The film industry has been struggling for some time in a war with streaming services. As stated by The Spartan Shield, “The film industry is competing with people who don’t want to leave their house, and they can see… any movie they want, any time… that’s huge competition.”
At a time when a pandemic rages outside our front door and we are all not allowed to leave our homes except for essential reasons, what state will this leave the movie industry in?
According to Vox, “Consequences of the pandemic in these industries could range from lowered attendance at film festivals and disruptions in film distribution to delayed or cancelled movie releases… Financial ramifications will likely be felt by studios, filmmakers, theatre owners, and more for months or even years.”
As stated by The Motley Fool, “Stocks across industries are sinking… Though almost every company and sector will feel the pressure, Amazon.com, Campbell Soup Co., and Netflix may weather the coronavirus storm better than others– and might even see a boost to revenue.”
Netflix (NFLX) took a bit of a dip on March 16; however, since then, it has been on the steady rise. It should be noted that more people spending time watching Netflix does not translate to more revenue; however, the stock should not see people ending subscriptions due to the pandemic. In other words, they should stay afloat just fine.
On the other hand, the film industry is directly affected as movie attendance is impossible at this time, and might find it harder to keep their finances secure.
As stated by IndieWire, “The Coronavirus outbreak is disrupting entertainment events in Hollywood and around the world, from theatrical releases of major studio tentpoles to the launch of film festivals and TV conferences. ”
Variety concludes that, “The likelihood that a recession is looming in the U.S. will magnify the pain for major media conglomerates…. The North America weekend box office nosedived to $55.3 million its lowest levels since September 2000.”
Some project releases that have been delayed or postponed due to the pandemic include Disney’s Mulan, Paramount’s A Quiet Place Part II, season 3 production of HBO’s series Succession, and Warner Bros’ Wonder Woman 1984.
It was announced yesterday that Wimbledon would be cancelled. This is the first time the event will not take place since World War II. The severity of this pandemic and its drastic impact can be felt in many sectors, the film industry simply being one.
These are scary and uncertain times we live in. The worst part about all of it is that the economic status of industries like the movie industry change each day. We will not know who is going to come out on top of this pandemic until it’s all over.