How will the Movie industry Move forward due to the Worldwide Pandemic?

The whole entertainment industry is on its knees, so what is the future for the movie industry?

Peter Moore
Feb 8 · 5 min read

In this article, I thought it would be to shed some light on the movie sector due to the pandemic.

Movies are of value to the global film community. Global box office revenues totaled in 2020— showing a contribution of almost one-third of the estimated in the value of movie production and distribution.

Hollywood does support more than jobs and suports American businesses each year; With British film & TV is worth around each day to the economy.

Other, countries like China are taking big steps to grow their creative output.

The coronavirus pandemic has halted film production and with the closing of cinemas globally. Normality should hopefully resume; has restarted in some and the industry has adopted remote-work where this is possible for many.

the virus creates huge uncertainty, and the biggest risk seems to be consumers’ lack of confidence in venues.

  • COVID-19 has the global movie industry, halting film production, and closing cinemas in many countries.
  • Even before the pandemic hit, however, (SVOD) was having a on the industry.

What is the transformation of the global movie industry!

Firstly, there is a in movie attendance. But, except for China — where audiences grew to over from 2009–2019.

All other markest and declined!

In , the number of tickets sold has barely changed really, since 1995, while in the UK, admissions have been around per year since 2005.

This is likely not attributable to the movie-going experience. Most operators have invested in theatres, , making seats more comfortable, and introducing consumer-friendly subscription

specifically, demand is believed to be strong, but the suffers from a relative of screens.

“The problem we have in India is a constraint on the supply side of new cinemas, as there is a huge demand for theatres which are able to offer a vast range of bespoke experiences to those looking for great value family and corporate entertainment,” explains Siddharth Jain, Director at INOX Group.

The venue have also been challenged by the theatrical window, the number of times a shows movies exclusively in theatres before releasing them for sale, download, or via platforms.

Since the turn of the century, the theatrical window has narrowed by more than two months.

This change consumer preferences for content, which increasingly favor the streaming video-on-demand (SVoD) .

Many SVoD services are now owned or invested in by the movie studios, which does the incentives to maintain a window.

This has led many of the studios to releases for their own services, leading to a reduction in movies shown in theatres.

According to analyst Matthew Ball, around 15 years ago, the “big six” — Warner Bros, Walt Disney, 20th Century Fox, Paramount, Sony, and Universal — released around major films.

By , only releasing as few as movies, which is a significant drop.

Well-funded SVoD providers with substantial budgets for content are shifting the power balance.

Netflix, Amazon, and others movies made outside the six studios, releasing them directly to consumers and further limiting the pool of movies available to .

So, what is ahead for the industry?

The movie industry is on the edge of the “biggest shift in the history of Hollywood.”

First, the business model is moving from distribution and single-ticket towards owned distribution with recurring revenues.

This is seen by in SVoD services, where a single movie or TV series is rarely a profit driver; rather, recurring subscriptions (and, in some cases, advertising revenue) produce to the overall revenue generator!

As a result of this, media companies no longer optimize releases for fixed schedules, primetime TV slots.

Instead, the goal is , thereby improving user retention and data on content popularity. Tencent’s recent purchases of iQIYI and is the latest manifestation of this trend.

And within its investment in HBO Max, AT&T is accounting for lost earnings from the content it otherwise would have licensed to outside buyers;

HBO Max is expected to become an engine for bundling subscriptions to AT&T’s wireless and data services.

The also normalizes the release of movies directly to consumers, which eats away at the market for the operators.

Theatres take up to of ticket sales; now, this income stream is under threat. Perhaps the most aggressive reaction has been from , which announced a boycott of after the studio bypassed a theatrical release.

Independent movie theatres are expected to be heavily impacted.

Even before the pandemic, studios would often give to larger chains or mandate that smaller venues block screens regardless of demand. Some though are of consolidation among theatre operators.

may deliver economies of for theatre operators, but it also strengthens the biggest movie studios. With available, blockbuster franchises take a of box office revenue.

The portion of sales attributed to franchises has increased from around 30% in the 1980s to 40% today.

is playing a greater role in franchise growth. Since 2000, the share of box office taken by the big six has grown over Disney’s share in the same period has more than , with most in the last decade.

Although if you look at the , Hollywood does love an underdog, so it’s not yet that time to write off the movie industry just yet.

There’s plenty of room for growth — especially new revenue based on movie , such as video games, toys & books to name just a few!

The ending may still be for the film sector, mmm maybe, just mayby!

By Pete Moore

The Entertainment Engine

Keeping readers informed with entertainment news, advice, and guests from Music, Film, and TV

Peter Moore

Written by

Peter has lived New York, Los Angeles and London working in the music, film and TV industries for over three decades helping creators realize their vision.

The Entertainment Engine

We’re providing helpful tips and useful information on navigating the entertainment industry

Peter Moore

Written by

Peter has lived New York, Los Angeles and London working in the music, film and TV industries for over three decades helping creators realize their vision.

The Entertainment Engine

We’re providing helpful tips and useful information on navigating the entertainment industry

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