And I’m positing that most people either don’t care about the experience, or don’t actually enjoy it. They go for the movie themselves.
The first billion dollar (first run) movie was Titanic, a highly marketed, cultural phenom that still holds records. That was only 22 years ago. Billion dollar films are a fairly recent phenomenon that rely heavily on international markets. Even Endgame, the highest grossing movie ever,
only made $850 million domestically (30% of its total gross). So to say VOD will never make a billion is overselling the theater experience while underselling the accessibility of VOD. Anything is capable of making a billion its culturally big enough.
Because the actual elephant in the room with this situation isn’t getting discussed.
Ticket SALES have been trending down for the last twenty years, despite the increasing box office. That’s why AMC and NATO is so scared about VOD. That’s why theaters are willing to sacrifice so much to Disney (100% take, 60% of screens) so they can get people to actually go to the movies. That’s why ticket prices keep ticking up. So, when Universal says the quiet part out loud (“Maybe we don’t need theaters”), they’re actually the ones with the leverage and statistical advantage. And AMC knows it.
If movies studios are bands, movie theaters are the dive bars that let bands perform for “exposure” while taking a cut of the money. Eventually though, the bands start to realize they can make more money without the dive bar. That’s what we’re seeing here. Universal (ie- Comcast) has the infrastructure and capability to put their films directly into people’s homes with no middleman at all. Why wouldn’t they explore it? Because of the “theater experience?” Numbers indicate that doesn’t actually matter.