According to a new report, after months of movie theater closures due to Covid, the global box office will face a slow, asymmetrical recovery that will likely take years. The international entertainment business was one of the most hard-hit industries throughout the pandemic. Only 34% of media business CEOs felt confident in their companies' potential growth across the following year.
With no choice but to close their doors, movie theaters weren't afforded the luxuries of streaming when mandatory Covid lockdowns were put in place. Streaming, on the other hand, maintained steady growth throughout the pandemic. 2020 was a peak year for services like Disney+, Apple TV, and HBO Max, with the streaming market experiencing a 37% growth. This, in addition to the pandemic, took a significant toll on the box office as movies bypassed theaters in favor of going straight to subscription services.
According to a new report from PricewaterhouseCoopers, per Deadline, theatrical revenue won’t return to 2019 levels until 2024. The entertainment industry experienced a nearly 4% decline in 2020 across every sector, which was the largest drop ever recorded by PwC. Annual growth of 5% is expected by the PwC through 2025. Still, CEOs in the media business aren't entirely optimistic for a quick recovery, as the threat of steaming services continually threatens to take revenue from box office sales. Subscription services are expected to earn over $81.3 billion globally by 2025.
In March 2020, immediately following the first round of Covid shutdowns, The National Association of Theatre Owners and its 150,000 employees asked the U.S. government for an emergency bailout. A $2 trillion package was passed soon after, but the money quickly ran out. In December, another package was passed, this time for $15 million. The aid was split up between live-theater companies and movie theaters to assist in paying rent, keeping employees afloat, and maintaining facilities throughout the shutdown. Despite assistance from the U.S. government, beloved venues like ArcLight Cinemas and Pacific Theaters closed permanently after exhausting all options for a complete financial rebound, causing moviegoers to fear for the future of theaters post-pandemic.
As of now, most theaters are back up and running across the country. Summer releases like F9, which recently surpassed $500 million in ticket sales, and A Quiet Place Part II, which grossed over $191 million, are helping to bring audiences back to the big screen. With Black Widow having just debuted to massive success both in theaters and on Disney+ Premier Access, this might be the first significant indicator of recovery—albeit a slow one—for the global box office.
Source: Deadline