Let that sink in a little.
All the movies that come out every month throughout the year will not hold a candle to what streaming apps will bring to everyone in our home next year.
There’s a ton of competition out there for the price of a movie ticket. Everyone is vying for your attention (and your money). Nothing really scares all those production houses out there, which is probably why we are stuck with remedial scripts like Death Wish, Truth or Dare, Mile 22, The Happytime Murders, and whatever the hell the last book in the Fifty Shades trilogy was called.
For all those easy-to-predict belly flops this year, a study by Ampere Analysis should put the fear of God in those muckety-mucks.
In 2019, global subscription revenue is expected to top $46 billion, compared with just under $40 billion in worldwide theatrical revenue.
That gaggle of greatness only skims the surface. There is a veritable cornucopia of apps out there encouraging you to save the $8 for a large soda and that obnoxious $12 movie ticket. Wait for the movie to come out in-home and “chill” with the rest of us.
Take this nugget of wisdom for example: “The average price of a cinema ticket is higher than a month’s subscription to a SVOD service.”
There is nothing that beats the experience of watching a summer blockbuster on a massive screen with eardrum-blowing speakers surrounded by a few hundred of your non-closest friends. Yet, people like being able to fill their gas tanks without begging for change out front of the local station.
So, something’s gotta give.
Ampere surveyed 15 active movie-viewing markets around the globe. They found something that requires little common sense — the more expensive the ticket price, the lower the movie attendance. This is why SVOD (Streaming and Video On-Demand) is surging in popularity.
For example, Mexico’s average movie ticket costs $2.50, which average cinema admissions per capita per year. However, in Scandinavia, a ticket is $13, so the average time a movie goer attends is less than one per year. Not everyone works in a theater. Not everyone has residual income that can go to fatten Paramount’s, MGM’s, and Universal’s pockets. Things happen like feeding a family and buying groceries, so there’s that.
“There’s clearly an appetite for content among some consumers whether that be on the big screen, or a smaller one,” [Senior Ampere analyst Toby] Holleran said. “The key for cinema is to understand that while SVOD subscribers are more avid cinema-goers, this may not always be the case. Therefore, the shared experience of watching a film on the big screen must remain an enticing — and realistically priced — one.”
And there’s the key: “realistically priced.”
Going to the movies is always enticing. It is rarely realistic, but copping a squat on the couch and turning on Hulu is easy. Sure, you miss out on the latest post-credits tease, but who cares when you have all those dolts on social media with their spoilers.
In the U.S., streaming has already outpaced movie watching. The U.K. market is expected to fall by the end of this year, and China, the world’s second-largest theatrical market, is expected to do the same by next year.
What’s more important Hollywood, edacity or entertainment? Greed or a good time? Don’t worry if you aren’t in the mood to answer that question. It appears your audience is already telling you their preference, loud and clear.
Are you listening?