Variety came out with an article yesterday called RIP to the 90-Day Theatrical Window that describes the pandemic being a catalyst to a shortening theatrical window. The article discusses the changes from the standard 90-days to where we are today in the pandemic, where many studios are experimenting with releasing in a shorter period, and theaters having no leverage due to the health crisis.
There was one sentence that really stuck out to me that I feel encompasses my feelings on all of this theater business:
Theater owners, the staunchest defenders of the theatrical window, had long fought for an ironclad period of exclusivity. They argued audiences wouldn’t pay to see movies on the big screen if they could wait a few weeks to watch them at home.
From RIP to the 90-Day Theatrical Window by Rebecca Rubin
Ok… so what these theater owners are basically saying is that if a movie was released in theaters on the same day as on an at-home network, then audiences would choose to watch the film at home. That audience members would not willingly choose to go to a theater if they had the option because it’s the inferior option. So why are we giving customers the short end of the stick and forcing them to go to theaters, with tickets at now-outrageous prices, when the better experience by the theater-owners’ own omission is an at-home experience?
Let’s say we did away with the theatrical window altogether post-pandemic – theater attendance would plummet and owners would be forced to either reduce prices to meet demand, innovate their offering, or close.
Reduce Prices
I do believe seeing a great film in a theater is a fantastic experience. It’s built to show the best qualities for the picture and sound, and creates a communal experience with the rest of the audience. What I can’t get over is the price. The average ticket price has increased by 100% since 1997 to $9.16 in 2019 and 2020, according to The Numbers. In San Francisco, where I am, a basic cinema ticket would set you back about $15 (back when they were open), and any “premium” format would easily go for $18-$24 per person. If you have a family of 4, these prices are not worth it if you have the option to watch at home.
Without an exclusive theatrical window, ticket prices would reduce in order for the supply of theaters to meet the demand of their customers. Perhaps with a $10 ticket, that family of four would think it’s worth it to all pack up to head to the theater. Or maybe not – maybe it’s even less. But the point is that we shouldn’t be artificially propping up these theater chain prices at the expense of the right thing for the consumer.
Innovation
If these theater owners want to keep the prices where they are, another option would be to innovate their offerings. We’re already seeing more premium-style theaters with luxury seating and a working bar / food option. These spaces are also ripe for integrating VR / AR equipment which is growing in the entertainment industry. 3D is something that still isn’t mastered in a home setting that a theater can do exceptionally well. Or, perhaps, these theaters can move into smaller, more intimate event spaces for screenings or group bookings. We just don’t need to settle for the same old status quo of today’s theaters when home-theater technology is as good as it is.
Closings
Look, of course it’s sad whenever a business (particularly a local business) closes, and that’s why it’s so crucial to have social safety net features accessible for everyone like unemployment and affordable education. But if a company has an inferior product and refuses to adapt or innovate, then we shouldn’t artificially prop them up when that means giving customers a worse experience. Thousands of businesses fail every year and don’t have the power to force consumers to buy their inferior products – why should theaters be any different? It feels anti-competitive for streamers and TVOD services to have this exclusivity window.
Do you agree or disagree with my thoughts above? If you think keeping the exclusivity window is important – tell me why! I’d love to hear another point of view and learn from you too!
