, many people have become more comfortable with paying with three or maybe even more platforms (Patel). The film industry has without a doubt recognized this and attempted to take advantage of this with new releases, or straight to streaming releases. Overall, the streaming wars have simply reassured the industry that this is the direction it will be heading. While competition increases between platforms and studios as the streaming wars continue, I see a growth in opportunity for the filmmakers. 500 projects just from Netflix translates to a lot of jobs for creators. With every streaming platform making as many new projects as possible this raises the demand of filmmakers, which is ultimately a positive thing for the industry. More projects means more jobs, and luckily for our audience that means more content for them. As I mentioned before, no studio has ever produced the large number of projects in a single year, like these streaming platforms are doing now. In my opinion more content will almost always be a good thing in the eyes of the audience. Especially when it is still being made at the high level we are seeing with the streaming platforms. This shift in the importance of streaming also means that audiences will now become even more accustomed to the binge watching style than they already are. Audiences have now come to expect access to what they want, when they want, and this will most likely become the dominant style of releasing content. Sources McClintock, Pamela. “U.S. Box Office Fell 80 Percent in 2020 as Streaming Boomed.” The Hollywood Reporter, 18 Mar. 2021. Patel, Arvin. “How Is The Quarantine Affecting The Streaming Wars?” Forbes, Forbes Magazine, 20 Apr. 2020. Szalai, Georg. “Studio Profit Report: Netflix Reigns, Paramount and Sony Gain.” The Hollywood Reporter, 5 Mar. 2021.
More and more companies are coming out with their own streaming platforms that cover their own IPs. This means that movies are becoming more and more spread out. If you want to watch a movie from Paramount, you might have to watch it on Paramount+. If you want to watch a movie from Warner Bros., you might have to watch it on HBO Max. It seems these studios are becoming more independent. As mentioned in The Washington Post, Warner Bros. has announced that all of its releases for 2021 will also become available to stream the same day on HBO Max. These movies come at no extra cost to the consumer, so I’m not sure how profitable this method will become. However, this certainly will draw in the attention of new customers who want to avoid the theater. According to Hollywood Reporter, ticket sales are down nearly 80% from 2019, so a theatrical release might not be the best idea anyway. This also means that the studio is cutting out a lot of middle men. According to History, past antitrust laws made it so there could be no vertical integration in the film industry. This means a studio cannot control production, distribution, and exhibition. But with streaming, distribution and exhibition come back to the hands of the studio. Again, I don’t know how profitable this is compared to a theatrical release, but the studio will be saving a bit of money.
All of these new streaming platforms also means a huge spike in competition. So what does this mean for filmmakers and consumers? I think this could benefit both groups in their own ways. There is a saying that goes: “when companies compete, the consumer always wins.” What this means is that for one company to get an edge over another, all they have to do is appeal to customers more than the other. This fight means that many of the competing companies get better from a consumer perspective. Companies spend millions on research and changing their models, and the consumer gets a better product. For filmmakers, I hope this means that they can get a shot at making more passion projects. Films that won’t make enough to be a full theatrical release because they’re too niche or artsy can be made on a smaller budget and thrown on a streaming platform. This means we can get a more personal connection to the filmmaker since they aren’t trying to produce a blockbuster. Consumers may even cause an increase in the quality of some films. If the movie of the future is going to be straight to streaming, they are going to have to be engaging. You pay for a theater, you’re sort of locked in this chair staring at a huge screen. At home, you have the ability to simply stop the movie 15 minutes in because you’re bored. Companies will need to produce movies that can be effectively watched from a living room couch.
