film studios – Trekking with Dennis

One of the consequences of the pandemic has been the long-term closure of many cinemas (movie theaters for my American readers). Aside from a short respite last July and August, most cinemas here in the UK have been shut since March 2020 – for well over a year now. Some, like a local independent cinema near me, have had no choice but to close permanently, even with the end of lockdown seemingly in sight. Even when cinemas are able to reopen, limits on capacity due to social distancing, the general unease among many people about sitting in a room with dozens of strangers with the pandemic still ongoing, and most significantly, the lack of major film releases in the near term will – in my opinion, at least – most likely mean it will be a long time before things are able to get back to normal.

But will things ever get back to normal? That’s the question I want to ask today.

Will empty cinemas be full again one day?

In the early days of the pandemic, most films scheduled for release in spring or summer 2020 were simply postponed; their release dates pushed back by a few months so that they could be released to full crowds when lockdowns were lifted in their key markets. But as the pandemic has dragged on and on, film studios have begun to switch the way they release many big titles – opting to send them to streaming platforms rather than wait.

Without Remorse was originally supposed to get a theatrical release, but premiered on Amazon Prime Video instead. Raya and the Last Dragon went directly to Disney+. Then there are titles like Zack Snyder’s Justice League, Mulan, The Little Things, Godzilla vs. Kong, Bill & Ted Face The Music, News of the World, and Tom & Jerry. Upcoming titles such as Jungle Cruise, Space Jam: A New Legacy, Black Widow, Malignant, and A Quiet Place II are all going to either be released directly on streaming or with a limited theatrical run at the same time as going straight to streaming.

Animated film *Raya and the Last Dragon* went straight to Disney+ earlier in the year.

Is this a one-time thing, purely caused by the pandemic? And if it is, will audiences be happy to return to cinemas once the pandemic has cleared and they can fully reopen? If you’d asked me in March or April last year, I’d have said yes to both questions without hesitation. But now I’m not so sure.

There are a lot of advantages to streaming compared to going to the cinema, and as more and more people come to see those advantages, the cinema becomes a less-attractive option in contrast. This trend is not new – cinema attendance has declined a lot from where it was a few decades ago, and with the rise of high-quality television series which can rival and even surpass films in many cases, this is a reckoning that cinemas have had coming for a while. The pandemic has accelerated that to light-speed, but the trend has been going in this direction for a while.

Paramount+ is one of many competing streaming platforms that have arguably benefited from the forced closure of cinemas during the pandemic.

So what are the supposed advantages of at-home streaming? The first has to be convenience. Viewers can watch what they want on their own schedule, with the ability to pause a film to take a phone call or go to the bathroom, watching before or after work, or even late at night. It’s possible to watch with subtitles, audio description, director commentaries, and even watch in other languages. Most folks are more comfortable in their own homes than they are in a cinema chair – even the nicest cinema seats aren’t as pleasant as a comfy armchair or couch. There are no distractions from (other people’s) noisy kids, people munching popcorn, or idiots on their phones. You don’t have to sit through half an hour of adverts and trailers to get to the film. If you’re using a phone or tablet it’s possible to watch on the go, or literally anywhere. And some of the things we might’ve considered to be disadvantages a few years ago – such as screen size, resolution, and audio quality – are all easily surmountable even for folks on a limited budget.

Obviously not all of these points apply in every single case, but as a general rule, as screens get bigger and better, the need to watch something in the cinema is dropping. The old adage that a particular film was “better in the cinema” or “made for cinemas” no longer applies in many cases.

Amazon Prime Video have snapped up a number of films that couldn’t get a theatrical release this year – including *Without Remorse*.

I have a relatively inexpensive 4K television that doesn’t have OLED or HDR or any of those higher-end features, just a bog-standard LED set. But this model, even when I was buying it a few years ago, only started at a 40-inch screen size, with sizes going all the way up to 60″ or 65″. Nowadays, 85″ and 90″ sets are on the market and within reach of many consumers. Sound bars and speakers that put out fantastic quality audio are equally affordable, with prices dropping massively from where they had been when 4K and large screens were new. Even on my cheap and cheerful set, films look great. And if you sit reasonably close, it really does feel akin to being in the cinema – in the comfort of my own home.

