Content is King
Content is King
Can the Cinema Experience Survive
As a business consultant I look at companies, industries and products and ask if they have longevity. With our change in viewing habits will movie theatres be there for the long run.
The movie business, like every business is subject to the laws of supply and demand. It is a product: it needs to adapt with the times, be of a certain quality in accordance to the price and or service offered and fulfill a need. We can apply this law to soda, popcorn and even toilet paper. Yes, even toilet paper has changed over the course of time, without question the entertainment business has changed but content will always be king. What does this mean for the future of movie theatres?
Technology like most things and especially the entertainment business has changed our viewing habits. We don’t have to go to the cinemas to see movies. We can see movies on demand in record time and we have different devices in which to watch. Last summer I enrolled with the app Sinemia, a membership theatre pass for ten dollars monthly, it was an incredible deal and my local theatre is one of the best in the world. But there were not always movies I wanted to see, and my initial “discounted” membership with Sinemia recently ended and I question the value at the “new” price.
The increasing competition has spread the content to more formats than just theatres, it goes back to the law of supply and demand, now producers can shop their films to other outlets so there are more movies not going to the cinematic screen. For example, Netflix will show the Alex Garland’s, Annihilation, starring Natalie Portman; a movie that could have been in the theatres but we can now watch at home.
Theatres have changed their product with full service food, beer and the 4DX experience not to mention the recliner chairs, better screens and sounds with lobby areas that are more like a charming hotel. In the dreaded February, Black Panther debuted with record setting numbers to disprove the theory about when a movie should be released and placing more importance on what movie is released. There again we can go back to content.
With Hulu, Netflix, YouTube and more studios making their own content and producers having more selling options for on demand viewing, the convenience of home and the cost savings of monthly memberships may outweigh the cinema experience.
Is going to the theatre still a worthwhile experience for you?
By Dane Flanigan
Dane Flanigan is a business consultant who helps companies build strategies to grow sales. https://www.DaneFlanigan.com