History.com Editors. (2009, November 13). U.S. Supreme Court decides Paramount antitrust case. HISTORY; HISTORY. https://www.history.com/this-day-in-history/u-s-supreme-court-decides-paramount-antitrust-case
Keegan, R., Jarvey, N., & McClintock, P. (2020, December 16). 2020’s Big Plot Twist: How “Wonder Woman 1984” Came to Upend Hollywood’s Future. The Hollywood Reporter; https://www.hollywoodreporter.com/features/2020s-big-plot-twist-how-wonder-woman-1984-came-to-upend-hollywoods-future
Zeitchik, S. (2020, December 3). In major break from tradition, Warner Bros. moves to debut all its 2021 movies simultaneously on HBO Max and in theaters. Washington Post; The Washington Post. 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
Streaming wars have had an unprecedented impact in the film industry. Customer preferences have changed, with audiences now demanding more streaming content than theaters. The situation has been exacerbated by the Coronavirus pandemic which has seen the issuance of stay at home orders globally (Paloma and Richards). Consequently, the likes of Netflix, Hulu, Show Max and Disney Plus have been the greatest gainers, with individuals bingeing their favorite movies at home to keep up with the public health guidelines. Crucially, movie studios have now changed their routine, releasing films directly for on demand streaming with no due consideration of traditional studios at all (Paloma and Richards). The situation is dire for traditional studios but at its best moment for the streaming services in the film industry. Ostensibly, the long term impact may be to reduce the whole film industry into the streaming model and lead to the complete shutdown of the traditional theatre model which is quickly losing ground due to customer preferences that are shifting as well as the unprecedented impact of the Coronavirus pandemic and the attendant public health measures.
The numbers reported since 2020 shows that streaming will permanently change filmmaking and lead to the abandonment of theaters on a permanent basis. It is notable that since the pandemic started in 2020, most companies have been recording losses globally, with the film industry not spared. Yet, players in the streaming industry have reported encouraging results in the midst of the tumultuous period. According to Szalai, 2020 was the year where Hollywood majors cut major losses in theatrical titles but again witnessed unprecedented growth in the streaming sector. Examples of growth in the streaming side are led by Netflix, whose 2020 was one of the best years. Crucially, Szalai notes that Netflix added a whopping 36.6 million users in 2020, and growing their positive cash flow to the region of $1.9 billion. To the contrary, another giant in the industry, Warner Bros, suffered a 76% box office hit which was driven by the closure of theaters worldwide. In fact, US Box office as a whole witnessed a drop of 80% following the closure of theaters in 2020 (McClintock). Thus, it is clear that streaming is taking over as the traditional theaters decline following the public health measures that have been put in place to deal with the coronavirus pandemic. Hopefully, the trend will not lead to the permanent closure of some of the renowned names in the industry.
For filmmakers and audiences, it is clear that the industry has been changed for good. It is not really about the pandemic alone, but the change has been long coming. The increased penetration of the internet globally and the convenience of on-demand films suggests that it may be a permanent shift from box office to streaming. Consequently, filmmakers would be wise to focus on developing streaming content and completely abandon or scale down production that is meant for the theaters. Indeed, even after the pandemic, whose end may not be known soon, people may become too accustomed to streaming to the extent that they do not appreciate theaters at all. It is therefore necessary that filmmakers switch gears towards streaming and build their competencies in that angle. Customers should also get accustomed to streaming as theaters may have embarked on their journey towards extinction.
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.
Palomba, Anthony, and Sarah Richards. “The Netflix Effect: The Movie Industry and New Data.” Darden Ideas to Action, 17 Dec. 2020, ideas.darden.virginia.edu/movie-industry-and-new-data.
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.
The film industry has seen a significant change due to impacts of the pandemic. The statistics show how drastic the virus was to industry’s revenue, “global box office falling 71 percent from a record of $42.5 billion to $12.4 billion and domestic revenue dropping 80 percent to $2.3 billion” (Szalai). With theatres struggling, there was a great opportunity for streaming platforms to succeed. Many platforms have taken full advantage, seeing huge success in their numbers. Netflix, the leader of the streaming wars, saw its profits reach $4.6 billion which was up by 77%. Netflix displays a strong lead among streaming platforms, but it could also provide perspective on the future of other providers success. This recent opportunity for streaming has created a new perception of how we consume entertainment. Even though this was a sudden and significant change, it feels cemented in our culture despite its relative recency. Streaming is now the norm for entertainment, people are fully buying in to this model of consuming entertainment. I believe this will continue to be the norm even after the pandemic ends. Streaming is what carried the entertainment industry as a whole during the lockdowns as the box office market in America suffered, “For the first time ever, China ($3 billion) passed up North America to rank as the world's largest box office market” (McClinktock). I do believe that there will still be a place for in-person viewing at a movie theatre post-pandemic, however I believe the damage done in the pandemic will have a lasting impact. A new precedent has been established for viewing shows and movies and even though the pandemic allowed this opportunity, it is not dependent on a pandemic for its success. This will still be the preferred way of viewership even as we return to normal life in the future. There will be an initial desire to return to theatres after the pandemic in the short term, because of how long it has been since that was an option, but it won’t slow down the rapid growth of streaming.
