Humans have thrived on the “survival of the fittest” theory long enough. Either be at the top to make important decisions or collaborate with others extensively to build an unshakable influence on the world. This notion of socioeconomics was well understood and practiced until the deadliest pandemic of 2020 took the world by storm.
It would have been easier for the common man to beat themselves up with complex negative emotions of disappointment, fear, self-pity, and depression if top companies hadn’t put forth their struggling numbers. Like every sector, the entertainment industry also is a victim of COVID-19 which brought the world to a complete standstill in the year 2020. Following 2021 and entering into the new year, the world is dealing with the long-lasting repercussions of COVID-19 and its emerging variants while adapting to the digitalized work-life landscape.
Fall of Numbers for Giants
While cinema giant AMC Entertainment reported a net loss of $4.6 billion in 2020, the Motion Picture Association released their annual THEME report covering the year of pandemic. The report follows the theatrical and in-home industry both globally and domestically as well as other video streaming platforms.
The numbers aren’t too bright. The theatrical industry faced the sharpest decline from $42.3 billion in 2019 to $12 billion in 2020 accounting for only 15% of the total global entertainment revenue.
A rise in Digital Entertainment
On the other hand, digital entertainment climbed up the ladder making a haven for its business to multiply. Now with 1.1 billion online video subscribers worldwide, digital entertainment accounts for revenue of $61.8 billion, a value too difficult to ignore. Netflix, Amazon Prime, Hulu, Disney+ have been people’s favorites.
Opportunity for Independent Filmmakers to be noticed
One may say, stars are not too bright for the theatre business right now. But with an array of digital entertainment channels, it has become easier for independent filmmakers to shine. The pandemic somehow accelerated the digital world to a point where there is a fair opportunity for everyone to shine.
If you have missed some great indie movies, then grab that popcorn to enjoy these on Netflix.
Wide range of options at their desired time
Unlike the regular schedule of a theatrical release, OTT platforms provide the benefit of any time, anywhere. People have a broad range of times, places, and companies to choose from thus giving them complete autonomy.
Simultaneous Release – Cinema Theatres and OTT
Warner Brothers made waves with their recent announcement of the simultaneous release of movies in the theatre and on HBO Max Subscription Service. Warner’s move was not received well by the industry as it violates the exclusive theatrical release window. Additionally, Warner’s announcement covered its entire 2021 slate including major hits like – Matrix, Dune, and The Suicide Squad. This eventually stirred up the assumption that Warner wanted the temporary COVID-19 restrictions to be permanent.
This debate is like walking on the edge of a sword with an expectation of being unharmed. But a simultaneous release is bound to expand the spectrum of choices for the audiences. This has triggered insecurity in the cinema industry. It is wiser to accept the need for adaptation and the possibility of new normal.
An end to Monopoly
If nothing else, the pandemic has knocked sense in the minds of people who are now open to embracing diversity thus giving a fair chance for everyone to shine. Apart from mainstream films and big studios, independent art films are also enjoying a successful run at the theatres. The numbers might not be overwhelming, but cinema and art enthusiasts are witnessing a shift in the paradigm.
Expect Saturation as New Streamers show up
With big studios pivoting online, the encroachment of the digital indie space will be interesting to watch. As the initial craze fizzes off, it is but natural for the market in digital entertainment to saturate. With numerous emerging streamers and endless subscriptions, it will be exciting to understand how the digital landscape will change in the future.
How will the audience adapt to the overwhelmingly high numbers of OTT platforms? Will the next change be easy or as drastic as the pandemic?
