How Hollywood Is Using Streaming to Get Audiences Back to the Movies
A study from Roku and the National Research Group gives terrific insight on what studios can do to boost box-office receipts.
When was the last time you went to the movies? On-demand streaming has completely changed the way that viewers interact with new releases, even in the post-COVID era where streaming services do not release movies on the same day and date that they arrive in theaters. One survey from March found that only 34% of Americans preferred watching new movies in theaters, but new data from Roku and National Research Group (NRG) shows that theaters and streaming services like Netflix and Prime Video can still coexist in a way that keeps theaters going in the long-term.
Key Details:
- The survey found 61% of streaming watchers say they’d prefer to see a new movie in theaters if it were released to streaming at the same time.
- The biggest argument for watching movies in theaters is that some films need to be seen on the big screen, respondents say.
- Over 40% of moviegoing streaming viewers say seeing a new trailer for a movie on a streaming service would make them more interested in seeing it in a theater.
The survey from NRG and Roku shows that despite the popularity of watching movies on streaming, audiences who stream still go to the theater. Sixty-one percent of viewers who stream video at least one hour per week have been to at least two movies in cinemas over the past six months, and 74% have gone at least once.
Another 61% of respondents to the study say that if movies are released in theaters and on streaming services at the same time, they’d prefer to go to the theater. The top reasons listed by audiences for watching a movie in theaters as opposed to streaming it from home are:
- Some movies need to be seen on the big screen (50%)
- I want to see a movie as a night out with friends, family, or on a date (46%)
- I enjoy the experience of going to the theater (46%)
- I want to treat myself (44%)
- The visual and audio quality is better in the theater (43%)
Conversely, viewers very much enjoy the lower cost and more customizable experience of watching movies at home on streaming services. The top reasons given for preferring to stream movies are:
- It’s cheaper to watch at home (62%)
- I like being able to watch on my own schedule (59%)
- I like the privacy of watching at home (45%)
- I like to be able to pause or rewind the movie at will (45%)
- It’s more comfortable watching a movie at home (40%)
How Can Streamers Help Studios Out?
Most of the top movie studios in Hollywood, including Disney, MGM, Paramount Pictures, Warner Bros. Pictures, and Universal are owned by parent companies that also have major on-demand streaming services. The Roku/NRG study has some good insights on how they can do better to improve box-office returns that have continued to drag years after COVID forced theaters to close temporarily.
The survey shows that 44% of moviegoing streaming viewers say that seeing a trailer for a new movie on a given streaming service would make them more interested in seeing that film in a theater. That method of reaching customers is more effective than showing trailers on social media or on TV.
Thirty-two percent of so-called “high frequency” streaming viewers — users who watch at least 20 hours of streaming content every week — already report going to the theater on a monthly basis. If streamers did a better job of distributing trailers for the new movies their studios are getting ready to put into theaters, they might see a significant upswing in ticket sales.
Amazon — the parent company of MGM — intends to increase the number of movies it sends to theaters and could release as many as 16 films every year theatrically by 2027. It can distribute promotional material for these movies not only on its streamer Prime Video, but also on Amazon Fire TV to help get more viewers into cinemas.
The continuing decline of revenue generated by cable channels and the slow build to profitability for streaming mean that many legacy media companies are relying on their movie studios for an important chunk of their income. This new study from Roku and NRG provides good insight into what these companies can do to lift theater attendance.
Amazon Prime Video
Amazon Prime Video is a subscription video streaming service that includes on-demand access to 10,000+ movies, TV shows, and Prime Originals like “The Lord of the Rings: The Rings of Power,” “Jack Ryan,” “The Marvelous Mrs. Maisel,” “The Boys,” and more. Subscribers can also add third-party services like Max, Showtime, STARZ, and dozens more with Amazon Prime Video Channels. Prime Video also offers exclusive live access to NFL Thursday Night Football.