Hollywood and COVID-19

Introduction

Warner Bros. released Wonder Woman 1984, starring Gal Gadot, on the same day in theaters and on its streaming service. With many movie houses closed because of COVID-19, Warner said it will release all its 2021 films simultaneously to streaming and theaters. (Screenshot)

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Overview

Gena Chattin likes to go to the movies on Christmas Day. This past Christmas, though, the 45-year-old West Virginia librarian and film buff did not feel safe attending her local theater, due to the COVID-19 pandemic. So, she settled herself in front of her 43-inch Roku smart TV to watch a new movie debuting that day on her HBO Max streaming service: Wonder Woman 1984, the much-anticipated sequel to the 2017 hit.

Meanwhile, in those theaters across the country that remained open, audiences could see Amazonian Princess Diana, played by Gal Gadot, raise her golden armbands in full, 30-foot, Technicolor glory. That was because Warner Bros., the studio behind the film, had made the unusual and controversial decision to release Wonder Woman 1984 on the same day on both its streaming service and in theaters — a strategy it said it will deploy for its entire slate of 2021 films.1 (Typically, theaters receive exclusive rights for up to three months before movies go to video.)

An AMC theater at Lincoln Center in New York City was boarded up in November. Domestic movie theater box office revenues for 2020 hit a 40-year low as pandemic restrictions forced cinemas to close or restrict audience size. (Getty Images/Alexi Rosenfeld)

How did Chattin feel about her holiday movie at home? “The experience was fine because it was a necessity,” she says. “But I vastly prefer to watch in a cinema, with popcorn I didn't make myself.”

Despite complaints about technical glitches, particularly from Roku users like Chattin, HBO Max and Warner declared the rollout a success. While Warner will not reveal precisely how many HBO Max viewers watched the movie on Christmas, the company reported that about half of its approximately 6.8 million retail subscribers tuned in. (Retail subscribers are those who buy the streaming service directly, instead of through a cable subscription.) At U.S. theaters, the movie took in $16.7 million over Christmas weekend — above expectations, but still 84 percent less than the original Wonder Woman made during its 2017 opening weekend, a sign of the pandemic's devastating impact.2

Indeed, Godzilla could not have wreaked more havoc on the entertainment landscape than COVID-19 did in 2020 and continues to do this year. U.S. and Canadian movie theater box office revenues for 2020 hit a 40-year low of $2.3 billion, compared to $11.4 billion in 2019.3 For much of last year, movie theaters were closed altogether, or open only to a small number of customers.

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Those who could Netflixed-and-chilled — or used Hulu, Disney+, Amazon Prime Video or a host of competing streaming services to escape pandemic cares. Many also chose to save money by cutting their pay television cords and, if they could afford to, investing instead in bigger, better TVs.

All this leads to the questions: Are these consumer behaviors permanent? What does the future hold for the entertainment industry?

Analysts say shifts in consumer behavior such as moving toward streaming services and away from movie theaters and cable subscriptions were underway before COVID, but that the pandemic has accelerated them. For example, theater moviegoing was already in decline, while consumers increasingly were embracing video on demand from online streaming services.

“The long-promised streaming revolution — the next great leap in how the world gets its entertainment — is finally here,” wrote New York Times reporter Brooks Barnes in November 2019, before the pandemic began in the United States. Barnes pointed not only to Netflix, which began streaming movies and TV shows in 2007, but also the onslaught of new competitors, including some run by movie studios themselves, such as Disney+.4

Moviegoing also was down before the pandemic, particularly among frequent moviegoers, according to a 2019 Motion Picture Association report, which found that fewer tickets were sold across all age groups.5

“Americans have a nostalgic relationship with going to the movies, but in reality, prepandemic, Americans were going on average only three to five times a year,” says Tom Nunan, a longtime film producer (including for 2006's Academy Award-winning Crash) and former president of NBC Studios. “Post-pandemic, who knows what that number is going be? Once a year?”

One industry analyst does not think movie revenues will return to prepandemic levels until after 2024, with one reason being consumers' embrace of competing in-home entertainment options. “Innovations such as AR [augmented reality] and VR [virtual reality] plus the strong performance of some movies released direct-to-consumer have challenged common sentiments around how and when we want to engage with cinema content,” said CJ Bangah, a principal at the global consultancy PwC.6

Nunan, on the other hand, expects “a big roaring kind of comeback,” at least in the short term, once the pandemic ends and theaters fully reopen. “One can't help but be bullish about the immediate prospects in the entertainment industry this year, compared to 2020,” he says.

But what if the pandemic drags on? Will consumers grow increasingly accustomed to nabbing first-run movies when they want, in the convenient comfort of their own homes and often on bigger, better, more immersive home theater equipment that is becoming less expensive? Will other studios follow Warner Bros.' lead and decide to release movies digitally at the same time as in theaters?

Warner's move raised an uproar in the film industry. Critics called it a way for the studio to push subscriptions to its HBO Max service, which debuted in May, but to the detriment of the filmmakers and other profit participants, who felt they lost leverage in future movie deals.7

“Some of our industry's biggest filmmakers and most important movie stars went to bed the night before thinking they were working for the greatest movie studio and woke up to find out they were working for the worst streaming service,” said filmmaker Christopher Nolan.8

Actor George Clooney blamed Warner's parent company for the move. “It feels like a decision from AT&T, which is not a film company,” he said. “It feels like all they're trying to do is get HBO Max going.”9

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Others were more sympathetic to Warner's plight.

“I can't blame Warner Media. The theaters aren't open. So what do you expect them to do? Just hold on to their movies forever?” says Dan Rayburn, principal analyst with the Frost & Sullivan consulting firm. “They've made it very clear this isn't going to be the norm going forward,” but is only intended to be in effect during 2021 due to the pandemic, he says.

Warner also recently cut deals with its film partners, including theaters, to ensure they receive a portion of streaming profits.10

Other help to devastated theaters came from a $900 billion COVID-19 relief bill signed in December by President Donald Trump, which included money for small- and medium-sized theater companies to help stave off financial ruin. Large, publicly traded chains, such as Cinemark and AMC, did not qualify for this aid.11

AMC, the world's largest theater chain, was near bankruptcy several times in 2020 and remains at risk for this in 2021, given its heavy debt. However, AMC benefited from a public stock sale amid a surge in its share price in January, as the same group of independent investors that fueled the GameStop rise also favored AMC. This enabled the company to raise enough money to forestall bankruptcy, at least for the near term.12

One potentially lucrative avenue for movie studios lies in other countries, such as China. In past years, U.S. films have made hundreds of millions in overseas sales, although in 2020 the flow of new films slowed due to COVID production restrictions. Another concern specific to China is its censorship requirements for U.S. filmmakers, such as forbidding anything that might cast a negative light on the Chinese government. Legislators considered the issue in a congressional hearing last year, while a writers advocacy group, PEN America, is urging Hollywood to protect free expression.13

Diversity, or the absence of it, also has a significant impact on film and television profits, according to a study released in October by UCLA's Center for Scholars and Storytellers. The report analyzed 109 movies from 2016 to 2019 and concluded that studios can lose up to $130 million per film in box office revenue if they lack diversity among characters and the actors who portray them, as well as among the scriptwriters, casting directors and others who produce the films.14

A study by the University of Southern California's Annenberg School for Communication and Journalism, which covered 1,300 top-grossing films from 2007 to 2019, found Hollywood movies continue to lack inclusive representation for minorities, women, those in the LGBTQ community and people with disabilities. One positive sign: movies featuring leading characters and actors of color rose slightly in 2019. But few featured leading roles for women over age 45, characters with disabilities or LGBTQ characters, the study found. Also, women directed just 4.8 percent of the films — a sharp contrast to Netflix, where 20.7 percent of the directors of its 2019 U.S.-based films were female.15

“The legacy studios may want to take a note out of the streaming giant's playbook on how to hire more inclusively behind the camera,” said Stacy L. Smith, an associate professor of communication at the Annenberg school, who directed the study.16

To help correct racial and gender inequities in the film industry, the Academy of Motion Picture Arts and Sciences, which awards the Oscars, announced new standards of inclusion for Best Picture nominees. The standards will phase in starting in 2022 and take full effect by 2024.17

Another challenge in the entertainment business is the growing number of cancellations of cable, satellite and telecom services. “The pandemic has pushed forward the cord-cutting movement's momentum,” wrote Sarah Perez on the TechCrunch website.

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According to projections by the eMarketer research firm, last year another 6 million U.S. households joined the ranks of those who have canceled, bringing the total to 31.2 million, or almost 25 percent of all U.S. homes. By 2024, eMarketer projects, the number is likely to reach 46.6 million, or more than a third of households.18

“Consumers are choosing to cut the cord because of high prices, especially compared with streaming alternatives,” said Eric Haggstrom, a forecasting analyst at eMarketer. “The loss of live sports in [the first quarter of] 2020 contributed to further declines.”19

For most cable companies, the shift is not likely to hurt their bottom lines, as they are increasingly focusing on sales of high-speed internet, which is essential for viewing streaming content. They also can make up lost viewer revenue by raising rates, and many make money from their own streaming services. Satellite companies are more likely to feel the pain, as they lack these options, analysts say.20

As uncertainty over the pandemic's — and the nation's — future continues, these are among the top entertainment industry issues analysts and experts are discussing:

Can movie theaters survive the challenge of streaming services?

The death of the movie theater has been forecast many times, and each time the doomsayers were wrong. The question now is whether the prediction will finally be proven right.

But while there is debate about that, there is no question that the options for consuming entertainment are multiplying.

For example, while Warner's HBO Max arrangement drew the headlines, the studio was hardly the only one to trim movie theaters' exclusivity windows and provide more first-run content to streaming services.

Disney promoted its Pixar movie Soul with a billboard in Hollywood in December — but the only place to view the film that month was on the entertainment company's Disney+ streaming service. (Getty Images/GC Images/Aaron P. Bauer-Griffin)

Universal has a deal with AMC and Cinemark to allow home viewing a scant 17 days after a movie opens in theaters, at which point the theaters get a share of the streaming revenue.21 Disney — which is both a studio and a streaming service — made its Pixar movie Soul available to Disney+ streaming subscribers on Christmas, skipping movie theaters altogether. The company, which also owns Hulu, says it plans to focus on “direct-to-consumer” content.22

Meanwhile, top-streaming service Netflix announced in January that as of the end of 2020, it had 203.7 million subscribers worldwide, breaking its own fourth-quarter subscriber growth projections by 42 percent.23 Disney+ also has seen rapid growth since its November 2019 debut, with almost 95 million subscribers as of early January.24

Other new streamers also are making claims on customers' eyeballs and credit cards. These include Peacock, NBC's streaming service, which debuted in July; Discovery+, which began in January and Paramount+, a ViacomCBS service that comes out in March and replaces CBS All Access.25 These join hundreds of other streaming channels now available. TV analyst Rayburn says he has counted 1,200 services people can subscribe to via the internet. And people are buying: 80 percent of U.S. consumers subscribe to at least one paid streaming video service.26

So, faced with so much competition for viewing time, how likely are people to resume theater-going, once the pandemic passes?

“I think the threat of streaming is somewhat overstated,” says Patrick Corcoran, vice president and chief communications officer for the National Association of Theatre Owners. He points to a February 2020 study by the Ernst & Young consulting firm that his organization commissioned, showing that “people who stream a lot are also the people who go to the movies a lot.” Those who stream nine or more hours weekly are people who go to more movies, at least in prepandemic times, and value movies on their home streaming platforms that have been in movie theaters, he says.27

Another study, by South Korean researchers, found that reducing the exclusive movie theater window from three months to one month had no significant impact on theater attendance. Most movie-watchers “remained loyal to the theatrical experience,” researchers said.28

The threat of the movie theater's demise has been overstated in the past, says Neil Landau, a screenwriter and associate professor at the University of Georgia. “When movies went from silent to talkies, or when television supplanted radio, people always panicked and said, ‘This is the end of movies.’ And it never was.” But, Landau adds, “this time … it feels different.”

