It is difficult to overstate the impact that COVID-19 is having on every part of the economy. The film industry is not an exception to that rule. The disease is interfering with some parts of the industry, but it is also prompting growth in other parts. In the long run, it may even lead to lasting changes in the way that the film industry functions.
Active Production is Slowing Down
Many films and TV shows have opted to temporarily stop production. That choice is part of the widespread effort to prevent people from spreading the disease by going to work. Production companies expect to return to work in the near future. They have a strong incentive to do so because the people who are staying home want to watch new shows. On the other hand, it is still too early to predict the precise time that production will resume.
Studios Delay Major Releases
Most major movie theater chains have decided to stop showing films during the health crisis. That choice aligns with the government’s directions to stop large gatherings. Some film studios have responded by delaying major releases until people can see them in the theater. On the other hand, other movies are switching over to a digital release strategy so people can watch them at home. The new release strategies will evolve over time as the length of the social isolation policy and the desires of consumers become clear.
Most movie studios will adapt to these new release patterns if the movie theaters stay closed for more than a few months. They may start to focus on digital distribution or simply make larger changes to their release schedules. The details remain to be seen, but the companies will need to adapt and find a way to release their films and generate some revenue.
Streaming Services Benefit
Streaming services are doing well because they offer a chance to enjoy films at home. Movie studios may come to rely on them as their main publishing platform in the near future. That may even continue after people start to leave their homes again if the model works well. It is too early to predict the details, but the film industry is sure to learn from experience and take advantage of those lessons.