Movie Theater Magic

“Distributors, please focus first and foremost on the theatrical releases of your

films”, invoked Sean Baker at the Academy Award Ceremony (THR). The

ANORA director, who set a record for winning the most Oscar for an

independent film, spent $6MM in a production that grossed five times its

investment in worldwide box-office, plus five statuettes. So what happened

to theatrical releases?

The Streaming Factor

We all know that convenience, exclusivity, and affordability are the primary

driving forces behind the streaming era. At the beginning of this new wave,

studios and distributors would respect a theatrical first window, putting

films in TVOD or PVOD months away, therefore stimulating the audience to

watch it on the big screens. The moment the window died (during Covid),

everything was everywhere all at once (pun intended).

The Disaster Year

Let’s rewind to better examine the full picture regarding theatrical releases

in the US in recent years. 2024 was a disaster. Domestic ticket sales

marked a decline of 3.3% from the previous year and a shocking 23.5%

drop from 2019 (more on Variety).

The Strikes Year

In 2023, movie theater attendance rose by 18%, if compared with the

previous year. Yet it remained significantly below pre-pandemic levels –

let’s keep in mind that the double strikes affected all US productions for six

months (THR). It is important so say that number of wide releases in 2023

was 40% higher than 2022 and approaching the number of wide releases in

2019, but the average movie ticket price fell to less than it was in 1971

(inflation accounted for) (THR)

The Post Pandemic Year

As IndieWire shows, 2022 was a good year after the pandemic, "Avatar The

Way Of Water" becoming the biggest worldwide grosser since COVID, but

theatrical attendance went down a staggering 52% if compared to 2018. A

total of 71 films were released (all of them by major studios).

The Covid Years

2021 had 57 new releases, 2020 lowered at 34 new releases, a period that

faced closed cinemas due to COVID. Just for context, in 2020 Netflix added

more than 35 MM new subscriptions, their best year yet – in direct

proportion with the lowest release theatrical data ever. (Variety)

This Year

2021 had 57 new releases, 2020 lowered at 34 new releases, a period that

faced closed cinemas due to COVID. Just for context, in 2020 Netflix added

more than 35 MM new subscriptions, their best year yet – in direct

proportion with the lowest release theatrical data ever. (Variety) This year's

Academy Awards’ prove that we may experience some kind of revival in the

theater’s releases: indies are profitable again. "Flow", the $3.7MM

animation from Latvia that won Best Animated Feature Film, made $17MM

in theaters. "No Other Land", the awarded documentary budgeted at $800K,

made almost three times its budget in tickets. "A Real Pain", independently

made with $3MM, grossed north of $22MM.

Let’s conclude by quoting Sean Baker again, and remembering the

importance of the collective experience in 2025. “In a time in which our

world can feel very divided, this is more important than ever: (movie going)

it is a communal experience you simply don’t get at home.”

See you at the movies!

Best,

Laura Malin