"Movie-theater attendance is down to a 19-year low, with revenues hovering slightly above $10 billion," reports Vanity Fair
, arguing that traditional studios should feel threatened by nimble streaming companies like Netflix and Amazon, which produced the film Manchester By The Sea
-- nominated for six Oscars.
An anonymous reader writes:
Amazon CEO Jeff Bezos attended the Oscars, prompting host Jimmy Kimmel to joke that if the film won, "you can expect your Oscar to arrive in 2 to 5 business days, possibly stolen by a GrubHub delivery man." But it's a symbol of an inevitable disruption in Hollywood. "Studios now account for less than 10% of their parent companies' profits," writes Vanity Fair, adding "By 2020, according to some forecasts, that share will fall to around 5%... Some 70% of box office comes from abroad, which means that studios must traffic in the sort of blow-'em-up action films and comic-book thrillers that translate easily enough to Mandarin. Or in reboots and sequels that rely on existing intellectual property." Former Paramount CEO Barry Diller famously said "I don't know why anyone would want a movie company today. They don't make movies; they make hats and whistles."
The article makes the case that Hollywood, "in its over-reliance on franchises, has ceded the vast majority of the more stimulating content to premium networks and over-the-top services such as HBO and Showtime, and, increasingly, digital-native platforms such as Netflix and Amazon. These companies also have access to analytics tools that Hollywood could never fathom, and an allergy to its inefficiency."
The article argues that with A.I., CGI, big data and innovation, "Silicon Valley has already won," and that "it's only a matter of time -- perhaps a couple of years -- before movies will be streamed on social-media sites."