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CINEMA: Navigating Beyond Uncertainty (Part 2)

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Long before COVID-19, consumers increasingly favor streaming video-on-demand (SVoD). Therefore, worsening attendance at the box office. As a result of the change in consumption patterns.

Cinema admissions have been in decline for most countries except China. In the USA the number of tickets sold has not increased for 25 years. Even in India per capita admission has fallen by more than 30%. Between them are two of the world’s largest producing film industries.

The reduction of content in contrast to the variety available via the SVoD model is expected to continue. Worsening the prospects for theatres in the backdrop of charging 50% of the ticket sales.

Cinema: Theatrical Window

The quantity of films in theatres is declining for almost two decades now. So is the amount of time (two months) for showing movies exclusively in cinemas.

Netflix had its best-ever film slate in 2019, including two of the nine “Best Picture” nominees. Both of these films actually avoided theatrical releases.

Studio invested and owned services platforms are a new reality. When content creators go direct to digital, they reduce box office collections and revenue from satellite rights. An enormous source for the producers.

Cinema vs. The Rise Of SVOD

Published by Ay Watson and Statista 2020

Perhaps the most notable shift the industry has ever seen. In favor of owned distribution and recurring revenue.

The launch of Disney Plus in November 2019 has only confirmed this. Well-funded SVoD providers with momentous budgets are shifting the balance.

Amazon Studios announced in 2019 that it would be shifting some features to direct-to-SVOD releases, while others would have only a few weeks of exclusivity in theaters.

Tencent’s recent purchases of iQIYI and Iflix is the latest edition of this trend.

A single Movie or TV release is not profitable but subscriptions and advertising are valuable.

As a result, entertainment companies no longer realize fixed schedules, primetime, or popular holiday weekends.

Instead, the goal is increasing engagement, thereby improving user retention and data on content popularity. 

As For Cinema

The SVoD model is disintegrating the market for theatres. 50% of ticket sales income is clearly under threat.

With fewer films available, blockbuster franchises take a growing share of box office revenue.

For two decades, the share of box office revenues taken by the big studios has grown over 10%; Disney’s share in the same period has more than doubled.

Filmmakers may still take advantage of a theatrical release, but they’re likely to be exceptions.


There’s plenty of room for growth – especially new revenue.

Releasing movies directly to consumers and further limiting the pool available to brick-and-mortar distributors.

In addition to SVoD services, gaming com\panies are also sensing an opportunity. For instance. Fortnite hosting an in-game Christopher Nolan-themed movie screening.

Remember! Netflix and Amazon are largely unaffected by the COVID crisis.

Therefore! Think Movies and Not Just Cinema

Useful References :

Title Image Credits: | Also available on Medium

Source: Variety


Asim Qureshi is the Founder of Starring Brands. A pioneer in marketing movies and cinemas in Pakistan



✅ Agency Founder✨Ex-CEO at Leading Media ARY & Jang Group✨Ex-Contributor Khaleej Times & Dawn✅
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Abdullah Hameed
Abdullah Hameed

Well! I miss going to cinema with friends.

Ms Khan
Ms Khan

I couldn’t agree more its true that Netflix hasn’t been affected by COVID. Good analysis and well written. I love the simplicity of it and the thought process behind it.


Miss going to movies 🙁


Cinema is dead here in Germany

Yang Ziyi
Yang Ziyi

No substitute for movie theatre

Sonali Roy
Sonali Roy

Mee 2 miss going to theaters and the big screen. No substitute for it.

Justin Wild
Justin Wild

I think cinema may never be the same again streaming should become the norm

Laura Sanchez
Laura Sanchez

Good stuff please share links of any Pakistan movies on Netflix

Oriana Rodriguez
Oriana Rodriguez

Greetings from Miami, Ori here and I am musician and a model. Wondering if you would love to collaborate on instagram and do videos?


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