Streaming services challenge the future of movie theaters - The Daily Universe (2023)

Streaming services challenge the future of movie theaters - The Daily Universe (1)

In the future, going to the movies is going to be like going to the opera: a special occasion where you put on a nice suit and make an evening out of it. At least that’s what film critic David Sterritt said he remembers someone saying almost 20 years ago.Now in 2022, it doesn’t seem to be the most far-fetched idea.

“I’m not literally saying that,” Sterritt said about the opera comparisons. “But clearly things have been veering in that sort of direction for quite a while.”

Sterritt takes movies seriously. He has a Ph.D. in cinema studies from New York University, spent 10 years as the chair of the National Society of Film Critics and now works as a film professor at the Maryland Institute College of Art. Movies are a huge part of his life.

Sterritt said for decades he has greatly preferred to watch movies on his home TV rather than go into the theater, even though a lot of his colleagues prefer the latter.

Movie theaters and movie releases have long been intertwined. Sterritt said in the 1980s when the original “Dune” movie came out, he had the chance to speak with writer and director David Lynch about the film.

He said Lynch believed his version of “Dune” had to be seen in a movie theater with a great screen and excellent sound. Sterritt challenged Lynch on that, saying a lot of people in the future were going to be watching the film on video.

This same sentiment expressed by Lynch is visible in other contemporary filmmakers. In a letter written to “Variety,” “Dune” (2021) director Denis Villeneuve said he was upset with the decision to release his version of the film on streaming the same day it was released in theaters.

“With this decision, AT&T has hijacked one of the most respectable and important studios in film history. There is absolutely no love for cinema, nor for the audience here,” Villenueve said in the letter.

Sterritt said technology has brought so much accessibility to movie-watching. He grew up in an era where you couldn’t watch a movie unless it was playing in the theater near where he lived, and once it was gone from the theater you couldn’t watch it unless it happened to play on TV.

People could watch the new “Dune” in the comfort of their own home the day it came out, and most people will watch both Lynch’s and Villeneuve’s versions of “Dune” on smaller screens long after their theater runs are over.

Sterritt said for someone who spends prodigious amounts of time watching movies, he finds significantly fewer distractions in the comfort of his own home.

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“Unexpected things confront you in the movie theater; the person behind you is talking or answering the phone, or rumbling popcorn and stuff like that,” he said.

Sterritt has a nice big screen in his living room and said he feels as though he is able to achieve something really close to the theatrical experience there.

COVID-19 and the great shutdown

If the movie distribution model had been veering away from theaters, COVID-19 gave it quite the push.

During the pandemic, theaters have seen a steep decline in attendance. In 2020 AMC lost $4.5 billion, and both Cinemark and AMC had to close all their theaters.

The preference for movie theaters has decreased since the start of the pandemic. A study done by Statista found that in November 2018, 28% of people strongly preferred to watch a movie for the first time in theaters and 15% strongly preferred streaming. In June 2020, those numbers practically flipped, with 14% saying that they strongly preferred the theater and 36% saying that they preferred streaming.

Streaming services challenge the future of movie theaters - The Daily Universe (2)

The impact of COVID-19 can’t be understated when looking at these numbers. Statista said risk of infection was definitely a factor in consumers’ decisions to attend or not attend theaters.

Streaming in general has gotten more popular. Another study done by Statista found that 52% of consumers in the U.S. had some form of streaming service in 2015. In 2021, that number increased by 26%, with 78% of consumers having at least one streaming service.

The Quorum, an organization that tracks information related to film marketing, published a study in November 2021 about people’s willingness to attend movie theaters. This study was an effort to determine who wasn’t going to the theaters anymore and what would make them more comfortable returning.

Streaming services challenge the future of movie theaters - The Daily Universe (3)

The study found that 33% of respondents have continued to go to the theaters despite COVID-19, even during the delta variant surge. On the other side, 8% of respondents said they stopped going to the theater altogether when the pandemic began. Of all respondents, whether currently attending the theater or not, 71% said they would be disappointed if theaters disappeared.

