Chronicle Editor
Tafadzwa Muronzwa
THE global Covid-19 pandemic affected screen viewing as we know it. Movie theatres and production studios temporarily closed while everyone was cocooned in their homes waiting for the tide to go down.
Netflix was not having that – the subscription-based video company doubled on its business and targeted the locked down movie lovers who were starved of Box Office cinema movies.
Being a pioneer of movie streaming, Netflix was at an advantage — it had already dealt with the bruises and bumps that come with teething. Seeing that Netflix was racking in millions in US dollars, competitors, Disney-Plus, HBOMAX and others, copied and pasted the Netflix model by launching their own streaming services while majority people were still under lockdown.
Most production houses were not too sure about the Netflix business model, whether it would work or not and were happy making money at the Box Office Cinemas before lockdowns. They noticed the cash it was bringing in and taking up all the market share and they couldn’t fold their hands and watch.
Film analysts and critics had already warned that the streaming trend could have a negative impact on cinemas.
Most people would agree with me that the Covid-19 pandemic sped up the pace as isolating saw more people signing up to streaming services. A movie at home is now more ideal than a public cinema.
The number of movies in 2020 dropped as studios moved release dates into 2021-2023, patiently waiting for cinemas to reopen so that they can make most of their money through box office releases. A good example is the new James Bond movie, No Time To Die. It was originally due to hit the cinemas in April 2020, but was only released yesterday.
Movie theatres have clearly been hit the hardest, and several major chains such as Cinemax, which has most of its branches in Mexico and a great presence in the USA, have been forced to close down permanently. AMC, which has the largest movie theatre chain in America, is reportedly on the brink of filing for bankruptcy.
To survive the Covid-19 onslaught, some smaller chains and independent theatres have allowed small groups of people to book private screening.
Universal Pictures’ sister company Peacock gambled digitally and released the blockbuster cartoon Trolls World Tour. The movie was released exclusively to digital rental instead of showing in cinemas and it managed to earn over US$100 million in its first three weeks.
This led Universal to announce that in future it will release its movies simultaneously in theatres and on digital rental. This has led to tension between Universal Pictures and movie cinema chains, with some threatening not to play Universal films in their theatres if this comes to be. This is what happens when you are caught flat-footed with the wave of change.
This change reflects that viewers now prefer watching from home with their loved ones and shunning the traditional cinemas. The lockdowns have clearly seen the majority of viewers picking up the habit of popping popcorn at home and dimming the lights in their sittings to watch a movie instead of queuing to go watch a movie at a movie house.
You might be asking; how do these streaming services make money? Well, it’s through monthly subscriptions, for example Netflix has 209 million paid members worldwide and their lowest package is $8,99 so they gross around US$1,8 billion minimum, yes per month.
Speaking of formulas, DEOD which is under TelOne, is available online at a cost of US$3 per month (the last time I checked). But honestly, they haven’t done much to market and promote this streaming service which has great potential since it has a section of Zimbabwean productions including kids cartoons. If bundled well with their data packages, it would be Zimbabwe’s Netflix in the making.
Finally, there are traditional satellite services such as DSTV, these guys are literally hanging by the tread if you ask me. If two events happen simultaneously, they are going to be in huge trouble. If Netflix introduces live TV — that is News, Sports and Talk Shows — and if the cost of unlimited data is reduced and made affordable to low-income earners, satellite TV will go out of business.
Who knows? Anything is possible. I mean Mr Strive Masiyiwa was the first African to be on the Netflix board of directors and they want to expand into other continents, Asia and yes, Africa.
Mr Masiyiwa was once in the satellite television business, so he knows a thing or two on how Netflix can undo satellite TV.
Online Reporter