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Hollywood's 'Tepid' Climate Due To Competition From The Entire Internet

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Hollywood's 'Tepid' Climate Due To Competition From The Entire Internet

Recode senior media editor Peter Kafka has one word to describe the Hollywood box office environment: tepid.

The failure of recent films on the big screen is mostly due to consumers having plenty of reasons not to get up from the couch and drive to the theaters, Kafka said Monday on CNBC. For example, many fans of the Rocky Balboa franchise were eager to see "Creed 2" when it was released last year but were willing to wait for the film to hit one of the streaming video platforms.

Meanwhile, theaters aren't competing against just streaming video platforms like Netflix, Inc. (NASDAQ: NFLX), but against the entire internet.

Specifically, the younger generation can stream TV and movies from their handheld device but can also spend hours browsing social media platforms like TikTok and Snap Inc (NYSE: SNAP), Kafka said.

Is Disney The Exception?

Walt Disney Co's (NYSE: DIS) "Frozen 2" is the obvious exception as it grossed a record $124 million in North America over the five-day weekend. The film also collected nearly three-quarters of a billion dollars in ticket sales worldwide.

The animated film's success could be seen as a sign its brand new streaming business isn't stealing away sales from the big screen, CNBC's Julia Boorstin reported.

Other notable films seeing success includes "Knives Out" as adults will pay money to see an adult-themed movie in the theaters that isn't tied to any specific franchise, she said.

Nevertheless, total box office sales for the entire Thanksgiving weekend were down 16% year-over-year. This could be due to Netflix's streaming debut of "The Irishman."

The upcoming "Star Wars: The Rise of Skywalker" also comes with a large following and fanbase so should see success regardless of reviews...and the streaming crowd probably won't be willing to wait several months for the film to hit a streaming platform.

Related Links

'Frozen 2' Sets Another Box Office Record For Disney This Year

'The Irishman' Has Star-Studded Cast, But Netflix Is Forgoing Wide Cinematic Release

Posted-In: CNBC Frozen 2 Hollywood movies peter kafka Star WarsTech Media Best of Benzinga

 

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