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2021-07-14
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Analyst: 'Black Widow's' streaming success spells 'big trouble' for theater chains
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According to the company, the film generated $60 million on Disney+ — less than theaters, but a significant haul amid Hollywood's \"new normal\" after COVID-19.</p>\n<p><img src=\"https://s.yimg.com/os/creatr-uploaded-images/2021-06/22ef0880-d886-11eb-baff-83eedeb75f5b\" tg-width=\"1280\" tg-height=\"854\" referrerpolicy=\"no-referrer\"></p>\n<p>\"This is a watershed moment for the industry,\" LightShed Partners Rich Greenfield told Yahoo Finance in a recent interview. He suggested movie studios are \"becoming more powerful\" in the wake of COVID-19, as the focus shifts from box office exclusives to hybrid releases on streaming platforms.</p>\n<p>\"[Studios] don't need the theaters as much as they used to. Do they still want theaters? Sure. Do they make money on theaters? Absolutely. It's a good business [and] movie theaters will be around for a very long time,\" Greenfield said.</p>\n<p>\"But the leverage in the relationship is shifting towards the movie studio, and they're realizing that they can generate a lot of money directly to consumer,\" he continued.</p>\n<p>Studios that release films directly to platforms — Disney to Disney+, Warner Bros. to HBO Max — keep a significant portion of the revenues (about 80%) whereas a theatrical release is often split with theater chains, Greenfield explained.</p>\n<p>\"This is a pretty profound moment, [and] a big signal that direct-to-home movies that you know don't have to be seen in theaters are here to stay,\" he predicted.</p>\n<h2><b>'Theater chains in deep trouble'</b></h2>\n<p class=\"t-img-caption\"><img src=\"https://s.yimg.com/os/creatr-uploaded-images/2021-07/c47cd740-e38a-11eb-bbaf-ca40598f2468\" tg-width=\"3600\" tg-height=\"2400\"><span>Theater chains are in 'deep trouble,' analyst Rich Greenfield saysTom Cooper via Getty Images</span></p>\n<p>While \"Black Widow's\" box office success is still a positive outcome for cinema chains like AMC (AMC), IMAX (IMAX) and Cinemark (CNK), many analysts believe that the streaming threat is a significant hurdle.</p>\n<p>\"The theater chains are in deep trouble. I mean deep, deep trouble,\" LightShed's Greenfield warned.</p>\n<p>\"AMC was not making money pre-pandemic [and] now you're looking at attendance that is nowhere near what it was pre-pandemic,\" he said. He noted how box office numbers are still falling short of expectations, despite big budget marketing and perceived optimism around theatrical re-openings.</p>\n<p>Greenfield suggested that pent-up demand for concerts and travel are at all-time highs, whereas \"movie theater attendance is not blowing out. This is a substantial contraction versus where we were in 2019, and when you look at what happened this past weekend, we're never going back,\" he added.</p>\n<p>He underscored the financial dilemma that theater chains will face as more studios opt for hybrid day-and-date releases.</p>\n<p>Overall, Greenfield notes that although movie theaters will continue to exist \"they're going to be a lot less profitable and a lot smaller business than they are today.\"</p>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Analyst: 'Black Widow's' streaming success spells 'big trouble' for theater chains</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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According to the company, the film generated $60 million on Disney+ — less than theaters, but a significant haul amid Hollywood's \"new normal\" after COVID-19.\n\n\"This is a watershed moment for the industry,\" LightShed Partners Rich Greenfield told Yahoo Finance in a recent interview. He suggested movie studios are \"becoming more powerful\" in the wake of COVID-19, as the focus shifts from box office exclusives to hybrid releases on streaming platforms.\n\"[Studios] don't need the theaters as much as they used to. Do they still want theaters? Sure. Do they make money on theaters? Absolutely. It's a good business [and] movie theaters will be around for a very long time,\" Greenfield said.\n\"But the leverage in the relationship is shifting towards the movie studio, and they're realizing that they can generate a lot of money directly to consumer,\" he continued.\nStudios that release films directly to platforms — Disney to Disney+, Warner Bros. to HBO Max — keep a significant portion of the revenues (about 80%) whereas a theatrical release is often split with theater chains, Greenfield explained.\n\"This is a pretty profound moment, [and] a big signal that direct-to-home movies that you know don't have to be seen in theaters are here to stay,\" he predicted.\n'Theater chains in deep trouble'\nTheater chains are in 'deep trouble,' analyst Rich Greenfield saysTom Cooper via Getty Images\nWhile \"Black Widow's\" box office success is still a positive outcome for cinema chains like AMC (AMC), IMAX (IMAX) and Cinemark (CNK), many analysts believe that the streaming threat is a significant hurdle.\n\"The theater chains are in deep trouble. I mean deep, deep trouble,\" LightShed's Greenfield warned.\n\"AMC was not making money pre-pandemic [and] now you're looking at attendance that is nowhere near what it was pre-pandemic,\" he said. He noted how box office numbers are still falling short of expectations, despite big budget marketing and perceived optimism around theatrical re-openings.\nGreenfield suggested that pent-up demand for concerts and travel are at all-time highs, whereas \"movie theater attendance is not blowing out. This is a substantial contraction versus where we were in 2019, and when you look at what happened this past weekend, we're never going back,\" he added.\nHe underscored the financial dilemma that theater chains will face as more studios opt for hybrid day-and-date releases.\nOverall, Greenfield notes that although movie theaters will continue to exist \"they're going to be a lot less profitable and a lot smaller business than they are today.\"","news_type":1},"isVote":1,"tweetType":1,"viewCount":149,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":31,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/145735784"}
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