Today, consumers can buy, for relatively low prices, large high-definition TVs with surround sound systems and, to some extent, recreate the movie-going experience — without having to hire a babysitter, schlep to a theater, pay ticket and concession prices and deal with somebody sitting nearby texting or even talking on their phone. Due to the pandemic, consumers have also become used to watching movies on TV, and habits can be hard to change.

“While theaters may rebound at some point to a respectable level, I think the home will continue — as it has during COVID-19 — to be the central place that most consumers will prefer to watch new movie releases, especially those folded into an existing [streaming] subscription,” said Steve Nason, research director at Parks Associates, a market research firm.29

Analyst Rayburn disagrees, pointing out that especially for certain types of movies, such as those with special effects, the big screen and sound from a theater are a key part of the experience. “There's plenty of people like me,” he says, who will line up at the theater when the new James Bond or Star Wars films come out — and who will want to share it with others.

“Movie theaters are going to return,” Rayburn says. “This idea that people are never going to go to the movies anymore, and everything will be streamed online — that is not what makes us human. What makes us human is that we actually want to be around other people — most of us, anyway. Movies are a community event. We want to go with our friends, we want to go with a date.”

Marc Simon, a filmmaker and entertainment attorney from the Philadelphia law firm Fox Rothschild, agrees: “The communal experience of going with friends and loved ones to a dark room with a big screen and smell of popcorn is too powerful to die.”30

Will cord cutting doom cable companies?

Although canceling cable service has become more commonplace, especially during the pandemic, only a minority have done it. Most of the country's 120 million households still have a cable, satellite or a telecom pay TV package. In 2020, 77.6 million had not cut the cord — yet.31

Some analysts say it is only a matter of time before this happens. They point to the growing adoption of streaming services, plus financial pressures brought about by the pandemic.32

Joe McCormack, a media and telecom analyst at the Third Bridge research firm, said industry executives suggest U.S. pay TV households could fall to as low as 50 million “over the longer term.” Others give pay TV a decade before it essentially disappears.33

“I think it's 10 years, and there'll be a total change of the guard,” said former DirecTV/AT&T Audience Network programming chief Chris Long, who is now a film and television producer. “At some point, people will make that decision of ‘I can get everything I want [in streaming]. I no longer need to have 180 channels that I only watch 12 of.’”34

Film producer Nunan says media companies are putting all their chips on streaming, a bet premised on the belief that cable is no longer relevant in an increasingly digital age.

“Our relationship with cable is going to change or possibly go away completely, meaning most of the content that you consume through cable now — basic or premium cable — will be experienced exclusively through your computer or a streaming service,” he says. “Cable's future is dismal.”

One reason, says Nunan, is price. “If you're looking at a $200 cable bill every month, even if you bought all of the major streaming channels, it would likely add up to less than half your cable bill each month,” he says.

However, screenwriter Landau has found the opposite. After cutting his cable, then adding on streaming services, “our bill is now more each month than what it was,” he says.

Analyst Rayburn, too, has found cable to be cheaper. He says his Triple Play bundle with Verizon is less costly than digital services people often buy to replace cable, such as Hulu Live or YouTube TV, which bundle local channels, news, sports and various popular channels for a flat fee.

Fans in Kansas City, Mo., watch the broadcast of the Super Bowl on Feb. 7. Telecasts of popular sports events may limit the number of consumers who opt to drop their cable TV service. (Getty Images/Kyle Rivas)

“Every service now starts at $65 or $70 per month,” says Rayburn, but he adds that most have had multiple price hikes in recent years to cover rising costs of content licensing — another issue, especially as the pandemic has delayed content production.

Rayburn also says services such as Hulu Live usually restrict how many devices can stream at once to two or three before additional fees apply, whereas cable does not impose such restrictions. And, says Rayburn, the video quality with streaming channels is not as good as what he gets with cable.

Rayburn predicts cable will remain a viable option in the coming years, but with a shift in what is being watched and how it is watched.

“The reason you're not going to see 30, 40, 50 percent of the market leave cable is because of sports,” he says.

An October 2020 report from ABI Research offers some support for this conclusion. In North America, more than 2 million subscribers canceled their cable or other pay TV service in the first quarter of 2020, when most sports were shut down due to the pandemic, the report said.35 But it also concluded that the effect was likely to be temporary. “When sports events resume, sports fans are likely to go back to pay TV service.”36

However, the picture is mixed. The Trade Desk, a technology company, found in an early December survey that after live sports resumed, fewer consumers cited live events such as sports as a reason to keep their cable — 30 percent, down from 60 percent nine months earlier. The survey found 39 percent of sports viewers now are watching live sports on ad-supported streaming services or social media platforms. “Even live sports can't keep viewers tethered to traditional TV,” The Trade Desk reported.37

One factor that may play into consumers' viewing decisions: who owns the rights to broadcast major league sports, such as the NFL, whose current TV deal expires next year.38 Rayburn says such rights are likely to stay with broadcast networks, not streaming services.

Variety writers Michael Schneider and Kate Aurthur disagree: “The conglomerates with sports rights will either have to include a streaming component (adding NBA to HBO Max or NFL to Disney+, for example), or risk losing exclusivity as major leagues look to sell those streaming rights to a third party such as Google or Facebook.” They also point out that younger people — such as members of Generation Z — have grown up with streaming and have “no loyalty to cable whatsoever,” which does not bode well for cable's long-term future.39

In addition to sports, cable has traditionally offered a variety of niche programs as part of its lineups: cooking shows, home improvement and the like. Some of these cable brands are now turning to streaming. Discovery+, which launched Jan. 4, offers streaming shows from all the channels under the Discovery umbrella — everything from “Diners, Drive-Ins and Dives” to “The Property Brothers” to content from the Food Network, Investigation Discovery, Lifetime and many others, for $4.99 per month. Shows are available from past seasons, as well as shortly after they air live on their cable counterpart. There also are shows exclusive to Discovery+.40

FX Networks has created an “FX on Hulu” portal, with original programming not aired on FX's cable channel, as a way to expand the FX brand. That way, should cable fail, the channel can carry on, but in streaming space.41

“Where all the growth and investment in the television industry is, is in streaming,” said FX Networks CEO John Landgraf.42

Should Hollywood push back harder against Chinese censorship?

In 1986, an up-and-coming Tom Cruise cemented his leading-man status by playing a “Top Gun” fighter pilot in the movie of the same name. He memorably wore a jaunty leather jacket featuring a variety of emblems and patches — including the Japanese and Taiwanese flags.

A new Top Gun movie — Top Gun: Maverick — is set to come out in July, unless the pandemic delays it. Trailers from this sequel show Cruise wearing his iconic jacket — but the two flags have been replaced. Why? Observers suggest it was done to appease China, which is notoriously sensitive to content and images in the foreign films it allows into its restricted market. The government in Beijing has a contentious relationship with both Taiwan, which it regards as a renegade Chinese province, and Japan. Chinese tech giant Tencent also is an investor in and co-marketer for the film. Neither Tencent nor Paramount Pictures, producer of the movie, has commented.43

The iconic jacket worn by Tom Cruise in the 1986 film Top Gun, including a Taiwanese flag patch, is displayed before an auction. In a sequel set for release in July, the jacket is back — but the flag patch is gone, to placate Chinese censors. (Getty Images/PA Images/Andrew Matthews)

The incident showcases an ongoing concern with Chinese censorship of American movies, described in a report released in August 2020 by PEN America. The report outlines the effects of Hollywood's desire to sell its movies to China's audience of more than 1.4 billion people — which generated $2.6 billion in box office revenues in 2019 — and the need to meet restrictive guidelines to gain this access and funding.44

“As U.S. film studios compete for the opportunity to access Chinese audiences, many are making difficult and troubling compromises on free expression,” PEN America said in its report. “The result is a system in which Beijing bureaucrats can demand changes to Hollywood movies — or expect Hollywood insiders to anticipate and make these changes, unprompted — without any significant hue or cry over such censorship.”45

China allows 30 to 40 foreign films into the country each year. To make the cut, films must not portray China's authoritarian Communist government in a negative light. Chinese censors also will not accept films that mention Tibet, the exiled Tibetan religious leader the Dalai Lama, homosexuality — or ghosts and time travel, which officials fear could be used as vehicles for veiled criticism of the government.46

For example, before the 2018 Oscar-winning film Bohemian Rhapsody was allowed to open in China in 2019, three minutes were cut to hide singer Freddie Mercury's gay sexual orientation.47 These changes were made only to the Chinese version of the film. However, on other occasions, China demands changes to all versions, even those shown in the United States. Censors also exact broad retribution on a studio: If one of its films or stars offends a censor, any of its other films may be banned, said Chris Fenton, a longtime Hollywood executive whose memoir focusing on Chinese censorship was released in July 2020.48

Fenton said that “premeditated censorship” needs to stop. “We are the pillar of creative freedom and freedom of expression as the Hollywood industry. And to stifle that because we are thinking about one particular market and what they might like or not like is completely hypocritical to what the whole foundation of the business is.”49

Actor Richard Gere, a vocal supporter of the Dalai Lama and Tibetan independence, testified about Chinese reprisals before a Senate committee last June.50 Sen. Ted Cruz, R-Texas, has introduced a bill called the Stopping Censorship, Restoring Integrity, Protecting Talkies (SCRIPT) Act. The measure would ban the U.S. government from funding or providing assets, such as props like military tanks, to studios or movies that censor for the Chinese market.51

Stanley Rosen, a professor of political science at the University of Southern California who specializes in Chinese politics and society, was a consultant to PEN America. “I don't believe there needs to be a government response,” Rosen says. He suggests Cruz can influence public opinion against Chinese censorship by holding hearings, writing op-eds or going on talk shows, “but I don't think it should be done by any congressional act. After all, this is America, not China.”

The PEN report recommends that Hollywood take a variety of actions to push back against Chinese censorship, including having the major movie studios agree that if changes to films are made to satisfy Chinese censors, they affect only the Chinese version of the film.52

Rosen finds some of PEN's conclusions “unrealistic,” noting that Hollywood needs China for financing and as a market for its films. China also needs Hollywood, says Rosen, “but less so since they have learned from Hollywood how to make successful blockbuster films of their own.” China recovered relatively quickly from the COVID pandemic, with theaters reopening in June. Four of the top 2020 revenue-producing movies in the world were made in China, including the highest-grossing film, The Eight Hundred. China's 2020 box office earnings were $3.1 billion, compared with $2.25 billion in the United States and Canada.53

Washington Post columnist Sonny Bunch recommended another solution: that prestigious international film festivals, such as Cannes, refuse to accept any film bearing the “Dragon Seal” of approval from Chinese Communist Party censors. “Validation from the international community is big to the Chinese, particularly with an industry like the film industry,” he wrote. “If multiple festivals representing multiple countries took a stand, [the Chinese Communist Party] would have no choice but to retreat.”54

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Background

Cinema's Early Days

The first movies were created in the late 1890s by multiple inventors in the United States and Europe, working simultaneously to develop cameras and projectors.

