Theaters reopen, but Disney cautious on families returning to big screens -Breaking
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© Reuters By Nivedita Balu
(Reuters) – Movie-goers in America are returning to theaters after the pandemic has subsided, though it’s not known if a large portion of them – the families – will be content watching movies from their own homes.
If you have a home theater and are looking for new films, the convenience of watching them at your own pace in your living space may outweigh any need to see the movie on the big screen. This is a Walt issue. Disney (NYSE:) Co addresses this issue by reducing the gap between blockbuster releases in theatres and those that are available on Disney+ streaming.
“It’s all about ping-ponging with the audience, from the theater to their TV and vice versa. Disney obviously has an incredibly bright future. However, it has become complicated as the pandemic has permanently changed consumers viewing habits,” Paul Dergarabedian (Comscore) said.
Theatre owners emphasize the strength of movie listings and how cinemas fill up.
Phil Contrino (Director of Media and Research, National Association of Theatre Owners) stated that while watching movies at home is not new. However, people still want to go back.
Cinemark Holdings Inc (NYSE:) Inc announced that they had “anticipated blocksbusters appealing to both families and adults” in their pipeline.
When speaking to analysts, however, Disney CEO Bob Chapek seemed less confident.
His statement said, “We are still not sure in terms how the marketplace will react when family film come back” and that theatrical releases were a good way to start. Disney has reduced the gap between home and big-screen openings.
He said that he was doing this to expedite the delivery of his films to Disney+, but also to test if the theatre market will pick up as these films are released.
Disney attempted to release several big-budget movies during the pandemic.
Chapek explained that COVID is in the backview mirror but, God will, I believe changing consumer behaviour is going to last longer.
Recent subscription growth reports from Disney+ as well rival Netflix Inc (NASDAQ) were both disappointing.
Comscore data has shown that October’s new releases at the box office grossed almost 10 times as much than the beginning of the year. This is due to Disney’s hit films like “Shang-Chi”, “Black Widow”, and “Jungle Cruise”.
Data also revealed that “Ron’s Gone Wrong”, an animated family movie, which hit theaters in October had approximately half its audience among the 13-17-year-olds within the first week. After its October release, “No Time to Die” was viewed by 72% of the over-25 age bracket.
For an interactive graphic, click here: https://tmsnrt.rs/3Hgut6Y
Analysts said that Disney must find a way to balance the needs of theater owners with new content for streaming subscribers.
Edward Jones Analyst David Heger stated that students like Disney have yet to strike the balance.
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