Are Streaming Services Going To Buy Movie Theaters? Here’s Why It Might Make Sense
Shutterstock / Dean Drobot
By Ryan Scott/Feb. 1, 2022 1:48 pm EST
There’s a very strong chance that 2022 will see the global box office begin to recover even more substantially than in 2021. The process has been slow, as the pandemic has not abated in the way many had hoped. While the box office may be in for a relatively sizable recovery, we may never get back to pre-pandemic levels of moviegoing, and much of that has to do with the streaming takeover that has accelerated over the past couple of years. Streaming is the future and there is no denying that. But what if that future somehow circles back around to the notion of streaming movies being released in theaters?
Theatrically viable studios are continually cutting deals with streaming services, as Apple recently made a big deal with Skydance, the studio behind the “Mission: Impossible” franchise. But can those big movies continue to exist purely in a streaming world without other revenue? Especially when there is so much competition out there for subscribers? Let’s not forget that Netflix once again missed its quarterly expectations for subscriber growth and, as a result, its stock plummeted. The king of the hill may be reaching its crest and that is paving the way for the competition to catch up. Things are going to get ugly and ruthlessly competitive. That being the case, for various reasons, it might not be insane to imagine a world in which one (or several) of the major streaming services out there decide to invest in purchasing movie theaters, effectively putting them in the exhibition business (in addition to being in the streaming business). That may sound a little wacky and backward but there are plenty of reasons this could be an attractive option moving forward and it boils down to a couple of major points – talent and revenue.
Are Streaming Services Going To Buy Movie Theaters? Here’s Why It Might Make Sense
Shutterstock / Dean Drobot
By Ryan Scott/Feb. 1, 2022 1:48 pm EST
There’s a very strong chance that 2022 will see the global box office begin to recover even more substantially than in 2021. The process has been slow, as the pandemic has not abated in the way many had hoped. While the box office may be in for a relatively sizable recovery, we may never get back to pre-pandemic levels of moviegoing, and much of that has to do with the streaming takeover that has accelerated over the past couple of years. Streaming is the future and there is no denying that. But what if that future somehow circles back around to the notion of streaming movies being released in theaters?
Theatrically viable studios are continually cutting deals with streaming services, as Apple recently made a big deal with Skydance, the studio behind the “Mission: Impossible” franchise. But can those big movies continue to exist purely in a streaming world without other revenue? Especially when there is so much competition out there for subscribers? Let’s not forget that Netflix once again missed its quarterly expectations for subscriber growth and, as a result, its stock plummeted. The king of the hill may be reaching its crest and that is paving the way for the competition to catch up. Things are going to get ugly and ruthlessly competitive. That being the case, for various reasons, it might not be insane to imagine a world in which one (or several) of the major streaming services out there decide to invest in purchasing movie theaters, effectively putting them in the exhibition business (in addition to being in the streaming business). That may sound a little wacky and backward but there are plenty of reasons this could be an attractive option moving forward and it boils down to a couple of major points – talent and revenue.
Theatrically viable studios are continually cutting deals with streaming services, as Apple recently made a big deal with Skydance, the studio behind the “Mission: Impossible” franchise. But can those big movies continue to exist purely in a streaming world without other revenue? Especially when there is so much competition out there for subscribers? Let’s not forget that Netflix once again missed its quarterly expectations for subscriber growth and, as a result, its stock plummeted. The king of the hill may be reaching its crest and that is paving the way for the competition to catch up. Things are going to get ugly and ruthlessly competitive.
That being the case, for various reasons, it might not be insane to imagine a world in which one (or several) of the major streaming services out there decide to invest in purchasing movie theaters, effectively putting them in the exhibition business (in addition to being in the streaming business). That may sound a little wacky and backward but there are plenty of reasons this could be an attractive option moving forward and it boils down to a couple of major points – talent and revenue.
Potentially Attractive to Filmmakers
Lionsgate
This is what Apple had done with Martin Scorsese by putting up the dough for “Killers of the Flower Moon” after Netflix first lured the filmmaker to the streaming world by financing his passion project “The Irishman.” Big filmmakers are increasingly moving to streaming instead of going with a traditional studio for similar reasons. That’s why “Knives Out 2” is going to Netflix instead of being released theatrically by Lionsgate, though Netflix is supposedly going to give the sequel a theatrical release of some kind. And therein lies the hook for a streaming service buying some theaters or perhaps even an entire theater chain.
Pure Streaming May Not Be Sustainable
Netflix
It’s Ultimately About Control
Apple TV+
