Once Again, The Eulogies For Movie Theaters Might Be Premature
Cinema-anchored districts and centers have reason to be alarmed by the closing of the so-called “theatrical window” (i.e. during which theaters enjoy exclusivity over new releases before they go to video/streaming) – first, from 75 to 17 days and now, to zero (article below). Cinemas, however, have been counted out ever since the ’50’s (with the rise of TV, then the VCR, then Netflix), and yet, annual North American box-office revenue actually increased 4% between 2013 and 2019. And to those who say that COVID has changed our viewing habits for good, it is worth noting that movie-going in China and Japan has been recovering nicely as the virus has been brought to heel there. Indeed, larger exhibitors could even be strengthened in the longer term by the new business model forced upon them by this crisis (e.g. sharing of digital revenue, more “dynamic” theatrical windows, etc). Overall contraction – and further consolidation – may be likely, but as with so much in retail today, the eulogies seem premature.