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Along came a spider

Among those who would be disappointed to see theaters go is Tori Baker, President & CEO of the Salt Lake Film Society. Baker said the group’s mission is to exhibit and preserve — and part of preserving means preserving the movie theater experience.

“We are preserving that communal experience where you come together, sit around the fireside, tell the story,” Baker said.

Baker said the aspect of being with a lot of other people is integral to that experience.

“It’s about the coming together and the feeling of communal emotion,” Baker said. “That shared experience and the energy that happens in a room is super unique. You can possibly feel it with your partner on your couch for a little bit, but it’s very different to feel it in a dark room with 200 strangers.”

Many people were able to experience that feeling of coming together with the release of “Spider-Man: No Way Home.”

Kaden Prows, a BYU student studying media arts, said watching “No Way Home” in a packed theater was one of his favorite movie-watching experiences ever.

“Had I just watched this movie on my own, I probably would’ve thought it was pretty good. It was a good movie,” he said. “It’s not a perfect movie, but seeing it with that crowd made me like the movie a lot more than I would have had I just watched it in my home on a small screen.”

Prows, who went to see movies in theaters more than 25 times last year, said the atmosphere made the experience very special and unique. He said the coming together of a crowd to experience something they loved gave him the feeling of euphoria.

Other people share this sentiment about “Spider-Man: No Way Home.”Cheyanne Elton, a BYU student from San Diego studying media arts, said movies like “No Way Home” become an event that you plan ahead for and they’re something you want to experience with other people who like the same things you do.

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While it’s impossible to know for sure what the future of movie theaters looks like, “Spider-Man: No Way Home” shows that people are still willing to go to the movies. The film made more than $1.5 billion globally, becoming one of the highest grossing movies of all time.

Kelly Loosli, an animation professor at BYU and co-creator of the school’s animation program, said movie theaters are still important to filmmakers. She said most filmmakers still want their movies screened in theaters for the experience that it provides as well as for the financial benefits.

“Most of them grew up watching movies in the theater and they love that experience. More important than that is the financial impact. It used to be that a movie would play in the theater, then it would go to prime cable TV stations like HBO, it would be sold on DVDs or Blu-rays, then after that play on channels like NBC or CBS,” Loosli said.

Loosli also said streaming services have their upsides and that they allow for other types of movies to be made. Not a lot of romantic comedies or relationship-based films end up in theaters, but those types of films are still being made for streaming. However, Loosli said the problem with movies made for streaming is that a lot of those films are being made with less care and quality.

Baker said a lot of companies follow the “quantity over quality” model and that as long as a service pushes enough content onto their platform then subscribers will continue to pay the monthly fee. She said what sets theaters apart from the vast amount of streaming services is the quality.

“There’s no way that anybody’s going to invest in a theatrical release because it costs money to mount that, unless they stand behind their work and unless they’ve gone through this kind of rigid process,” she said.

Baker said a theatrical release is what every filmmaker shoots for, and getting that release says something about the filmmaker’s work. While there can be good content on streaming services, the movie theater is where you’ll find the films that have made their way to the top.

The cultural impact or lack thereof

While “Spider-Man: No Way Home” was able to make a good amount of money, other films in 2021 weren’t as fortunate. Many films didn’t make back their budget, even critically successful films such as “The Last Duel” and DC’s “Suicide Squad.” Loosli said theaters may evolve to be houses for big-event films only.

“Streaming doesn’t seem to have this same sort of ‘wow’ factor,” Loosli said. “We may just find that theatrical releases end up being for more unique films that can create this audience draw, and everything else goes to streaming.”

Loosli also said the recent Disney and Pixar movies that have been released on streaming haven’t thrilled him.

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“Is that because they aren’t as good or is that because the venue in which I watched them didn’t create the same experience? I don’t know. For me, seeing a movie I am excited to see in a theater is still my top priority,” he said.

Baker said she believes for a piece of media to achieve true cultural relevance it needs millions of eyeballs on it. She said a big streaming platform like Disney could have those millions of eyeballs, but the question is whether or not it will get those views in a certain time frame.

“It’s probably the theatrical window that really is the magic sauce to cultural relevance,” she said. “There’s something to that model that inherently allows that window to protect you being able to talk about that at the water cooler, so to speak, which is what it takes for cultural relevance anymore.”

