Since the Covid-19 pandemic, movie theaters took a shift and online streaming services started to become a top innovator, 72% of users are using at home digital content streaming services. In 2021 the combined home and mobile entertainment reached $99.7 billion, a 24% increase compared to 2020. Only 387 movies were released in theaters in 2021 compared to 987 in 2019. 1
The pandemic has shifted the way people think about doing their everyday activities and with online streaming services taking over, people have been accustomed to staying at home and not only that, but they have also found a huge benefit in staying at home versus going to the movie theater to watch a movie.
Cinema tickets are not exactly cheap, especially if you are going as a family. A ticket can cost anywhere from $15-20 dollars per person along with the costly popcorn, drinks, and snacks that the movie theaters charge a staggering 600% markup. Now you can purchase a new released movie or even those movies may be included in a subscription service that the user is already subscribed to.
Buying a movie online if not subscribed to the service can be anywhere from $15-25 dollars. Now with the cost of gas rising and more Covid-19 variants spreading, staying home not only saves money but can be more comfortable. At the movie theater you have young adolescents that may scream during the movie, the seats may not be comfortable, and you may have to get up to go to the bathroom or grab another refreshment.
At home you can sit in the comfort of your own home. Parent’s do not need to find a babysitter, and if viewer needs to grab a snack or go to the bathroom, you can easily pause or rewind the movie at any time to re-watch a scene. Not only this, but the purchase also allows you to re-watch the movie again or another member in the household may want to watch it lat a later time, whereas in the movie theater after you are done the movie you go home.
I believe as the pandemic continues and as people’s wants and desires continue to shift, the streaming and movie service will continue to innovate and shift to the new normal. As movie theaters have already taken a financial hit due to the pandemic, the future of the physical locations remains uncertain. As digital innovation continues to strengthen, we will see how streaming services adapt and if theaters find ways to survive.
McClintock, Pamela. “2021 Global Box Office down 50 Percent from Pre-Pandemic Times: MPA Report.” The Hollywood Reporter, The Hollywood Reporter, 14 Mar. 2022, https://www.hollywoodreporter.com/movies/movie-news/2021-global-box-office-pandemic-1235110511/.
Patel, Arvin. “The Top 5 Streaming and Video Innovations Keeping Us Sane during COVID-19.” Forbes, Forbes Magazine, 28 May 2020, https://www.forbes.com/sites/arvinpatel/2020/05/28/the-top-5-streaming-and-video-innovations-keeping-us-sane-during-covid-19/?sh=2d6dc9093f6c.
Worby, ByMike. “10 Reasons Why Watching at Home Beats the Cinema.” Tilt Magazine, 19 Sept. 2021, https://tilt.goombastomp.com/film/10-reasons-why-watching-at-home-beats-the-cinema/.