March 29, 2021, 9:15 am | Read time: 5 minutes

In general, the gap between theatrical release and streaming release has been shrinking over the past few years. Initially, when Netflix fully entered and established itself in the streaming business in the late 2000s, it took months, if not years, for blockbusters to be available for home streaming. Now, the wait time is significantly shorter. The pandemic has accelerated this process and pushed it to the extreme. Major studios are now releasing their films directly on streaming platforms due to closed theaters. An analysis of the conflict between cinema and streaming:

People are Streaming More and More

Overall, the streaming industry has developed well in recent years. Market giant Netflix recently surpassed 200 million subscribers worldwide. The pandemic has further fueled the streaming business, partly because people naturally spent more time at home and partly because theaters were among the first to close and remain closed in many places. Even if reopening becomes possible soon, theaters cannot be filled as they used to be. Additionally, today’s home theater technology has significantly improved; TVs are larger, sound systems are better, etc.

The solution last year was increasingly to shift planned theatrical releases to streaming services. Simultaneously, major film festivals, such as the Berlinale, also took place digitally. This, of course, has the advantage of making the format accessible to more people. On the other hand, the catastrophe for cinemas continues to grow.

Disney+ Streaming Service Takes New Paths with Its Own Film Productions

Currently, a report involving Marvel and Disney+ is making headlines. After the epic conclusion of MCU Phase 3 in “Avengers 4: Endgame” (2019), “Black Widow” was supposed to continue in 2020. The film about the superhero Natasha Romanoff, played by Scarlett Johansson, was initially set to hit the big screen in spring 2020. Due to the pandemic, the release date was postponed multiple times. The current official date is July 9, 2021, and hopefully, it will remain so. However, as announced in March, Disney, which owns Marvel Studios, plans a simultaneous release on its streaming platform Disney+. The company took a similar approach with the films “Mulan” and “Raya and the Last Dragon.”

On Disney+, subscribers can stream the films for an additional fee of about 21 euros. A few months later, the films become part of the regular offering. The new model has not been universally well-received. There has been strong criticism, especially from theater operators, who are under additional pressure due to this new practice by streaming services.

Other Platforms Follow Suit

In the fall of 2020, Disney+ seemingly set new standards with the live-action adaptation of “Mulan.” On one hand, the company established the concept of film studios launching their own streaming platforms. On the other hand, releasing theatrical films on these platforms has apparently been financially rewarding, as Warner Brothers soon followed suit. At the end of 2020, the company announced that all its films would be released simultaneously in theaters and on the newly launched U.S. streaming service HBO Max. “Wonder Woman 1984” kicked things off in December. In 2021, a series of major blockbusters are set to follow, including “Godzilla vs. Kong,” “Dune,” and “Matrix 4.” How Warner plans to proceed in Germany, where HBO Max is not yet available, is unknown.

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Cinema and Streaming Are Changing

A look at this year’s Oscar nominees also shows that some true heavyweights first ran on streaming platforms, and a large portion of the nominees can now be streamed on Netflix, Amazon, and others. For this, the Academy temporarily suspended the existing rules that films could only compete if they ran in theaters for at least a week. The big winner of this rule change, judging by the nominations, is clearly streaming provider Netflix, while the losers are the cinemas.

Large productions are only profitable for creators if they at least recoup their expenses. The aforementioned Marvel film “Avengers: Endgame,” for example, cost a whopping $356 million to produce. However, it grossed $2.6 billion, which was only possible because the film was shown and successful in theaters worldwide. It’s now clear to everyone that this won’t be possible anytime soon due to the pandemic. But are streaming services the ultimate solution? Or will production budgets need to be smaller in the future?

Streaming Services and Theater Operators Should Work Together

It’s still far too early to write off movie theaters. Despite all the technological advances, a night on the couch can hardly compete with a genuine cinema experience. Moreover, it cannot be in the interest of streaming services for the cinema industry to suffer. Netflix and others benefit too much from the major productions that are financed this way. The same goes for studios, even if they have their own streaming platform.

For the pandemic period and to promote their own service in individual cases, it may be a good idea to release films simultaneously in theaters and on streaming platforms. However, this cannot apply to all major film productions in the long term if studios do not want to irreparably damage their relationship with theater operators. Streaming is certainly a significant part of the industry’s future, and cinemas cannot rely solely on the audience’s nostalgia. However, streaming services should never forget how much they benefit from cinemas and that very nostalgia.