Don't shoot the Messenger!

[Arnold Chase]

Given the unprecedented situation that the theatrical exhibition industry is facing right now, with theaters being shut down either voluntarily, or in many cases via governmental orders, both blockbuster releases as well as lesser films are now being postponed up to a year or more in some cases. It is not unreasonable to think that even when the government allows the public to go back to the theaters, will there be an inevitable residual reluctance on the part of the public to readily go back?

Given this, at what point will the studios finally reach the point where so-called day and date releases will be allowed to be sent directly to the public (either as an adjunct distribution channel or a primary channel)? In the past with film-based technology this was not a possibility, but with digital distribution the new norm, all it takes is a “flip of the switch” to send those features in the same 2K resolution out to the ever-growing field of 65”, 70”, and 80+” flat-screens in people’s homes.

Right now we're dealing with the corona virus as a 'one-of' situation, but it is becoming more and more clear that either seasonal re-occurrences of this may happen, and/or the emergence of new viral threats in the future is all but inevitable.

If the studios had such a “direct” plan in place right now, even as an adjunct to the theatrical distribution channel, instead of getting zero income on the hundreds of millions of dollars that they have already sunk into product sitting on the shelves, if they had offered an alternative delivery channel they would have been able to make untold millions of dollars (as well as many other types of currency) just this weekend alone. In the past, exhibitors flatly rejected such a scenario, even with their being offered a percentage of the online gross in their area because they didn't want to take anything away from their theater operations. Now, with these theaters earning nothing, doesn't such a plan make sense?

Your thoughts?

[Harold Hallikainen]

How does direct to stream studio revenue compare to the studio share of theatrical revenue?

[Arnold Chase]

As no deal has ever been negotiated or approved, so it is unknown but let's assume the studio/exhibitor split stays the same as it is now - it's still new-found money for the exhibitor. Obviously the concession income is still zero, but the staff, electricity, HVAC, and advertising costs also fall to zero as well.

[Marcel Birgelen]

How does direct to stream studio revenue compare to the studio share of theatrical revenue?

It doesn't compare... Big blockbuster movies are still carried by the theatrical releases, the rest they make from streaming, physical media, rental, broadcast, is just a bonus. It's pretty simple: You can't charge the same figure per pair of eyeballs for a streaming release.

Over the years I've been involved in several streaming services, most of the early ones had a "Pay Per View" model, but they sold close to nothing. It wasn't until the likes of Netflix came along with their "all you can view", monthly subscription formulas, until the streaming market became a more viable one...

Disney could've pushed their fresh releases onto Disney+, maybe they would've sold some extra subscriptions, but as soon as they switch to a "PPV" model for some releases, you'll see that users are simply going to skip it in droves and wait until the "premium" content will be pushed into the regular content.

Sure, some mentally retarded studio execs could use the current situation to finally drive the theatrical release window down to zero, but that will be the inevitable end of the classic, big budget Hollywood blockbuster.

PS: I think this topic is more suitable for the "Ground Level" forum than the "Digital Cinema" one. Also, I think the title is a little-bit too "teasery".

[Mike Blakesley]

It's already happening.... movies like "The Hunt" and "Trolls World Tour" are going to streaming immediately (or sooner than anticipated).

Our old buddy Richard "Rich" Greenfield, who famously said about five years ago that the video window would be gone in the next six months or so, is now predicting that the theatrical exhibition business will be "mostly bankrupt by the end of this year." So, hopefully he's still an idiot.

[Dustin Grush]

My take: Theaters should refuse to book any features that are released on demand. It will hurt a lot less now, when grosses are down anyways, rather than when they try this later. Set the precedent now, if the studios want it direct to home, don't expect a box office gross as well. Will it happen...no, but I can dream, can't i?

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NEW YORK (AP) — The coronavirus pandemic has cracked Hollywood's traditional theatrical window. Universal Pictures on Monday said it will make its current and upcoming films available for on-demand rental, becoming the first major studio to turn directly to home viewing in light of the virus.


The studio said it will put movies currently in theaters — "Invisible Man," "The Hunt," "Emma" — up for rental on-demand beginning as early as Friday. It also said that "Trolls World Tour," one of the only major releases left on the April film release calendar, will open "day-and-date," debuting in theaters and on-demand services simultaneously. A 48-hour rental will cost $19.99.

The move came as theaters worldwide have closed and many North American cinemas are shuttering. On Sunday, the mayors of New York and Los Angeles order their cities' theaters shut. Theaters in Massachusetts and Quebec have also closed. Overseas, most European cinemas have shut down, as have those in China, India and elsewhere.



Major theater chains in the U.S. have attempted to stay open in areas where they hadn't been told to close. AMC Theaters, the largest movie chain in North America, said Monday it will limit attendance at all screenings to 50 people to adhere to the CDC's latest social distancing guidelines.

Over the weekend, ticket sales plunged to their lowest levels in at least 20 years at the weekend box office for U.S. and Canadian theaters. Not since a quiet September weekend in 2000 has weekend box office revenue been so low, according to data firm Comscore. More people went to the movies the weekend after Sept. 11, 2001.



People enter an AMC theater Saturday, March 14, 2020, in Los Angeles. Californians wanting to escape the new reality of the coronavirus at the movies, casino or amusement park are running into the six foot rule. State health officials issued new guidance Saturday urging theaters to keep attendance under 250 people and ask strangers to sit six feet apart. (AP Photo/Marcio Jose Sanchez)

"Rather than delaying these films or releasing them into a challenged distribution landscape, we wanted to provide an option for people to view these titles in the home that is both accessible and affordable," said NBCUniversal CEO Jeff Shell in a statement. "We hope and believe that people will still go to the movies in theaters where available, but we understand that for people in different areas of the world that is increasingly becoming less possible."

NBCUniversal is prepping its own streaming service, dubbed Peacock, but it isn't to launch until July 15. On Sunday, the Walt Disney Co. made "Frozen 2" available on its streaming service, Disney Plus, but that film had already completed its theatrical run. Its digital release didn't break the traditional 90-day theatrical exclusivity window.

Discussing ticket receipts for titles including "The Hunt" and "Invisible Man" on Sunday, Universal's distribution chief Jim Orr called the situation a unique time for the industry. "But we'll get to the other side of it, and the box office will come back very healthy," said Orr. "It's just a matter of when that might be."

Hollywood has postponed most of its upcoming releases. This week's previously most anticipated movie, "A Quiet Place Part II," has been removed from the schedule. Other major releases, including Disney's "Mulan" and the James Bond film "Die Another Day" have been put off.

That means that even if movie theaters remain open in the coming weeks, they will have little to play. There isn't a major release currently planned for the next two months.

Much of the entertainment world has shut down. Broadway theaters, major museums and theme parks have closed their doors. Concerts have been called off: Elton John was the latest as Monday he announced dates in North America for his "Farewell Yellow Brick Road" tour from March 26 to May 2 would be postponed: later dates remain unchanged.

Festivals including South by Southwest in Austin, Texas, and the Tribeca Film Festival in New York have been canceled or delayed. Most live-action film and TV production has been put on hiatus.

For most people, the new coronavirus causes only mild or moderate symptoms, such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia.

The vast majority of people recover from the new virus. According to the World Health Organization, people with mild illness recover in about two weeks, while those with more severe illness may take three to six weeks to recover.