Since COVID-19 struck the world, the United States has lost thousands of cinemas. With this dramatic decrease, the film industry has shifted away from its reliance on revenue from in-person screenings, mainly a result of the changes COVID-19 made to the lifestyles of people worldwide. Furthermore, streaming services have been growing and becoming more profitable.
In 2020, COVID-19 made countless US citizens stay home, causing many industries to struggle. Since theaters are generally enclosed environments filled with people, they became an especially dangerous place in regard to exposure to the virus. Few people continued to go to theaters because of the danger the virus posed, and many theaters shut down rapidly after the pandemic began.
While fewer people went to theaters, many still watched movies from home. Streaming movies became more popular because people could no longer watch in theaters. Netflix gained an estimated record of around 40 million subscribers from 2019-20, as shown from subscriber data stated in Netflix’s own reports to shareholders. The count reached a total of 192.9 million at the end of 2020. The year before, they gained around 25 million. While viewers flocked to streaming platforms, cinemas around the world went under due to the dramatic shift.
Even though movies still had audiences, the profits were not nearly as great. In 2018, the industry hit a record $136 billion in revenue in a single year. However, just two years later, the number decreased to $80 billion in 2020. The domestic box office saw only $2.2 billion, as collected by box office mojo from distributor reports, the lowest it has been since 1980.
2020 was a fall from the record-breaking highs of the past two years, and the film industry is still in recovery. Revenue continues to trend upward and is predicted to grow past its previous heights. The industry is currently in a period of change. With adjustments to follow the new trend of streaming revenue will eventually surpass its prior heights. The box office still hasn’t returned to the $11 billion made in 2018. In fact, the estimated revenue decreased from 2023-24. Rather than returning to theaters, many people continue to use streaming services and watch from home. This suggests a large change in the structure of the film industry, with trends showing that cinemas may never return to their original status. Throughout history, the movie industry has changed dramatically, and the growth of streaming is another one of those changes. While they will continue to be viewed in different settings, movies as a form of entertainment are unlikely to fade into obscurity any time soon.