In 1893, Thomas Edison and his team invented a cabinet called a kinetoscope with a small peephole on top, through which people could take turns peering at the moving images displayed within. (One early Edison film — the first motion picture to be copyrighted — showed five seconds of a man sneezing.) Coin-operated kinetoscopes began popping up in penny arcades, hotel lobbies and amusement parks. In 1894, the first kinetoscope parlor opened in a converted storefront in New York City.55

Other inventors focused on creating projectors so groups of people could watch images together. In 1895, Antoine Lumiere and sons Louis and Auguste debuted a 15-minute series of 10 short videos to a paying crowd in Paris. Their movies were made and projected by a machine Louis and Auguste had built, called a cinematographe, a lightweight, portable, hand-cranked device that revolutionized filmmaking and gave a new name to movies: cinema.56

The following year, the world's first permanent movie theater opened: the 72-seat Edisonia Vitascope Hall, in Buffalo, N.Y. However, people were more likely to view these brief, black-and-white, silent movies in tents set up at fairgrounds and carnivals or at vaudeville and variety shows.57

A nickelodeon in Detroit in 1909 was one of thousands of small theaters across the country that allowed patrons to watch films for five cents in the movie industry's early days. (Getty Images/Universal Images Group/Contributor)

After the turn of the 20th century, with audiences growing, movies relocated to larger venues, such as music halls, opera houses, converted churches or vacant stores.58

Starting in 1905, nickelodeons — small theaters set up for people to watch movies and live vaudeville acts for only a nickel — became popular. The first opened in 1905 in Pittsburgh with 96 seats. Nickelodeons quickly spread across the country. By 1908, there were nearly 8,000; in 1910, 10,000.59

By 1914, an estimated 27 percent of Americans went to the movies each week.60 A $1 million (nearly $26 million in today's dollars) “movie palace” opened in 1914 in Manhattan with seating for nearly 3,000. Demand grew for other ornate theaters to accommodate audiences for the longer feature films that were being created. By 1916, more than 21,000 such theaters had been built.61

The trend reflected a shift in public perception of movie-watching, previously looked down upon as a carnival sideshow for working- and lower-class people. Placing films in gilt-adorned, velvet-seated settings helped change upper-class minds about movies' suitability.62

Racism was apparent in the content of some films and in the fact that many theaters were segregated. The nation's first full-length motion picture was 1915's The Birth of a Nation, which used white actors in blackface to portray African Americans and cast Ku Klux Klansmen in a heroic light.63

The Spanish Flu

As World War I wound down in 1918, Americans started grappling with a new enemy: an H1N1 influenza outbreak dubbed the Spanish flu, which hit especially hard in the fall and, within 10 months, would kill 675,000 in the United States and 50 million worldwide.64 Public health experts — just as they have with today's COVID-19 outbreak — urged masking and social distancing, while nonessential businesses were ordered to close, including movie studios and theaters.

Movie studios shuttered production from mid-October through November of 1918, incurring big financial losses. Famous Players, which later became Paramount, lost nearly $2 million from 1918 to 1919 ($30 million in today's dollars). About 80 to 90 percent of American movie theaters closed for two to six months.65 In November 1918, the leadership of the Theater Owners Association argued before the Los Angeles City Council that the theaters had been unfairly targeted for closure.66

Some stars, especially males, fought mask-wearing, saying it made them appear unmanly. One prominent leading man, Harold Lockwood, 31, died from the flu, shocking the industry while devastating his fans. Other stars, including Mary Pickford and Lillian Gish, also fell ill, though they recovered. Learning of the death and illness of film actors frightened many from going to theaters, even after they reopened.67

As a result, many movie theaters, which often were struggling mom-and-pop operations, failed. Adolph Zukor, head of Famous Players (later to become Paramount), bought them for pennies on the dollar. If owners balked, he would threaten to open a competing theater across the street and run them out of business, said Hollywood historian Michael Mann. By 1921, Zukor's studio owned more theaters than any other.68

Zukor helped create a vertically integrated studio system in which the studios controlled the production, distribution and exhibition of movies. Smaller, independent filmmakers, such as female directors, actors, producers and screenwriters, were frozen out.69 The nation's top five studios — Warner Bros. Pictures, Paramount Pictures, RKO Pictures, Metro-Goldwyn Mayer and 20th Century Fox — owned about half the movie theater seating capacity in the United States, mostly in first-run movie theaters in major cities. Theaters not owned by studios were forced to accept “block booking” — having to rent multiple movies rather than getting to pick selectively.70

As the 1920s roared on, movies continued to improve technologically, with the first feature-length film to include music and spoken dialogue, The Jazz Singer, opening in 1927. Other “talkies” soon followed, as the era of silent films ended.71

With movies rising in both popularity and influence in society, religious groups complained about immorality and lewd behavior on screen. In 1930, the Motion Picture Producers and Distributors of America (later the Motion Picture Association of America or MPAA), approved a set of guidelines named after the organization's head, Will H. Hays. These rules were enforced starting in 1934, and banned movies from showing interracial marriage, homosexuality, violence and sexual behavior (including kissing).72

For audiences during the Great Depression of the 1930s, movie watching became a great escape. From 1929 to 1939, “moviegoing in America reached a peak that has never been surpassed,” wrote Barbara Crossette in The New York Times. 73 In 1930, for example, more than 65 percent of the population went to the movies weekly.74

The United States entered World War II in 1941. During the war years, movie-viewing was one of the few entertainment options available, and at a relatively low cost, so attendance remained high.75

However, Hollywood studios faced another type of battle: fighting antitrust action begun by the U.S. Department of Justice in 1938. The legal fight took 10 years, culminating in a 1948 U.S. Supreme Court decision upholding a lower court's finding that the studios were guilty of price-fixing and monopolizing the industry. The resulting “Paramount Decrees” required studios to sell their movie theaters and end block-booking and other monopolistic practices.76

Television, Cable and Streaming

As the second half of the 20th century dawned, so did the television era. The first nationwide broadcast TV network, NBC, began in 1951. Americans could watch TV at home for free and stopped going as often to movies. Studios tried to fight this by refusing to let their movies or stars they had under contract appear on TV, but eventually realized they could make more money by producing films for both TV and movies. They also sold the television rights to older films, such as The Wizard of Oz, which hit theaters in 1939 but debuted on TV in 1956.77

Meanwhile, as studios started focusing more on producing TV content, weekly movie attendance fell. In 1950, 60 million Americans went to a movie theater once a week. Just 10 years later, in 1960, this had fallen by one-third to 40 million, according to the U.S. census.78

Fewer people going to the cinema, as well as the growth of the suburbs, made it difficult for large movie theaters in downtown areas to survive. The suburban multiplex emerged as an alternative: boxy buildings divided into multiple screening auditoriums. The first was built in 1963 in Kansas City, Mo. Megaplexes have since become commonplace across America, replacing the movie palaces of old.79

Another change: The Hays Code, governing sexual and other conduct on screen, was abolished in 1968 and replaced the following year by the MPAA's film rating system. This was designed to encourage more artistic freedom, as well as enhance U.S. films' foreign competitiveness.80

Technology gave movies a boost in the 1970s with the application of computer-generated imagery (CGI) and special effects. Star Wars, which opened in 1977, was a groundbreaking smash that triggered a wave of special-effects, high-action blockbusters that continues to this day, often based on comic book superheroes.81

Cable TV started expanding into large cities and major metro areas across the country in the 1960s and 1970s, offering consumers a wider choice in TV viewing. The Home Box Office (HBO) premium channel debuted in 1972. Three years later, it became the first channel to transmit via satellite. More premium cable networks, such as Showtime and Cinemax, followed. By the end of the 1980s, nearly 53 million households accessed TV via cable.82

A Blockbuster Video store in Miami in 2002 was among hundreds of the company's outlets that rented movies for home viewing. (Getty Images/David Friedman)

Home video recorders started becoming popular in the late 1970s, allowing consumers to record and watch movies at home. Soon, they could rent movies on videocassette from outlets such as Blockbuster, which opened its first location in 1985 in Dallas and quickly became the country's leading chain, with 1,000 stores by the early 1990s. By the late 1990s, DVD rentals became commonplace.83 In 1997, Netflix started offering movie DVD rentals via mail. In 2007, it added the ability to watch movies online, via streaming.84

Amazon, which began in 1994 as an online bookstore and grew into an e-commerce giant, started streaming movies and TV shows in 2011.85 Netflix released its first original TV series, “House of Cards,” in 2013 and first feature film, Beasts of No Nation, in 2015; Amazon its first TV show in 2014. Both Netflix and Amazon produced films that have received Academy Award nominations and wins.86 In 2019, Netflix became the only purely streaming company to become a member of the MPAA.87

Other streaming services entered the market, including Disney-owned Hulu in 2007, Apple TV+ and Disney+ in 2019, and HBO Max and Peacock in 2020.88

Another type of service offers live sports, local news and programming similar to what cable TV offers, but over the internet. Services such as Hulu+ Live TV, YouTube TV and Sling TV make it easier for people to cancel their cable or satellite subscriptions and watch TV via online platforms instead.89

While the landscape was being changed for consumers with greater TV and movie streaming options, media companies were merging. In 2019, Disney acquired most of Fox; the merger of AT&T and Time Warner won court approval; and Viacom and CBS merged.90

In August 2020, the U.S. Justice Department, as part of the Trump administration's deregulatory emphasis, dissolved the 1948 Paramount Decrees, a move fought by theater owners.

“The structure of the market, absent the Paramount Decrees, will go back into that kind of abusive behavior that the decrees were designed to prevent,” said Corcoran, the National Association of Theatre Owners vice president.91 The ruling immediately removed the ban on studios buying movie theaters, while keeping the prohibition against block booking in place for two years.92

COVID-19 Strikes

Most U.S. movie theaters closed in March 2020, as the COVID-19 virus, which first appeared in the country in January, began spreading across the nation. Theaters were considered a nonessential business, and also are primarily an indoor activity, with people often taking off face masks to munch popcorn or drink soda.93 These risk factors have kept many theaters closed or open at reduced capacity, as the virus, and its potentially more contagious variants, continues to threaten many areas of the country. As of early February, about 60 percent of the nation's theaters remained closed, though the 40 percent that were open include about half the country's movie screens, says Corcoran of the National Theatre Owners Association.

Movie and television production also was largely shuttered in 2020. It resumed later in the year, but then shut down again as California experienced a serious virus resurgence.94

Throughout the country, people began working from home as well as spending more time indoors, with restaurants and many other activities closed. Children, too, stayed home to attend virtual school. To keep themselves entertained, people turned to television — especially on-demand streaming services. During the second quarter of 2020, for instance, Nielsen found that people spent almost double the amount of time watching streaming content as they did during the same period in 2019 — 142.5 billion minutes watched in a week versus 81.7 billion.95

The top streaming TV series of 2020, according to Nielsen ratings, was “The Office,” by a landslide. The sitcom, which originally aired on NBC from 2005 to 2013, was available on Netflix until this year. Its new popularity on streaming perhaps attracted people shut out of their real-life offices due to the pandemic. Having a home on the top streaming service also may have helped, given that the entire top 10 streaming list was made up of Netflix shows.96

The $900 billion COVID relief measure enacted in December 2020 included money set aside for small, private movie theater companies, but left out large, publicly traded firms. However, the bill did include tax benefits and other forms of business relief to provide some help for these companies, as well as unemployment insurance for their employees, Corcoran says.

