Where Do Cinemas Go From Here?

It has been 6 years, almost to the day, when I prognosticated that movies would eventually be released day-and-date across all digital platforms.  My reasons for this rather (at the time) bold pronouncement was predicated on the premise that the large (and growing) internet-based companies, such as Google and Amazon would eventually need to expand their user base so as to monetize their business and thus their charged fees and advertisement solicitations.  Netflix, at that time, did not figure into the equation, as it offered only a movie-by-mail service.  But, by a complete re-invention of itself (through one of the greatest turnarounds in corporate history) became the predominate internet streamer of viewed entertainment - and the prime mover in global movie distribution.

With billions at their disposal, these internet giants can buy and produce original, high-end content and decide where and how it is viewed.  Ushering in the day when a movie's debut will be world-wide on all digital platforms.  Last week, in Cannes, Netflix's chief of content, Ted Sarandos, stated "The current practice of delaying the release of films on home entertainment platforms until several weeks or months after they have appeared in cinemas, termed 'the theatrical window', will no longer be the norm.  Movies will be more profitable when they debut online and simultaneous with their conventional cinema releases."

How about some 'homemade' popcorn

Problem is: these web-based entities have the means but not the physical distribution outlets that bring movies to 'life' - cinemas.  Now, Netflix could easily purchase even the largest cinema circuit but what does that give them?  It would be contrary to their entire corporate strategy and reason for being - fee-based global content streaming.  Cinemas go against everything these entities strive not to be. Cinemas aren't efficient, virtual. or very profitable (at least not in Netflix's world).  So, their alternative is to produce high-quality movie content to distribute on their platform.

To that end, Netflix announced their first original film production, a sequel to the Oscar-winning 'Crouching Tiger - Hidden Dragon' in partners, with our old friends at the Weinstein Company. Another movie, 'The Ridiculous Six', a western spoof starring Adam Sandler will not be released in cinemas at all, and is the first of four stream-only movies scheduled with Sandler. (Note to cinema exhibitors: don't book any more Sandler movies).

Now, it's a no-brainer, and we find no fault with Netflix, Amazon, Google, or Apple, becoming major players in the entertainment content business (as this is a logical extension of their current business endeavors).  However, the cinema experience is what it is and it cannot be replicated via on-line devices. The logical conclusion will be the eventual elimination of the 'theatrical window'.  That said, the biggest grossing films are the high-impact, action-based films which really can only be savored at a cinema with big sound, large screen, and communal viewing which can not be replicated by streaming to home entertainment systems or iPads.

Immersive is just that, and you can only get really immersive at a cinema.  Stand-fast cinemas, you're going to be around until something much better than streaming a movie to a TV comes around.

Just saying,
Jim Lavorato

I would love to have your comments on this subject so don't hesitate to have your say.