As The 007 Franchise Shifts Gears In A New Direction, So To Will The World Of Cinema In A Post Covid-19 World.
The Thursday to Sunday showings were often the backbone for date night, teenagers’ primary gathering place, and the engine that drove TV advertising for decades. Seinfeld, Cheers, and Friends were funded by new movie release advertising for the weekend viewing. And then, in an instant, this vanished overnight as a set of very connected eco-systems were in collective shock. Film companies delayed releases, new methods (online only releases) have been tried to try and solve this. However, there is no doubt that even with a recovery in place. Some signs have already occurred the industry, especially at the theater end, will change radically by 2031.
In recent surveys, the confidence to go back to the theater (cinema) is now greater than 80%. Major releases (Dune, 007, Top Gun) promise the big screen and popcorn power again and are irresistible draws for every generation, while the period for exclusivity.
Today, our guest lays the economic plan for a shift in revenues for the theaters that could develop them into a seven-day-a-week community hub model and maybe see a twenty to thirty percent mix of their revenues. John Partilla is the CEO of Screenvision Media. The theater industry has had to adapt to many epochs of change; TV, Videotapes, DVD’s, big screen TV’s, home theaters, online streaming, and now Covid-19. In addition, new players like Netflix, Amazon, Apple TV are actively competing for our mind share not just as channels but as creators.
Covid -19 has muddied the already transforming industry, but it also offers up new windows of opportunities for how theaters attract people, maybe even how they act as community centers. The theater is an exceptional and different experience. So our guest believes there will be a return to more traditional release windows because the economics will not accommodate a parallel release future. For example, Black Widow premiered July 9th in parallel (theater and home), and the drop-off in total revenue was 68% compared to a more traditional 50% drop-off. Piracy is still a significant challenge with home release models, and film studios cannot and will not be able to re-calibrate fast enough to accommodate for this.
How money is going to be made has to evolve for the theater industry to survive. Our traditional view of the theater is as an intimate environment. Imagine a place where communities connect, job fairs occur, school meetings happen, even local government open forums, E gaming tournaments, special concert events (for example, re-running a Rolling Stones concert on s 60 feet screen).
The combinations of comfort, convenience, world-class audio and video, and parking, probably near restaurants, should be an almost irresistible attraction compared to the alternatives. Most of these new business models have low to no additional capital needs These ideas could add twenty to thirty percent of revenue to an industry used to scraping for margins based on how expensive facilities are left vacant for 85%+ of their time. The facilities are built for comfort, unlike schools or job fairs.