Netflix, Disney Plus and many more streaming sites are getting plenty of traffic as people quarantine themselves and practice social distancing. In some ways it seems like a booming time for the entertainment industry, as most people have a lot of free time on their hands and nowhere to go. However, the film industry will undoubtedly take a major hit due to the complications caused by COVID-19. According to Hollywood Reporter, some experts predict that the total losses in Hollywood could be at least $5 billion.
All major film productions have shut down and delayed releases for later dates, when the virus will hopefully have died down. Films such as “Wonder Woman 1984,” “No Time to Die” and “Mulan” have already been pushed back, and Sony recently pushed their entire release slate into 2021.
The new Trolls film is the only new release to take a different route, deferring to a full streaming debut with a whopping $20 price tag to rent the title. This is likely to make up for ticket sale losses. Unfortunately, there haven’t been any “box office” reports for how it is faring in this new landscape, but given how many films are available to be streamed for so much less, it is likely not doing particularly well. Other films that were in theaters shortly before the pandemic switched quickly to streaming, offering less expensive rental options in hopes that they can still get a return on their films.
With no films being made during this time and no theaters to make profit off of the current releases, Hollywood will undoubtedly lose a substantial amount of money. Studios like Disney may survive, but smaller studios that were already struggling may have to close their doors. Theaters will also be threatened, as they have been experiencing a general downturn in the past decade. It has been debated for a long time if theaters will last or if they will die out, but COVID-19 could possibly be the final straw that leads to their collapse.
China recently attempted reopening theaters and implemented precautions to keep people safe while showing classic favorites in an attempt to get people to return. Unfortunately, the few theaters that opened only made an estimated $4,355 on the first Saturday of their opening, according to an article by Deadline. The news site later reported that China responded by closing the theaters again to prevent any panic due to fear of further spread of the virus.
Now, the concern is if theaters are even capable of making a comeback. Studios pushing back their release dates is based on the hope that things might go back to normal. The move shows faith in theaters and faith that audiences will return if things settle back down. The coming months will be telling, though, as the situation could worsen or improve dramatically in a short amount of time.