McClintock, Pamela. "U.S. Box Office Fell 80 Percent in 2020 as Streaming Boomed." The Hollywood Reporter 18 March 2021,
Szalai, Georg. "Studio Profit Report: Netflix Reigns, Paramount and Sony Gain." The Hollywood Reporter 5 March 2021.
The Film industry has also been changing and adapting since the Pandemic started a year ago. Once the COVID-19 virus hit the U.S. movie theaters were shut down and heavily impacted Hollywood. With everyone trapped inside and at home streaming became the number one source for entertainment. In an article from the Hollywood reporter, statistics from 2020 show that Netflix, Disney and Warner Brothers, who all have streaming platforms, made way more than other film companies. Netflix had over 4.5 Billion dollars in pure profit meanwhile, Paramount, who didn’t release their streaming platform at the time, made only 215 million dollars in profit. Warner Brothers also introduced an interesting tactic during the pandemic, which could have led to their success. In a Washington post article it mentions Warner Brothers new hybrid release strategy that releases films on streaming platforms and also in theaters. Wonder Woman 1984 had amazing success in its opening weekend and was a highly rated film. This tactic they are using is also getting people to join their streaming service and attracting new subscribers. When the platform first launched in may it struggled, “At the same time that the film studio was battling the uncertainty of the pandemic, WarnerMedia’s 6-month-old streaming service, HBO Max, was struggling to lure new subscribers, a problem Kilar was charged with solving.”. This Washington Post article also mentions how it hopes many more hybrid releases of films will help the platform and get their revenue up. With the pandemic not going away anytime soon new ideas and old are coming to life from the entertainment industry. In an article from Wiser Strategies, it mentions how the use of more animation may become popular. Also other ways to view films such as Drive in Movie theaters are somehow coming back to life. There have been many old drive in movies that have resurfaced due to the pandemic and people wanting to get out of the house and watch a film. The idea of it is very appealing to those afraid of the virus while also wanting to experience going to the movies. With more animated films there is no filming, everything is computer generated and voice actors are only needed. With everything going on in the world it is nice to see how the entertainment business is adapting and overcoming these major obstacles. Being stuck at home is already awful enough, but then to not have any new content come out from these big companies would just be worse. At least we will still be able to have new releases and films, but with these new tactics and safety measures in place.
DeMoor, Published by Zachary. “Covid-19's Impact on the Film Industry.” Wiser Strategies, 1 Dec. 2020, wiserstrategies.com/covid-19s-impact-on-the-film-industry/. Keegan, Rebecca et al. "2020's Big Plot Twist: How 'Wonder Woman 1984' Came to Upend Hollywood's Future." The Hollywood Reporter 16 December 2020,
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,
Szalai, Georg. "Studio Profit Report: Netflix Reigns, Paramount and Sony Gain." The Hollywood Reporter 5 March 2021.
Katie Dansereau
ReplyDeletePART 1
Prior to the 2020 pandemic, streaming services transformed how moviegoers consumed media. Although the idea that streaming is killing the film industry has validity, there’s undoubtedly more nuance to the situation, especially when considering the current state of the film industry. As of now, filmmakers are challenged to deliver intriguing pictures for audiences, as audiences now have a variety of options for viewing entertainment.
