Will Streaming Services Replace Movie Theaters? Recent Studio Choices Raise Questions on Whether the Theater Industry Can Recover

The pandemic has radically changed everything about our lives. How we shop, how we eat, who we see, where we travel, and it continues to be unique in the way that it keeps rolling out surprises in the way it changes business.

In a radical move that angered struggling theater owners across the country, Warner Brothers made the decision to release the highly anticipated “Wonder Woman: 1984” on HBO Max the same day it was released in theaters. This decision was not only a shock to the movie industry, but it showed that the production studio giants are beginning to favor at home releases amid concerns of in person film viewings. 

The Pandemic of 2020 has been full of surprises, but some of them were to be expected. With states across the country like Massachusetts and New York banning indoor gatherings movie theaters are struggling to find alternatives that suit the needs of the changing climate. This shift in how audiences view their content is much easier for streaming services such as HBO Max, Netflix, Disney+ and Hulu. Larger studios are beginning to realize that making films exclusive to theaters before at home release can actually hurt ticket sales, but theater CEO’s have banded together to make the argument that although it’s strategically logical to release in both theaters and on streaming services theaters should receive showings first.

With the development of DVD’s, Blu-Rays and streaming sites theaters have already begun taking a huge hit. In fact, in 2019 before the pandemic AMC (a titan of the theater industry) reported $149 million in losses. That number has drastically increased in 2020. Even theater giants such as AMC and Regal are attempting to offer different options such as curbside pickup of popcorn and creating their own streaming service, but the losses are accelerating at a rate that the industry is unlikely to recover from. In a recent poll, almost half of the participants stated they prefer streaming new movies than actually going out to the theater, with 80 percent of them saying they couldn’t imagine a world without theaters.

Over time, it’s become apparent that businesses that thrive on social gathering struggle during a global pandemic, but even more so when people can do it at home. With restaurants and theaters seeing massive layoffs, cooking and viewing movies from home is becoming the wave of the future. Many theater CEOs argue that the element of being social is missing in these activities, as cooking and streaming from home requires additional elements such as working on your own meals and being able to afford tech to watch the movie on. 

Media is constantly shifting and adjusting to whatever the current climate demands. Theaters, streaming sites, and fans of media and entertainment all have an impact on where the industry takes us. However, 2020 has shown us that there are situations where choices can become limited, and some industries suffer from an outside source. The theater industry will need to be creative and strategic if they hope to recover from these massive losses.