The Impact of COVID-19 on The Entertainment Industry Essay Sample

In 2020 the world experienced a pandemic that wobbled many different industries, but none such as the film and theater industry. Movie theaters are high-risk environments by their very nature, as they frequently cram hundreds of people into a tiny area for lengthy periods. Furthermore, cleaning them may be difficult and time-consuming, making them unsuitable for a highly infectious virus-like COVID-19. With this issue, studios have decided to push streaming services onto the masses throwing huge blockbusters onto subscription platforms. How has this affected the film industry? Will theaters be able to recover fully? Film enthusiasts and regular moviegoers alike have asked these questions. The international box office has plummeted, directors are fed up with their vision being messed with, and the essential idea of film is being corrupted. 

The Merriam-Webster dictionary defines film as “a recording of moving images that tells a story and that people watch on a screen or television.” Films are often watched with a group of friends in the theaters. Some examples of films would be 2001: A space odyssey, Citizen Kane, and Star Wars. Films are like books in that they tell stories and can also be a source of knowledge, but there is a critical difference in how these storytelling mediums are portrayed. Films incorporate music, cinematography, and writing into one medium, creating an extraordinary spectacle that is un-replicable. Nevertheless, this art form, which is a staple of the entertainment industry, is in danger.

Piracy is being exacerbated due to studios' decision to release big blockbusters online on the same day they hit theaters. Piracy has been an issue since long before covid. An example of this was in early 2014 when the film The Expendables 3 leaked online weeks before its intended release date. According to an article published by Forbes, "…the movie has since been downloaded illegally 40 million times just on Bit Torrent sites, so adding the proportional share of illegal streams and other pirate sources, a reasonable total estimate is 70 million illegal views!" This single film lost over 517 million dollars in potential revenue for the studio and was considered a horrendous disaster. Now with these more enormous blockbusters being released online to these platforms in the highest quality possible, it's become extraordinarily easier for these films to be distributed illegally, losing these artists and workers millions of dollars. 2021 could be the worst year for pirating, with Wired stating, "…Warner and Disney's new strategies all but assure 2021 will be the dawning of a platinum age. What we're about to see will go down in pirate lore forever." The current state of pirating will only worsen from now on, thanks to these decisions. Yet, this is not only affecting studios; movie theaters are feeling the brunt of the blow of these decisions.

Movie theaters are losing extraordinary amounts of revenue on account of streaming services. Now, cinemas are under tight regulation and are more reliant than ever on ticket sales. With movies releasing online the same day they do in cinemas, theaters are losing revenue necessary to their survival. According to Washington Square News, "During the first month that a film is displayed in cinemas, theaters receive 90% of their theatrical earnings." If people continue to choose the convenience of watching new films on HBO Max, theatres around the country will continue to disappear. In addition, theaters had also felt the repercussion of HBO's decision long before it was implemented, with Deadline reporting that "AMC Entertainment, the biggest and most financially strapped, was down 16%. Marcus lost 13%, Imax fell 8% and in-theater ad firm National", immediately following the announcement of this decision. Theaters are down in profit immensely after covid, and these streaming services are only worsening the already bad situation that theaters are in.

Nevertheless, some criticizers believe that the shift to online for films is beneficial with people no longer having to drive to the theaters to see movies. This argument makes sense from a convenience point of view; however, it puts it over the art form itself. Director Denis Villeneuve put it best when he stated that films such as his own, "won't have the chance to perform financially in order to be viable and piracy will ultimately triumph." Though it may be more convenient, these services ultimately will lead to poorer quality films, and studios will take less risk with new I.Ps (intellectual property). What this means is that movies are going to become more repetitive and staler, ruining the entire point of making movies in the first place. The argument posed by the critics is sound when defending convenience but falls apart once you consider the art form itself.

Overall, after investigating how streaming affects the film industry, it becomes clear that the industry is moving in the wrong direction. Piracy is being made only worse by companies' choice to distribute major blockbusters online on the same day they are released in cinemas. Cinemas are losing astronomical amounts of money because of streaming. Film is a way of experiencing evocative, life-inspiring stories unfold on the screen. If significant modifications are not made to the way the industry is being run, it could spell the end of the art form we all know and love.