In Sarah Whitten’s 2019 article, “Netflix isn’t killing movie theaters: Viewers who stream more also go to cinemas more”, the state of streaming in relation to the film industry was discussed. The article makes the point that in 2018, there was a 5% increase in the number of movie tickets sold, with 75 percent of the population seeing at least one movie in theaters (Whitten). The CEO of the Movie Picture Association of America, Charles Rivkin, drew the comparison that “everyone has a kitchen, but everyone still goes out to eat”, which at the time accurately represented the relationship viewers had with viewing content (Whitten). I chose to look at an article prior to 2020 about the streaming wars impacting film in order to understand how the pandemic was the catalyst for the current state of the film industry.
Currently, the relationship between streaming and the film industry looks very different. According to “Studio Profit Report: Netflix Reigns, Paramount and Sony Gain” by George Szalai, the pandemic caused the global box office revenue to drop 71 percent to $12.4 billion dollars. Meanwhile, quarantine caused viewers to flock to streaming services, seeing as there was a record increase of 36.6 million users for the year (Szalai). Studios began to adapt to the abrupt change within the industry, as major studio films were sent to streaming services along with theaters. A key film was Wonder Woman 1984, discussed in “2020's Big Plot Twist: How 'Wonder Woman 1984' Came to Upend Hollywood's Future”, with its debut on HBOMax after several delays from the pandemic (Keegan, Jarvey, McClintock). Streaming is the new avenue for films to be seen by moviegoers, as movie theaters are no longer an appealing option.
Katie Dansereau
DeletePART 2
Since streaming services began releasing original content, there has been greater competition between them and the film industry. Netflix challenged filmmakers by creating critically acclaimed content such as The Irishman and Roma, which showed that streaming services are capable of creating quality films and shows. In general, the increased competition from streaming services causes filmmakers to push new, compelling content that viewers will want to watch over anything else. As stated in Jenny Coppola’s article, “What We Can Learn from Streaming Services About Audience Viewing Behavior”, the streaming wars “push brands to raise the bar creatively” in order to draw in audiences, whether it be competition amongst other streaming services or the film industry. Although streaming services were not originally taken seriously for their originals, now they are releasing some of the most high-profile content in the entertainment industry.
On the other hand, audiences currently have the power to shape their own content viewing experience. Viewers can decide from a handful of streaming services, as well as traditionally released films. Across multiple streaming services, $24.5 billion is spent annually on creating new content that audiences will be invested in (Coppola). Along with this, American viewers subscribe to an average 3.4 streaming services, which shows that audiences like several options for watching content (Coppola). Audiences benefit the most from the streaming wars, as brands compete with one another to make the best possible content, resulting in an abundance of high-quality films and series. As mentioned, the film industry also is competing with streaming services to get audiences in theaters (pre-pandemic), so they are looking for new ways to get audiences invested. Overall, the streaming wars have created new (high) standards for content, as audiences have to pick and choose what they want to watch over a handful of services, along with traditional movie watching.
Coppola, Jenny. “What We Can Learn from Streaming Services About Audience Viewing Behavior.” Wistia, Wistia, 3 Sept. 2019, wistia.com/learn/marketing/what-we-can-learn-from-streaming-services-about-audience-viewing-behavior.
Rebecca Keegan, Natalie Jarvey. “2020's Big Plot Twist: How 'Wonder Woman 1984' Came to Upend Hollywood's Future.” The Hollywood Reporter, 24 Dec. 2020, www.hollywoodreporter.com/features/2020s-big-plot-twist-how-wonder-woman-1984-came-to-upend- hollywoods-future.
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.
Whitten, Sarah. “Netflix Isn't Killing Movie Theaters: Viewers Who Stream More Also Go to Cinemas More.” CNBC, CNBC, 8 Apr. 2019, www.cnbc.com/2019/04/08/netflix-isnt-killing-theaters-people-who-steam-more-see-movies-more.html.
