Last week, Warner Bros. decided to release all of its 17 movies on HBO Max the same day they hit theaters next year. This decision is another blow to the already-floundering movie theater industry. However their reaction is rather tepid. According to the WSJ article, "movie-theater chains are seeking lifelines to bridge the time, with hopes that a post-pandemic audience is full of pent-up desire to go to the movies." Major film studios are testing new business models. Shouldn't the theater industry do the same too?
This news reminded me of a recent episode from a16z podcast on the cloud gaming aired on Nov. 16, 2020. A guest there said that the internet has moved from the internet of the text to the internet of the video. What is next? It's the internet of experiences. When she was asked to share her visions for the gaming landscape, she said gaming is not just entertainment, but also a place to hangout.
A real problem the theater industry is facing is not the pandemic, but the fact that it doesn't offer any different experiences that the audience wouldn't have from watching the movie at home. A big screen and a better sound are not enough. What could a theater provide that would allure people to abandon the convenience of a streaming service and go to a movie theater? Can a theater help the audience enjoy the movie beyond watching it? What about a social aspect? Can a theater be a place where people choose to hang out?
The pandemic did not cause, but just accelerated the destruction of the movie theater industry. If the pandemic cannot force the industry leaders to contemplate and create new business plans, I don't know what could help transform the sector.
p.s. Another question: would a change in distribution lead to changes in how movies are made? Something to watch...