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Current Situation

Theater Chains and Studios

AMC, with 1,000 outlets, including 594 in the United States, has been hanging on by the slimmest of threads through the pandemic, lining up loans to help it avoid bankruptcy as it burns about $125 million in cash every month. Many financial analysts predicted it would need to file for bankruptcy in January. Other rumors swirled that Amazon might try to buy it.97

However, on Jan. 25, AMC announced it had secured $917 million in debt and equity financing, leading CEO Adam Aron to say, “Any talk of an imminent bankruptcy for AMC is completely off the table.”98 After the announcement, AMC's share price rose 26 percent, to $4.42. The activity apparently motivated the WallStreetBets group of online day traders — who had previously pushed GameStop stock to dizzying heights — to back AMC. A market frenzy ensued: AMC stock soared more than 300 percent to nearly $20, 50 million shares the company had put up for sale sold out and a #SaveAMC Twitter campaign began trending, with users posting pictures and memories of favorite theaters and movie dates. (By early February the share price had fallen back to around $6.)99

A Regal Cinema in New York City in October displays a sign calling on Gov. Andrew Cuomo to allow movie theaters to reopen. Regal's parent company averted bankruptcy in November through a financing deal. (Getty Images/Alexi Rosenfeld)

AMC's stock sales allowed it to cut its $6 billion debt by about 10 percent. A private-equity firm stepped in to provide further help, perhaps increasing AMC's chances of survival.100

Cineworld, owner of the U.S. Regal Cinemas chain, also was able to avert bankruptcy after securing a financing deal in exchange for 10 percent of the company. “With vaccines on the horizon and liquidity secured, we think that [Cineworld] is now well-placed in a re-opening scenario,” analysts at Jefferies Financial Group said.101 Cinemark received a positive recommendation from B. Riley Securities analyst Eric Wold, who, buoyed by vaccine news, predicted in January that theater attendance would return to 2019 levels by 2023.102

Theater chains, as well as movie studios, are hopeful the current vaccine distribution effort will help quell the pandemic and hasten the time when they can reopen all their theaters — and that new, more contagious strains of the virus that have emerged are not resistant to the vaccines.

Movie and TV production has resumed in Los Angeles after a brief shutdown in early January due to a COVID surge.103 However, the ups and downs of TV and movie production, as well as the transition to streaming services, have resulted in mass layoffs. Warner Bros. has had two rounds as of November 2020; NBCUniversal has cut hundreds of jobs; and AMC Networks let go 100 staffers in November. Discovery Inc., Sony Pictures and Lionsgate experienced sizable layoffs in 2020, as well. Short-form video streamer Quibi went under after six months, putting about 250 employees out of work.104

“We've been saying that at some point the studios were going to have to rethink their business models, and now they're actually doing it,” said Michael Nathanson, media analyst with the MoffettNathanson research firm. “I think these companies should have been planning this pivot earlier.”105

Governmental Action

The aid to struggling small- and medium-sized movie theaters in the December COVID relief package was expected to help about 1,000 companies, according to Corcoran. The measure provides 45 percent of revenue lost between April and December 2020, capped at $10 million, which could be used to cover rent, payroll and other costs. Theaters that lost at least 90 percent of their revenue could apply right away, while those that lost 70 percent could do so after two weeks. Another phase in the second quarter of 2021 could allow additional grants at half the earlier total for companies that continue to have difficulty, providing funding remains (Corcoran's group believes enough exists).

It is not yet known if the Biden administration and Congress will consider more targeted stimulus for theaters in the new COVID bill currently being hashed out. The theater owners association also is working to find aid for the bigger chains as well.

“There's seems to be more of an appetite with this administration, and with the Congress coming in and … a Democratic Senate, for more aid” to people and businesses that have been affected by the pandemic, Corcoran says. “We've been running back and forth to the Hill quite a lot…. The pandemic is not over, and until it is, I think there's going to be that need for more support for workers and for businesses.”

Of course, much depends on the progress of the fight against COVID-19. National vaccination efforts are moving more slowly than anticipated, while new virus strains, including some that may be resistant to vaccines, are spreading across the country. This further clouds the picture, making it difficult to see when theaters can reopen again to full capacity.

Congress also may pursue antitrust action against big tech companies, following up on hearings held during the Trump administration. Amazon (which owns Amazon Prime Video), Apple (Apple TV+) and Google (YouTube TV) potentially could become targets of antitrust lawsuits.106

Also potentially up for congressional action: relations between China and Hollywood. In 2012, Biden, then vice president, worked with China to increase the number of foreign films it allowed into the country, which increased Hollywood revenues. That agreement expired in 2017.107

USC professor Rosen says he thinks President Biden would want to renew and update Hollywood's access to the Chinese market “in Hollywood's favor.” Since the 2012 agreement expired, says Rosen, “negotiations have been on hold because of the trade war and other issues in the Sino-American relationship, making such deals difficult in the current environment.” Chinese censorship is also a concern, although Rosen does not think the Biden administration would favor the position taken by Sen. Cruz, who has proposed denying U.S. governmental assistance to movie companies that accept Chinese censorship.

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Outlook

More Disruption

Five years from now, new technologies may have emerged that could upend once again an already disrupted industry.

“Now more than ever, entertainment and technology are joined at the hip,” says Anthony Palomba, communication professor at the University of Virginia's Darden School of Business. He predicts virtual and augmented reality technologies will finally turn the corner of general acceptance, allowing viewers wearing special goggles or headsets to feel fully immersed inside a TV show or movie. Artificial intelligence also can be used to better determine what customers want to see, to guide people to that content or even to help create the content, according to Palomba.

Film producer Nunan predicts movie studios or streaming services will buy up movie theaters again, just as the studios did after the Spanish flu pandemic. If movie theaters continue to struggle financially due to lower attendance, a trend even before the pandemic struck, “the studios are just standing on the sidelines, waiting for them to get more and more desperate to either sell out completely or partner at extremely favorable terms to the studio,” says Nunan.

Theaters then may become associated with a single studio that views the theater as primarily a way to promote its brand, which could include streaming shows or other products. A Disney-owned theater could show new and old Disney titles, or related films that create interest in a current new feature, Nunan says. An Apple or Amazon theater might have other Apple or Amazon products for sale, such as Amazon Fire or Apple TV devices.

“It's all going to be brand extension, with the mother ship — the streaming service — being the biggest priority,” he says.

Streaming services may also shake out, as consumers struggle to justify multiple subscriptions, or else become confused and overwhelmed by the number of choices. “Five years from now, I don't think we're going to see all these streamers still standing,” says Nunan. “Some may go away; some may consolidate.”

On the positive side, the plethora of channels needing content — and able to provide niche services to targeted customers — means more opportunity for lower- and medium-budget films, independent movies and other character-driven storytelling to reach an audience, Nunan says. Lower- and medium-budget films “are experiencing a renaissance … because they're finding homes on these digital platforms,” he says.

Streaming services are likely to pick up such productions, perhaps as a series rather than a single film, but in either event offering many more viewing choices for consumers.

Some legacy movie companies — the creators of Hollywood's so-called golden age from the 1930s through 1945 — may find themselves unable to compete against streaming services, Palomba says. He points to current behemoth Netflix, which, through its aggressive spending, “has raised the costs on everything, including talent.” Palomba notes that Ryan Murphy, showrunner for the popular “American Horror Story” TV series and many others, signed a $300 million, five-year deal to leave 20th Century Fox and produce content for Netflix. “How do you compete if you are Fox?” Palomba asks.

However, other legacy companies, such as Warner and Disney, also own major streaming platforms, meaning they are covered no matter which way consumer demand shifts. Similarly, Paramount is now part of ViacomCBS and is soon to launch its own streaming service, Paramount+.

“The entertainment business is like Las Vegas in that the house always wins,” says screenwriter Landau. “Whether Warner Brothers releases theatrically or on HBO Max, they own both.”

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Pro/Con

Will movie theaters return to profitability after the COVID-19 pandemic ends?

Pro Anthony Palomba Communication Professor, Darden School of Business, University of Virginia. Written for CQ Researcher, February 2021 It is likely that the movie theater industry will rebound after the pandemic, but whether it gets back to prepandemic levels remains to be seen. Consumers will need to feel safe in theaters, and studios will need to be able to consistently produce movies. Movie theaters can return to profitability if they adapt to consumer viewing preferences, consistently deploy cutting-edge technology and reimagine what an event is to consumers. Until recently, the industry has not adjusted its strategy for releasing movies to accommodate new technology or digital business strategies. Producers should not automatically campaign to have their movies debut in theaters. Instead, they should assess the consumer appeal and genre. Theaters will and should lean into exhibiting blockbuster and franchise movies, which draw large audiences. Studios have signed deals with theaters to shorten exclusive theater windows and/or allow them to debut movies on other platforms and services alongside a theater opening. Theaters can earn profits from these alternative movie debuts, which may prove to be an essential financial buoy. Primary external threats to theater viewing include showing movies on smartphones, tablets, laptops, desktops, smart televisions and other devices. This allows for on-demand movie viewing. Also, consumers have fairly sophisticated technology in their homes that allows them to mimic an immersive theater viewing experience. To combat these threats, movie theater executives need to give consumers a reason to go to a theater to see a movie. Movie theaters may consider expanding the amount of available 3D screens and embracing fine food and drink menus (as some movie theater chains already have). It is also possible to offer concessions outside of theaters to drive sales. Theater executives should consider negotiating for streaming rights to movies and debut them on developed apps, although this is already a heavily crowded marketplace. Movie theaters will need to be on the cutting edge of digital technology and entertainment. This includes anticipating what consumers may want to experience beyond 3D movies, and may even include virtual reality, augmented reality and 4D experiences. Consumers expect more from their theater-going experiences, and theaters will need to continue to innovate at a high level. This will help theater chains combat high revenue volatility and competition. A market will always exist for people who want to leave their homes to enjoy an event, whether it is in a theater or at a live concert. There needs to be a concerted effort to create events at movie theaters, or other experiences that people cannot enjoy from their living rooms. Thinking on those levels is a way for the movie theater industry to be financially solvent moving forward.

Con Neil Landau Screenwriter; Associate Professor of MFA Film and Entertainment & Media Studies, University of Georgia. Written for CQ Researcher, February 2021 I'm an incorrigible optimist, but after the cataclysmic shifts of 2020, I'm looking at the future of movie theaters through a more pragmatic lens. As a lifelong cinephile, I hope my prognostications are wrong. The cons: Technology is improving faster and is more affordable and accessible than ever. If you didn't have a way to watch movies at home before March 2020, you most certainly are connected now, and home viewing is much cheaper and more convenient than going to a theater. Netflix announced it will debut 70 films in 2021 (the top five studios in prepandemic times could release at most 90 theatrical titles combined). The lines between cinema and TV have blurred. Even cineastes Martin Scorsese and Spike Lee have learned to embrace streaming platforms for distribution. Disney has spent billions to launch its streaming platform, Disney+, and already has almost 95 million subscribers. Once Disney recoups its investment in streaming, I doubt that it, and its competitors, will want to unplug that revenue stream. In 2011, MoviePass was launched — and failed to attract audiences with a flat rate for unlimited monthly theater visits. This desperation to remain relevant in the face of technological advances, including video games, virtual reality and augmented reality, might be viewed as the beginning of the end of the modern movie theater. Younger generations are accustomed to toggling between watching a movie and interfacing with another electronic device. That's not possible in theaters where cellphones must be turned off. Traditionally, a theatrical release was required for movies to qualify for Academy Award consideration. In 2020, the majority of theatrical releases premiered on streaming platforms, yet remain Oscar-eligible. That's unlikely to change. Last year's Oscar winner, Parasite, set precedents for winning Best Picture and Best Foreign Film, and the movie was profitable but not a blockbuster in the United States. Still, the film demonstrates the growing U.S. demand for global fare, best suited for streaming. Parasite was a ratings juggernaut when it aired on Hulu — which does not bode well for movie megaplexes that have become reliant on mega-budget spectacles. Traditional forms of advertising have been superseded by algorithms based on the acquisition of customer data by streaming platforms. Theater exhibitors cannot compete with the targeted messaging and trackable consumer behavior that binge-able episodic television programming provides. Movies are still beloved and, happily, that's not going to change. But how and where we watch them, that communal experience, could be relegated mainly to big tentpole/event movies, bolstered by the tug of nostalgia. When all these factors are considered, there is reason to believe that the movie theater is an endangered species.

