The Financial Times predicted the future of the film industry in the context of the pandemic

The Financial Times predicted the future of the film industry in the context of the pandemic

Cinema chains have faced competition from online streaming services.

All the best happy endings can provide an unexpected plot twist. So in the real movie business. Cinemas have suffered because of the coronavirus pandemic, because many moviegoers are afraid of contracting COVID-19, so they do not attend film screenings too actively. And influential film studios delay the releases of the most expected premieres, because they are afraid of losing their own profits. Pessimistic forecasts suggest that the film industry may not survive the “pandemic apocalypse”, but the Financial Times believes otherwise.

The good news about coronavirus vaccines recently triggered a rise in the shares of debt-burdened film groups such as AMC, Cineworld and Cinemark. But share prices for these groups again began to “fluctuate” after Warner Bros. said it will release its films from next year at the same time in cinemas and online streaming services.

This is the solution of Warner Bros. – one of the largest Hollywood studios, will lead to the fact that the number of Internet viewers will again begin to grow rapidly. It also crosses out the hopes of movie theaters that once the mass vaccination begins, the number of visitors to theaters will increase.

Warner Bros. said the move is a plan that reflects the likelihood that movie theaters “will operate with reduced capacity during 2021. In any case, this is a serious blow to cinema chains, which have already lost a significant part of their revenues.

However, if the vaccines really help stop the pandemic, the public pessimism of Warner Bros. about cinemas may become unjustified.

For example, when the pandemic situation began to stabilize in China, a significant number of viewers actively went to cinemas. This indicates that visitors to the cinemas are happy to return when they feel safe. The studios are also interested in seeing their return. Only cinema chains can generate the revenue needed to make movies that cost hundreds of millions of dollars “viable”.

Influential film studios need cinemas. Moreover, even in the era of “high definition television” blockbusters are still being created for the big screen.

Therefore, there are good reasons to believe that movie theaters will survive the COVID-19 era, even if some of them go bankrupt. It is possible that the total number of cinemas will decrease.

Despite the fact that global revenues from box offices in 2019 reached a record 42.5 billion dollars, it was mainly due to higher ticket prices, because the number of viewers fell from the peak of 2002.

The balance of power between film studios, which are aggressively expanding their online services, and cinema networks will continue to change. In the best traditions of Hollywood movie catastrophes, cinemas will face a serious enemy, but they will still be able to survive, summarizes the publication.

Recall that on January 30, WHO recognized the coronavirus as a problem of global scale. Later the EU authorities launched the innovation program Horizon 2020 to study coronavirus.

It is impossible to stop the COID-19 coronavirus in the European Union, as the head of the European Commission Ursula von der Leyen stated.