While it’s hard to know exactly how the distribution of movies can impact culture, Baker said she believes the impact movie theaters can have on people is immense.

“If you’re going to the theater, you’re going to have that experience at some point that either changes who you are or shapes your worldview,” she said.

To each their own

In referencing his comparison of the movie theater becoming like the opera, Sterritt said he was exaggerating and it’s pretty clear people still want to go to the movies.

He himself goes every once in a while when there’s a movie he wants to see that isn’t streaming, and he said he assumes his local theater sells a lot of Saturday night tickets. He said he wants theaters to be available for anyone who wants to go have that community experience, but he also doesn’t think the future is going that direction.

“I think the future is going to be a hybrid, and I think there will be fewer movie theaters than there used to be. But I hope that there are still plenty of them,” Sterritt said. “The main bulk of movie-watching will probably be done by people at home.”

His heart goes out to all the film proprietors losing tons of business. He said he wishes they weren’t, but it doesn’t give him any qualms to watch movies at home. He believes a lot of people feel the same way.

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FAQs

Do you think OTT platforms will replace theaters in time to come? ›

Theatres provide employment to many skilled and unskilled workers. To watch and experience 3D and 4D movies, many people have to go to theatres. So, OTT platforms cannot completely replace theatres.

What is alternative content AMC? ›

'Event Cinema' or 'Alternative Content' refers to the showing of event-based content to your audience instead of traditional feature films.

Will movie theaters disappear in the future? ›

And yet, whether out of movie-loving optimism, showbiz-savvy pragmatism, or both, nearly all of EW's interviewees believe that we'll still be heading to theaters in 2032. "Movie theaters aren't going anywhere!," insists director/writer M.

Is it better to see a movie in the theater or stream it at home? ›

The advantage that going to see a movie at a theater has over watching it at home is the screen at the theater is typically much bigger. With the screen being so much bigger, that not only allows you to sit in a wider number of spots in that room, but also adds to the immersion of it all.

Are streaming services killing theaters? ›

Streaming services are single-handedly killing off many movie theaters one by one. By releasing their movies either close to when they release in theaters or even releasing them the same day as they release in theaters, theaters everywhere are forced to compete with a free-watching experience.

How do OTT platforms affect the film industry? ›

It makes advertising more profitable as films and web series watching becomes more common for everyone with a subscription. More movies are releasing and will also hit the popular OTT platforms the Netflix, Disney+ ,Prime video etc. DATA COLLECTION AND ANALYSIS: Data was collected by online through google forms.

Is there a free version of AMC+? ›

An AMC Plus free trial also gets you seven days of access to the best content BBC America, IFC, and Sundance TV have to offer, and full access to Shudder, Sundance Now, and IFC Films Unlimited. The AMC Plus free trial is worth considering if you have an interest in streaming platforms such as Disney Plus and HBO Max.

Is AMC premiere free if you have AMC? ›

This is not your typical streaming service. Unlike Netflix or Hulu, AMC Premiere is not a standalone service — rather, it requires that you already have access to AMC. But this service is also not just a streaming app for AMC viewers: It has a subscription fee and offers exclusive content.

How do I avoid AMC convenience fee? ›

Convenience fees cannot be refunded, but you can avoid paying convenience fees by joining AMC Stubs: AMC Stubs A-List and Premiere members never pay ticketing fees on our site, our app or our partner sites, and fees are waived for Insiders who buy 4+ tickets. Was this information helpful?

Are movie theaters losing popularity? ›

Movie attendance was also down among moviegoers. In 2021, those who attended a movie saw 3.6 films on average, compared with 6.9 in December 2007 and no fewer than 5.7 in any other Gallup survey.

Are movie theaters struggling? ›

Top Gun: Maverick was a standout success at the box office in a summer full of big winners, but new data shows movie theaters are still struggling to fully recover from the pandemic amid increasing competition from streaming services and a limited release schedule.

Why don t movie theaters do 3D anymore? ›

Unfortunately, due to the widespread shutdowns that year, and 3D being a format that makes most of its money in the theater, most films were shifted to 2D only streaming releases, even if the 3D version had already been completed. For the most part, 3D stopped cold that year.

