Originally posted on Twitter, you can view the full thread on Twitter here
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Disney’s Bob Iger says there will likely be:
-Less attendance at the movies
-Shorter windows for movies staying in theater
-And less theatrical releases overall
The end of movie theaters as we know it?
I say YES.
What’s working against theaters and how can they survive? 👇
1/ The big one is COVID. Some people are afraid to be near other people that can get them sick. Movie theaters are large gatherings of people in an enclosed space for long periods of time.
There's the constant threat now of future COVID waves fully stopping their business.
2/ Number two would be the cost: a movie with concessions easily runs you over $20 per person for a 2-hour movie.
That doesn't include parking fees, gas to drive there, and any other random cost.
Streaming services offer a MONTH’s worth of content for as little as $9 bucks.
3/ Next is convenience of streaming at home vs going to the theater. You can literally stream anywhere on any device. Vs it's annoying to get up & go to a theater at a specific time.
Streaming is anytime that works for you, & you can stop at anytime. Movie theaters lock you in.
4/ Lastly, the content providers like Disney would prefer to have control over the distribution, and cut the middleman theaters out if they can. They want to push you to their streaming services instead. That way once you're subscribed, it's all their product without competition.
5/ BUT WAIT, HOLD ON!
Here's the movie theaters' best advantage they will always have going for them and Netflix can't compete: THE EXPERIENCE.
The smells, the sounds, the anticipation, the event aspect. They have to lean into that as much as possible.
6/ The amazing smell of popcorn you get when you first walk in... The crazy loud surround sound that vibrates through your body during an action movie... The gigantic hi-def screen that takes up the entire wall and you have to turn your head to see the whole thing...
7/ Waiting in line for a big opening of a movie you've seen the first 2 parts of the trilogy & now is the finale. Whether it's a night out with a group of friends, or a date w/that special someone, the experience just hits different in theater vs at home (sorry Netflix & Chill...)
8/ Movie theaters HAVE to go above and beyond to lean into the amazing experience aspect for the audience.
I believe their best bet to do that is through VR/ Virtual Reality headsets.
9/ Most people don't want to drop $500+ for a nice VR headset, but I think people would justify renting one at a movie theater for ~$40 all-in if it made their experience that much more immersive, right?
That price point is still comparable to a concert ticket or comedy show.
10/ Theaters could work out partnerships with the VR companies so it's a win win for both of them.
Theaters get more customers, and the VR companies get more exposure to how amazing their products are.
11/ There is one other major obstacle for movie theaters and VR headsets, however...
It's no use to have VR headsets if the movies themselves aren't produced with VR in mind.
Theaters will need the movie companies to start optimizing for VR audiences when filming & producing.
12/ It's another tough obstacle for an industry that's had a rough time as it is.
I love movie theaters but there's a reason why $AMC was one of the most shorted stocks.
All in all, it's going to be tough sledding for movie theaters moving forward if they can't adapt!
13/ This thread was inspired by @ShaanVP famous (or infamous?) thread on why he thinks Clubhouse will fail.
If you don't follow him already, I highly recommend doing so, check out his pod @myfirstmilpod and give that thread a read here!
14/ Am I right or wrong? Let me know what you think!
Follow for more plain easy analysis.
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