It’s difficult, in my opinion, for cinemas to compete on price or quality. Even the more expensive streaming platforms, like Netflix, cost around £10-12 per month. It’s been a while since I was able to go to the cinema – health issues prevent me from doing so – but the last time I was able to go, £10 wouldn’t even stretch to two tickets. For that money you get one month’s worth of access to a massive library of titles – including many brand-new ones and Netflix originals made specially for the platform.

Large, good-quality television screens are increasingly affordable and offer a cinema-like experience at home.

In the late ’40s and ’50s, when my parents were young, going to the cinema was a frequent outing. You’d see an A- and B-movie, as well as perhaps a newsreel or something else, and it would feel like good value. Since the early 20th Century, going to the cinema on at least a weekly basis was a big part of many peoples’ lives – but things have been changing, slowly, for quite a while.

For at least the last couple of decades, going to the cinema is something most folks have viewed as an occasional treat rather than a regular outing. The price and value of a cinema ticket – and the additional extras like drinks and snacks – have shot up in relation to earnings, while at the same time the number of advertisements and trailers have also increased. Though the cinema still has a place in many folks’ lives, that place had been slipping long before the pandemic arrived. In the ’90s and 2000s, the blame for that lay with cable and satellite television channels, including many dedicated film channels. Nowadays, the blame has shifted to streaming.

Netflix has picked up a lot of subscribers in the past year.

Many film studios are keen to play their part in this trend, too. Sharing a big chunk of their profits with cinema chains and operators was never something they were wild about, which is why we’re seeing more and more studios and production companies either partnering with big streaming platforms or else trying to launch their own. Paramount+ exists for this reason, as do Disney+, HBO Max, and many others. These companies don’t care in the slightest about the fate of cinemas – except insofar as they can use them to turn a profit. When the pandemic meant that wasn’t possible, many companies happily jumped ship and released their films digitally instead.

Though I know a lot of people who have told me they’re keen to get back to the cinema as soon as possible, when I probed most of them further and asked how often they would go to the cinema pre-pandemic, or what films they were most excited to see at the cinema next, all of the answers I got back up everything I’ve been saying. Most folks go to the cinema infrequently at best, and while they’ve missed some of the social aspects of the “cinema experience,” they certainly haven’t missed the adverts, loud seat neighbours, and hassle. Streaming, while not as glamorous or exciting in some ways, is a more enjoyable experience in others.

Some people have missed every aspect of being at the cinema… but many haven’t!

I know I have to acknowledge my own bias here. As someone whose disability prevents them going to the cinema, I’d be quite happy if every film I want to watch from now on comes directly to streaming! On a purely selfish level, that’s something I’m fine with. And while I stand by the fact that the trend away from the cinema in a general sense is real and demonstrable, the pandemic probably hasn’t killed the entire concept of the cinema stone-dead. Nor would that be a good thing. Many cinemas offer more than just the latest blockbusters, with classic films, recorded theatre plays and ballet performances, and other such events. In the rural area where I live, the idea of being able to see something like the Royal Ballet is beyond a lot of people due to the distances involved. But local cinemas occasionally show things like ballets, operas, and Shakespeare plays, bringing a different kind of culture and entertainment to the region. Cinemas are also big local employers, and it’s nothing to celebrate when a local business is forced to close.

So most cinemas will eventually re-open. But the question I asked is still pertinent, because I don’t know whether they’ll see pre-pandemic numbers of visitors for a very long time – if at all. The pandemic has forced the hand of film studios and distributors, and the result has been an uptick in the number of subscribers to streaming platforms. Many folks have tried streaming for the first time, and while there will always be holdouts, people who proclaim that it really is “better in the cinema,” I think a lot of people have been surprised at how enjoyable streaming a film at home can be, and how favourably it can compare to the cinema experience.