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Short Features

New TV Tech Brings Theater Experience Home

Today's televisions are bigger, better and yet less expensive than their predecessors, making it easier for consumers who watch movies at home to get a near-theatrical experience. It is a trend that analysts expect to continue.

In the first half of 2020, sales of 65-inch TVs and larger were up 53 percent compared to 2019, with prices down significantly (averaging $644, $200 less than 2019), according to The NPD Group, a market research firm. Before the pandemic, NPD had projected 65-inch TV sales would rise 20 percent due to the price drops, but the actual numbers more than doubled its original forecast.1

Sales for even bigger TVs were even stronger, up 77 percent in April and June, despite many Americans being laid off or furloughed from their jobs because of COVID-19. Some buyers used the $1,200 checks that the federal government issued as part of a coronavirus relief package, while others spent funds saved for vacations that would not happen.2

“Obviously, the numbers have accelerated as the pandemic has kept many people in their homes,” said Stephen Baker, vice president of industry analysis for The NPD Group.3

Bigger, higher-resolution screens aim to provide viewers a more theater-like event. “What we're seeing is just amazing home theater experiences that rival … what they would experience in a giant amphitheater or movie house,” says Tom Nunan, a film producer and former head of NBC Studios.

Though the average television size in an American household today is 47 inches, the TVs consumers are buying to replace them are bigger, with an average size in 2019 of 65 inches. Picture quality also is improving. While TVs once advertised HD (high definition) capabilities, today “Ultra HD” (also known as 4K resolution) is becoming standard.4 Sales of 8K TVs that offer even greater image quality are starting to heat up, projected to double in 2021 from the previous year to 1 million units globally, according to market researcher Deloitte. In 2018, the first full year 8K televisions were on the market, sales totaled just 18,600.5

Newer enhancements include OLED (organic light-emitting diode), which provides better lighting and color quality.6 “OLED is absolutely just incredible quality-wise,” says Dan Rayburn, principal analyst at the Frost & Sullivan consulting firm. But he warned that for now, prices of OLED-equipped TVs are high: “A 55-inch one — even during a sale like Black Friday — is $1,400 and a 70-inch one is still $3,200 on average.”

Accessories such as sound bars and wireless surround speakers can further improve the home theater experience. Apple recently updated the software for its Airpod Pro earbuds to produce what it touted as theater-like surround sound, along with dynamic head tracking, meaning the audio remains focused on the performer who is speaking even if the viewer or the device moves.7

Meanwhile, a new development in TV technology promises to bring better pictures and sound. NextGen TV uses an over-the-air, internet-based broadcast standard that its makers say can bring higher resolution video and movie-theater-quality audio to TV. It can be accessed for free using an antenna, plus either a TV that can receive NextGen TV signals (some are already on the market) or a set-top gateway box, such as the $199 HDHomeRun Connect.

NextGen TV is available in about 20 cities now and will likely expand to about 65 by year's end, covering about 75 percent of U.S. households, says Madeleine Noland, president of the Washington-based Advanced Television Systems Committee (ATSC), which governs the new standard, called ATSC 3.0. Cable providers also are working to access NextGen TV signals, says Noland.

One hurdle is available content, as major broadcast networks are not yet offering programming to take advantage of the new standard. Local channels are more likely to be early adopters, wrote tech journalist Jared Newman.8

If everyone cocoons at home with their giant TVs and great audio systems, what happens to the communal aspect of viewing movies with other people? Technology is also trying to answer this question.

People can watch streaming movies with friends and chat about what is happening even if physically distant, using free apps. Amazon Prime Watch Party is built into the regular Amazon Prime Video app (designated by a party hat icon), while Teleparty is available as a free Google Chrome browser extension. Teleparty synchronizes video playback, so all viewers are watching the same thing at the same time, and adds group chat to content from Netflix, Disney, Hulu and HBO. Users create personal icons and can upload emojis, GIFs and screenshots, a type of interactivity not possible in a darkened movie theater.9

The app Bigscreen VR (for virtual reality) allows home movie viewers who miss the in-theater experience to create a virtual cinema — complete with simulated popcorn and soda — through VR technology. (Screenshot)

For those who miss the theater environment — the chairs, the stage, the huge screen laid out in front of them — Bigscreen VR offers another solution for home viewers. The free app allows users to rent and watch 2D and 3D movies starting at $3.99 per film with friends in a personal movie theater, via virtual reality. The app creates a virtual theater, where users sit before a big screen. They can even hold a tub of virtual popcorn and a cup of soda (a slurping sound occurs if it is brought close to the mouth), plus have conversations with those nearby. A new option lets users choose a drive-in theater setting.10

Consumer tech writer Benny Har-Even tried out the Bigscreen VR experience for Forbes. “What was remarkable,” he wrote, “was how much it felt like I was actually present in a cinema.”11

— Lorna Collier

[1] Mike Snider, “Despite coronavirus pandemic, consumers still turned on by big-screen TVs,” USA Today, July 20, 2020, https://tinyurl.com/y3xase49.

[2] Ibid.

[3] Ibid.

[4] Nick Pino and Henry St. Leger, “What is 4K resolution? Our guide to Ultra HD viewing,” Tech Radar, Jan. 21, 2021, https://tinyurl.com/yyly4nwz.

[5] Cornelia Calugar-Pop et al., “TV New Year's resolution: The start of the 8K wave,” Deloitte Insights, Dec. 7, 2020, https://tinyurl.com/y62qnpxz.

[6] Brandt Ranj, “LED vs. OLED TV: Which One is Best For Your Home Theater?” Rolling Stone, June 17, 2020, https://tinyurl.com/y5upg8ks.

[7] “How To Turn Your Airpods Into A Movie Theater,” Academy of Motion Picture Arts and Sciences, Oct. 9, 2020, https://tinyurl.com/y2vtzd25.

[8] Jared Newman, “ATSC 3.0 in 2021: Why it's still early days for antenna TV's big upgrade,” Tech Hive, Jan. 21, 2021, https://tinyurl.com/y2avt6f7.

[9] Dan Helyer, “The 8 Best Ways to Watch Movies Together Online,” Make Use Of, Sept. 8, 2020, https://tinyurl.com/y3adpxb6; “A New Way to Watch TV Together,” Netflixparty.com, https://tinyurl.com/y3a9pncz.

[10] “Rent and watch movies in your personal movie theater,” Bigscreen VR, https://tinyurl.com/y33wt69z.

[11] Benny Har-Even, “Why Virtual Reality Could Become The New Normal For Cinema,” Forbes, Dec. 29, 2020, https://tinyurl.com/yytqjuo3.

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Theaters Fight to Win Back Customers

When people visit AMC's 30-screen theater at the Easton Town Center shopping and entertainment complex in Columbus, Ohio, they can do more than watch movies. The theater offers another experience: “Dreamscape at AMC,” an immersive, virtual-reality space where patrons, decked out in special goggles, backpacks and hand and foot sensors can battle alien animals, explore a cursed temple or glide beside blue whales.

Virtual reality of this type (called “location based”) lets people move in specially designed spaces where they can feel part of the action, interacting with others and using props such as swords or flashlights. Often, the virtual scenarios are based on popular movie themes or characters — not surprising, given that Dreamscape Immersive is backed by director Steven Spielberg, former DreamWorks and Disney Imagineering executives and movie studios that include ViacomCBS and WarnerMedia.12

Cinemark and Regal Cinemas have also been offering virtual-reality experiences as an added attraction to bring in customers — which is vitally important for theater companies that have racked up losses as high as 80 to 90 percent due to COVID-19 shutdowns or restrictions.13 Even before the pandemic, theaters battling competition from streaming services had been trying a variety of approaches to get patrons to attend more often.

Here is a look at some of their efforts:

• Adding COVID protections.

  Theaters have invested large amounts in new or improved air filtration systems, bringing in extra cleaning products, installing Plexiglass, training employees and ensuring social distancing by removing or roping off seats, says Patrick Corcoran, vice president and chief communications officer for the National Association of Theatre Owners.

  This is important for public safety, and also for public perception. The theater industry is “not going to recover fully until consumers are confident that they won't die if they go to the movies,” said Michael Pachter, an analyst at Wedbush Securities, an investment firm.14

• Renting theaters to the public.

  Many theaters are now renting their auditoriums to private parties. Marcus Theaters, the nation's fourth-largest chain with 89 theaters in 17 states, started offering rentals in September, says spokesperson Mari Randa. In January, it offered a $99 special for up to 20 people, who pick the movie and snacks they want. “The auditorium becomes the group's living room, but with a bigger space,” she says. “Plus, our safety protocols are fully integrated into this experience.”

• Moving outdoors.

  Drive-in theaters have reported more business than usual during the pandemic — at least until late fall, when colder weather hit most locations.15 But indoor theaters have benefited as well, by adding outdoor screens. “In some places where they were not allowed to do indoor, they would use their parking lot or rooftop for outdoor screenings,” says Corcoran. Theaters used inflatable screens or projected movies against a wall.

• Providing streaming movies.

  Some movie theater chains have become on-demand streaming services, usually via their apps and for patrons who have signed up for loyalty cards or subscriptions. AMC, for example, offers movie rentals and purchases for patrons of its AMC Stubs loyalty program (no subscription fee required). The available movies are not first-run pictures, but those that have been in theaters for two to three months.16

  Viewers watch a drive-in showing of Frozen in Santa Monica, Calif., in December. Drive-ins and other outdoor movie venues increased in popularity during the COVID-related shutdowns of indoor theaters. (AFP/Getty Images/Valerie Macon)

• Serving upgraded food and alcohol.

  Flix Brewhouse operates 10 dine-in movie theaters in Texas and brews its own craft beer. CEO Allan Reagan calls his chain “a brewpub — a gastropub — that shows movies” and says theaters “need to broaden our entertainment offerings beyond just the film product.”17

  Another chain that advertises itself as offering high-quality food is Studio Movie Grill, based in Dallas. The restaurant-theater company, with 33 locations, went into Chapter 11 bankruptcy in October, but is open again. Even when it was shut down, it kept 10 locations open to offer food for pickup and delivery, with 10 percent of sales going to a fund to support its employees.18

• Offering comfier seating.

  Many big chains have moved to so-called stadium seating that offers improved sight lines and legroom, and, in recent years, to recliners. Marcus Theatres began adding “DreamLounger” recliners in 2013, some of them heated, says spokesperson Randa. The “vast majority” of seats in the chain's 1,097 auditoriums are DreamLoungers, she says.

  Making seats larger and more comfortable “has had a big effect on business,” says Corcoran of the theater owners' association. “We have seen where you take out about 50 to 60 percent of your seats and you do 40 to 50 percent more business, because people are much more comfortable,” he says.

• Adding virtual reality (VR).

  AMC is only offering Dreamscape rooms in three U.S. locations: Columbus, Dallas and Los Angeles (closed as of early February due to the pandemic), plus one in Dubai. Just before COVID hit early last year, AMC said it would expand its VR centers to more U.S. markets, including New York and New Jersey.19 CEO Adam Aron called the Dreamscape experiences “powerful and wonderfully unique entertainment.”

  Other major chains have dabbled in VR. Cinemark until recently offered a similar “roaming VR” attraction at two of its theaters, offering you-are-there experiences based on Star Wars, The Avengers and other films.20 But with Cinemark's theaters closed during the pandemic, its VR partners have lost licensing rights or been sold, and the attractions shut down.21

  Analysts say VR can enable movie theaters to stand out, especially using technology not available to fans at home or in arcades.

