The Future of Film: Are Streaming Services Threatening Movie Theaters?

The movie theatre industry, now over a century old, has been a fundamental part of the film landscape since its inception. While the idea of films existing without theatres once seemed unlikely, the rapid rise of streaming services in recent years has made this possibility more plausible. Streaming platforms are increasingly viewed as viable alternatives to traditional cinema, leading to concerns that they could eventually make movie cinemas obsolete. This anxiety intensified during the pandemic when theaters were forced to close and audiences turned to streaming for their entertainment. As people became accustomed to watching movies at home, a pressing question emerged that could shape the future of the film industry: Will streaming platforms ultimately replace movie theatres?

The era when cinemas were the sole venue for film viewing is fading. Studios are now able to generate comparable revenue from streaming services, which offer convenience and accessibility. Many studios have embraced this shift, drawn in by the speed, ease, and profitability of streaming. However, this perspective raises a critical issue: is viewing art solely through a capitalistic lens the right approach? Studios continue to release films in theatres not only for artistic expression and profit but also to secure greater press coverage, increased recognition, and, crucially, a larger audience. To protect this, films typically operate within a "theatrical window," a designated period during which they cannot be shown on any platform other than theatres. The length of this window is determined through negotiations between studios and theatre chains, but it has been shrinking in recent years, much to the frustration of theatres.

Before the COVID-19 pandemic, this window lasted 90 days, allowing studios to release films on streaming platforms three months after their theatrical debut. However, with cinemas forced to close during the pandemic, studios seized the opportunity to launch films simultaneously in theatres and on streaming platforms—a move they had long desired. This dual-release strategy enables studios to maximize profits from day one, but it also leads to reduced theater attendance. During the lockdown, theatre chains had little recourse to oppose this shift, as many were already on the brink of closure.

After the lockdown, theaters could not allow simultaneous releases to continue, as it would lead to significant financial losses. Consequently, studios and theaters began to negotiate, resulting in most studios agreeing to a 45-day theatrical window, while Universal Studios secured a shorter 31-day window.

This theatrical window exists partly because studios still rely on theaters for their own advantage. Beyond generating revenue, theaters help create an event atmosphere around a film, elevating the viewing experience beyond mere entertainment. While some viewers may prefer to watch new releases on streaming platforms right away, these films often lack the broader appeal of those that premiere exclusively in theatres first. Experiencing a film in a packed theater fosters a sense of community and excitement that simply doesn’t occur when watching alone at home.

This was clearly illustrated during the ‘Barbenheimer’ phenomenon last year, when the simultaneous release of two major films, Barbie and Oppenheimer, created a frenzy among moviegoers. Audiences flocked to theatres in groups, often dressing up in themed outfits. A similar event unfolded with the release of Taylor Swift: The Eras Tour, which offered viewers a concert-like experience in a theater setting. This unique "theater experience" is something streaming platforms simply cannot replicate.