Why people prefer going to the cinema instead of watching movies at home? ›

Also, a big plus of cinemas is a big screen, which is many times bigger than any TV. More cinemas beautiful sound with the effect of Dolby Surround, which further immerses you in the movie.

Why are there fewer people going to the cinema to watch movies nowadays? ›

Especially after the global COVID-19 pandemic, people prefer to stay indoors rather than go out and watch a movie in the theater.

Is streaming hurting the film industry? ›

In a year when Hollywood largely failed to jump-start theatrical moviegoing, streaming services solidified their hold on viewers. Global ticket sales totaled $21.3 billion in 2021, down from $42.3 billion in 2019, according to the Motion Picture Association.

Are people leaving streaming services? ›

So streaming is competing with all other forms of media for the finite amount of time everyone has. This could be why the average number of streaming services people subscribe to has gone down from 3.4 in 2020 and 2021 to 2.6 in 2022.

Why do streaming services get rid of movies? ›

Just because content lives on a service doesn't mean that it's free after sunk costs. Streaming services still must pay residuals to casts and crews of a production, and those costs pile up. HBO Max will save “north of $100 million annually” after removing the shows, according to a source familiar with HBO's decision.

What is the challenge that the OTT platform is facing? ›

Challenges faced by OTT Platforms

The biggest challenge faced by OTT platforms is distribution. For eg. to operate these platforms on TV, one has to upgrade their TV into a smart TV. However, in the younger generation we see that people are willing to pay the price whether it is big or small for them.

Is OTT industry a disruption to movie theatre industry? ›

A major disruption in Indian entertainment industry is the emergence of OTT (over-the-top), which shares around 7-9 per cent of the entertainment industry, and is constantly growing with over 40 odd players and offering original media content in all languages.

How OTT is changing the film industry? ›

Seamless content viewing experience across multiple devices

One of the most pronounced reasons the OTT industry is making advances in how they provide their services is because of the hugely improved customer user experience (UX) that they offer.

Is AMC plus free with Amazon Prime? ›

You can get AMC+ on Amazon Channels. Like all subscribers, there is a free trial available if you haven't had the app before. After that, you'll need to pay on the monthly subscription price. It costs $8.99 per month for all the content available.

Does Peacock have AMC? ›

AMC Networks Inks Content Deal With NBCUniversal's Peacock Streaming Service. AMC Networks continues to expand distribution beyond the pay-TV ecosystem.

What is the difference between AMC and AMC+? ›

How is AMC+ different from AMC Premiere? AMC+ is a bundle that includes all the benefits of AMC Premiere plus much more: the premier collections of Shudder, Sundance Now, IFC Films Unlimited— plus exclusive series and Ad Free access to acclaimed shows from AMC, BBC America, IFC, and SundanceTV.

How much is a subscription to AMC premiere? ›

AMC Premiere plans and pricing
AMC Premiere
Monthly price$4.99
Annual price$59.99
Free trial7 days
Number of titles70+
6 more rows

How do I get a free AMC account? ›

Does AMC+ have a free trial?
  1. Visit Amazon Prime Video's website.
  2. Click “Start your 30-day free trial“
  3. Enter your information and payment method, and create an account.
  4. Visit Amazon Prime Video's AMC Plus page and start your free trial.
  5. Start watching with Amazon Prime Video's AMC Plus free trial.
30 Sept 2022

Which states do not allow convenience fees? ›

States that prohibit credit card surcharges and convenience fees. Ten states prohibit credit card surcharges and convenience fees: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

Why do we pay convenience fee? ›

A convenience fee is a charge that consumers pay to digital service providers for the service or the convenience they offer, which could be for payment of electricity, broadband, railway ticket or air ticket. IRCTC, the railways ticketing website, under the Ministry of Railways, charges a convenience fee of up to 10%.

How can I avoid booking fees on movie tickets? ›

There is no way to get these fees waived. Usually, they are handled by the merchant and are related to the channel of purchase. So, getting them waived is entirely a decision by the person who wants your money and there is no legal precedent for getting them waived. You do not have a right to convenience.

