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Kyle Fritschi

Prof. Goodson

ENGL 101 (0408)

1 May 2019

Stream Vs Screen

Growing up, I always had a special affinity for movies. Often times when I’m free from

other responsibilities, I’ll make some food, get comfortable, and watch a movie of any kind.

When I was a little kid, I watched Disney’s Tarzan every single day, and that’s not an

exaggeration. My parents would take me to the theater a bunch and I cherished those

showings. I love watching things in a theater because you just can’t recreate the experience

anywhere else. I really appreciate the feeling you get when you walk in the doors. The dimmed

lights, the big screen, loud rumbling sound system, and of course, the smell of popcorn are all

reminiscent of the movie theater experience. To give an example of my enjoyment at the

cinema, I would bring up all the Marvel movies. I have watched every single one of these films

in the theater right after each one comes out. In fact, this past weekend, and friend and I saw

Avengers: Endgame, the climax of the Marvel Cinematic Universe. While this movie will go

down as one of my favorites of all time, it reminded me about the years that had gone by and

how much has changed in terms of movies and the theater.

In the past decade, I’ve seen firsthand the emergence of streaming services and the

effects that have come of it. Streaming is something that a lot of people use and pretty much

everyone is familiar with. If you don’t stream, then what are you doing? The issue at hand is

that movie theaters are being hurt immensely by the use of streaming services. People like

Daniel Loria, the Boxoffice media’s editorial director, and Richard Gelfond, the CEO of IMAX,

have voiced concerns over the past few years due to this issue (Gibbs, 2016). They are worried

that theaters are crumbling at the hands of streaming. There are several reasons why this is

occurring, and I’ll get into that a little later. Overall, this issue is indeed significant and current.

It needs our attention and shouldn’t be ignored.

For this essay, I will argue that streaming services are taking over the media

entertainment industry and are causing movie theaters to deteriorate in numbers and in ticket

sales. First, I will, introduce video streaming and how it works as well as give examples. Then, I

will talk about how movie theaters currently operate and how they make money as well as how

they’ve changed over the years. Next, I will mention how streaming appeals to more people

nowadays because of its convenience and cost effectiveness. Then, I will mention my own

beliefs on the subject, and how the issue at hand will affect the general public. After that, I will

address the concerns of streaming corporations becoming too big and powerful as well as how

the next generations may gradually lose interest in theaters. Overall, I will claim that theaters

can be saved, but only if we put forth the effort.

Streaming services are quickly becoming the biggest medium for movies and TV

entertainment. These streaming services like Netflix and Hulu are internet platforms where one

could purchase a monthly subscription and have access to all the movies and shows that the
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service provides. Its quick, easy, cheap, and taking the world by storm. According to CNBC, box

office numbers have been falling for some time now, and the culprit is streaming (Snider, 2017).

Basically, the way it works is that these services get movies and shows leased from other

production companies to them for an amount of time. Once they’re on the site, anyone with a

pass can watch it until its gone. There is however a sizable amount of time before that happens

though. After you buy a subscription, you can view the videos on any device that has an

internet connection and a screen. Also, you can have multiple profiles on each account so that

way, you and your family or friends can all go in on one account and minimize the cost. Another

thing about streaming services is that now, these companies are creating their own content.

Exclusive shows and movies are being added all the time to their respective platform. A couple

examples of these are Birdbox (Netflix 2018), The Man in the High Castle (AmazonPrime 2015- ),

and The Handmaid’s Tale (Hulu 2017- ). All of these have gotten rave reviews, and some have

won awards. This goes to show that the people over at the streaming services know about

making movies as well as streaming them.

Movie theaters have operated in the same way for a long time. Movies get leased to the

theaters for a certain amount of time, and while they’re available, they collect all the ticket

funds and give back to the production companies that leased them, while keeping some profits

for the betterment of the venue (Zipin, 2019). Afterwards, the production team will pick a date

to release the movie through DVD/BluRay or digitally. They make this decision based on how

well the movie did in theaters and will try to keep it in there as long as possible to really milk

out each dollar earned. Interestingly enough, the box office had a record-breaking year in 2018

with 11.9 billion dollars earned and a 5% rise in ticket sales (Whitten, 2019). We will have to see
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if streaming will grow to the same extent and if the box office will plateau. Some things may

stay uniform, but many ideas have changed including the access to different accommodations.

This includes the sale of food and beverages, the option of watching in IMAX or 3-D, and the

idea of reserving seats early before the showing. Some select theaters have reclining couches

instead of chairs. In fact, some places are beginning to serve alcohol as well (Arnold, 2017). All

of these benefits are being implemented to combat the ease of streaming. They want going to

the movies to be more of an experience, and that’s something that streaming services can’t do.

While movie theaters are doing their best to stay in the game, will it be enough to stay above

the streaming?