Matt Gallo
ReplyDeleteThe streaming wars has impacted just about everyone’s lives at this point, along with massively affecting the film industry. Especially with the pandemic, society is becoming more inclined to watch a movie from the couch, rather than pay more to view in a theater. Movie theaters was one of the industries that got hit the worst during COVID-19. There was not much they were able to change when it came to people being paranoid about leaving their houses.
This is a massive adjustment for filmmakers. For example, Warner Bros. has moved all of their movie debuts to HBO Max. This is a pretty new tactic from such a movie giant and could possibly influence other entertainment companies to do the same. In an article by the Washington Post, author Steven Zeitchik states, “The changes might limit revenue for theaters even after people are able to return to them. In the longer term, it could further habituate Americans to receive their entertainment primarily at home” (Washington Post). Of course, it is important that HBO Max is receiving rights to movies in 2021, but the influence for the future is the bigger factor here. Movie theaters have been a such an established business for years and is now very in doubt of becoming close to obsolete. Due to the amount of people receiving vaccines the theatre business is projected to get back on its feet, however this could be the beginning of the end for theaters.
As far as audiences go, they are the most important piece of this puzzle. After being stuck in the house for six or so months, it become easier for people to enjoy the comfort of their own home. If people are more prone to enjoying entertainment from the couch, movie studios and film makers are going to begin to recognize that. In 2020, global box offices dropped 71% and domestic revenue of cinemas dropping 80% . On the other hand Netflix’s profit and revenue are up 77% and 24% respectively (Hollywood Reporter). If these trends continue we may see a massive change in the way filmmakers distribute their content.
Although streaming services definitely got the better end of the stick in the past calendar year, CEO of the National Association of Theatre Owners, sees a tons of room for improvement. In another article in the Hollywood Reporter, John Fithian stated, “The studios have delayed the vast majority of their major releases until movie theaters are back in business for a very simple reason. A theatrical release is their biggest source of revenue on these titles, and they cannot be profitable without such a release,” (McClintock). With the normalcy of society coming sooner or later, big movies will begin to release and premiered in theatres.
DeleteSome anticipated movies in 2021 according to Variety.com include “Zola”, “The French Dispatch”, and “Cow”. Studios are hopeful that some of the bigger names in this next year, will bring them back to normal. It will be very interesting to see what filmmakers and audiences prefer after the world practically turned upside down.
Davis, Clayton. “Directors Whose Work We're Excited to See in 2021.” Variety, Variety, 26 Jan. 2021, variety.com/lists/directors-anticipated-movies-2021/andrea-arnold-cow/.
McClintock, P. (2021, January 27). Studios Hold Out Hope for Theaters’ Return to Normalcy. The Hollywood Reporter. https://www.hollywoodreporter.com/news/studios-hold-out-hope-for-theaters-return-to-normalcy
Szalai, G. (2021, March 5). Studio Profit Report: Netflix Reigns, Paramount and Sony Gain. The Hollywood Reporter. https://www.hollywoodreporter.com/news/studio-profit-report-netflix-reigns-paramount-and-sony-gain
Zeitchik, S. (2020, December 4). In major break from tradition, Warner Bros. moves to debut all its 2021 movies simultaneously on HBO Max and in theaters. Washington Post. 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
Caleb Wood
ReplyDeleteThe number one way that the streaming wars have affected the film industry is the shift in importance to these streaming platforms. With the inability to have theatrical releases the industry was forced to adapt and that meant putting all of their focus into streaming. This is why we have seen such successful years for Netflix, Hulu, Disney+, HBO Max, and more. I believe the success of these platforms show how they are the new powerhouses of the film industry. During 2020 Netflix added a record 36.6 million subs, and finished the year with over 200 million. They also recently announced to have roughly 500 projects in post production or ready for release (Szalai). The fact that Netflix has this capability speaks for itself. There has certainly never been a studio that has released that many projects in one year, and I believe this has resulted from both their success, but also the pressure they face from the streaming wars. I believe Netflix’s numbers alone show how streaming has become the top dog and is here to stay, however almost all streaming platforms have seen immense growth over this past year. Most