Is streaming more popular than movie theaters? ›

In 2018, 28% of people strongly preferred to watch a movie for the first time in movie theaters, with only 15% preferring to stream it. However, by June 2020, the percentage of adults strongly preferring to go to the theater plummeted to 14%, with 36% preferring to stream movies.

Do movies still make money after theaters? ›

The film industry is in flux, and ticket sales alone don't drive revenue. There's merchandising, VOD, streaming video, foreign sales, and a plethora of other distribution channels that can help filmmakers, producers, and studios turn a profit.

Why are movie theaters going out of business? ›

Some studios continue to release films on streaming services and in theaters at the same time, or bypass theaters altogether, and the cost of running a theater keeps climbing. Almost everyone agrees that the 117-year-old movie exhibition business cannot keep going like this.

What movie chain is going out of business? ›

Cineworld, the world's second largest movie theater chain, files for bankruptcy.

Is Regal shutting down? ›

PUBLISHED: September 15, 2022 at 3:04 p.m. | UPDATED: September 16, 2022 at 10:02 a.m. Regal movie theaters in Anaheim Hills, Irvine and Calabasas will close later this month as owner Cineworld Group reorganizes the chain and its leases in bankruptcy court. The London-based company filed a motion Sept.

Is AMC going out of business? ›

The company came back from the brink of bankruptcy in 2021 thanks to millions of retail investors who turned its shares into a meme stock. Since then, AMC has devised several plans to raise more capital to pay down its debts and invest in acquisitions, theater upgrades, a popcorn business and even a gold mine.

Is IMAX 3D better than 3D? ›

The audio in the IMAX 3D is uncompressed and therefore seems to be of a better quality as opposed to RealD 3D whose specifications on sound are not standard but vary by theatre. When it comes to depth of the picture, Imax Digital 3D offers better quality with the image seemingly popping out of the picture.

Are 3D TVs coming back? ›

The technology is available to be re-implemented at any time that TV makers choose, but it is not likely in the near future - However, video projectors provide a better 3D viewing experience than TVs and there are still a number of video projectors that include 3D viewing capability.

Do you still wear glasses for 3D movies? ›

TV makers have discontinued glasses-required 3D TVs for consumers. Still, many video projectors offer 3D viewing capability as they are used in both home and professional settings. However, that still requires viewing using glasses.

Is there a way to watch movies that are in theaters at home? ›

Whether you're on your couch or on the go, we'll bring the movies to you. AMC Theatres On Demand is available on Roku, LG and Samsung Smart TVs or via the AMC Theatres website or app. Search for the AMC Theatres On Demand app on the channel store of your Roku, Apple TV, LG or Samsung Smart TVs.

How can I watch new theater movies at home? ›

If you want to catch a new release film, you probably don't need to go to the cinema.
...
  1. AMC On Demand. AMC is the largest in-person cinema chain in the United States and Canada. ...
  2. Vudu. ...
  3. Amazon Video. ...
  4. Apple TV. ...
  5. Redbox On Demand. ...
  6. Your Usual Streaming Service Subscription.
7 Sept 2022

What is the best way to stream new movies? ›

  1. Netflix. Best for Original Movies. Jump To. ...
  2. Hulu. Best for Movie Variety. Jump To. ...
  3. Peacock. Best for Free TV and Movie Streaming. Jump To. ...
  4. Amazon Prime Video. Best for Popular Movies. Jump To. ...
  5. Disney+ Best for Family-Friendly Movies. ...
  6. HBO Max. Best for WarnerMedia Movies. ...
  7. KweliTV. Best for International Films. ...
  8. Tubi. Best for Free Movies.

What are the difference between watching a movie at home and watching it in Theatre? ›

At home, a person can pause, rewind, or forward when necessary. In addition, one could watch a movie halfway, stop it and look for another if he or she does not like it. In theaters, a viewer could leave the place for a while, but miss some sections. This means that watching movies at home is convenient.

Why is TV more popular than cinema? ›

They spend a lot of free time watching different TV programs. People eager to watch TV because you do not have to focus and imagine the situation as in the case of reading books or listening to the radio.