Many people haven’t missed the “cinema experience” as much as they expected.

A big home theatre setup is no longer necessary. With a relatively inexpensive – but still large – television set and maybe a sound bar or pair of satellite speakers, many people can have a truly cinema-like experience in their own living rooms. And a lot of people who’ve tried it for the first time, prompted by lockdown, may have no plans to return to the cinema any time soon – or if they do, they’ll be making fewer trips.

In my opinion, this is something that has the potential to continue to build over time. As screens continue to improve, and as more people eschew the cinema in favour of staying in, more films will go direct to streaming because companies will see more success and more money in it. Fewer films will end up in cinemas exclusively, so fewer people will go. And the cycle will continue!

Even if I’m wrong on that final point, I do believe that we’ve already seen a slow move away from cinemas in the pre-pandemic years. The pandemic came along and blew the lid off that, and while there will be a return once things settle down, at-home streaming is here to stay. It benefits viewers and companies – the only folks who are going to lose out are the cinema chains themselves. I’m not saying it’s a positive thing necessarily, although it does stand to benefit me in some respects, nor am I advocating for it. But when I look at the way things have been going over the past few years, and add the pandemic’s disruption into the mix, I really do feel that we’re seeing a big move away from the cinema in favour of at-home streaming.

All titles mentioned above are the copyright of their respective studio, distributor, production company, etc. This article contains the thoughts and opinions of one person only and is not intended to cause any offence.

To perhaps nobody’s real surprise, three big films have recently announced delays: No Time to Die, Dune, and The Batman. With the coronavirus pandemic clearly not dying down any time soon – at least in the west – studios quite rightly feel that releasing their titles this year or even early next year won’t bring in audiences and won’t make enough money. They’re not wrong in that assessment; many people I know here in the UK would be uncomfortable visiting a cinema in person, even if the law or guidelines say that doing so is allowed. It’s going to take time – and, perhaps, a widely-available vaccine – for that mindset to change.

Over the summer, the UK government ran a scheme called “eat out to help out.” If you’re unfamiliar with it, the programme offered diners a 50% discount (up to a maximum of £10 per head) at participating restaurants. The goal was to encourage people anxious about the ongoing pandemic to get back into restaurants and, frankly, save the industry from collapse. It was successful, at least partially, with participating restaurants reporting increased takeup. However, such schemes are temporary, and there’s no way the government could run something like that for every impacted industry.

Cinema bosses have denounced decisions to delay releases – or, in the case of titles like Mulan – send titles directly to streaming platforms. Without big blockbuster releases, there’s no way to entice cinema-goers back, and the entire industry is on the brink. Cineworld, one of the world’s largest cinema chains, has announced it will close all of its US and UK sites until further notice – putting 45,000 people out of work. This is the real impact of the pandemic, and the longer it goes on, the worse it’s going to get.

There’s no “eat out to help out” equivalent coming to cinemas. The industry is on its own to handle the fallout from the pandemic – as are so many others – and there’s no easy fix. Until the public at large have confidence that it’s safe to go out, that it’s safe to sit in a big room with a couple of hundred strangers, there’s nothing that can be done. Even the release of Tenet in August failed to bring in sufficient numbers of viewers to make running a cinema financially viable. At this rate, the highest-grossing film of 2020 will remain Bad Boys for Life. Nobody would have predicted that in January!

I can understand from the cinemas’ perspective that film studios aren’t behaving appropriately. Cinemas and film studios are two parts of a greater whole, yet the studios have unilaterally acted to pull their films, either delaying them or sending them directly to streaming. And I can understand why that’s going to sting. Where there could have been a coming together, it feels like the bigger companies are acting selfishly; it’s everyone for themselves instead of a sense of community and togetherness.

