Movie Theaters Will be The Next Blockbuster

Going to the movies is something that has played a major role in our way of life. Theaters are a pillar of communities. A place for excitement, imagination, social gatherings, edible treats, and admiration for our favorite celebrities. Whether you are a film buff or just the occasional viewer waiting for the next film with their favorite actor to release. According to the bureau of labor statistics, consumers spend around $1,000/yr on movie stubs. Pre-ordering tickets 3-4 weeks in advance of the most popular releases, grabbing popcorn, drinks, and snacks has become an exciting event for the industries most exciting box office titles.

Outside of technology that enhances (seating, projector technology) the theater experience and bigger companies like AMC pushing out small mom and pop theaters, the industry really hasn't changed a bit. Until Now!

Streaming services have thrived and soared to unimaginable heights. The cord has been cut from the cable industry and essentially act as internet providers for all intensive purposes. Home Movie Theaters and big screen tvs are present in most homes. While we all love a goodnight out, a movie at home is convenient, costs less for the consumer (i.e. snacks, food etc.), and is just flat out more efficient which we covet as a society.

The Covid-19 pandemic forced the film industry to adapt in a way that it had never planned for nor ever experienced. Digital only, all theaters closed. A few films postponed its release date while others decided on a more innovative route. For the cost of 2 movie tickets ($29.99) you can stream your desired movie and own it. 

By The Numbers 

Invisible man

$7 million to make - $135 million grossed across streaming services. The forecast was not projecting a large gross but did well and not having a large portion of the gross paid to theaters is a clear win. 

Trolls

$100 million across streaming platforms - $150 million in the box office. The studio turned a higher profit on streaming devices. 

Tenet 

Has only made $50 million overseas and is expected for a less than eye popping number due to 40% of theaters currently shutdown and consumers that don't feel comfortable attending. Within the U.S. it's reasonable to say that the latest Christoper Nolan installment would have grossed 150 mill within the first week on streaming services. Imagine the film not having to fork over half the cash to AMC. 

Production companies and filmmakers now have a pathway to greater financial gains. While a movie will report grossing a higher number in the box office keep in mind that movie theaters keep a large portion of the profit share (about 50%). The benefits of the consumer are overwhelming. Much like saving money, time, hassle of going to Blockbuster. Who wouldn’t want to spend $30 to watch Tenet this weekend and be able to re-watch it at your leisure? Movies direct to streaming services will push theaters out of business. It's what the consumer wants and the financial benefits for Studios and film makers is a no-brainer.