Is Video on Demand the Future?
A question that has lurked upon the entertainment industry for a few years now. Ever since the explosive rise of Netflix (and then, all the services that followed), both creators and casual film enthusiasts alike have feared the possible demise of cinema everywhere. So, let’s get into it: is video on demand the future?
Up until a very recent point, this wasn’t a legitimate fear.
Cinema is still the better alternative. From a filmmaking perspective, there are more money in releasing your film in a theater. Plus, most features are meant to be seen on a big screen; watching them on your TV is, objectively, not the same experience.
From a film-goer perspective, film has always been a social activity. A casual Wednesday night with friends? Might as well catch a movie. A Friday night date? Might as well catch a movie. Sunday family day? You guessed it – it’s cinema time.
And let’s not forget about the money theaters push into the economy. Governments, especially such in highly populated cities, or such that are predominantly interested and aware of pop-culture, gather millions annually from taxing.
Cinema is the better alternative. It’s more exciting, more respectful to the filmmakers, and logically makes more sense.
But now, for the first time, there’s a legitimate chance this changes.
We’ll use Netflix as a prime example, but all of the following applies to mostly any big streaming service. Netflix has actually existed since 1997, but has changed it’s business model many times since. It’s the service that not only popularized video on demand, but actually invented it in 2007. Then, in the early 2010s, Netflix gained popularity, mainly in the States, before expanding massively in later years. There are currently 193 million paid subscribers for this service.
And now, in the past few years, Netflix has become a necessity for any casual film enthusiast. Yes, necessity, because so much of pop-culture now resolves around Netflix Originals. If you want to be a part of the conversation, you need to be a part of Netflix.
Netflix used to make great TV Originals and not-so-great Original films. But in recent years, this has started to change. Lately, the service has massively improved the quality of their features, mainly by financing and trusting talented creatives. It’s also worth mentioning that Netflix is now a name that creatives trust and are willing to work with.
You get the gist — smart business model, a lot of money put into it, wise decisions, and a fast rise in popularity, and thus, quality. Streaming services got it right and exploded.
So now, let’s answer the question that we’ve been building up to:
Why is video on demand so scary for the cinema industry now?
We’re going to have to mention it, everyone is, and you probably know it’s coming: COVID-19.
Ever since the virus broke out and the world went into lockdown (a sentence we never thought we would actually write), video on demand has been the only option. There haven’t been any new releases in cinema since the beginning of March. More than four months ago. For four months, everyone has been watching only video on demand.
And people have gotten used to it. It takes an average of 66 days to build a habit and we’re long past that. We, as film lovers, have gotten used to loving film from the comfort of our homes. On top of that, people are now paying for more services. Months ago, you could get away with maybe one service? Maybe only Netflix? Now, especially since people are not paying to go to the cinema, a lot of viewers are also subscribed to Hulu, Amazon, HBO, and Disney+.
Another reason is the quality of video demand. We wrote about this earlier. It used to be cheap and generic, but now it’s objectively good and award-winning. It’s worth paying for.
And lastly, while people do want cinema (because it is, as we discussed, the better alternative), the scary thing is, it might actually be very difficult for cinema to even exist now. Independent theaters are either a) already bankrupt or b) about to go bankrupt. Even if Tenet opens in theaters next month, is the room going to be packed? No. It will probably be illegal to pack theaters because of social distancing. And psychologically, people are going to be scared to go to the cinema for a long time. Especially in the States. Honestly, domestic box office is doomed until at least 2021.
In conclusion:
Everyone loves going to the cinema. But in recent years, we’ve had Netflix explode — and with it, video on demand.
While this used to be something extra, a bonus for when you get home — now it’s the only option. 2020 has made video on demand a necessity. And since we’ve been in this current situation for so long, streaming services have almost permanently tied themselves into our lives. Our mindsets change, theaters are having a rough time existing, Hollywood is struggling to keep up, and video on demand is getting too good.
For the first time ever, the future of cinema theaters is uncertain. Video on demand might, in fact, be the future.
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