03 december 2020
21:28
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The Warner Bros film studio is set to launch all of its films simultaneously in cinema and on its streaming channel HBO Max next year.
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This is no less than a revolution in the film industry and it puts the business model of cinema groups such as Kinepolis in Belgium under pressure.
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Warner Bros has 17 releases scheduled for next year, including ‘Godzilla vs Kong’, ‘Mortal Kombat’ and the latest Matrix movie. These will also be available to subscribers of the streaming channel HBO Max for a month when they are released in the cinema.
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That decision was prompted by the pandemic. Even with the first vaccines at your fingertips, Ann Sarnoff, CEO of Warner Bros, keeps in mind that it will be a long time before everything is back to normal.
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Our content is very valuable, unless it stays in a cupboard somewhere and nobody gets to see it.
Ann Sarnoff
CEO Warner Bros
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‘Everyone wants movies on the big screen again. We would prefer nothing more. We know that new content is the lifeblood of theaters, but we also have to take into account the reality that most theaters in the US will probably still run at a reduced capacity all year round, ”he said.
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‘Our content is very valuable, unless it stays in a cupboard somewhere and nobody gets to see it. Our approach gives everyone the opportunity to watch our fantastic films in 2021. ‘
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One-time plan
The company summit immediately made it clear that this approach only applies to 2021. ‘A one-time plan’, it sounds. Still, all of this may be the start of a new era in the film industry, where movie theaters could bear the brunt of the infighting between streaming platforms.
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Warner Bros also recently announced that it will be launching ‘Wonder Woman 1984’ on Christmas Day both via streaming and in theaters.
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And Warner Bros isn’t alone in crossing the Rubicon. Disney decided this year to throw ‘Mulan’ on Disney + immediately – for a hefty extra on top of the subscription fee – and just skip the cinema passage. MGM is also looking for a streaming channel to bring the new Bond film to the market.
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Kinepolis
Kinepolis CEO Eddy Duquenne recently appeared to be reasonably comfortable with the new developments. “Ultimately, the water always runs to the sea,” he said. ‘The highest added value per’ couple of eyeballs’ comes from cinema. That is and will remain so. In Europe, cinema accounts for 55 percent of film revenue. The studios are very well aware of this, otherwise the majority would not postpone their blockbusters. ‘
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‘What we are seeing now are experiments, out of necessity in exceptional times. Now you may also have a meal from your favorite restaurant delivered to your home, but as soon as the weather is possible, you will go to a restaurant. It’s a different experience. ‘
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He also made it clear that the degree to which cinemas get exclusivity for a film also determines the price of the contract. Give a little, take a little. The shorter the exclusivity, the less a cinema hands over to the film producer per ticket.
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