  “Movie theaters are really focused on bringing in premium experiences that you can't really do at home,” said Alexis Macklin, analyst with Greenlight Insights, a market intelligence firm.22 “VR's the next step for that.”

  Despite these changes, Corcoran says the most important thing movie theaters have to offer remains the same. “The essential thing that we're selling is that big screen, big sound and communal feeling,” he says. “That's always going to be the key.”

— Lorna Collier

[12] David Bloom, “Hello, Columbus: Spielberg-Backed Dreamscape VR Center Opens Friday In Ohio,” Forbes, Feb. 24, 2020, https://tinyurl.com/y2rq87cz.

[13] Peter Rubin, “Imax Ditched VR — but Big Theaters Are Buying In,” Wired, Feb. 8, 2019, https://tinyurl.com/yy3aotej.

[14] Sarah Whitten, “Movie theaters in jeopardy as studios move blockbusters to 2021, audiences stay home,” CNBC, Sept. 29, 2020, https://tinyurl.com/y3chlwul.

[15] Elissaveta M. Brandon, “How the American Drive-In Staged a Comeback,” Bloomberg City Lab, Sept. 4, 2020, https://tinyurl.com/y2h6gcde.

[16] “Frequently Asked Questions: AMC Theatres On Demand,” AMC, https://tinyurl.com/yxunsqz7.

[17] Kevin Stankiewicz, “Movie theater CEO expects up to 25% permanent decline in attendance due to Covid,” CNBC, Dec. 30, 2020, https://tinyurl.com/y749hqdc.

[18] Jeremy Fuster, “Studio Movie Grill to Reopen Select Locations for Food Takeout During Coronavirus Pandemic,” The Wrap, March 31, 2020, https://tinyurl.com/y5ctngpm.

[19] “Dreamscape To Launch Immersive VR Destination In Partnership With AMC Theatres On August 15 In Dallas' NorthPark Center,” news release, Dreamscape, Aug. 6, 2019, https://tinyurl.com/y2nuycr5.

[20] Rebecca Pahle, “Welcome to the New Reality: Theaters Invest in VR for a High-Tech Consumer Experience,” Box Office, Aug. 27, 2019, https://tinyurl.com/yyu3knrt.

[21] Julio Cachila, “Apple Going Big On AR Technology After Acquiring DreamWorks' Former Project Spaces,” International Business Times, Aug. 25, 2020, https://tinyurl.com/y3mnxl7o; Janko Roettgers, “After loan default and asset transfer, The Void's future looks uncertain,” Protocol, Nov. 16, 2020, https://tinyurl.com/yy6ndebx.

[22] Rubin, op. cit.

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Bibliography

Books

Broe, Dennis , Birth of the Binge: Serial TV and the End of Leisure , Wayne State University Press, 2019. A television scholar and critic examines the addictive practice of binge-watching TV shows and how this relates to changes in American political, economic and social life.

Fenton, Chris , Feeding the Dragon: Inside the Trillion Dollar Dilemma Facing Hollywood, the NBA, & American Business , Post Hill Press, 2020. The former president of DMG Entertainment Motion Picture Group chronicles his experiences making movies for the Chinese market and criticizes the self-censorship culture Hollywood has accepted to get films into China.

Hastings, Reed, and Erin Meyer , No Rules Rules: Netflix and the Culture of Reinvention , Penguin Press, 2020. Netflix co-founder Hastings writes that the company was able to lead an entertainment industry revolution by fostering a culture of innovation and adaptability.

Articles

Amos, Jim , “The 6 Things Theater Owners Should Do To Stay Relevant In The Streaming Era,” Forbes, July 30, 2019, https://tinyurl.com/yxktxm9k. An entertainment industry writer suggests steps theater owners can take to stave off competition from streaming platforms.

Danaher, Brett , “Column: As the Streaming Wars Heat Up, Why Are Consumers Losing Out?” dot.LA, July 29, 2020, https://tinyurl.com/y3lx2ap7. A Chapman University business and economics professor discusses consumers' difficulties with streaming services, including content fractured among numerous channels and costs rising due to having to purchase multiple services separately.

Linnane, Ciara , “Why cinema will survive the coronavirus pandemic,” MarketWatch, Dec. 4, 2020, https://tinyurl.com/y2s38atk. Despite analysts' warnings, an investing and corporate news editor argues that fans' emotional and sentimental attachment to movie-going, dating from childhood, will lead them to return to theaters as soon as it is deemed safe.

Nunan, Tom , “Severely Low Ratings Saturday Nights Signal Deeper Issues With Broadcast TV,” Forbes, Jan. 31, 2021, https://tinyurl.com/y4vjl7yh. A longtime film and TV producer notes how legacy broadcast networks today feature reality TV, sports and news over scripted content, now largely ceded to streaming services.

Rubin, Peter , “Imax Ditched VR — but Big Theaters Are Buying In,” Wired, Feb. 8, 2018, https://tinyurl.com/yy3aotej. Big theaters are experimenting with virtual reality experiences in a smarter way than Imax did and may be more successful with it.

Sutton, Kelsey , “Analysts Explain What This Year's Seismic TV Changes Mean for 2021,” Adweek, Dec. 28, 2020, https://tinyurl.com/y53ms4cq. Multiple industry analysts discuss the outlook for 2021 regarding streaming, cable cord-cutting and other trends.

Zetlin, Minda , “Blockbuster Could Have Bought Netflix for $50 Million, but the CEO Thought It Was a Joke,” Inc., Sept. 20, 2019, https://tinyurl.com/y2cf96dc. Netflix co-founder Hastings claims Blockbuster executives dismissed an opportunity to buy the streaming company during its struggling early days.

Reports and Studies

“Beyond Checking A Box: A Lack of Authentically Inclusive Representation Has Costs at the Box Office,” Center for Scholars & Storytellers, Oct. 6, 2020, https://tinyurl.com/yy9zusvf. A UCLA-based nonprofit that promotes positive youth development finds that a lack of authentically inclusive representation in movies can cost millions of dollars in lost revenue.

“Digital Media Trends Survey, 14th edition,” Center for Technology, Media & Telecommunications, Deloitte, 2020, https://tinyurl.com/y385ddmg. A business consultancy finds most consumers prefer ad-supported streaming services rather than having to buy a subscription, and that 22 percent rented new movies released directly to streaming services, with young people most likely to prefer streaming.

“Global Entertainment & Media Outlook 2020-2024,” PricewaterhouseCoopers, https://tinyurl.com/y3wqcd5l. Industry analysts predict the effects of the pandemic on the entertainment and media industry over the next few years.

“Hollywood Diversity Report 2020, A Tale of Two Hollywoods,” UCLA College of Social Sciences, Part One: https://tinyurl.com/yxeapvz2 and Part Two: https://tinyurl.com/y5utmw2c. This two-part report examines diversity in the movie and TV industries and finds that women and minorities are close to proportionate representation in acting roles, but not behind the scenes.

“Inequality in 1,300 Popular Films: Examining Portrayals of Gender, Race/Ethnicity, LGBTQ & Disability from 2007 to 2019,” Annenberg Inclusion Initiative, Sept. 8, 2020, https://tinyurl.com/y467djnw. A University of Southern California think tank that studies diversity in entertainment finds little to no progress in representation of minorities, women, LGBTQ and disabled characters in the 13 years the organization has been monitoring the trends.

“The Relationship Between Movie Theatre Attendance and Streaming Behavior,” Ernst & Young, February 2020, https://tinyurl.com/yywx79wj. Results of a survey commissioned by the National Association of Theatre Owners shows heavy movie-streamers also are more likely to be theatergoers, while those who do not attend movies in theaters are less likely to stream them at home.

Tager, James, and Jonathan Landreth , “Made in Hollywood, Censored by Beijing: The U.S. Film Industry and Chinese Government Influence,” PEN America, Aug. 5, 2020, https://tinyurl.com/y3gjn62b. A nonprofit that focuses on freedom of artistic expression examines how Chinese censorship of U.S. films triggers self-censorship in Hollywood and recommends how the industry can combat the practice.

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The Next Step

China

Brzeski, Patrick, and Kim Masters , “Chinese Blockbuster's Similarity to Fox's ‘Fault in Our Stars’ Ignites Debate Over Derivative Work,” Hollywood Reporter, Jan. 13, 2021, https://tinyurl.com/prjfquzf. A Chinese romance film about cancer patients may have been cribbed from a similar American film without credit or approval, after 20th Century Fox halted its own authorized remake for the Chinese market.

Pallotta, Frank , “What if China no longer needs Hollywood? That's bad news for the film industry,” CNN, Jan. 28, 2021, https://tinyurl.com/1bren1vt. Recent Hollywood films have done poorly in China, including Disney's live action Mulan.

Su, Alice , “Shanghai's old cinemas tell of a power reversal between China and Hollywood,” Los Angeles Times, Feb. 4, 2021, https://tinyurl.com/1grjp8wd. China is increasingly wielding its power by producing movies praising the country, its people and its government.

Diversity

Ritman, Alex , “Netflix Teams With Femi Oguns' Identity School as Part of U.K. Diversity Drive,” Hollywood Reporter, Jan. 21, 2021, https://tinyurl.com/1rbg416q. Netflix made a significant investment in a British acting school to help nurture the careers of aspiring actors from Black, Asian and other ethnic minority communities.

Robb, David , “Hollywood's Union Leaders Call On Congress To Enact Laws Advancing Diversity And Equity In The Arts, Entertainment & Media,” Deadline, Feb. 11, 2021, https://tinyurl.com/4pozuuup. Union leaders urged Congress to establish diversity objectives for arts grant recipients.

Sun, Rebecca , “In Golden Globes Twist, Directing Category Is More Diverse Than Actor Nominations,” Hollywood Reporter, Feb. 3, 2021, https://tinyurl.com/rhtsjza7. Three of the five nominees for best director at the 2021 Golden Globes are women, and two are women of color.

Home TV Tech

Jordan, Aisha , “How to Turn a Spare Room Into a Home Theater,” Lifehacker, Jan. 20, 2020, https://tinyurl.com/589zer6l. A culture writer explores the options involved in designing a home theater.

Snider, Mike , “New TV for Super Bowl Sunday: Big-screen television sales spike amid coronavirus pandemic,” USA Today, Feb. 4, 2021, https://tinyurl.com/2p3ers82. In the run-up to the Super Bowl, 85-inch televisions became increasingly popular.

Willcox, James K. , “The TVs Coming From LG, Samsung, Sony, TCL, and Others in 2021,” Consumer Reports, Jan. 15, 2021, https://tinyurl.com/1s56s34j. Improved audio and 8K resolution are some of the expected features among new TVs in 2021.

Studios and Productions

Blackall, Molly , “‘Getting work has never been harder’: TV and film production during Covid,” The Guardian, Feb. 4, 2021, https://tinyurl.com/1sg6nbj1. Four people who work in film and television in the United Kingdom share their struggles after losing work during the COVID-19 shutdowns.

D'Alessandro, Anthony , “Dakota Johnson Movie ‘Am I OK?’ Paused After Positive Covid Test,” Deadline, Feb. 5, 2021, https://tinyurl.com/4pawvgpk. Production on a film in Los Angeles was halted after the assistant of the leading actress tested positive for COVID-19.

Williams, Dave , “Georgia film industry bouncing back nicely from COVID-19 hiatus,” Rockdale-Newton Citizen, Feb. 7, 2021, https://tinyurl.com/1tn3hn2b. Film and TV producers are working on 37 projects in Georgia, more than the 23 that were in production at the same time last year.

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Contacts

Academy of Motion Picture Arts and Sciences
8949 Wilshire Blvd., Beverly Hills, CA 90211
310-247-3000
oscars.org
Organization that supports the motion picture industry and hands out the annual Academy Awards.

