Have Streaming Services Rendered Movie Theaters Useless?

Streaming services have been around for several years, but not in the numbers that we have now, which puts you in control of your viewing.

It’s no secret that many viewers are turning away from cable subscriptions in favor of streaming offers that allow them to pay less and get more from their viewing time. The question we’re presented with today is whether or not these services are rendering movie theaters useless. While you might think that it’s an easy answer and you know that you won’t pay to go to the movies any longer, you might want to rethink that initial argument.

A Pandemic Impact

We are coming to the backside of the COVID-19 pandemic, and that means things are, hopefully, getting back to normal. During the time of this pandemic, movies that were nearly completed were finished and immediately rushed to a related streaming service that would show it, usually free of charge, to subscribers. This was an excellent way to allow viewers to enjoy movies and add to their weekly entertainment time while they were stuck at home. Maybe, we should consider the idea that the pandemic had something to do with the fact that movie theaters aren’t as popular as they used to be.

SVOD vs. PVOD

DO you have several streaming services that you subscribe to? Have you set up an online television subscription with unlimited channels that give you access to everything you could ever desire? At first glance, these are simply the activities that could render cable television useless, but we now have streaming video on demand (SVOD) and premium video on demand (PVOD) services that contribute to the value of movie theaters.

The fact that we were receiving movies as soon as they were ready to be released during the pandemic has led to us being more impatient about receiving movies through this method now. Suppose a movie isn’t expected to be a “box office hit,” it is often offered exclusively through a platform and SVOD methods. That leaves a PVOD method that you would have to pay a little extra to enjoy.

The PVOD method of watching a movie typically requires you to pay an extra fee to have the movie available to you for a short period of time. Even with this added cost, we aren’t seeing all movies released through streaming services immediately, which was the fear when movies were being sent directly to our subscriptions.

The Waiting Game; Movies Aren’t Added Right Away

Do you remember the years of waiting for a movie to come out on cable through HBO, Showtime, or Cinemax? In the past several years, that waiting game was shortened. There was a time that movies would not appear on these channels until a year or more after they were released. Now, we see a much shorter window of time. Prior to the pandemic, streaming services would not receive movies for at least 60-90 days from the date of release for PVOD viewing, but today, that window has been reduced to 45 days or less.

Ticket Prices at Movie Theaters; Is that the Problem?

When you go to the movie theater to watch a film, you’re paying for more than just the viewing pleasure of the movie; you’re paying for the experience. Sometimes it’s nice to get out of the house, take the family or a date to the movies, and enjoy the immersion of the technology. The experience of a movie theater seat with a bag of popcorn and a drink is something that we love. It gives us a respite from our homes and watching on the screens that we have in our living rooms.

The challenge of going to a movie theater to watch a film has much more to do with cost than the experience. It’s pretty easy to pay as much as $100 or more for four people to enjoy time at the theater once you pay for tickets, snacks, and drinks. This isn’t nearly as cost-effective as watching a movie at home, where the overall cost, even for a PVOD service, is less than half of the price you’ll pay for the experience at the theater. Of course, at home, you’ll have to handle potential interruptions and disruptions, but that could be a valuable trade-off.

A Different Stream of Income for the Movie Industry

The use of streaming services to release movies that aren’t expected to do well is a little niche in their delivery, or are much more of an artistic nature, allows those movies to enjoy a share of the income from the streaming company when their movies are viewed. Rather than becoming a box office flop because a movie is only offered at a few theaters around the country, being added to a streaming menu could allow an entire world of subscribers to enjoy the movie and for the film company to gather a new stream of revenue.

The First Few Weekends of a Hit Movie are Still Exciting

When a new movie with all the advertising and support of many of the hits we’ve seen over the years reach the theaters, the first few weekends when a movie hits the big screen are magical. There are lines for every show, tickets can sometimes be in short supply, and those who attend have to try hard to avoid posting spoilers on social media for a while. Some movies even have midnight showings on the very first day they are out, giving a select number of viewers the chance to see the film before anyone else.

Have We Answered the Question?

Are streaming services rendering movie theaters useless? As long as the big box office hits keep showing up in theaters first, and streamers have to wait at least 90 days to have the movie in their living rooms, the theaters will continue to thrive. It might be a good idea for theaters to reduce prices of tickets or concessions, but there’s still enough excitement around the first few weeks a movie is out in theaters, which is when many movies will make the lion’s share of their box office ticket sales.