How Theaters Can Evolve In The Age Of Streaming

BRICK-AND-MORTAR CINEMA ISN’T DEAD JUST YET

- Benjamin Kerry & Gavin Lenaghan

When you are in the mood to watch a great film, how do you watch it? Do you schedule a visit to the local theater, or do you simply load up the Netflix app on your iPhone or iPad? Chances are that you would be happy to do either, depending on where your mood takes you. Right now, the traditional, theater-based model of film consumption is locking horns with the more modern, streaming-based approach pioneered by Netflix, but it remains unclear exactly how this battle will unfold.

Netflix itself has given traditional theaters a lot to think about on quite a few occasions over the years. This includes as recently as this year, when the streamer was locked in negotiations with major theater chains for months before it was announced that Martin Scorsese’s The Irishman would be released to theaters on November 1 before its arrival on Netflix’s streaming platform on November 27. Even here, though, Netflix is clearly chipping away at the theatrical business model.

This can be inferred from the fact that, traditionally, such leading theater chains as AMC and Regal stipulate a 90-day exclusivity “window” before films are released to home streaming services. After all, the longer these chains can keep the films on their big screens, the more money these longstanding gatekeepers of the cinema world can make. However, this situation clashes with Netflix’s own strategy of using new content as a way of attracting and keeping subscribers.