impressive to me was that for the very first time subscribers to online services broke one billion after having topped out at 1.1 billion in 2020 (McClintock). This growth was a 26 percent gain from 2019, and I would surely predict that this number will continue to steadily rise over the next few years. As a result of the pandemic coinciding with the streaming wars, many people have become more comfortable with paying with three or maybe even more platforms (Patel). The film industry has without a doubt recognized this and attempted to take advantage of this with new releases, or straight to streaming releases. Overall, the streaming wars have simply reassured the industry that this is the direction it will be heading. While competition increases between platforms and studios as the streaming wars continue, I see a growth in opportunity for the filmmakers. 500 projects just from Netflix translates to a lot of jobs for creators. With every streaming platform making as many new projects as possible this raises the demand of filmmakers, which is ultimately a positive thing for the industry. More projects means more jobs, and luckily for our audience that means more content for them. As I mentioned before, no studio has ever produced the large number of projects in a single year, like these streaming platforms are doing now. In my opinion more content will almost always be a good thing in the eyes of the audience. Especially when it is still being made at the high level we are seeing with the streaming platforms. This shift in the importance of streaming also means that audiences will now become even more accustomed to the binge watching style than they already are. Audiences have now come to expect access to what they want, when they want, and this will most likely become the dominant style of releasing content.
Sources
McClintock, Pamela. “U.S. Box Office Fell 80 Percent in 2020 as Streaming Boomed.” The Hollywood Reporter, 18 Mar. 2021.
Patel, Arvin. “How Is The Quarantine Affecting The Streaming Wars?” Forbes, Forbes Magazine, 20 Apr. 2020.
Szalai, Georg. “Studio Profit Report: Netflix Reigns, Paramount and Sony Gain.” The Hollywood Reporter, 5 Mar. 2021.
Brendan McDonald
ReplyDeleteMore and more companies are coming out with their own streaming platforms that cover their own IPs. This means that movies are becoming more and more spread out. If you want to watch a movie from Paramount, you might have to watch it on Paramount+. If you want to watch a movie from Warner Bros., you might have to watch it on HBO Max. It seems these studios are becoming more independent. As mentioned in The Washington Post, Warner Bros. has announced that all of its releases for 2021 will also become available to stream the same day on HBO Max. These movies come at no extra cost to the consumer, so I’m not sure how profitable this method will become. However, this certainly will draw in the attention of new customers who want to avoid the theater. According to Hollywood Reporter, ticket sales are down nearly 80% from 2019, so a theatrical release might not be the best idea anyway. This also means that the studio is cutting out a lot of middle men. According to History, past antitrust laws made it so there could be no vertical integration in the film industry. This means a studio cannot control production, distribution, and exhibition. But with streaming, distribution and exhibition come back to the hands of the studio. Again, I don’t know how profitable this is compared to a theatrical release, but the studio will be saving a bit of money.
All of these new streaming platforms also means a huge spike in competition. So what does this mean for filmmakers and consumers? I think this could benefit both groups in their own ways. There is a saying that goes: “when companies compete, the consumer always wins.” What this means is that for one company to get an edge over another, all they have to do is appeal to customers more than the other. This fight means that many of the competing companies get better from a consumer perspective. Companies spend millions on research and changing their models, and the consumer gets a better product. For filmmakers, I hope this means that they can get a shot at making more passion projects. Films that won’t make enough to be a full theatrical release because they’re too niche or artsy can be made on a smaller budget and thrown on a streaming platform. This means we can get a more personal connection to the filmmaker since they aren’t trying to produce a blockbuster. Consumers may even cause an increase in the quality of some films. If the movie of the future is going to be straight to streaming, they are going to have to be engaging. You pay for a theater, you’re sort of locked in this chair staring at a huge screen. At home, you have the ability to simply stop the movie 15 minutes in because you’re bored. Companies will need to produce movies that can be effectively watched from a living room couch.
