Theaters Making a Comeback?
So I’m a huge movie theater fan. I’ve been sadly lamenting every theater closures throughout the pandemic, hoping and praying they make a comeback. Streaming dominated the pandemic era though for the obvious reasons people were stuck at home. We saw the launch of new platforms, the shift of first window releases to streaming, and the overall push to develop original content with the sole goal of driving eyeballs to streaming interfaces. All that being said, I think the tides are finally turning back in favor of the theaters! And there are several factors leading me to that glorious conclusion:
Masks No Longer Necessary. According to the CDC, vaccinated people can resume all normal activities without wearing a mask or having to social distance. This is a huge win for the theaters and fun in general! People will be free to go out and socialize and experience life in person again. I imagine many will be eager to experience summer blockbusters in theaters more than ever before. My hope is this will bring about a theater renaissance of sorts.
Theater and Studio Deals. We are seeing studios ink deals with theater chains. Regal has signed deals with Disney, Warner Bros and Universal to show each of these studios summer films. Exclusive theatrical windows have been set up for blockbusters as well, helping ensure that people are pushed to view films in theaters if they want a first look at them. These exclusive theatrical windows were put on hold during the pandemic, but studios and exhibitors are back on the same page again when it comes to their summer slates. A big win!
Streaming Numbers on the Decline. Disney stock shares dipped yesterday with the main catalyst being an overestimation of streaming growth. Disney over projected the number of subscribers for Disney+, causing a drop in the stock price. There was a slow-down in growth and now Disney will need to pick up the pace to meet its target. Perhaps the streaming boom was a bubble of sorts, overestimating the demand stemming from a pandemic-induced stay-at-home environment. Time will tell, but with streaming on the decline I think some business models will need to be tweaked once again.
In summary, here’s to the revival of theaters and to our lives returning to a sense of normalcy once again!