Why people stopped going to the movies? ›

Infrequent moviegoers cite preference for streaming, high costs of tickets among reasons they're not ready to head back. The popcorn is popped, the trailers are rolling and movie theaters are eagerly awaiting — or perhaps praying for — a rush of crowds as the summer movie season approaches.

Will Netflix replace movie theater? ›

Netflix does not plan to buy a movie theater chain, co-CEO says.

Which is better theatre or OTT platform? ›

Ott platforms are cheaper than the theatre. The average cost of the monthly subscription to the ott platform is around 149 to 199 in India. Where the cost of a single ticket in multiplex starts from 249/- in small cities. So people found ott more cost-effective and beneficial.

Can OTT replace the business of multiplex? ›

OTT players will soon do unto multiplexes what multiplexes did to VCR/VCP/VCD players during the early 2000s, according to SBI Research's assessment. It forecast OTTs to become a Rs 12,000-crore market by 2023 — a major jump from Rs 2,590 crore in 2018.

Is OTT the future of entertainment? ›

Growth of OTT Video Streaming Has Impacted the Media Industry. The rise of the OTT has driven industry trends to provide better networks that maximize digital connectivity to its core! As per research data, video streaming platforms reach roughly 332.2 million subscribers.

What will Netflix remove in 2022? ›

What is leaving Netflix in October 2022?
  • 10,000 B.C.
  • 26 Years.
  • 3 Ninjas: Kick Back.
  • 6 Bullets.
  • Agyaat.
  • Anjaan.
  • Argo.
1 Oct 2022

What is Netflix getting rid of in 2022? ›

The streaming service will no longer be the home for cherished TV series, including “Quantico,” “Saved by the Bell,” “Gotham” and “Dark Matter.” Netflix will also scrap classic titles, like “Catch Me If You Can,” “Mean Girls,” “Taxi Driver,” “Dirty Harry” and “Dumb and Dumber.”

Is Netflix worth it anymore 2022? ›

Not all of it is good or worthwhile, but considering how good the best Netflix titles are (and the fact that you can still watch Better Call Saul there), I'd say Netflix is still worth the price…for now.

Why is OTT gaining popularity? ›

The accessibility of OTT content is one of the many reasons it's so popular, not to mention that OTT providers are now producing some of the best original content. To stream OTT, customers only require a high-speed internet connection and a connected device that supports apps or browsers.

How much does an OTT platform cost? ›

Depending on the scale of your operation, an OTT hosting platform could cost you anywhere from under $100/month or over $1000/month. Related to hosting costs, you'll have to consider bandwidth costs. This will also vary on a case-by-case basis.

Why is OTT more popular than cinema? ›

OTT will still score here as its audience tapping capacity is larger than theatres. Movies which are released on the OTT platforms cross at least 200 country borders in different languages, hereby reaching more a number of millennials in one go as compared to theatres.

Can OTT streaming platforms ever replace the magic of movie Theatres? ›

No OTT platform can replace the cinematic experience. OTT platforms will never replace the magic of movie theatres. Some movies have to be watched only on the silver screen. But because of coronavirus, some filmmakers are facing financial difficulties.

What are the disadvantages of OTT platforms? ›

People with poor internet connections will not be able to enjoy a smooth viewing experience. Access to the Internet is also required because the materials are only available online. Security and privacy are the two most pressing problems for OTT platforms.

What does OTT stand for? ›

OTT (over-the-top) is a means of providing television and film content over the internet at the request and to suit the requirements of the individual consumer. The term itself stands for “over-the-top”, which implies that a content provider is going over the top of existing internet services.

Does OTT replace cable TV? ›

You can safely say that OTT is not replacing traditional TV as quickly as some people might have guessed. Not to mention, high-speed internet connections can cost up to $20 to $30 per month in these same regions.

How is OTT better than TV? ›

On OTT, you have the option to watch your content ad-free. You just have to pay for an ad-free subscription. Anyone who has watched Indian television knows how truly annoying ad breaks can be. We are mostly very thankful for the ad-free nature of OTT platforms, even if we have to pay a little extra to get that.

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