The recent surge in financial success for films in the premium video-on-demand (PVOD) sector has sparked heated discussions within the film industry, particularly around the significance of theatrical releases. With “Wicked” grossing approximately $100 million in PVOD sales, it’s apparent that the financial health of studios can heavily influence the future of cinematic experiences. Peter Levinsohn, Chairman of Global Distribution for NBCUniversal Entertainment, emphasizes that the focus on theatrical releases is paramount to the brand’s identity and economic sustainability. But how valid is this stance in a landscape increasingly dominated by streaming services?
Many industry leaders, like Levinsohn, argue that theaters should remain the primary platform for film releases. They propose that theatrical experiences lay the groundwork for the cultural relevance of movies, stating, “Theatrical is the foundation, it’s the underpinning of every single thing we do.” While this framework may hold water for major blockbusters, it raises important questions: What about smaller films? Are they merely an afterthought in a market increasingly geared towards blockbuster spectacles?
The Reality of Consumer Behavior
Levinsohn also notes that consumer behavior has evolved significantly. A growing portion of moviegoers is not inclined to attend every film in theaters, which reflects a more discerning audience. This reluctance indicates a shift in how viewers prioritize their discretionary time and disposable income. Regal Cineworld CEO Eduardo Acuna argues that part of this issue lies in the confusion around different types of viewing options. Many consumers now perceive PVOD as a convenient way to enjoy films at home, often believing future releases will be free on streaming platforms. This notion, according to Acuna, conditions audiences to postpone their theater visits, ultimately squeezing box-office revenues.
The disparity in perceptions about the value of theatrical versus home viewing may lead to a significant downturn in cinema attendance if left unaddressed. While Levinsohn counters that NBCUniversal’s findings indicate little evidence supporting Acuna’s claims regarding consumer behavior, he cannot overlook the competing forces vying for viewers’ precious time—be it Netflix, Disney+, or even social media platforms that fragment attention spans.
The Importance of Theatrical Experience
While it’s easy to focus solely on revenue models, directors like Joseph Kosinski offer poignant reminders of why we venture into theaters. He reflects on the formative memories linked to the big screen—experiences that streaming simply cannot replicate. His assertion that a successful film must compel audiences to see it on the big screen poses a challenge to filmmakers in a crowded marketplace. It raises the stakes for filmmakers to produce content that is undeniably cinematic, an intense viewing experience that resonates deeply with audiences.
For modern movies packed with visual splendor, a theatrical release becomes not merely relevant but essential. Directors are tasked with crafting a narrative and visual tapestry that magnetizes viewers, ensuring that the theater is the only place to savor the full scope of what they created. Yet this sentiment often feels overshadowed by the allure of PVOD speed and the necessity for studios to remain profitable.
Indie Films: The Forgotten Player in TheWars of Distribution
One of the most pressing issues is the expected bias towards blockbuster films, particularly in trailer placements and marketing strategies. As noted by Neon CEO Tom Quinn, independent films face a harsher road to recognition. If major studios monopolize promotional opportunities without offering indie films a fair chance, it creates a feedback loop that sidelines diverse stories and voices.
Quinn calls for equal representation in marketing, emphasizing how the success of indie movies could enrich the cinematic landscape. The movie industry cannot afford to shy away from unique narratives; they should be prioritized and showcased alongside high-budget productions. More equitable access to promotional resources would ensure a diverse array of films competes on favorable ground, ensuring a richer cultural tapestry within the cinema.
The sheer scale of potential earnings on PVOD should not deter the industry from fiercely advocating for theatrical releases. As the competition for viewers’ attentions grows increasingly fierce, the film industry must recognize that the collective enriching of its ecosystem encompasses all players—big and small. The future of cinema depends on returning to our roots while evolving to meet the modern audience’s expectations.