Where is Entertainment Evolving?

 It is now evident that going forward, most entertainment will be streamed. Consumers are already choosing streaming over broadcast and cable TV. Yet, only one company, Netflix, is generating any big dollars from streaming. Why?

  

Only Netflix counts. Cinemas can and will get alternative content 

Netflix has a unique niche. With over 400 million paying monthly subscribers worldwide, it generates huge cash flow which it has wisely placed on high-quality content produced around the globe. So how can other entertainment companies follow suit? It will be very difficult!

It will take massive investment over a long period of time and producing great series, movies, and 'live' programming that people want to view day after day. Or linkup with an existing streamer and scale your content (brand) with great programming and receive a share of the revenues of all of the streamer's service revenues.

This is similar to the movie distributor/exhibitor relationship. Keep in mind that Netflix's current share of at-home viewing time is less than 10% - meaning many people are online and viewing other stuff (YouTube, X, Rumble, Meta, et.al.). 

This scenario goes for the cinema industry as well. More and more, movie theater content will be streamed And, more and more, will be non-film. Concerts, sporting events, live entertainment will take on more and more screen time.

Jim Lavorato, Entertainment Equipment Corp.  EECcinema.com 

The 2023 Holiday Box office May Be a No-show

 The October box office was a bust! Was it not for Taylor Swift with a little help from Scorsese's 'Flower Moon', there would have been empty movie theaters. 

No blockbusters this year...but

Which begs the question. Will the '23 holiday movie season be a no-show. There already exists big-time angst on the part of exhibitors. The SAG strike is the obvious culprit for exhibitors' woes, but through October the box office totaled $7.5 billion, which is 22% above last year's performance - projections are for a $9 billion year total. Not bad considering the impact of the strike.

There appears to be no films on the holiday roster that would be potential tentpoles, but there are some bright spots. "The Marvels" will release next month as will "The Ballad of Songbirds and Snakes" ("The Hunger Games" prequel). Family-friendly, Turkey Day releases also include: "Trolls Band Together" and the musical, "Wish". 

December 1st, debuts Beyonce's, Taylor Swift cloned, concert, "Renaissance". It appears that these concert films may start a trend, and their low production costs make good bank for the performer and cinemas.

Other content that could bring in additional box office are "Aquaman and the Lost Kingdom", "Wonka", and "The Color Purple".  

I think the holiday box office will be OK, not a disaster but not stellar. 

Jim Lavorato, Entertainment Equipment Corp.

Swifties - Best News for Movie Exhibitors

 It costs hundreds and hundreds of dollars to attend a Taylor Swift concert, yet only $20 to see it at a movie theater. 

Scene from Eras Tours movie which is over 3 hours long.

Taylor Swift's 'Eras Tours' concert movie amassed $39 million in its debut opening day. How much can it gross worldwide? I think $400 million at least. 

Both exhibitors and Swift are encouraging fans to use their cell phones during the presentation - a switch from normal cinema etiquette rules.

And it is all working. Both Cinema Score and Rotten Tomatoes gave 'Eras Tours' very rare A+ and 100% viewers' rating approvals respectively. 

Swift composes her own songs which tell the story of her life.

The good news is that Swift decided to go directly to movie theaters for distribution and bypass the studios. Making her take of the gross greater and the exhibitors, as well. This is a first time this has been accomplished for a wide release movie and a sign of things to come.

Beyonce' is working on a concert movie to be released in December and plans to use the same distribution format.

This is great news for exhibitors and will boost their revenue streams and their concession sales. Exhibitors need to seize this opportunity and turn these concert movies into events, with major promotions, tail-gate parties, dress-up contests, merch sales, CD sales, etc. etc.

There is a close bond between Swift and her fan base (over 100 million). Many that attended the movie stood, sang, and danced. Cinemas have what live shows do not. Better seats, more immersive sound, a great 'view' of the entertainers, in a safe and controlled environment. 

The face that could change the exhibition industry.

Turning cinemas into mini-concert venues and all that can be added on to the event bodes very well for cinema operators. 

Swift has been recording for over 20 years and has built her fan base slowly and methodically. She has lived her life in public via social media. She has learned that being yourself vs. having stardom overtake you is the best way to go in the entertainment industry. 

By Jim Lavorato, Entertainment Equipment EECcinema.com

Content Streamers UNITE...It Had to Happen

 In the wake of the Writers' and Actors' union strikes why wouldn't one think that the content streaming providers would gather and form their own alliance...and this is just what they did.

This past Monday, a new trade group was formed, the Streaming Innovation Alliance (SNA) which bring together the likes of: Netflix, Disney, Warner Bros., Paramount, Discovery+, MotorTrend+, Peacock, Pluto TV, Telemundo, BET+, and more. 

Prime movers of the SIA

The SNA mission is to promote their interests to politicians and government entities (Washington speak for lobbing group) and marks the first time competing streaming providers have banded together. SNA will advocate for federal and state policies that builds on a very strong pro-consumer market for streaming content.

In a recent Neilsen poll, content streaming has overtaken broadcast and cable programming in viewership, and it continues to grab market share. Also on the SIA agenda is the issue of Net Neutrality, which the Biden Administration has recently brought back as a topic to be investigated by the FCC. 

According to a statement issued by the SNA, "streaming provides great value, vast programming choices, and unprecedented options for consumers. We will be working to ensure that federal and state policy propels this incredible innovation forward - and doesn't undermine the value and diversity consumers are enjoying today."

The statement went on the say that streaming services bring relevant stories and options to historically underserved communities, and any policies that drags down streaming would turn back the clock on this vital progress. 

To prove their point, SIA released results of the Neilsen poll which found that 70% of registered voters view streaming services "favorably" or "very favorably", with results even higher among young voters.

By: Jim Lavorato, Entertainment Equipment Corp. EECcinema.com