Now, in a very large number of countries, special conditions for the work and rest of citizens have been introduced. Some are transferred to homework, while for others cinemas are closed and concerts and public events are canceled. All with only one goal – to reduce the risk of transmission of coronavirus from person to person. Against this background, new entertainment comes to the fore. For example, in China, the amount spent by users inside applications or on computer games has doubled. All of this has a major impact on the entertainment industry as a whole. Even when the worldwide quarantine is over, many things will still not return to their usual state and will change forever. Especially streaming video services. What awaits them?
Online movie theaters will only become more popular.
How to watch an online cinema
It's no secret that streaming services are the easiest way to watch videos, movies, TV series and TV shows. For many, they still remain a curiosity, but times are changing and gradually they are taking more deserved positions.
Streaming video services aren't just about YouTube. Now there are a lot of different services that offer to watch something without leaving home or, conversely, on the road. There are those who create content themselves and make good money on it. For example, the well-known Netflix, which has become a household name in its business, like Tesla, Xerox, iPad and many others. There are also services such as ivi, which does not produce its own content, but successfully sells someone else's and earns on commissions.
Such services have become more and more popular every year, even in Russia, where, in principle, they are not used to paying for anything. The situation is gradually changing, and not so long ago, the same ivi reported on the payback of the subscription. That is, it was the subscription that brought him more money than the ads embedded in free videos. This is a good thing and the growth in service revenues will spur them to further improve the quality.
Online cinemas in quarantine
Under quarantine conditions in large countries, the demand for these services will increase significantly. Of course, what else to do while sitting at home for a long time. The vast majority of those who attended events during normal times will now choose videos, computer games or books.
Many people will quarantine like this.
Almost all services in Russia felt the moment and offered a free subscription or a subscription for some symbolic money (for example, Ivi gives a monthly subscription for 1 ruble). This is how they defined the competition for potential customers. Indeed, as practice shows, those who started using such a service continue to use it. At the same time, giving preference to the service that was tried first. Even some expensive applications are given away for free, just to gain a user base.
This promotion included Kinopoisk, ivi, OKKO, Megogo and others. They will be the competitors of cinemas. Under the conditions of quarantine, cinemas were first banned from selling more than 50 tickets for one screening (there is a ban on mass events of more than 50 people indoors), and now they are completely closed. So far, this is only a recommendation, but, apparently, a ban is not far off.
Why are cinemas closed
A typical cinema is expensive. The top films in them bring in decent money, but those that few people go to are not as profitable. As a result, the profit of cinemas in normal times is not sky-high, taking into account all costs, and now even more so.
The biggest cost of a movie theater is the movie rental rights. In addition to the cost of making a copy of the film, which costs several thousand dollars, you have to pay a royalty on each ticket sold. The terms of the contract may change, but usually in the first week of rental the cinema pays up to half of the proceeds from tickets, then the amount of deductions becomes less every week.
Such beautiful rooms can gradually become a thing of the past.
If we take into account not only the fact that the cinema sells a hundred tickets for one show for 300 rubles, receiving 30,000 rubles from “one hall”, but also the costs, it becomes clear that this business is not golden mountains. That is why small “halls” are closed so often, which do not attract expenses.
Long downtime of cinemas can lead to the fact that many of them will simply close. Cinemas may be further impacted by changing studio priorities. Now, in order to recoup the films, the work on which began a long time ago, copyright holders are beginning to massively sell them in online cinemas. A situation may arise in which it will be more profitable for studios from a financial point of view. The films will begin appearing online immediately on the day of the premiere. As a result, people will simply stop going to cinemas, since for the price of one ticket it will be possible to buy a movie online and watch it with the whole family as many times as necessary. Against the background of the availability of large TVs, soundbars and home theaters, the prospects for such a development of events become even more real.
As a result, it may turn out that cinemas will become the lot of connoisseurs and will no longer be part of every more or less large shopping center. So we can witness a very dramatic change in the industry, which will hit very many areas of production. First of all, the companies that produce the film will be closed. There will be very few of them and the price will not rise. As a result, the price of a movie ticket will rise. At one time it was so with vinyl records, but now their popularity is gradually returning.
Why Netflix and YouTube quality dropped
About YouTube it is worth recalling what we wrote a few days ago. I mean the drop in YouTube quality against the backdrop of the coronavirus raging on the planet. The downfall is caused by the fact that Google employees are now sitting at home and they can not work as productively with censorship. As a result, this will be done by artificial intelligence, which will make mistakes much more often and ban absolutely normal videos. The process of challenging can be very long for the same reason for the lack of employees.
Now, with European networks going to be congested, providers have enlisted the support of the authorities and sent a request to Netflix and other major services. The request contains a request to reduce the quality of the transmitted video.
Netflix has already confirmed that it has agreed to meet the Europeans and will reduce the quality of the content, thereby reducing the amount of traffic transmitted by 25 percent. In an environment where everyone is at home, this will be a very serious savings.
Netflix and other services will become even more popular during the quarantine period.
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If such a request comes from providers in other countries where Netflix provides its services, the company said it agreed in advance to accommodate and take similar measures.
In fact, this state of affairs will be useful not only for providers “on the ground”. Given the increased load on Netflix's servers, the company may experience broadcast disruptions. Thus, Netflix protected itself from the increased load in advance and at the same time showed its concern for users and loyalty to providers. As a result, everyone was in the black. Well, users are unlikely to notice a significant loss in picture quality.
Where to watch new movies
It turns out that now online cinemas will be the best place to watch new movies. They will not give what the big halls did, but in our age of technology and people's desire for solitude, rejecting them may seem very logical. On the other hand, you can also listen to music at home on good speakers, but people continue to go to concerts. They also prefer visiting the stadium instead of watching matches on the couch. But this is already a topic for another conversation.
The fact remains that the world is changing, and temporary isolation can greatly accelerate this process. If this happens, online cinemas will benefit the most from it. Slightly fewer content producers. And ordinary cinemas and those who provide their work will lose. Let's see what will come of it, but for now the situation is as follows.