Movie theaters have played a pivotal role in the film industry, from providing a place to watch and enjoy films to establishing tight-knit communities for movie critics, fanatics and lovers. With the rise of streaming platforms like Netflix, Hulu, Max and others, the appreciation for traditional movie theaters has been gradually decreasing over the years. Many theatres have been closing down across the country. A recent article, focusing on the Bronx area, states that the borough has become a film desert.
Some filmmakers and industry professionals argue that the cinematic experience, complete with large screens, immersive sound and communal viewing, cannot be replicated at home; however, the downfall of movie theaters says otherwise. The skyrocketing ticket prices have been discouraging people from attending movie theaters. This led the public’s eye to be caught by streaming platforms that have proven to be a much more cost-effective alternative than paying these increasingly high prices.
Multiple studies have shown an ever-increasing demand for digital content. According to several studies, a staggering 99% of households in the United States have at least one video streaming subscription, and 90 million individuals have at least one paid music streaming subscription. With these statistics in mind, we can already see that there’s an upward trend in the usage of streaming platforms across the nation, signaling a shift in consumer preferences.
During the COVID-19 pandemic, many of us were left confined within our homes and unable to physically go to movie theaters, which led to a surge in the usage of movie streaming platforms to watch our favorite and most beloved movies. From 2020 to 2021 time spent streaming rose 44%. This shift in behavior has made streaming platforms a dominant force in the entertainment industry, redefining how audiences consume media.
Additionally, the cost disparity between movie theaters and streaming services is a significant factor influencing consumer choices. The average nationwide price of a movie ticket in 2022 was more than $11. In New York a ticket can reach up to $28. On the other hand, streaming platforms offer a variety of subscription plans from which you can choose the most affordable one. The average base price for most starts at $7.99 per month, granting unlimited access to a vast library of content at a fraction of the cost of a single theater visit.
Despite this, some argue that movie theaters are not dying but rather evolving to fit the needs of contemporary consumers. Following the COVID-19 pandemic, many movie theater companies were forced to close down locations due to the economic downturn the country was experiencing which declined the demand for their services. As the industry goes out of style, operators have taken measures to enhance the movie theater experience by investing in better picture quality, improved sound systems and comfortable seating, among other things. Moreover, other movie theaters have begun diversifying their programming by hosting live events, gaming tournaments and special screenings of classic films to attract a broader audience.
All of these changes, despite being carried out in an effort to make theaters more competitive in an era dominated by digital entertainment, have not yielded positive results. In fact, according to Forbes, the number of movie tickets sold in the U.S. has decreased by 50%, and the devastating decline includes the successful 2023 films “Barbie” and “Oppenheimer.” With this in mind, it is not surprising that a number of movie theaters have gone bankrupt.
Subscription-based services have proven to be a better alternative for moviegoers as they have presented an attractive and affordable alternative for those who can’t keep up with the rising costs of movie theaters. The rise of streaming platforms has undoubtedly transformed the movie industry, offering a more affordable and reliable alternative to traditional theaters. With flexible subscription models and extensive content libraries, streaming services provide accessibility to a broad global audience. However, movie theaters continue to adapt by enhancing the in-person experience to remain relevant in an ever-changing scenery.
Ultimately, the decision between streaming and attending a theater depends on individual preferences. While some may value the comfort and affordability of watching a movie at home, others cherish and indulge in the unique atmosphere and the social vibes of the cinema. As both streaming and movie industries evolve, a balance between the two may emerge, ensuring that movie lovers can enjoy films in the way that best suits their needs.
Eduardo Mateo, FCRH ’28, is a political science major from Santo Domingo, Dominican Republic.