History.com Editors. (2009, November 13). U.S. Supreme Court decides Paramount antitrust case. HISTORY; HISTORY. https://www.history.com/this-day-in-history/u-s-supreme-court-decides-paramount-antitrust-case
Keegan, R., Jarvey, N., & McClintock, P. (2020, December 16). 2020’s Big Plot Twist: How “Wonder Woman 1984” Came to Upend Hollywood’s Future. The Hollywood Reporter; https://www.hollywoodreporter.com/features/2020s-big-plot-twist-how-wonder-woman-1984-came-to-upend-hollywoods-future
Zeitchik, S. (2020, December 3). In major break from tradition, Warner Bros. moves to debut all its 2021 movies simultaneously on HBO Max and in theaters. Washington Post; The Washington Post. 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
Alex Hazarian
ReplyDeleteStreaming wars have had an unprecedented impact in the film industry. Customer preferences have changed, with audiences now demanding more streaming content than theaters. The situation has been exacerbated by the Coronavirus pandemic which has seen the issuance of stay at home orders globally (Paloma and Richards). Consequently, the likes of Netflix, Hulu, Show Max and Disney Plus have been the greatest gainers, with individuals bingeing their favorite movies at home to keep up with the public health guidelines. Crucially, movie studios have now changed their routine, releasing films directly for on demand streaming with no due consideration of traditional studios at all (Paloma and Richards). The situation is dire for traditional studios but at its best moment for the streaming services in the film industry. Ostensibly, the long term impact may be to reduce the whole film industry into the streaming model and lead to the complete shutdown of the traditional theatre model which is quickly losing ground due to customer preferences that are shifting as well as the unprecedented impact of the Coronavirus pandemic and the attendant public health measures.
The numbers reported since 2020 shows that streaming will permanently change filmmaking and lead to the abandonment of theaters on a permanent basis. It is notable that since the pandemic started in 2020, most companies have been recording losses globally, with the film industry not spared. Yet, players in the streaming industry have reported encouraging results in the midst of the tumultuous period. According to Szalai, 2020 was the year where Hollywood majors cut major losses in theatrical titles but again witnessed unprecedented growth in the streaming sector. Examples of growth in the streaming side are led by Netflix, whose 2020 was one of the best years. Crucially, Szalai notes that Netflix added a whopping 36.6 million users in 2020, and growing their positive cash flow to the region of $1.9 billion. To the contrary, another giant in the industry, Warner Bros, suffered a 76% box office hit which was driven by the closure of theaters worldwide. In fact, US Box office as a whole witnessed a drop of 80% following the closure of theaters in 2020 (McClintock). Thus, it is clear that streaming is taking over as the traditional theaters decline following the public health measures that have been put in place to deal with the coronavirus pandemic. Hopefully, the trend will not lead to the permanent closure of some of the renowned names in the industry.
Part 2
ReplyDeleteFor filmmakers and audiences, it is clear that the industry has been changed for good. It is not really about the pandemic alone, but the change has been long coming. The increased penetration of the internet globally and the convenience of on-demand films suggests that it may be a permanent shift from box office to streaming. Consequently, filmmakers would be wise to focus on developing streaming content and completely abandon or scale down production that is meant for the theaters. Indeed, even after the pandemic, whose end may not be known soon, people may become too accustomed to streaming to the extent that they do not appreciate theaters at all. It is therefore necessary that filmmakers switch gears towards streaming and build their competencies in that angle. Customers should also get accustomed to streaming as theaters may have embarked on their journey towards extinction.
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.
Palomba, Anthony, and Sarah Richards. “The Netflix Effect: The Movie Industry and New Data.” Darden Ideas to Action, 17 Dec. 2020, ideas.darden.virginia.edu/movie-industry-and-new-data.
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.
