December 14, 2020
With Hollywood studios increasingly opting to release new movies directly to consumers instead of the theater, new data from Parks Associates finds 25% of U.S. broadband households now prefer an over-the-top video subscription service to watch new movies, while 24% still prefer movie theaters to experience first-run movie titles.
The findings come as Parks hosts an online panel, “Future of Video,” discussing the value of content and technology innovations such as premium, transactional, and subscription-based VOD platforms delivering new-release movies directly to consumers rather than in the 90-day theatrical window.
Universal Pictures earlier this year, in response to the coronavirus pandemic, moved animated sequel Trolls World Tour from its theatrical slate to PVOD. The decision saw the movie generate $100 million in PVOD revenue, jumpstarting Hollywood’s renaissance with premium priced movies streaming into consumer homes.
“COVID-19 has upended the traditional content-windowing process, and consumer research shows this paradigm shift is impacting consumer attitudes,” research director Steve Nason said in a statement.
Nason said streaming access in the home scores higher than movie theaters when consumers report their preferences for first-run movies. The analyst contends the shift might be temporary as nearly 30% of survey respondents had no preference for how to watch a new movie.
“[This] gives theaters a glimmer of hope they can eventually gain back some audience for first-run titles,” he said.