An issue that has troubled the media industry for a long time is the barriers to entry that are presented by large cinema circuits for films to make an appearance in theaters. Currently there are only five major cinema circuits that show movies in the US (there are more than five but these are the major ones). These companies include Regal Entertainment, AMC Entertainment Inc., Cinemark USA, Inc., Carmike Cinemas, Inc., and Cineplex Entertainment LP (Statista). Very rarely do indie movies or movies from small producers get a shot at being featured in these large theaters.
I’m sure as you can imagine that with only five major theater chains creating the barrier to entry, there is very little creativity or diversity in selection you are given at the movie theaters. As mentioned in the Holy Commodity Fetish, Batman! reading, major film industries as well as cinema circuits, are only focused on what will bring in the most money(Meehan). There is no concern for the actual content of the film, as long as there is some certainty that it will bring in money. An example of this can be seen in that there are now three Toy Story movies (and a fourth one on the way in 2017)(IMDb).
A relatively new phenomenon, though, may change the way that we consume films all together, and may spell trouble for these major cinema circuits.
Netflix has recently announced that they are partnering to distribute the new movie Crouching Tiger, Hidden Dragon: The Green Legend exclusively through streaming services as well as in IMAX theaters (Screen Rant). This announcement has several major theater chains fuming, and in turn has caused them to refuse to screen the film at all.
Though it is not a totally new phenomenon to release a movie through on-demand as well as in theaters, it has come as a surprise that Time Warner Cable would release a sequel that is as eagerly anticipated as this only to Netflix and IMAX.
Many argue that the climate of the film industry is rapidly changing, and evidence of this can be seen by the steady decline of movie ticket sales in the past ten years (The Numbers).
The popularity of streaming services such as Netflix can be argued to be largely to blame for the declining appeal of movie theaters. Cinema companies that are unwilling to try a new approach may become problematic for their profits in the near future (Screen Rant).
This new phenomenon could spell good news for movie consumers though. Not only will the price of movies be more affordable (as many as you can watch for $8.99 on Netflix),but this shift will promote a broader spectrum of films to be featured. As profits dwindle for the major cinema circuits, there could potentially be less of a barrier to entry for films produced by smaller companies that wouldn’t have stood a chance against the largest film producers.
Works Cited
“Could Netflix Kill the Movie Theater Industry?” Screen Rant. N.p., 05 Oct. 2014. Web. 20 Jan. 2015.
“Domestic Movie Theatrical Market Summary 1995 to 2014.” The Numbers. N.p., n.d. Web. 18 Jan. 2015.
“Leading Cinema Circuits in North America by Number of Screens 2013 | Statistic.” Statista. N.p., n.d. Web. 20 Jan. 2015.
Meehan, Ellen R. Holy Commodity Fetish, Batman!”:The Political Economy of a Commercial Intertext. 48-62. PDF.
“Toy Story 4.” IMDb. IMDb.com, n.d. Web. 20 Jan. 2015.
Erin M Ford says
I believe the agreement between Time Warner, Netflix, and IMAX is illustrative of the future in the movie industry. A similar move was made by Amazon, who created “Amazon Studios” and has churned out “television series such as multi-Golden Globe winner Transparent, Annie-nominated Tumble Leaf, and Mozart in the Jungle” (Amazon). They are now venturing into the world of movies, intending to produce films released in theaters. Amazon, a huge profitable corporation, was created as an online shopping site and is now venturing into the movie business.
Like you mentioned in your article, there “are only five major cinema circuits” in the United States. This is similar to the few corporations that dominate the film industry, which are referred to as the Big Eight (News Corporation, The Walt Disney Company, Viacom, Sony, Time Warner, and NBC Universal). What this goes to show is that huge conglomerates control the film industry. Amazon and other big companies are entering the market (with Netflix starting to gain some footing), which has its pros and cons. A positive result of this is that the involvement of more companies creates competition within the field, which can result in more innovation, more choices, and lower prices. A negative aspect is that although more companies are entering the market, they are companies that already have a lot of money like Amazon. These companies are already conglomerates in themselves, so while more companies are entering the mix they are still large corporations. I don’t think it will be surprising if more companies like Amazon or even Google start producing movies.
Amazon.com, Inc. Amazon Media Room. http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=2008551. Press Releases. Amazon, n.d. Web. 21 Jan. 2015. .
dlm5622 says
I really enjoyed reading your article because I completely agree with the issues you address within your article. What Netflix is offering for small indie movies is great and will allow the directors and producers the ability to reach more viewers and have a bigger audience. Netflix is creating a new avenue even for television. And it will be great to see Netflix establish that for movies as well.
We see the beginning of this with even the release of The Interview being released over the internet and I am sure many more movies will follow suit.
The only way indies really get a name out is from the Oscars or a director or company establishing a strong following of fans.
Hopefully, in the future Netflix and the Internet can make a great change for movies.