Streaming New Movie Releases Could Be Here to Stay
Social distancing has given studios an opportunity to test new types of release schedules
In response to the coronavirus pandemic, major theater chains have been closed for weeks and release dates for major blockbuster movies are indefinitely postponed. To offset their losses, studios are creating new ways for viewers to digitally rent movies from the safety of their home. Disney is aggressively releasing films on Disney+ earlier than planned, and Universal is experimenting with $20 streaming rentals. Digital rentals and streaming won’t make the studios as much money as a theatrical release typically does, but they provide some revenue.
The problem, for theaters anyway, is that once viewers get a taste of watching the latest hit movies from the comfort of their own couch, they may not want to go back to public screenings.
While moviegoers may be vaguely aware that there’s a gap between when a movie comes out in theaters and when they can buy it to watch at home, the specifics of the theatrical release window are carefully negotiated between studios and theaters. Typically, theaters enjoy a two-to-three-month window of exclusivity. The cut studios take from ticket sales varies, but they tend to get roughly 60%. The more tickets sold, the more money…
