The movie industry has largely recovered thanks to digital delivery

[Shawn Knight]

Editor's take: The film industry has mostly recovered from the pandemic-induced downturn, coming out on the other side with a bit of a different look. As pandemic restrictions ease (barring another variant outbreak), it’ll be interesting to see if theaters recover further in 2022 or if consumers prefer to watch from the comfort of their home via digital delivery.

The Motion Picture Association in its 2021 Theatrical and Home Entertainment Market Environment (THEME) report said the combined global theatrical and home / mobile entertainment market generated $99.7 billion in 2021. That’s up from just $80.5 billion in 2020, and eclipses the $98.1 billion in revenue from 2019 / pre-pandemic levels.

It’s the breakdown of revenue, however, that is especially interesting.

Last year, a full 72 percent of the aforementioned $99.7 billion in revenue – or $71.9 billion – was generated by digital delivery. Before the pandemic in 2019, digital markets generated just $45.5 billion.

Theatrical revenue dipped accordingly, from $42.3 billion in 2019 to $21.3 billion last year. In 2020 during the height of the pandemic, the theatrical market turned out just $11.8 billion in revenue as many theaters were forced to temporarily close over local Covid-19 guidelines.

The shift to digital content consumption is in line with similar trends we’ve seen as it relates to consumer spending in subscription-based apps over the last couple of years and is largely a byproduct of the pandemic. Faced with shutdowns and stay-at-home orders, content creators and distributors had to find new ways to reach audiences, and digital delivery was the answer.

Image credit cottonbro

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https://www.techspot.com/news/93792-movie-industry-has-largely-recovered-thanks-digital-delivery.html

 

[fps4ever]

This might be well one of those "well duh" moments they should have learned several years ago.

 

[QuantumPhysics]

I would have paid to see Mortal Kombat, King Kong vs. Godzilla and most of the other films I saw on HBO Max in the theater. I saw The Batman on friday night and loved it in the theater for the sound quality and screen size I just can't replicate at home.

 

[RudyBob]

Theater? Never again

 

[VitalyT]

But if we take quality of movies into consideration, then it's never recovered. It has been a rollercoaster of unwatchable crap in the last 12 month. I can't remember one good movie that I would recommend to anyone.

 

[BobDolesGhost]

But if we take quality of movies into consideration, then it's never recovered. It has been a rollercoaster of unwatchable crap in the last 12 month. I can't remember one good movie that I would recommend to anyone.

Theater? Never again

Agreed on both

 

[fps4ever]

I would have paid to see Mortal Kombat, King Kong vs. Godzilla and most of the other films I saw on HBO Max in the theater. I saw The Batman on friday night and loved it in the theater for the sound quality and screen size I just can't replicate at home.

There is always going to be a good amount of people that enjoy the theater experience. I'm OK with that and agree certain movies might be enjoyed better on the big screen for those that want it. The problem is there are still movie theater releases only before streaming is allowed, aka 30 days later, etc. That is what sucks.

 

[Dimitriid]

You mean the same industry that waged open war on piracy for the last 20 years or so? The same MPAA that together with the RIAA initiated a manhunt against some Swedish nerds for the crime of just letting people get the content they refused to make available when people were clamoring for it again, at least 20 years ago already, until a smart competitor and a global pandemic dragged them kicking and screaming into the digital age.

NOW they get it? This is why boomers just shouldn't be allowed near tech it has set them back decades on these record breaking profits.

 

[terzaerian]

I'm hoping the theater industry is able to find alternative revenue streams to sustain themselves in the wake of the pandemic.

As for Hollywood and the MPAA, I hope they go bankrupt. It's too bad people are all too eager to shovel hundreds of dollars a month into the subscription money pit to sustain them.

 

[Bl00dyMinded]

Maybe if they actually put out good movies people will enjoy going to them. But to watch a crap film and pay $16 a ticket, and then $12 a popcorn and $8 coke... ill watch it at home. The last 3 years I've only gone to see Spider-Man and the Batman (which is amazing).

Anything else I'll wait till I can just download it and put it on my plex.

 

[mailpup]

Since my local theaters have reopened I've been going almost once a week depending on what movie genres are playing. It's been a mixed bag with some being quite entertaining and others not so much. I know they're not all blockbusters but I like to see for myself. I'm not as concerned that they are not academy award worthy and I generally enjoy the experience but that's just me.

 

[RudyBob]

You mean the same industry that waged open war on piracy for the last 20 years or so? The same MPAA that together with the RIAA initiated a manhunt against some Swedish nerds for the crime of just letting people get the content they refused to make available when people were clamoring for it again, at least 20 years ago already, until a smart competitor and a global pandemic dragged them kicking and screaming into the digital age.

NOW they get it? This is why boomers just shouldn't be allowed near tech it has set them back decades on these record breaking profits.

VHS Baby !

 

[Todd Sauve]

You mean the same industry that waged open war on piracy for the last 20 years or so? The same MPAA that together with the RIAA initiated a manhunt against some Swedish nerds for the crime of just letting people get the content they refused to make available when people were clamoring for it again, at least 20 years ago already, until a smart competitor and a global pandemic dragged them kicking and screaming into the digital age.

