The Impact of the Coronavirus on the Global Film Industry

 The Impact of the Coronavirus on the Global Film Industry

The release of the much-awaited blockbuster “No Time to die” has been delayed again, this time till April, 2021. We live in unprecedented times like never before. The coronavirus pandemic has affected every single aspect of our lives. Award shows, film festivals, and exhibitions have all been delayed or rescheduled this year. Each business and industry suffered from virus spread and social distancing restrictions. The Global film industry that much relies on theatrical movie releases has seen a near shut-down impact.

According to Statista.com, the global film industry has so far lost $ 10 billion in the first five months of the current year alone. The trend isn’t going to halt anytime sooner. Millions of people associated with the global film industry are on the verge of joblessness if the trends continue. Even with relaxed social distancing restrictions, restoring public confidence will take time and enormous efforts.

Did It All Begin With Covid-19?

Precisely we should ask how much revenue the film industry is losing due to covid-19 impacts. The traditional theatre and cinema bookings saw a steep decline in recent years even before the events of covid-19. Various factors like cinemagoers’ demand for better screens, ambiance, ticket prices, and time constraints played key roles in reduced theatre visitors. The prime impact came through video-on-demand and online streaming platforms like Netflix, Amazon, and YouTube though.

Cinemagoers naturally shifted more towards the subscription based models. Permanent access to the content and video-on-demand features has attracted more customer base towards these platforms. In a sense, the global film industry has seen a surge in the shift of the user base that was already happening before the coronavirus pandemic.

The viewership shifting towards the smaller screen in the film and entertainment industry isn’t alone. The trends have significantly changed in other industries too like sports events have seen reduced gate money in recent years.

The Multi-Faceted Loss Due To Social Distancing:

It’s not only the theatrical move releases that slow down the industry revenue. All nodes of the global film industry have been affected by the catastrophic impacts of social distancing restrictions. The production for new movies has halted, putting millions of jobs on hold. Delayed movie premières, fewer promotions events, less marketing, and so on the declining circle of events continues.

Cinema owners, venue organizers, and multiplex investors were all in a fiercely competitive market due to streaming networks’ rising popularity. They’ll have to bear the brunt for a little while further at least. The customer shift towards other modes of movie streaming isn’t going to slow down, even with social distancing restrictions are waived.

Restoring Consumer Confidence:

Restoring consumer confidence with congested theatrical seating plans remains the biggest challenge for the film industry. It will not only impact ticket sales but make the viewer return to the gigantic movie screens again. People still show cautious signs of returning to public places and leisure events like cinemas amid the virus’s second wave fears. As more time passes by with closed theatres, the global films industry will lose more revenue to the streaming networks.

Impact of Streaming Networks on the Global Film Industry:

It may come with no surprises that we’ll see more movies being released on online streaming networks than in theatre. The time-lapse without cinema viewers has already established the new norms. An increasing number of people, especially the young lot are inclined towards smartphone screens.

Will we ever see the cinemas and theatres jam-packed for a movie release again? A certain yes for blockbusters and superhero movies, but what about other genres?

The consumer shift wasn’t initiated with compulsion, rather it all started with innovative technology. The viewership has tremendously shifted towards a smaller screen. People are inclined to the subscription and owned content more than ever.

Is it the Financial Remodeling?

It is early to predict that we’ll never see the theatre and cinema screens as regularly as in the past. The film industry can recover sales losses with a shift towards streaming networks like Apple and Netflix. Recently the movie Greyhound was released on Apple TV which awarded for $70 million copyrights. The revenue loss in the film industry isn’t just with the movie releases though. The global film industry connects several other industries like marketing.

Whether the industry goes through the complete transformation remains to be seen, but it certainly wouldn’t hold the trend longer. Consumers’ purchasing power and spending habits will change.

The Forecast:

The viewership trends will lead to the reshaping global film industry future. It is almost certain that cinemas and theatres will see reduced viewership. Media companies and movie distributors will have to incentivize the loyalty of customers with innovative offers. Easing social distancing restrictions may resume the production and festival activities soon but the industry has already incurred heavy financial losses.

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