The Coronavirus has affected all aspects of life and led to Lockdowns around the globe. The film and TV industries were no different and there will be an impact on the short and medium-term, at least.
The Pandemic and Lockdown will affect both the releasing and production of film and TV. The immediate effect has already been felt with cinemas worldwide have closed down and it had a knock-on effect. Many films that were out in cinemas like The Invisible Man and Emma had to cut their release early and producers blamed the Lockdown for Bloodshot‘s poor performance. The weekend before the Lockdown in the UK, cinema attendance was down by 50% and EON postponed the release of No Time To Die to November, which led to more films putting back their release down.
The impact of the Lockdown has already lead to a growth of Premium Digital Rentals. Various films that were in cinemas went straight to these services and Trolls World Tour had to have a VOD release. In Trolls World Tour‘s case, Dreamworks had to go for a VOD release because they spent a lot of money on marketing with the film being tied to a Easter release. Trolls World Tour had already been released in some markets like Malaysia and Russia in cinema so piracy was a big risk, so it was a way for Dreamworks to salvage the release.
The release of Trolls World Tour had led to many think pieces and articles about whether Premium VOD is the future for film releases. But Premium VOD was a measure of necessity. Premium VOD has a high price point: it’s £15.99 in the UK, $20 in the US to rent a film for 30 days. It’s as much as a Blu-ray and potentially more than a cinema ticket. In the UK some cinema chains offer a flat monthly fee to watch as many films as you want. The only long-lasting impact Premium VOD may have is with family films because a flat fee is cheaper for a family of three or more and they can watch any way they want. Otherwise, audiences would wait for the home release or when the films appear on streaming services.
Due to the Pandemic, most films have had their releases delayed. Sony’s reaction was the most extreme because most of its 2020 slate has been delayed to next year. Once the Lockdown is lifted cinemas there is going to be an influx of films where there would be a major release or two a week, at least. I personally believe once the Lockdown there is going to be a boom in entertainment because people would be itching just to go out after having so few options for so long. And this is properly going to be the case for other sectors within the entertainment industry like sports, bars and restaurants, tourism, etc…
However, in the short term cinemas (as well as a lot of businesses) have no income. Because of this, there have been reports that AMC Theaters is on the verge of bankruptcy. AMC is the biggest cinema chain in the United States and it would be a massive blow for the film industry in the States. The worst-case scenario would be 661 cinemas across America would close, although if AMC does declare bankruptcy it would be more likely that another company or a hedge fund would take over.
The Lockdown has had a positive effect on one cinema sector: drive-through theaters in the States. There are one part of the cinema sector that can enforce social distancing and the crisis has lead to drive-throughs opening early. However, they can only show films old releases since there are no new releases.
The Lockdown has led to an increase in subscriptions to streaming services. In the first three months of 2020 Netflix has seen an increase of 16 million and within five months of launching Disney+ has 50 million subscribers. Considering Lockdowns were starting in nations like the UK and Germany just the service launched it properly helped with subscription numbers. However, due to the increased demand, Netflix had to downgrade video quality to Standard Definition in Europe to cope with the demand. The increase in Streaming Service usage can lead to behavioural changes in how people consume media.
The filming of movies and TV shows has also been affected. Netflix has ordered all filming in the US and Canada to halted and filming on major films like The Batman and Mission Impossible sequels has had a similar fate. This will affect the release of many films and TV shows. Mission Impossible 7 and 8 have delayed for six months from their original release date.
Fans of British soaps have already seen the impact of delayed filming because the major channels have had to space out the broadcasting of episodes. It’s amusing because at the time of writing that characters in soapland are still celebrating Easter and going to work or school. The Lockdown has forced broadcasters in the UK to show more repeats and films they have available to fill gaps in their schedule. Broadcasters have also looked to make more chat shows and light entertainment to show in the meantime. The BBC is looking to make more educational shows because of school closures.
The Lockdown has affected the livelihoods of many freelancers in the film industry. If nothing is being filmed then there ‘s no work and could lead to hardships. Many people have been furloughed from their positions or have had to use the benefits system. Alternative work isn’t much of an option because The Lockdown has lead to a massive economic slowdown. Some enterprising film professionals have turned to Youtubing and Podcasting to supplement their income, as well as alleviate their boredom. For writers and creatives, The Lockdown does have a silver lining: it gives them time to develop ideas and hopefully hit the ground running when The Lockdown is lifted.
It is up in the air what will happen next. Some nations in East Asia are already out of Lockdown, some European nations and American started to ease their Lockdowns and others are still in Lockdown. The easing of Lockdowns means cinemas (as well as bars, restaurants, and theatres) are going to be the last places to be opened. Along with the fractious nature with how Lockdowns are going to end it will make cinema releases different around the world. It will be similar when filming around the world resumes. And if there is a second wave of the virus or rolling Lockdowns then we are back to square.
The film and TV industries will survive the crisis because there will always be a demand for entertainment. However, we will feel the impact for a least a year and the Pandemic may have a wider social and cultural impact on the industry.
