When was the last time you went to the movie theater? Perhaps last month, week, or maybe even last year? But when was the last time you watched Netflix? Ahhh, probably last night, right?
Netflix has grown in popularity in the past few decades, and the overall business of movie theaters has decreased. With changes and ease in consumer behavior, expense, and time, streaming services make watching movies easier for people.
After the COVID-19 pandemic, movie theaters have yet to make a recovery. 65% of Americans prefer to watch a movie at home, according to The Spectator.
The Spectator also states that while 35% of Americans opt to watch movies in theaters, many prefer to watch at home as there are a plethora of options, and the convenience of fast and accessible entertainment.
However, the Video Production Agency states that, “While traditional theaters won’t vanish, the way we consume films will diversify.”
The same decrease is present globally, seen in countries such as India and the UK as well, all due to the same reason that there is less wait time to watch a movie from the time it is released to when it is available on a streaming service.
With Netflix being the most prominent, from other platforms around the world, such as JioHotstar, Disney+, and Hulu, the price is what makes it the most attractive. With a standard plan with Ads, a plethora of options is available for 9.99.
Now compare that with the cost of going to a movie. The average ticket price for a movie is $10.45, and now add $8 if you would like popcorn, and a drink ranges from $3-5. That right there sums up to around 23 dollars.
Those 23 dollars can be used to access thousands of movies, at your ease, for 2 months. That itself is an inviting aspect that draws consumers towards streaming platforms and away from traditional theaters.
People aged 18-34 make up the majority of the audience at the movies. A study done by UCLA found that a preferred pastime for teenagers is going to the movies on opening weekend, ranked as the top activity.
Nick S., who is an IT staff at BarnZ’s Cinemas, with locations in Barrington and Meredith, New Hampshire, says that their overall revenue has not exhibited much change. They expressed a decrease in business during COVID-19, but have not seen a significant drop in theater goers over the long run.
In comparison, larger cinema businesses have had slightly stronger effects due to COVID-19 and streaming platforms. Specifically, AMC theaters, the largest chain in the U.S., has recently partnered with other companies to attract new customers and further their offerings.
These partnerships include technologies like 4DX and SCREEN X, ZOOM, and IMAX. These recent pairings have also had the effects of a 9% revenue drop and a 10% global attendance drop.
AMC has also endured a decline in box office sales. The company received a loss of 202.1 million dollars, but remains optimistic about the year, expecting a turnaround, according to the Wall Street Journal.
So it may be assumed by some that local theaters are in better shape and scope after Covid-19 than larger box-office chains.
Netflix obtains over 300 million paid subscribers worldwide, according to TechJury, a website containing in-depth software reviews.
A survey conducted by ROKU and NRG discovered that 45% of people prefer streaming movies rather than going to the movies. Although 37% say they are open to either.
According to Moises Forchue, the Network Assistant Manager for Norwood, states that “I think it’s the fact of being in one place. I like to go out to the open to watch a movie, I like that feeling.”
On a somewhat contradictory note, Jennifer Hartery, the RN school nurse at Norwood High School, explains, “I guess I’d say I prefer streaming services, because I’m kind of a homebody, but it’s fun going to the theatre too.”
She also adds that, “It’s just the comfort…and the selection.”
The future of consumer interest holds the outcome of traditional theatres. Some data shows a decline in business, while others may experience an abrupt turnaround.
