After the pandemic shut down movie theaters around the world, a new report says a full box office recovery will likely take several years.
According to a new report, after months of movie theater closings due to Covid, the ticket office it will face a slow and asymmetric recovery that will likely take years. The international entertainment business was one of the worst hit industries during the pandemic. Only 34% of CEOs of media companies were confident in the potential growth of their companies during the following year.
With no choice but to close their doors, cinemas didn’t have the frills of streaming when Covid’s mandatory shutdowns were put in place. Streaming, on the other hand, maintained steady growth during the pandemic. 2020 was a peak year for services like Disney +, Apple TV, and HBO Max, and the streaming market saw 37% growth. This, in addition to the pandemic, came at a significant cost at the box office as movies bypassed theaters in favor of going straight to subscription services.
According to a new report from PricewaterhouseCoopers, according to Term, movie theater revenue will not return to 2019 levels until 2024. The entertainment industry experienced a decline of nearly 4% in 2020 across all sectors, which was the largest drop ever recorded by PwC. PwC expects 5% annual growth through 2025. Still, CEOs in the media business are not entirely optimistic for a quick recovery, as the threat of steam services continually threatens to drive revenue from sales. box office. Subscription services are expected to earn more than $ 81.3 billion globally by 2025.
In March 2020, immediately after the first round of Covid closures, the National Association of Theater Owners and its 150,000 employees petitioned the US government for an emergency bailout. Soon after, a $ 2 trillion package was approved, but the money quickly ran out. In December, another package was approved, this time for $ 15 million. The aid was divided between live theater companies and movie theaters to help pay rent, keep employees afloat and maintain facilities during the shutdown. Despite help from the US government, beloved places like ArcLight Cinemas and Pacific Theaters closed permanently after exhausting all options for a full financial rebound, causing viewers to fear for the future of cinemas after the pandemic.
As of now, most of the theaters are running again across the country. Summer releases like F9, which recently surpassed $ 500 million in ticket sales, Y A quiet place, part II, which raised more than $ 191 million, they are helping to bring audiences back to the big screen. With Black widow Having debuted with massive success both in theaters and on Disney + Premier Access, this could be the first significant indicator of recovery, albeit slow, for the global box office.
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