The movie industry stands at a significant crossroads, fueled by the rapid evolution of consumer behavior and technological advancements. As we witness more films being released into the home-viewing environment sooner than ever before, the theatrical experience faces challenges that could threaten its existence. Peter Levinsohn, Chairman of Global Distribution at NBCUniversal, recently made a compelling case at CinemaCon, revealing how his company earned a staggering $100 million through premium video on demand (PVOD) from the adaptation of “Wicked.” While this financial success might seem beneficial, it raises critical questions about the future of movie-going.
Levinsohn argued that theatrical releases remain the industry’s cornerstone: “Theatrical is the foundation, [and] the underpinning of every single thing we do.” This strong sentiment reflects the value of cinematic releases in establishing brand identity and contributing to overall profitability. However, Levinsohn acknowledges an uncomfortable truth; not every consumer is inclined to venture out for each and every film. This raises the uncomfortable question: at what point does the convenience of home viewing undermine the very essence of cinema?
The Dilemma of Consumer Behavior
The debate over exclusive theatrical windows cannot be reduced to a simple pro-and-con argument. Eduardo Acuna, CEO of Regal Cineworld, highlighted a disconcerting shift in consumer expectations. Many moviegoers seem to believe they can wait indefinitely for films to eventually become available for free at home, resulting in dwindling box office numbers for theaters. The crux of the matter lies in how studios present their distribution models. Levinsohn’s assertion that quicker PVOD releases enhance profitability obscures the more complicated realities faced by cinema operators who watch ticket sales decline as viewers become conditioned to delay gratification.
Despite Levinsohn’s confidence in the viability of new windowing strategies, Acuna’s skepticism regarding consumer awareness cannot be overlooked. The growing preference for on-demand viewing is teaching audiences that they can simply sit back and wait for films to arrive at home without cost. As this behavior becomes ingrained, we risk seeing a fundamental shift in how both studios and theaters operate. This issue brings to light the importance of balancing immediate financial gains with long-term sustainability in a theater-centric model.
The Role of Independent Films
The divide between major blockbusters and indie films is increasingly apparent in this rapidly changing landscape. Directors like Joseph Kosinski emphasize the unparalleled experience of watching a film with a crowd in a theater, manifesting formative childhood memories tied to shared cinematic moments. Yet, independent films face unique challenges that big-budget productions do not. Without equal access to promotional resources, indie filmmakers are disadvantaged when it comes to gaining the visibility necessary for success in a saturated market.
This is why the distribution approach for independent films must evolve. If exclusive trailer play is only catered to big studios, we risk stifling creativity and innovation in cinema. The onus is on studios and distributors to provide a level playing field—one where both major films and indie projects can coexist and thrive. By ensuring diverse representation on screens, we can cultivate a healthier cinematic ecosystem.
A Call to Value Theatrical Experiences
As the discussion unfolds, it’s crucial to advocate for the irreplaceable value that theaters provide. The communal experience of enjoying a film in a packed theater fosters connections that are simply unattainable in isolation. The allure of cinematic journeys—often accompanied by excitement, laughter, and shared emotional highs—demands recognition. Filmmakers have a responsibility to craft experiences that audiences believe are worth venturing outside their homes to experience.
If studios truly view themselves as “theatrical first companies,” they must ensure that audiences see value in going to theaters. Movies should be created with the theatrical experience in mind, and marketing should reflect that ethos in a compelling way. The industry needs to reimagine what it means to engage viewers in a theatrical setting, an endeavor that will define cinema’s future as we navigate this dynamic and uncertain environment.