And ultimately that’s going to make things more difficult. We’ve already seen Odeon, another large cinema chain, pledge to stop showing films from Universal Pictures in retaliation for Universal making Trolls World Tour a streaming-only title. As I wrote when looking at Mulan’s release on Disney+, if every cinema chain were to come together and announce a boycott of companies that acted this way, they could effectively prevent the release of any film they chose. There’s power in working together, but ultimately the question will be: who has that power?

*Mulan* (2020) went straight to Disney+, upsetting cinema chains worldwide.

Film studios clearly see streaming as a viable option. As television screen technology continues to improve – and as screens get larger – the adage that a particular film was “better in the cinema” doesn’t ring true for a lot of people any more. In some ways, the move towards streaming is something we can absolutely argue was coming anyway; like with many things, the pandemic may have accelerated the move, but it didn’t fundamentally cause it. Titles like Annihilation and the critically-acclaimed The Irishman began production with the intention of a theatrical release, but circumstances changed and they ended up going to Netflix instead.

Streaming titles have also been nominated for top awards, and when a film is released digitally nowadays, it’s become so commonplace that it scarcely gets a mention in reviews. When people of my parents’ generation were young, going to the cinema was at least a weekly outing, and not only was there an A- and B-movie but you’d probably also get a newsreel too. Those days have gone, and for increasing numbers of people pre-pandemic, the cinema was an occasional treat rather than a regular one. Attendance has been steady, but the likes of Netflix, Amazon, Disney+, and big-budget television series like Game of Thrones have slowly been eroding the need for cinemas. In short, if cinemas try to pick a fight with film studios over digital releases, I think they’ll likely lose.

But for film studios it’s not as clear-cut. Selling an already-made film to the likes of Netflix is a complicated undertaking. Netflix wants to make sure any purchase is going to be worth its while, and the gold standard is whether a title will bring in new subscribers. As a result, I think it’s not unfair to say that a lot of films would likely make more money at the box office than on a streaming platform. That’s why Mulan costs $30 instead of being available to anyone with a Disney+ account; Disney wants to make as much of the film’s budget back as possible.

Bringing a film to Netflix – or any streaming platform – is not straightforward and will not make as much money, in most cases, as a theatrical release.

Making a film is an expensive project, and the vast majority of any title’s money is made at the box office, not through streaming or sales. If film studios were to move to streaming-only releases, a lot of things would have to change. Budgets may have to fall in some cases, which would not only be to the detriment of the quality of films, but would also put more people in the industry out of work.

As I said at the beginning, there is no easy answer. Streaming is a short-term solution that may be viable for some projects, but certainly can’t replace the revenue of a full theatrical release for most titles. Mulan was a test case, but as a film that has received mixed reviews at best, it perhaps isn’t the best example for studios to look to. And besides, most film studios don’t have their own streaming platforms, meaning they have to negotiate with the likes of Amazon or Netflix to put their titles out.

One thing that history teaches us about the longer-term effects of a disaster on any industry is that things do eventually get back to normal. If one big cinema chain were to go out of business this year, within five years or so most of its empty cinemas will have been bought up and reopened by some other company. The desire for going to the cinema may not be present right now, but it will largely return when the pandemic is brought under control. At least, that’s the way I see it. Streaming has already been disruptive, but there’s still a sense of enjoyment in going to the cinema, and from the point of view of studios, streaming is far less profitable. That means that as soon as they can, film studios will want to encourage people to get back to the cinema.

How long the pandemic will continue to drag on, and how long studios and cinema owners can hang in there are the big questions right now. And unfortunately those are the same questions people are asking across many different sectors of the economy. When the pandemic is brought under control – and it will be, sooner or later – how many businesses will have survived? And how long will it take to rebuild? From the point of view of films, are we about to enter a “dark age” where budgets and quality drop? I don’t have a good answer to any of these questions. Only time will tell.

All titles mentioned above are the copyright of their respective studio and/or distributor. This article contains the thoughts and opinions of one person only and is not intended to cause any offence.

Tag: film studios

Have we seen an unstoppable shift away from the cinema?

There’s no easy answer for film studios and cinemas right now