Why the future of movie theaters seems uncertain again

• Some Hollywood studios have again started delaying their films or selling them to streamers.
• It’s a sign theaters could face more complications as concerns about the coronavirus escalate.
• Here’s Insider’s guide to how Hollywood and theaters got to this point and what the future looks like.
• See more stories on the Insider business page.

While the North American box office has yet to rebound, it were signs of recovery after a calamitous year 2020

Ryan Reynolds’ action comedy “Free Guy,” grossed $ 28 million at the domestic box office on its opening weekend in August, exceeding expectations, and “A Quiet Place Part II” won had strong box office legs since its debut in May.

But as the Delta variant increases coronavirus cases and the vaccination rate slows in the United States, theaters may soon face similar challenges as they did last year, when studios delayed tentpole films. or found streaming alternatives to cinemas.

Paramount has already pulled its film “Clifford,” which was slated for October, from the release schedule, and Sony has delayed its “Venom” sequel for three weeks until October 15. The latter studio, without its own streaming platform, also sold the latest entry in its animated film series “Hotel Transylvania” on Amazon, skipping theaters altogether. Other big changes could follow.

Learn more about why Hollywood studios should delay their big budget movies.

A major problem facing tentpoles released in today’s theatrical environment is that they see their incomes plummet after their first weekends.

It was normal in the pre-pandemic market when films like “Black Widow” and “F9” would have opened with much larger numbers at the box office. But that’s not exactly sustainable now, given that films are already at a disadvantage with a number of North American theaters still closed, pandemic-related restrictions in place, and many consumers uncomfortable returning to the theater. cinemas.

Movies like “Black Widow,” “F9,” and “Godzilla vs. Kong” managed to break the $ 100 million mark at the domestic box office, but these films each cost around $ 200 million to make. While the international box office has given them a boost especially in the case of “F9”, which grossed $ 680 million worldwide, the Marvel and “Fast and Furious” films have grossed more than one dollar. billion dollars in the world.

Learn more about why strong openings alone couldn’t save the box office.

Another hurdle that cinemas faced this year was the lack of exclusive animated films, as many of these family films were streamed concurrently or exclusively. It looked like it might get better over the year, but now the aforementioned “Clifford” and “Hotel Transylvania” movies have been taken out of the equation.

While “Space Jam: A New Legacy” performed well, the box office could have benefited from the boost from the Pixar movie “Luca,” which went straight to Disney + this summer. Other animated films like “The Boss Baby: Family Business” and “Paw Patrol” have aired on the day and date respectively on the Peacock and Paramount + streaming platforms.

Learn more about how the lack of cinema-exclusive animated films hurt the box office.

The changing relationship with talent amidst streaming strategies has also had an impact on Hollywood, with theaters at the center of debates surrounding compensation for talent.

For example, Christopher Nolan, a theater champion, had conversations with

Netflix
, who wants to poach the Warner Bros. filmmaker for his next film. Nolan strongly criticized WarnerMedia’s decision to release its 2021 films in theaters and HBO max simultaneously. Its next move will be a big indicator for the future of cinemas as big tech and streaming rock Hollywood.

Learn more about where Nolan could take his next movie.

The coming weeks will be a barometer of the more immediate future of cinemas. If studios continue to delay films or sell them to streamers, this could be a cause for concern and a sign that the exploitation industry will continue to change at a breakneck pace.

Here’s a list of our recent coverage on the state of theaters as the industry seeks to recover from the pandemic:

The big picture

Main obstacles facing theaters and Hollywood

Evolution of Hollywood strategies

Strained talent relations

But it wasn’t that bad