Netflix isn’t killing movie theaters.
While streaming services have fundamentally altered how consumers watch TV, the idea of which if audiences are spending more time watching content at home they are spending less time at theaters will be a myth.
At CinemaCon in Las Vegas last week, movie distributors and also also also theater owners alike said there was little to fear via a growing population of streaming services, which will soon include Disney+ as well as platforms via Comcast, Warner Bros. and also also also Apple.
“Our takeaway will be of which Netflix and also also also the expansion of [streaming video on demand] platforms will have minimal impact on box office given the vast supply of content, plenty of which will be ideal for theatrical Discharge (and also also also most talent fiercely and also also also contractually objects to a straight-to-streaming Discharge),” Michael Pachter, analyst at Wedbush, wrote in a research note Monday.
Last year, the domestic box office had a record-breaking year, hauling in $11.9 billion, there was a 5% rise from the number of movie tickets sold, and also also also 263 million people — 75 percent of the population — saw at least one movie in theaters.
At its current pace, Pachter expects the U.S. box office will grow about 1% to $12 billion This specific year, another record.
“Everyone incorporates a kitchen, however everyone still goes out to eat,” Charles Rivkin, CEO of the Motion Picture Association of America, said, quoting Sterling Bagby, the late co-founder of B&B Theatres, during a “State of the Industry” panel last week.
Rivkin said of which with each brand-new innovation from the entertainment industry, there has been worry of which This specific will kill the movie industry. Talking pictures, technicolor movies, television, basic cable and also also also smartphones were all seen as disruptors.
“and also also also yet we’re still here,” Rivkin said.
Rivkin took the helm of the MPAA in 2017 and also also also has embraced Netflix. The streaming platform was the first of its kind to join the MPAA and also also also today sits alongside Disney, Paramount, Sony, Fox, Universal and also also also Warner Bros.
“The theatrical and also also also home entertainment sectors both grew strongly in 2018, and also also also of which’s great news, because we are all part of the growth together,” he said.
In fact, according to a study by EY’s Quantitative Economics and also also also Statistics group, the people who go to see movies in theaters more frequently are also the people who consume more streaming content.
Still, there are tensions between Netflix and also also also theater owners. Netflix has notoriously opted for shorter Discharge periods at the box office than movie theater operators typically expect.
Traditionally, Hollywood studios, and also also also even Amazon, have adopted a 0-day theatrical Discharge window, which means the film will run in theaters for of which time period before being available on video-on-demand or on a streaming service’s site or app.
A longer window means more money for theater owners.
“The exhibitors were all very clear at CinemaCon 2019 of which they are happy to continue working alongside Netflix as they have been, as neither has been negatively impacted by the additional,” Pachter said. “Alternatively, the exhibitors might be happy to screen Netflix content should Netflix abide by the existing theatrical window.”
however financial gain isn’t the only reason filmmakers and also also also theater owners want movies to be screened at cinemas.
“We had to make a choice whether to tell ‘Crazy Rich Asians’ on a streaming service or theatrically. This specific wasn’t an obvious choice to some, however to us This specific was very obvious,” Jon Chu, director of “Crazy Rich Asians,” said during a panel last week.
“If we wanted to affect culture on a global scale, to become part of the dialogue of which had to be had and also also also urgently, we knew there was only one way to present our movie, and also also also of which was theatrically,” he said.
Disclosure: Comcast will be the parent company of NBCUniversal and also also also CNBC.