Digital Entertainment Group
10635 Santa Monica Blvd., Suite 160, Los Angeles, CA 90025
424-248-3809
degonline.org
Group that promotes entertainment platforms, products and distribution channels that support the film, television and other home entertainment industries; publishes data about movie sales, rentals and streaming.

FilmLA
6255 W. Sunset Blvd., 12th Floor, Hollywood, CA 90028
213-977-8600
filmla.com
Film office of Greater Los Angeles that publishes an annual report on film production and film incentives worldwide.

Independent Cinema Alliance
PO Box 283, Mission, KS 66201
972-382-9422
cinemaalliance.org
Trade organization representing the interests of independent, community-focused cinema owners and operators.

Motion Picture Association of America
1301 K St., N.W., Suite 900E, Washington, DC 20005
202-293-1966
mpaa.org
Trade association representing the six major Hollywood film and TV studios and Netflix; developed the film rating system and publishes annual reports on the state of the movie industry.

National Association of Broadcasters
1 M St., S.E., Washington, D.C. 20003
202-429-5300
nab.org
Advocacy group representing America's local radio and television stations and broadcast networks.

National Association of Theatre Owners
1705 N St., N.W., Washington, DC 20036
202-962-0054
natoonline.org
Trade organization representing more than 33,000 movie screens in the United States and theaters in almost 100 countries.

Streaming Video Alliance
5177 Brandin Court, Fremont, CA 94538
streamingvideoalliance.org
Group of video streaming companies whose members research and share findings about critical challenges facing online video in order to improve consumer adoption.

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Footnotes

[1] Kerry Flynn, “Warner Bros. will stream movies on HBO Max the same day they drop in theaters,” CNN, Dec. 4, 2020, https://tinyurl.com/17gxt6ua.

[2] Brandon Katz, “Did the ‘Wonder Woman 1984’ Gamble Pay Off for HBO Max?” Observer, Jan. 4, 2021, https://tinyurl.com/y5gdg2uk; Sara Whitten, “HBO Max activations double to 17.2 million in fourth quarter,” CNBC, Jan. 27, 2021, https://tinyurl.com/juhj7nlz; and Kelly Gilblom and Bailey Lipschultz, “‘Wonder Woman’ Draws $16.7 Million as Viewers Opt to Stream,” Bloomberg, updated Dec. 28, 2020, https://tinyurl.com/sohlr0y1.

[3] Pamela McClintock, “It's Official: 2020 Domestic Box Office Fell 80 Percent to $2.3B Behind China's $2.7B,” The Hollywood Reporter, Jan. 1, 2021, https://tinyurl.com/1iw7huvv.

[4] Brooks Barnes, “The Streaming Era Has Finally Arrived. Everything Is About to Change,” The New York Times, updated Nov. 19, 2019, https://tinyurl.com/gcf9c6if.

[5] Pamela McClintock, “Frequent Moviegoing Slipped in 2019, Fewer Tickets Sold Across All Age Groups,” The Hollywood Reporter, March 11, 2020, https://tinyurl.com/2mr6opgy.

[6] Ciara Linnane, “Why cinema will survive the coronavirus pandemic,” MarketWatch, Dec. 4, 2020, https://tinyurl.com/16jh570i.

[7] Kim Masters, “Christopher Nolan Rips HBO Max as ‘Worst Streaming Service,’ Denounces Warner Bros.' Plan,” The Hollywood Reporter, Dec. 7, 2020, https://tinyurl.com/32d54pf8.

[8] Ibid.

[9] Kyle Buchanan, “George Clooney on ‘The Midnight Sky’ and Donald Trump,” The New York Times, Dec. 23, 2020, https://tinyurl.com/y6q5yryl.

[10] Lucas Shaw and Kelly Gibbon, “Warner Bros. Guarantees Filmmakers a Payday for HBO Max Movies,” Bloomberg, Jan. 9, 2021, https://tinyurl.com/19yc2794.

[11] Alex Weprin, “Trump Signs $900 Billion COVID Relief Bill,” The Hollywood Reporter, Dec. 27, 2020, https://tinyurl.com/1ao2yacr.

[12] Alexander Gladstone and Soma Biswas, “AMC's Pandemic Survival Gets Boost From Trading Mania,” The Wall Street Journal, Jan. 27, 2021, https://tinyurl.com/fcnnt6zp.

[13] “Censorship as a Non-Tariff Barrier to Trade,” United States Senate Committee on Finance, June 30, 2020, https://tinyurl.com/y6acmn7k; James Tager and Jonathan Landreth, “Made in Hollywood, Censored by Beijing: The U.S. Film Industry and Chinese Government Influence,” PEN America, Aug. 5, 2020, https://tinyurl.com/2vkqp3df.

[14] Dino-Ray Ramos, “New Study Finds Hollywood Studios Could Lose Money From Movies That Lack Diversity,” Deadline, Oct. 6, 2020, https://tinyurl.com/1jys9riu.

[15] Maria Puente, “New USC diversity study shows paltry progress for inclusion in 13 years of Hollywood movies,” USA Today, Sept. 10, 2020, https://tinyurl.com/2446to4k.

[16] Ibid.

[17] Pete Hammond, “Oscar Shakes Up Best Picture Eligibility Standards; Strict New Diversity Requirements Take Full Effect in 2024,” Deadline, Sept. 8, 2020, https://tinyurl.com/jxk322v7.

[18] Sarah Perez, “Pandemic accelerated cord cutting, making 2020 the worst-ever year for pay TV,” Tech Crunch, Sept. 21, 2020, https://tinyurl.com/4vytq2nn.

[19] Ibid.

[20] Brett Holzhauer, “Americans Are Cord Cutting In Record Numbers — And It's Not Slowing Down Anytime Soon,” Forbes, Nov. 2, 2020, https://tinyurl.com/yuse79mm; Jared Newman, “Cutting the cord? Here's why your cable company barely cares anymore,” Fast Company, Aug. 6, 2019, https://tinyurl.com/19eu89mm.

[21] Adam Holmes, “Following AMC Deal, Universal Is Partnering With Another Major Theater Chain,” Cinema Blend, Nov. 16, 2020, https://tinyurl.com/yg5mwchg.

[22] Eric Eisenberg, “Disney Is Making Big Moves To Focus On Streaming,” Cinema Blend, Oct. 12, 2020, https://tinyurl.com/5yme7vhx.

[23] Joe Flint and Micah Maidenberg, “Netflix Tops 200 Million Subscribers for the First Time,” The Wall Street Journal, Jan. 19, 2021, https://tinyurl.com/gvog15l0; Dan Gallagher, “Netflix Delivers a One-Two Punch,” The Wall Street Journal, Jan. 19, 2021, https://tinyurl.com/yfpc47rk.

[24] Erich Schwartzel and Allison Prang, “Disney Ekes Out a Profit Under the Weight of Pandemic Problems,” The Wall Street Journal, Feb. 11, 2021, https://tinyurl.com/y4qvvbr2.

[25] Eric Gruenwedel, “NBCUniversal's Peacock Streaming Service Tops 15 Million Subs Since Launching in July,” Media Play News, Sept. 15, 2020, https://tinyurl.com/10eb226o; Elaine Low, “Discovery Plus to Debut to a World Still Stuck at Home, Yearning for Comfort TV,” Variety, Jan. 1, 2021, https://tinyurl.com/2vagbj88; and Samuel Roberts, “Paramount Plus release date, price, shows and everything we know,” Tech Radar, Jan. 25, 2021, https://tinyurl.com/5nzjlqu9.

[26] Stephanie Prange, “Survey: 80% of U.S. Consumers Subscribe to at Least One Paid Streaming Video Service Post-COVID-19,” Media Play News, June 23, 2020, https://tinyurl.com/g9vvkdel.

[27] Phil Contrino, “Latest Ernst & Young Study Shows Movies With Theatrical Push Are More Likely To Be Streamed,” National Association of Theatre Owners, Feb. 9, 2020, https://tinyurl.com/5df98cay.

[28] Gordon Burtch et al., “Will Movie Theaters Survive When Audiences Can Stream New Releases?” Harvard Business Review, Jan. 15, 2021, https://tinyurl.com/2wuwn2v7.

[29] Kelsey Sutton, “Analysts Explain What This Year's Seismic TV Changes Mean for 2021,” Adweek, Dec. 28, 2020, https://tinyurl.com/16l9reog.

[30] “Nielsen Estimates 120.6 Million TV Homes in the U.S. for the 2019-2020 TV Season,” Nielsen, Aug. 27, 2019, https://tinyurl.com/4df9dwbl; Linnane, op. cit.

[31] Perez, op. cit.

[32] Ibid.

[33] Sutton, op. cit.

[34] Michael Schneider and Kate Aurthur, “R.I.P. Cable TV: Why Hollywood Is Slowly Killing Its Biggest Moneymaker,” Variety, July 21, 2020, https://tinyurl.com/ojkr0ua8.

[35] “COVID-19 Pandemic Accelerates Pay-TV Cord-Cutting in 2020,” ABI Research, Oct. 13, 2020, https://tinyurl.com/5veu68tb.

[36] Ibid.

[37] “New Survey Shows 27 Percent of U.S. Households Plan to Cut Cable TV Subscriptions in 2021,” press release, The Trade Desk, Jan. 12, 2021, https://tinyurl.com/2svd7pbf.

[38] Alex Sherman, “Here's How NFL TV rights are expected to shake out for the rest of the decade, according to sources,” CNBC, Feb. 23, 2020, https://tinyurl.com/fcbct33e.

[39] Schneider and Aurthur, op. cit.

[40] Brandt Ranj, “Discovery+ Review: Here's What to Know About Discovery's New Streaming Service,” Rolling Stone, Jan. 4, 2021, https://tinyurl.com/yypuu2dq.

[41] Schneider and Aurthur, op. cit.

[42] Ibid.

[43] Shelby Rose and Jessie Yeung, “Tencent-backed ‘Top Gun’ cuts Taiwan flag from Tom Cruise's jacket,” CNN, July 22, 2019, https://tinyurl.com/323kupae.

[44] “China Population 2021 (live),” World Population Review, https://tinyurl.com/yvnz7v9e; Tatiana Siegel, “Hollywood Is ‘Increasingly Normalizing’ Self-Censorship for China, Report Finds,” The Hollywood Reporter, Aug. 5, 2020, https://tinyurl.com/yemn6cep.

[45] PEN America, op. cit.

[46] Ibid.

[47] Catherine Shoard, “Bohemian Rhapsody's Chinese cut: no homosexuality, no frocks — and no Aids,” The Guardian, March 19, 2019, https://tinyurl.com/1tuiz2rz.

[48] Si Yang, “Hollywood Executive Reveals How China's Politics Have Shaped Movie Industry,” Voice of America, Oct. 16, 2020, https://tinyurl.com/2wjdug83.

[49] Ibid.

[50] Siegel, op. cit.

[51] Jesse Rifkin, “SCRIPT Act would ban government from assisting American movies that change or censor for the Chinese market,” GovTrack Insider, June 5, 2020, https://tinyurl.com/kxn1mskj.

[52] Ryan Faughnder, “PEN America calls for Hollywood transparency on China censorship to ‘protect artistic freedom,’” Los Angeles Times, Aug. 5, 2020, https://tinyurl.com/1j1pp6lv.

[53] Scott Mendelson, “2020: The Year China Crushed Hollywood At The Box Office,” Forbes, Dec. 31, 2020, https://tinyurl.com/1nvdbkk3; “Comscore Announces Global Box Office Totals for 2020,” press release, Comscore, Jan. 15, 2021, https://tinyurl.com/h9w1l03y; and Jesse Rifkin, “China's The Eight Hundred Becomes First Non-Hollywood Film to Top Yearly Global Box Office w/ $450.4M,” Box Office Pro, Jan. 29, 2021, https://tinyurl.com/2oac92j9.

