No matter what but due to the COVID-19 pandemic situation most of the businesses are getting evolved when we talk about technology. People are getting more conscious about it and due to having resources, there are no issues regarding accessibility. But still, one question that might be getting into your mind that whether there is a future of theatre in the upcoming days or not.
If this is the query you are facing then I will help you through the post by getting you to know about the pre-existing Trends of the entertainment industry. Through this, you will get to a room whether there is any future of movies and theatres or not. So make sure to stick with the post till the end.
All You Need To Know About Theatre
The COVID-19 pandemic has increased two already-established trends within the entertainment industry. People are more likely to stay at home to watch films and other video content and more studios and distributors are creating their own streaming services for direct-to-consumer consumption. Once the pandemic has ended it’s not clear what role theaters will have in the future and what current release system could be affected.
For streaming video providers and studios services, it could be time to rethink the old model of distribution as well as revenue. Are movies only considered a film when it’s first shown in a theater? Do more films need to skip the theater and be released directly to consumers through streaming services? Do direct-to-consumer services unlock new types of value? These are only a few crucial questions that the industry could be asking right now.
What Is Changing?
You might be wondering that’s what makes theatres shut down. But there are a few essential aspects that you need to know about. No matter what but if you explore soon you’ll get to know that due to changing technology people usually get involved in OTT platforms like Netflix and Prime which are termed to be more convenient and affordable too.
I’ve compiled a few of the essential aspects so let’s get into it:-
Landscape Changing
Studios are heavily dependent on sales at the box office which grew by 26% in worldwide revenues in 2000, up to 40% in the year 2019 Based on a comparison of global theatrical, video, and TV revenues. With nearly half of their revenue from the theatrical release Studios are naturally concerned about changing a centuries-old model to promote digital distribution.
Typically studios will release new films to cinemas for a specific time frame, which means that the film is not seen on any other channel. The quality of the theatrical release determines the licensing costs for distribution on other channels, such as home video as well as premium TV networks and free or basic television networks. The changes to the release schedule for theatrical films could trigger an effect that is domino-like across other channels and increase the pressure for streaming to make up for the loss of revenue during other times.
This changing environment puts theaters in a precarious situation. They may be able to connect more people via streaming services, especially during the outbreak, but doing this could affect the revenues earned through theaters. This can also impact revenue coming from different distribution platforms. The time delays that are inherent to the distribution system might seem like a burden for consumers who are now demanding quick access to all services of all sorts.
Revenue Model
Utilizing direct-to-consumer distribution channels could necessitate studios to review their monetization strategies and change their viewpoints. How can distributors and studios change from revenues per window to users per revenue? What can they do with a method that generates an incentive for the actors, creators, and crews that create the content?
In the same way that streaming decreases the burden for audiences and makes it easier for distributors and studios to put more relevant content and advertisements at the right audience. In general, digital services provide significantly more information about the audience than traditional theaters do information about their interests in content as well as demographics, region, and. Data-driven insights can lower the risk of developing content and financing as well as enable better targeting of ads-supported services. Studios also can use data to determine the most valuable segments like superusers.
The biggest challenge for both distributors and studios is to understand the best channel for what type of content, and to align that with the most appropriate audience. Data can be helpful, but it is also important for streaming services to keep working to transform content to concentrate on entertainment, storytelling, and the retention and engagement of viewers instead of focusing on whether the content premiered on TV or cinemas. While doing this they must be mindful of what they do to change the rules for the business. With all the competition for content and more opportunities to make it available to the appropriate audiences streaming video services might have to be innovative not just in retention and engagement, but also in the way they pay the creators of the content.
Premium Videos Used To Be In A Higher Demand
In the wake of the financial crisis, premium videos in demand (PVoD)–in which movies are made available directly to streaming video services – has become a viable method for movie studios to connect with customers. At the beginning of COVID-19’s stay-at-home orders in the first quarter of 2018, 22% of customers were willing to pay for rental or the PVoD film and 90% stated that they would rent or watch it once more, according to the fourteenth annual Deloitte’s trend in the digital world survey. The pandemic is continuing to grow the studios are releasing more movies on PVoD and the number of viewers has increased. In October of 2020, a follow-up Deloitte study found an average of 35% of people had seen the PVoD movie. It’s a promising trend, but convincing the majority of consumers to pay for streaming the film at home could take some time. For those who haven’t purchased a movie on PVoD, the cost is the most important factor.
For studio owners, monetizing streaming is a problem in particular when they do not control their distribution channels. For studios with channels, using streaming services is expensive, and a lot of them are yet to make any profits. Furthermore, 68% of people are inclined to watch at least some films in cinemas when the pandemic has passed.
The most important question is whether studios will earn the same revenue from PVoD as they earn from theatres. Studios and streaming video providers might consider establishing similar release windows for basic subscribers, PVoD, and ad-supported streaming viewers. Studios that offer their own streaming video services giving subscribers access to PVoD whenever the movie releases in cinemas could be a perk that stops customers from leaving.
Final Verdict
Due to pandemics most of the businesses got bankrupt just because there was not any way to make the business more profitable full stop similar thing happens with the movie industry which was considered to be the most booming and evolve in the industry of all time. Most of the other streaming platforms are getting evolved due to this which has literally opened up the doors. And it’s one of the best opportunities for the evolving era.
