Todd Sumamno
Wherever you look, it seems like the entertainment industry is starting to overcome the coronavirus pandemic.
Three years ago, just about every industry in the entertainment space was affected by the pandemic as events were put on hold and everyone had to shelter at home. Three years later, it’s all starting to feel rosy again. Movies are starting to hit big numbers again, and the sports industry is roaring – just take a look at Bovada March Madness odds to see the excitement around the NCAA showpiece event and how far sports have come once again.
Of course, this isn’t to say that it’s all great. With inflation concerns and the crisis in the banking sector, everyone’s trying to adjust their spending habits. Nevertheless, entertainment is still a necessity.
Interestingly, however, there is one industry that appears to still be looking to find its footing – cinema. Over the past two years, cinemas have done their best to stage a resurgence. However, going forward, the industry needs to adapt to changing conditions.
The Rise of Streaming Hurts Cinemas
One of the biggest and most persistent challenges to cinemas has been the prominence of movie streaming.
When the pandemic hit, everyone was stuck at home. This meant that for them to watch movies and consume content, people needed to stream on platforms like Netflix and Hulu. In the years since then, big companies and movie studios have all entered the streaming market – Amazon, Apple, Disney, and many more. These companies have invested billions into their streaming services, meaning that they would most likely want to keep their services running going forward.
All of this has meant that more people are looking to stream movies – and fewer people are going to cinemas as often as they used to.
Streaming is also entering into other fields like gaming and music, but its impact on traditional cinema has been felt the hardest.
Of course, this isn’t to say that streaming has been solely responsible for the decline of cinema. Attendance at cinemas was already plateauing before the pandemic, and with ticket prices now rising, things are only getting worse. Nevertheless, the comparative advantage of streaming is evident.
Looking Forward
Even with the numbers, it is worth noting that cinemas aren’t yet on the verge of extinction. At the end of the day, movies will continue being released in cinemas and people will continue going.
Nevertheless, cinemas will also need to adapt if they hope to keep up. Some of the trends that experts believe will be more prominent going forward include:
Increased Personalization
One of the best ways for cinemas to be better is to find ways to provide optimized, personalized experiences.
For cinema operators, it is easy to look into current operations to find what works and what doesn’t. Over the years, people have complained about the food and snacks being served at cinemas, the comfort they feel when they sit in those seats, and even the possibility of offering private rooms for viewing – maybe for parties and dates. This might be a good time for cinemas to explore all of these.
At the end of the day, no one knows how to get customers back in their seats like the customers themselves.
Service Flexibility
Another point of focus for cinemas would most likely be ways to make everything about their services more flexible.
AMC Theaters got a good idea of that when they announced that they’d make it possible for people to pay for movies using cryptocurrencies. It was a smart move that appealed to the growing cryptocurrency user and fan base, as well as helped AMC push for what many believe will be the future of payments.
Other points where cinemas might want to consider improving their flexibility include movie options, viewing experiences, etc. At the end of the day, it’s all about giving customers more options and allowing them to be more comfortable when they come to view movies.
Sequels
2023 is already proving to be a momentous year for movie sequels and cinemas. From the likes of “Black Panther: Wakanda Forever” and “The Batman” to “Avatar 2: The Way Of Water” and “Thor: Love And Thunder,” these are the types of movies that can get people back to cinemas and which will also provide compelling reasons for people to watch.
They might not necessarily be original movies, but they’re the types of movies that people would want to watch to get that feeling of nostalgia. And, with a fresh new lineup of movies coming – the likes of “John Wick 4” and “Fast X,” there are several titles that provide cinema operators with opportunities to recapture their segment of the market.
Again, none of this is a reason for cinemas to panic – at the end of the day, they’ll be here and will be fine. However, in an age where growth is all that matters, it might be worth exploring.
Brittany
