What's Happening?
A recent poll conducted by The Associated Press-NORC Center for Public Affairs Research indicates that a significant majority of Americans prefer streaming newly released movies at home over going to theaters. Approximately 75% of U.S. adults reported watching a new movie via streaming at least once in the past year, with about 30% doing so monthly. In contrast, only 16% of Americans visited theaters monthly. The shift towards streaming was accelerated by the COVID-19 pandemic, with convenience and cost being major factors. Theaters are now pushing for a 45-day exclusive window, down from the previous 90 days, to compete with streaming services.
Why It's Important?
The trend towards streaming has significant implications for the movie industry, affecting box office revenues and the traditional theater model. Streaming offers a more accessible option for lower-income Americans, while higher-income individuals are more likely to attend theaters occasionally. This shift could lead to changes in how movies are released and marketed, with studios potentially prioritizing streaming platforms over theatrical releases. The industry must adapt to these changes to maintain profitability and relevance.
What's Next?
The movie industry may continue to explore hybrid release models, balancing between streaming and theatrical releases. Studios might invest more in premium formats like IMAX to attract audiences to theaters. Theaters could also innovate to enhance the movie-going experience, potentially offering more interactive or immersive experiences to compete with the convenience of home viewing.
