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Are Cinemas Becoming Obsolete?

Marvel rsquo;s aptly-named Avenger’s Endgame marked the end of an era. The film earned close to $3 billion at the box office, a feat that is unlikely to be surpassed or matched in the coming years, especially with the events of 2020.

Movie Theaters Hit Hard

The wave of lockdowns has taken a toll on movie theaters. From Detroit to Los Angeles, theaters are permanently closing their doors due to the lack of revenue during the past few months. Cineworld Group, the owner of Regal Cinemas, has decided to shut down its operations in both the US and the UK. It reported close to $2 million in losses, forcing it to close down 536 theaters in the US and another 127 in the UK. AMC Cinemark, and Marcus Corporation — three of the world’s largest cinema chains — all reported similar losses, with revenues dropping by 85-96 percent.

Movie theaters have been forced to negotiate their leases and debt payments, offering a portion of future revenue as collateral. AMC warned that another round of extensive lockdowns could mean bankruptcy for most movie theaters. As studios opt to delay their films’ release, movie theaters are left with no new films and potential blockbusters.

MGM is reportedly losing $1 million for every month it delays the release of James Bond’s latest film, No Time to Die. However, the studio is opting to delay the release of the movie until April of 2021. Several movie studios are also doing the same, dashing the hopes of movie theaters around the world.

Major Movie Titles are Heading to Streaming

Warner Bros.’ Tenet served as the proverbial canary in the coal mine. With an estimated budget of $200 million, the film grossed a measly $350 million worldwide. Sadly, that was enough money to make the movie the fourth highest-earning movie of 2020. The first major motion picture to completely ditch the movie theaters is Disney’s live-action adaptation of its animated film Mulan. The film earned Disney $35 million from its subscribers in Disney Plus, scant earnings for the film’s 200 million budget. Even Wonder Woman, one of the most anticipated films of 2020, has decided to do a limited theatrical run while simultaneously offering the film through HBO Max.

Enjoy the Movies in Your Own Home

watching movies at home

With theaters closing down and movies turning to streaming services, movie enthusiasts are hosting private watch parties in their own homes. You can easily fit a room with a decent home entertainment system, a fairly large television, or a projector for a more movie theater-like feel, and installation should take less than a day or two if you go through the services of professionals. With a high-definition video format, your movie experience at home should rival that of a theater. Of course, you’ll need to provide your own popcorn and drinks.

The time of grand movie theaters might have come to an end. With another wave of lockdowns looming and studios opting to move to streaming services, the usual movie experience might be a little closer to home.

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