Can Theaters Be Saved From Extinction?
There is nothing more comforting to me than the moment I walk into a movie theater. The smell of buttery popcorn, the red velvet seating, the fifty-foot-wide silver screen, the surrounding sound system, and my personal favorite - the trailers. Together, this environment invokes a cozy, intimate feeling that makes the movie-watching experience much more enjoyable and eventful than if I were to simply watch off my laptop or television screen. Going to the movies with friends and family has always been an activity that I loved as a child, and continue to enjoy to this day. However, because of the detrimental impact of COVID-19 affecting both our communities’ health and economy this year, will this favorite pastime officially come to an end?
The Bad News
Already, thousands of movie theaters, both independent and chain, have suspended operations as a result of the ongoing pandemic, and many theatres are suffering the consequences of these closures. For one, many of these businesses have lost hundreds of thousands or even millions of dollars in revenue. For example, AMC Theaters - the biggest movie theater chain in the US - reports a $561 million loss in revenue in its most recent quarter of the pandemic. Similarly, many single-location art house theaters have also dealt with serious setbacks, but with more extensive and impactful repercussions. These local theaters gave countless independent films a greater opportunity to attain success, by not having to compete against the big blockbusters that most major theater chains cater to. However, with the strict social distancing guidelines, it has been a challenging feat to safely open back up. This has led several art house theaters to the brink of foreclosure due to the significant losses in profit that these indie movie screenings previously provided.
In addition, many upcoming films have postponed or even canceled their premiere dates altogether due to the closures of thousands of theaters around the world. One of my most anticipated films for this year was Dune, which was set to release on December 18, 2020, but was soon pushed back almost a year later to October 1, 2021. As awful as this is to hear, it is a safer bet considering the box office flops of many newly released blockbusters this year. Many of these big-name films, such as Christopher Nolan’s Tenet (2020), surprisingly brought in an underwhelming amount in revenue, making a meager $9.5 million in its opening weekend in comparison to his previous release, Dunkirk (2017), which made $50.5 million. Therefore, putting a hold on the release dates of these upcoming films helps prevent these major studio companies from losing even more money because of the apparent lack of viewership with many theaters closed down.
The Silver Lining
On a more positive note, there have been several unique ways that these struggling theaters have been able to pick up in order to stay afloat during the pandemic. Some theaters have turned to virtual screening models, where patrons buy tickets through their chosen theater and receive a link to watch the film by email. This option has opened up all around the country, enabling viewers to support independent theaters by purchasing tickets online from any theater, near or far. Similarly, film festivals which were previously canceled because of COVID-19, have also opted towards online streaming. Participants can buy admission passes from the respective film festivals’ website and watch all of the short films and live panels from the comfort of their home.
Some theater locations have been able to adapt to the social-distancing regulations by reviving the classic drive-ins. Still following the six-feet-apart ruling, theaters have started hosting their movie screenings at beaches, sports stadiums, and most commonly, parking lots. Cars and pickup trucks can safely congregate in any one of these locations, and people can enjoy watching beloved classics or newly released blockbusters in a controlled, socially distanced environment. If you’re missing the experience of going to the movies like I am, this is a great alternative for you and your close circle to enjoy in the meantime.
Many cinemas have also started renting out entire theaters for private screenings to help increase sales during these trying times. AMC Theaters is currently offering auditorium rentals starting at $99 for a party of up to 20 people. Guests can select from a list of older and newer releases, ranging from Jurassic Park (1993) to Tenet (2020). However, it should be noted that the total cost varies depending on the film you select and the day you decide to watch. Also, you might want to think twice about whether or not you want to bring in outside food, considering that it is an additional $250 charge. Nonetheless, I respect AMC for trying to find a creative solution to combat their financial struggles in what would have been their peak season.
In some states and counties where the COVID-19 case rates are at a minimum, theaters are actually opening back up with several safety precautions put into effect. One useful tool that is available for Californians to use, is this COVID-19 modeling website that provides more transparent access to the latest data regarding the risk levels in each county, and the restrictions placed on different activities and businesses. In Mariposa County, the website indicates that movie theaters are allowed to open up, though with some slight modifications. For example, Regal Cinemas have started opening their doors, but are reducing indoor capacities down to at least 50%, continuously cleaning all surfaces and seatings, in addition to requiring guests to wear a face mask at all times.
