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Movies May Hit On-Demand Even Sooner After Theatrical Releases Now
Movies might end up heading to on-demand even sooner after their theatrical runs following the coronavirus pandemic. The entertainment industry has undergone a lot of changes over the past few months, largely because of the pandemic. Not only did it shut down movie theaters back in mid-March, resulting in numerous films being pushed back, it also forced countless film and television productions to be delayed. Streaming services might be on the rise, but the traditional means of entertainment are struggling to find new ways forward. Arguably, theaters have been hardest hit by the pandemic, and they are the ones who especially threatened by the onset of streaming and VOD.
Universal was the first to break ranks by releasing Trolls World Tour directly to VOD instead of waiting for a theatrical run. It was an unprecedented move, and one that seemed to ultimately pay off for Universal. Because of that, the studio expressed its desire to continue exploring early VOD releases, as evidenced by its move to send The King of Staten Island and The High Note to on-demand without any chance of a theatrical run. However, this was met with intense disapproval from theater chains and owners, with AMC Theatres being the first to say they would no longer show any Universal films on their screens.
As this pandemic continues, the future of movies and how they will be shown continues to evolve. This latest update, courtesy of Deadline, suggests the window between a film's theatrical release and on-demand debut could end up being shortened. Typically, it takes 90 days for a movie to turn up on-demand after coming out in theaters. However, according to analyst Robert Fishman, that stretch of time is "an inefficient period that studios can no longer afford."
Because of this, Fishman believes studios will be eager to push for a shorter window once theaters open and the pandemic ends. Trolls World Tour and Warner Bros.' SCOOB! have indicated audiences like watching new movies from their homes, and studios will likely be interested in capitalizing on that. Fishman stated that "this time is different in that all of the major studios… are likely to be more aggressive with windowing strategies. As long as multiple studios push forward with PVOD or some other form of window changes, the balance of power in favor of studios shifts even more in their favor and reduces the leverage the exhibitors have as they would be unlikely to boycott multiple studios’ upcoming releases."
Should studios opt to shorten the window between theatrical release and on-demand release, movie theaters will likely announce their displeasure with the idea. Theaters have struggled to stay afloat during the pandemic, as the lack of a consistent income has left some chains grappling for funds. There is some hope that they will be able to reopen in July and show films like Tenet and Mulan, but that possibility remains shaky at best. There will always be some who stand by the theatrical experience, but studios are more interested in getting the attention of as many people as possible. In some cases, that means through on-demand.