NOW they get it? This is why boomers just shouldn't be allowed near tech it has set them back decades on these record breaking profits.

Nothing to do with being a Boomer. Everything to do with being greedy and controlling. And by the way, far from all Boomers are like that.

 

[Dimitriid]

Nothing to do with being a Boomer. Everything to do with being greedy and controlling. And by the way, far from all Boomers are like that.

There's more than simply just greed because the point of my post is that this article shows that contrary to what they assumed out of pure greed without understanding technology was that it was going to ruin them when the opposite is now being shown as true.

I am saying that ever since mp3s became popular in the late 90s we have known that digital distribution is something people really, really wanted but instead of figuring out how to get them to paid they started a moral panic to try and bury it.

And by the way, huge figures in the entire push to denounce piracy back then when it was becoming extremely popular are Metallica, as in you know, actual certified boomers all born before 1964 so it was washed out boomer rockstars that were used as shields for the RIAA and later the MPAA so you saying "It has nothing to do with boomers" when there was a distinct, clear line in the sand these types established as the entire anti piracy war just doesn't gives your argument the best of optics.

 

[terzaerian]

Nothing to do with being a Boomer. Everything to do with being greedy and controlling. And by the way, far from all Boomers are like that.

Maybe not, but the numbers don't lie:

My generation's blood and wealth were mortgaged to fight wars in Iraq and Afghanistan that our boomer leaders ultimately lost, only the latter became the wealthiest generation in history in the process. You don't have to agree with the resentment but I advise you come to terms with it.

 

[Todd Sauve]

There's more than simply just greed because the point of my post is that this article shows that contrary to what they assumed out of pure greed without understanding technology was that it was going to ruin them when the opposite is now being shown as true.

I am saying that ever since mp3s became popular in the late 90s we have known that digital distribution is something people really, really wanted but instead of figuring out how to get them to paid they started a moral panic to try and bury it.

And by the way, huge figures in the entire push to denounce piracy back then when it was becoming extremely popular are Metallica, as in you know, actual certified boomers all born before 1964 so it was washed out boomer rockstars that were used as shields for the RIAA and later the MPAA so you saying "It has nothing to do with boomers" when there was a distinct, clear line in the sand these types established as the entire anti piracy war just doesn't gives your argument the best of optics.

I was born in 1958 and have none of those problems. Neither do the people I know who are "boomers." These are problems that people in EVERY generation have, especially when they decide they want to be greedy and even exploit people. This behaviour did not originate with people born up until 1964. You are following a moral and logical fallacy.

 

[Todd Sauve]

Maybe not, but the numbers don't lie:

My generation's blood and wealth were mortgaged to fight wars in Iraq and Afghanistan that our boomer leaders ultimately lost, only the latter became the wealthiest generation in history in the process. You don't have to agree with the resentment but I advise you come to terms with it.

The current US president is 80 years old. That means he was born in 1941 or 42, rather before the baby boomers. Most presidents have not been born in the post WW2 years. Obama was and some others. These problems are not necessarily a generational thing, though the current generation thinks they are. The appreciation of real estate values is a symptom of the capitalist system as it is currently practised. I detest that, as does every thinking person. What you are expressing is frustration with an economic system that is beyond almost everyone's control because it is based on greed and has been since the third human murdered the fourth. Or vice-versa. Don't let yourself become a hater of people because of the time they were born in. None of us have any control over that, or have much say in the politics of our times.

 

[SilentMajority]

I would have paid to see Mortal Kombat, King Kong vs. Godzilla and most of the other films I saw on HBO Max in the theater. I saw The Batman on friday night and loved it in the theater for the sound quality and screen size I just can't replicate at home.

not to brag, but my inexpensive home theatre setup has better visual and audio quality (except for it is only 7.2 vs their 11.1+). I like going to the movies because of the atmosphere where others are cheering, as long as they dont go too crazy like jungle animals

 

[p51d007]

The "industry" may have recovered, but the movie "theaters" haven't. Oh well...they charge so much for refreshments anyway.
Plus you don't have to put up with people talking, phones ringing and on and on, not to mention you can pause the movie.

 

[Watzupken]

I don’t think the profitability of the movie industry was affected due to the pandemic. It is the movie theatres that are going out of business due to lockdowns, safe distancing measures, high costs, etc. Movies can easily be delivered through alternative channels for a price. Think about all the Disney shows that got released over the last couple of years, which they all got released on Disney+ for a steep fee that is paid directly to Disney. The cost of the early release on Disney+ cost almost as much as 4 adults ticket on a weekday, and 3 for weekend tickets.

 

[kenny loris]

The pandemic has changed the we live now. But, I really doubt that any individual can relate to the experience they come against with when in theatres. I know things are changing and there is no other choice but to adapt, and I fear that if things go digital movies and theatres will be like stories and tales that we will be telling to our children and grandchildren.