[54] Sonny Bunch, “Opinion: How film festivals can help combat Chinese censorship,” The Washington Post, Dec. 4, 2020, https://tinyurl.com/hjsmqx3u.

[55] “Edison and the Lumiere Brothers,” Britannica, https://tinyurl.com/c1lyx8wr; “Edison kinetoscopic record of a sneeze, January 7, 1894,” Library of Congress, https://tinyurl.com/5ftufdwo; and “The Kinetoscope,” American Experience: PBS, https://tinyurl.com/2m8qk8m4.

[56] Godfrey Cheshire, “Fleet French filch film glory,” Variety, May 15, 1995, https://tinyurl.com/u94n1c0n; “The Lumiere Brothers: Pioneers of Cinema and Colour Photography,” National Science and Media Museum, June 10, 2009, https://tinyurl.com/10emkmeo; and Sarah Pruitt, “The Lumiere Brothers, Pioneers of Cinema,” History, updated Aug. 22, 2018, https://tinyurl.com/o3d62gvd.

[57] Tim Dirks, “The History of Film: The Pre-1920s (Part 2),” Filmsite, https://tinyurl.com/5d6ez74c; Erin McDowell, “The rise and fall of movie theaters — and how the coronavirus pandemic might change them,” Business Insider, May 26, 2020, https://tinyurl.com/3kf588uz.

[58] Dirks, ibid.

[59] “First nickelodeon opens,” History, last updated June 17, 2020, https://tinyurl.com/1slbyx39; Ibid.

[60] Carrie Specht, “First Movie ‘Palace’ Opened on This Day in 1914 in New York City,” Classic Film Fan, April 11, 2007, https://tinyurl.com/14ku6me7; Aramide Tinubu, “Movie Theaters and Cinema Through The Decades,” Showbiz Cheat Sheet, Aug. 10, 2018, https://tinyurl.com/y6v42xwb.

[61] Kat Eschner, “Movie Palaces Let Everyday Americans Be Royalty,” Smithsonian, April 12, 2017, https://tinyurl.com/1iyk10oy; “RKO Warner Twin Theatre,” Cinema Treasures, https://tinyurl.com/r6yuhcao.

[62] Dick Lehr, “The Birth of a Nation,” Britannica, updated March 23, 2020, https://tinyurl.com/1dtpmu41.

[63] Dirks, op. cit.

[64] Nellie Andreeva, “Historian William Mann on How the 1918 Spanish Flu Changed Hollywood Forever & How COVID-19 Might Too,” Deadline, April 6, 2020, https://tinyurl.com/3g79kt2n.

[65] Ibid.

[66] Charlotte M. Canning, “Theatre and the Last Pandemic,” American Theatre, March 24, 2020, https://tinyurl.com/ygadl79n.

[67] Andreeva, op. cit.

[68] Ibid.

[69] Katherine J. Wu, “Hollywood's ‘Golden Age’ Saw Massive Dip in Female Film Representation,” Smithsonian Magazine, April 3, 2020, https://tinyurl.com/4rc4hh3t.

[70] Tim Dirks, “The History of Film: The 1920s,” Filmsite, https://tinyurl.com/8du635vb.

[71] “Motion Picture Association of America. Production Code Administration records,” Online Archive of California, https://tinyurl.com/1wr99tt4; “The Pre-World War II Sound Era,” Britannica, https://tinyurl.com/djud7xvo.

[72] Bob Mondello, “Remembering Hollywood's Hays Code, 40 Years On,” NPR, Aug. 8, 2008, https://tinyurl.com/ycuszhxu.

[73] Barbara Crossette, “Celebrating the 30's, When Nearly Everyone Went to the Movies,” The New York Times, Oct. 18, 1979, https://tinyurl.com/29g3l8zl.

[74] Caterina Cowden, “Movie Attendance Has Been On A Dismal Decline Since The 1940s,” CinemaBlend/Business Insider, Jan. 6, 2015, https://tinyurl.com/w700njdd.

[75] “The American Film Industry in The Early 1950s,” Encyclopedia.com, Jan. 12, 2021, https://tinyurl.com/2uglpb5d.

[76] “The Paramount Decrees,” U.S. Department of Justice, Oct. 30, 2018, https://tinyurl.com/y8mkfm46.

[77] “Our History,” NBCUniversal, https://tinyurl.com/y9dw6s9w; Tim Dirks, “The History of Film: The 1950s (Part 1),” Filmsite, https://tinyurl.com/29kb4oak.

[78] “The American Film Industry in The Early 1950s,” op. cit.

[79] Jason Roe, “The Multiplex is Born,” The Kansas City Public Library, https://tinyurl.com/1jznlv6s.

[80] Mondello, op. cit.

[81] Rita Lobo, “How Star Wars changed the special effects industry,” The New Economy, Oct. 9, 2014, https://tinyurl.com/1r2s3jet.

[82] “Cable's Story,” The Internet and Television Association (NCTA), https://tinyurl.com/1vt8hcwk; Erik Gregersen, “HBO,” Encyclopedia Britannica, updated Jan. 17, 2019, https://tinyurl.com/y8nn9k95.

[83] “First Blockbuster store opens,” History, last updated Oct. 16, 2019, https://tinyurl.com/9foban5c.

[84] “About Netflix,” Netflix, https://tinyurl.com/hrfqda9; Kaya Yurieff, “Everything Amazon has added to Prime over the years,” CNN, April 28, 2018, https://tinyurl.com/6qlr3o8s.

[85] Lydia DePillis and Ivory Sherman, “Amazon's Extraordinary Evolution,” CNN.com , Nov. 13, 2018, https://tinyurl.com/yb4a6obv.

[86] Tim Dirks, “The History of Film: The 2010s,” Filmsite, https://tinyurl.com/r0tthih4.

[87] Makena Kelly, “Netflix becomes first streaming company to join the MPAA,” The Verge, Jan 22, 2019, https://tinyurl.com/yc75qoad; Nick Perry, “What is HBO Max?” Digital Trends, Feb. 4, 2021, https://tinyurl.com/22wtejtj.

[88] William L. Hosch, “Hulu,” Britannica, https://tinyurl.com/46jwwrva; Joan E. Solsman, “Apple TV Plus: Everything to know about Apple's streaming service,” CNet, Nov. 13, 2020, https://tinyurl.com/btgombt5; Brooks Barnes, “Netflix Was Only the Start: Disney Streaming Service Shakes an Industry,” The New York Times, Nov. 10, 2019, https://tinyurl.com/2adjyv82; Joan E. Solsman, “HBO Max: How to watch movies like the Snyder Cut, Judas and the Black Messiah,” CNet, Jan. 27, 2021, https://tinyurl.com/jcigmskv; and Julia Alexander, “NBC's Peacock streaming service will launch on July 15th with three different price tiers,” The Verge, Jan. 16, 2020, https://tinyurl.com/3sdrka5y.

[89] Bill Frost, “Best TV Streaming Services of 2021: Live and On Demand,” CableTV.com, Jan. 21, 2021, https://tinyurl.com/yyxatax5.

[90] Michael Grothaus, “It's official: Disney now owns Fox,” Fast Company, March 20, 2019, https://tinyurl.com/69hfebpa; Diane Bartz and David Shepardson, “U.S. Justice Department will not appeal AT&T's, Time Warner merger after court loss,” Reuters.com , Feb. 26, 2019, https://tinyurl.com/28n89ctm; and “CBS, Viacom complete merger in a win for Shari Redstone,” Reuters, Dec. 4, 2019, https://tinyurl.com/1tm14us7.

[91] Brandon Katz, “The Implications of the Biggest Legal Decision to Hit Hollywood in Decades,” Observer, Aug. 14, 2020, https://tinyurl.com/gyko4t4b.

[92] Eriq Gardner, “Judge Agrees to End Paramount Consent Decrees,” The Hollywood Reporter, Aug. 7, 2020, https://tinyurl.com/t0mxc22p.

[93] Bryan Alexander, “AMC, Regal and Cinemark close all movie theaters amid coronavirus pandemic,” USA Today, March 16, 2020, https://tinyurl.com/hxfnjw20.

[94] Nellie Andreeva, “Los Angeles Production Grinds To A Halt Amid COVID-19 Surge; Netflix is Latest Major Studio to Pause Filming,” Deadline, Jan. 4, 2021, https://tinyurl.com/kfqqjdt5.

[95] Michael Balderston, “Nielsen: Streaming Made Up Quarter of TV Viewing in Q2 2020,” TV Tech, Aug. 13, 2020, https://tinyurl.com/6eza4qm7.

[96] Todd Spangler, “‘The Office’ Was by Far the Most-Streamed TV Show in 2020, Nielsen Says,” Variety, Jan. 12, 2021, https://tinyurl.com/ygn3933w; “The Office,” Internet Movie Database (IMDb), https://tinyurl.com/ypwn4dls.

[97] Jonathan Ponciano, “AMC, World's Largest Movie Theater Chain, Raises $100 Million Lifeline, But It Needs $750 Million To Survive Next Year,” Forbes, Dec. 11, 2020, https://tinyurl.com/1d2t8zss; Sarah Whitten, “AMC could benefit from bankruptcy, analysts say,” CNBC, Dec. 16, 2020, https://tinyurl.com/ifq0gl1m; and James Brumley, “3 Reasons Amazon Might Actually Want to Buy AMC Entertainment,” The Motley Fool, May 14, 2020, https://tinyurl.com/2aslepyn.

[98] Sarah Whitten, “AMC Entertainment says bankruptcy is off the table after raising more than $900 million since December,” CNBC, Jan. 25, 2021, https://tinyurl.com/4uoub58t.

[99] Gladstone and Biswas, op. cit.

[100] Alexander Gladstone and Soma Biswas, “Silver Lake Converts AMC Debt to Equity After Dazzling Stock Rally,” The Wall Street Journal, Jan. 28, 2021, https://tinyurl.com/9pjmovqb.

[101] Yadarisa Shabong, “Regal-owner Cineworld buys time until screenings can resume,” Reuters, Nov. 23, 2020, https://tinyurl.com/wzja2vwj.

[102] Georg Szalai, “Cinemark Analyst Upgrades Stock on ‘Next Leg of Recovery,’” The Hollywood Reporter, Jan. 15, 2021, https://tinyurl.com/zu9dqwyw.

[103] Bryn Sandberg, “Studios Restart Production in Los Angeles Amid COVID-19 Surge,” The Hollywood Reporter, Jan. 13, 2021, https://tinyurl.com/1twa3czq.

[104] Cynthia Littleton, “Hollywood Grapples With Mass Layoffs as the Biz Redefines Itself for Streaming Future,” Variety, Nov. 25, 2020, https://tinyurl.com/yk35l8j2; Natalie Jarvey, “Inside Quibi's Abrupt Shutdown: ‘This Is Not How They Wanted It to Go,’” The Hollywood Reporter, Oct. 23, 2020, https://tinyurl.com/jvv0kl12.

[105] Littleton, op. cit.

[106] Cat Zakrzewski, “Biden inherits bipartisan momentum to crack down on large tech companies' power,” The Washington Post, Jan. 18, 2021, https://tinyurl.com/3ks7dwnu.

[107] Cecilia Kang, “How Biden helped Hollywood unlock China,” The Washington Post, May 2, 2014, https://tinyurl.com/16cskyhs.

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About the Author

Lorna Collier has written about business, technology and other topics for AARP Bulletin, U.S. News & World Report, Chicago Tribune, Discover and others. She has reported about universal basic income, college debt and COVID-19's impact on mental health for CQ Researcher.

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