The Rise of Streaming Services
With many of us stuck at home, it does not come as a surprise that a great number have turned to streaming services as our main source of movie and television entertainment. While it is true that streaming platforms - such as Netflix, Hulu, and Amazon Prime Video - were already widely used before the pandemic, recent studies have shown that there has been a significant change in viewing habits ever since the beginning of the COVID-19 lockdown. Not only has the time spent watching on these platforms doubled to 1 hour and 11 minutes, but 12 million people have also signed up for at least one new subscription-based service during this time.
Aside from the ever-growing popularity of streaming services, many film studios have opted to directly releasing upcoming films On Demand, bypassing the theater release altogether. But what does this mean for movie theaters? Essentially, this new trend could potentially lead to even more extreme losses in revenue for the movie theater industry if more films choose to become immediately available for streaming online.
There are already several new releases that have premiered On Demand, but there is not yet a clear consensus as to whether or not this is a financially effective strategy. On the one end, the digital release of the animated sequel Trolls World Tour performed so well that it even managed to generate more revenue in its first three weeks than the original Trolls did during its five-months in theaters. In fact, by August, the sequel made about $150 million from rentals alone. But on the other side of the spectrum, Disney’s live adaptation of Mulan received mixed reviews and had a disappointing opening weekend, despite Cinema Blend’s prediction that it would be the highest-grossing film of the year because of its potential market in China.
Either way, it does not seem as though On Demand releases will cease anytime soon. This pandemic has opened up new territories for film studios to bring in additional revenue that they could definitely benefit from during this period when their main source of income, (movie theaters), has been indefinitely shut down.
In fact, Universal saw the foreclosure of theaters as an opportunity to announce that all of their films would now be released online at the same time as they are in theaters after lockdown is over. This news caused many theaters to begin boycotting the company considering how badly the theater industry is suffering from the lack of customers during this time. Furthermore, if Universal decided to make this step, what would stop other studios from following suit?
After much dispute, Universal and AMC reached an agreement that any of their newly released films would have to remain in theaters exclusively for at least 17 days before becoming available On Demand. Though this deal was a compromise, it drastically shorted the theatrical release window, which was typically 70 to 90 days - this will adversely affect the future of theaters.
How to Show Your Support
More than ever before, movie theaters, along with thousands of unemployed entertainment workers, need as much assistance as they can get. Thankfully, there are several ways that movie lovers can show their support.
One way you can help is by renting any new releases from your local theater’s website or that of an independent distributor. Already, there are several independent theaters who have created pages for guests to purchase ‘tickets’ for a virtual cinema experience. Los Angeles’ Laemmle Theaters has a wide selection of films, such as Senior Love Triangle and Pause, which viewers can rent for $5 to $10 and hold onto for up to three days. In this way, patrons are able to support their local theaters while also being able to take pleasure in watching a new film.
Another option that I briefly touched on earlier, is purchasing admissions passes to online film festivals happening this year. This is a great opportunity because it allows the average moviegoer to participate in film festivals happening across the country, or even internationally. And most importantly, you will also be supporting independent creators and their work. There are a number of online festivals approaching soon, including Glimmerglass Film Days (November 5 to 11), AMPLIFY! (November 6 to 22), and DOC NYC (November 11 to 19), to name a few.
If you would prefer to send direct donations, there are several charities and organizations that have committed to setting up relief funds for the affected parties. For example, the Will Rogers Motion Picture Pioneers Foundation is focused on providing financial support to unemployed movie theater workers. Similarly, the Directors Guild Foundation has created a COVID-19 Emergency Relief Fund which offers $1,000 grants to DGA members facing financial crises as a result of the production shutdown. This includes directors, assistant directors, location managers, and unit producers. And though the deadline for this fundraiser has passed, the Criterion Collection’s Art-House America Campaign has already raised $842,088 to aid hundreds of independent movie theaters across the United States.
However, an important step that we can all take to truly support these theaters is actively practicing social distancing guidelines! As the CDC recommends, always maintain a distance of six-feet, wear a mask, wash hands regularly, and be alert for any symptoms you might have. If we follow these steps, we can help prevent and even eliminate the spread of COVID-19, meaning one step closer to having our beloved theaters opening back up for business!
And though I am jumping the gun, don’t forget to continue supporting your local theaters once coronavirus is all said and done. They will definitely be needing all of the support they can get, and I’m sure we are all eager to get back to a sense of normalcy with all the chaos we have been through these past several months.