Despite the many ‘new normals’ the pandemic and the post-pandemic recovery period have thrown up, we’re still seeing a sharp divide in streaming and theatrical releases. Despite Netflix seeing great success with a theatrical debut for Glass Onion 2, they still kept it to a very limited (perhaps too limited) run. Few other streaming companies send films to theaters at all. Will this split continue, or could we be entering an era where streamers send their films to wider theatrical release, and not just to court awards season nominations? Brandon Blake, our expert entertainment attorney with Blake & Wang P.A, unpacks some of the potential.
Air Enters Theaters Exclusively
In April, we will see Amazon’s Air, based on the Nike story, exclusively enter theaters- opening the old theatrical exhibition question up all over again. And they’re not doing it by halves, either. The wide release schedule for Air hasn’t been seen from Amazon since 2019’s Late Night. Tentatively, it’s expected to go for a 45 day window.
There’s no question that the theatrical slate for 2023 could do with it, too. Before the pandemic, we were averaging 130 releases a year. Now, we’re struggling to reach 100. Combined theatrical/streaming releases from traditional studio partners backup the idea that this model, of them all, produces the most lucrative results. You have the flashy, attention-grabbing exclusive theatrical release, and then mop up more eyes (and dollars) with an exclusive streaming window, too. Even Netflix has to admit that Glass Onion: A Knives Out Mystery could have done with a longer and wider theatrical window if maximizing profits and results was the aim. And it’s clear Wall Street wants to see more from listed streaming companies than just subscriber growth this year.
Solid Progress, but More Needed
On the other hand, we definitely need to see more from 2023’s Box Office, too. Despite some solid progress in 2022, we saw a lack of new releases in Q4 take its toll on overall revenue. Most blame the protracted content gaps (think late summer and early fall, particularly) for the late-year loss in momentum from summer highs. While 2023 definitely has more volume as supply pipelines recover from COVID interruptions, we’re still seeing a weaker slate at that same period for this year. Yet historically, theatrical releases at that time of year typically do well.
With Amazon tentatively sniffing the theatrical window air again, will we potentially see more streaming studios take advantage of the opportunity to launch their movies in theaters as well as on their streaming platforms? It would make a lot of sense, likely appease Wall Street, and further a partnership that’s been shown time and again to perform better than the either/or model we once saw, for sure. Yet despite pressures to move away from that subscription-over-all mindset, many of the ‘streaming studios’ remain reluctant to experiment with more holistic release models. Perhaps Air will bring the impetus needed to see a shift in that mindset that would benefit the industry as a whole.