Jack Higgins
ReplyDeleteThe film industry has seen a significant change due to impacts of the pandemic. The statistics show how drastic the virus was to industry’s revenue, “global box office falling 71 percent from a record of $42.5 billion to $12.4 billion and domestic revenue dropping 80 percent to $2.3 billion” (Szalai). With theatres struggling, there was a great opportunity for streaming platforms to succeed. Many platforms have taken full advantage, seeing huge success in their numbers. Netflix, the leader of the streaming wars, saw its profits reach $4.6 billion which was up by 77%. Netflix displays a strong lead among streaming platforms, but it could also provide perspective on the future of other providers success. This recent opportunity for streaming has created a new perception of how we consume entertainment. Even though this was a sudden and significant change, it feels cemented in our culture despite its relative recency. Streaming is now the norm for entertainment, people are fully buying in to this model of consuming entertainment. I believe this will continue to be the norm even after the pandemic ends. Streaming is what carried the entertainment industry as a whole during the lockdowns as the box office market in America suffered, “For the first time ever, China ($3 billion) passed up North America to rank as the world's largest box office market” (McClinktock). I do believe that there will still be a place for in-person viewing at a movie theatre post-pandemic, however I believe the damage done in the pandemic will have a lasting impact. A new precedent has been established for viewing shows and movies and even though the pandemic allowed this opportunity, it is not dependent on a pandemic for its success. This will still be the preferred way of viewership even as we return to normal life in the future. There will be an initial desire to return to theatres after the pandemic in the short term, because of how long it has been since that was an option, but it won’t slow down the rapid growth of streaming.
McClintock, Pamela. "U.S. Box Office Fell 80 Percent in 2020 as Streaming Boomed." The Hollywood Reporter 18 March 2021,
Szalai, Georg. "Studio Profit Report: Netflix Reigns, Paramount and Sony Gain." The Hollywood Reporter 5 March 2021.
Chris Giorgio
ReplyDeleteBlog 6
The Film industry has also been changing and adapting since the Pandemic started a year ago. Once the COVID-19 virus hit the U.S. movie theaters were shut down and heavily impacted Hollywood. With everyone trapped inside and at home streaming became the number one source for entertainment. In an article from the Hollywood reporter, statistics from 2020 show that Netflix, Disney and Warner Brothers, who all have streaming platforms, made way more than other film companies. Netflix had over 4.5 Billion dollars in pure profit meanwhile, Paramount, who didn’t release their streaming platform at the time, made only 215 million dollars in profit. Warner Brothers also introduced an interesting tactic during the pandemic, which could have led to their success. In a Washington post article it mentions Warner Brothers new hybrid release strategy that releases films on streaming platforms and also in theaters. Wonder Woman 1984 had amazing success in its opening weekend and was a highly rated film. This tactic they are using is also getting people to join their streaming service and attracting new subscribers. When the platform first launched in may it struggled, “At the same time that the film studio was battling the uncertainty of the pandemic, WarnerMedia’s 6-month-old streaming service, HBO Max, was struggling to lure new subscribers, a problem Kilar was charged with solving.”. This Washington Post article also mentions how it hopes many more hybrid releases of films will help the platform and get their revenue up. With the pandemic not going away anytime soon new ideas and old are coming to life from the entertainment industry. In an article from Wiser Strategies, it mentions how the use of more animation may become popular. Also other ways to view films such as Drive in Movie theaters are somehow coming back to life. There have been many old drive in movies that have resurfaced due to the pandemic and people wanting to get out of the house and watch a film. The idea of it is very appealing to those afraid of the virus while also wanting to experience going to the movies. With more animated films there is no filming, everything is computer generated and voice actors are only needed. With everything going on in the world it is nice to see how the entertainment business is adapting and overcoming these major obstacles. Being stuck at home is already awful enough, but then to not have any new content come out from these big companies would just be worse. At least we will still be able to have new releases and films, but with these new tactics and safety measures in place.
DeMoor, Published by Zachary. “Covid-19's Impact on the Film Industry.” Wiser Strategies, 1 Dec. 2020, wiserstrategies.com/covid-19s-impact-on-the-film-industry/.
Keegan, Rebecca et al. "2020's Big Plot Twist: How 'Wonder Woman 1984' Came to Upend Hollywood's Future." The Hollywood Reporter 16 December 2020,
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,
Szalai, Georg. "Studio Profit Report: Netflix Reigns, Paramount and Sony Gain." The Hollywood Reporter 5 March 2021.