There are several reasons why streaming has become as popular as it is today. The first

reason is its convenience. Instead of getting ready and driving to the theater to watch just one

movie, why not stay home in whatever clothes and watch as many movies as you want? That’s

exactly what streaming aims for you to see. You have access to an entire library of content that

you can watch pretty much anytime, anywhere, and on whatever you want. Sometimes, it’s

nice to just sit down in the comfort of your own home and watch a movie. The second biggest

driving factor of why streaming is so popular is the cost efficiency of it. The average movie

theater ticket costs around 11-12 dollars these days which is a lot. On top of that, depending on

what accommodations you buy such as 3D or IMAX, it could cost even more. Also, if you want

to buy your ticket early online and reserve a seat, most theaters will charge a convenience fee

of around 3 dollars. Let’s not forget about food either- movie theaters are notorious for

overcharging on snacks and beverages. This is because they have a monopoly on the resource

because you’re not allowed to bring in your own food. When it comes to streaming, it is much
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cheaper if you compare the number of movies you get and how often you pay. To give an

example, the base price for a Netflix subscription is only $7.99 a month. They offer two

premium options as well which are $9.99 and $11.99. The first premium comes with option to

watch on two screens at once and it has high definition quality. The second premium allows you

to watch on four screens at once and you can watch videos on ultra-high definition. Netflix also

gives new users a trial of one month free before you start payments (TechBoomers, 2016). Now

let’s recap, you could spend anywhere from 11 to 40 dollars for one movie at the theater or 8

to 12 dollars a month for hundreds of movies. Obviously, the way to determine which one is

worth it depends on your utility for watching movies, but you can definitely tell which one most

people choose.

In my own opinion, I’m really not sure if I believe that streaming services will eventually

become the primary means of entertainment. That doesn’t necessarily mean that I want that to

happen, but I could definitely see that as a plausible statement. However, there may be a few

solutions that would change the course. For instance, Netflix is actually in the process of

purchasing movie theaters themselves. The reason is because they want to be recognized as a

big production company in the media world and to get their own exclusive films out there so

that they may be considered for awards like the Oscars and the Golden Globes. “Oscars are

prestigious, and prestige wins new customers” (Estes, 2018). When buying these theaters,

Netflix has the freedom to have showings of films from other companies as well as the exclusive

originals they provide. This way, people who don’t own a subscription can still see these

exclusive movies for the price of a ticket. This will further Netflix’s revenue tenfold, but at the

same time, it will indirectly keep theaters in business. Another thing to consider about this
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whole situation is the fact that fans of movies will likely keep going to theaters as long as they

can. According to a study done in 2018, “…respondents who visited a movie theater nine times

or more in the last 12 months consumed more streaming content than consumers who visited a

movie theater only once or twice over the past year” (Lang, 2018). This means that fans of

movies will typically watch movies regardless of where. This is because they want to see new

films as soon as they come out whether it’s in the theaters or at home. Alternatively, you could

wait the three to six months it usually takes for a film to be available through other means, but

a lot of movie-goers don’t have the patience. I’ll bring up the example of Avengers: Endgame

again because everyone who is a fan of Marvel tried to see this movie opening weekend.

Showings sold out almost immediately and those who were too slow had to wait a few more

days. People get hyped up watching trailers and learning about the movie that they don’t want

to see it any later than they have too. Because of all this, Endgame shattered box office records

with an opening weekend of 1.2 billion dollars. People love movies and there’s not much you

can do to stop that. The third way of looking at this is the fact that the people who go to the

theaters regularly probably also own a streaming subscription or two. If you enjoy movies to

the extent that you’d go to the theater often, then its highly plausible that you also enjoy

streaming different kinds of shows and movies, and the sole purpose of this is because you just

like movies, plain and simple. Why was there ever a question of streaming versus theaters

when the answer was always both? As long as we show equal attention to either side, I believe

that we’ll be okay.

Of course, all plans come with their cons. If Netflix were to buy all these movie theaters,

what’s to stop them form purchasing other significant things as well? In today’s society, we’re
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seeing a lot of change in today’s business world. Look at Disney for example. Over the years of

their existence as a corporation, they have accrued billions of dollars and have bought out

several big names in entertainment. Companies like ABC, A&E, ESPN, Marvel, FOX, and

LucasFilm are all under Disney’s name (Carpenter, 2019). Each one of these companies alone is

a multi-million/billion-dollar company, and all of that revenue is going straight to the top. These

kinds of things can be a little unsettling when you know that everything you’re watching is

filtering through one single media. All the marvel films, Star Wars films, all the sports you watch

all belong to the huge conglomerate that is Disney. In fact, Disney has announced their own

streaming service set to drop sometime this year. This could be a good or bad thing depending

on how you look at it. Now the question is, do we want Netflix to become something similar?

We shouldn’t let one business become to powerful because then the world will lack diversity, a

very important aspect of the human culture. If the world is run by a few massive corporations,

then a few standards will be set, and everything will follow. To solve this issue, perhaps a law or

rule could be put into place stating that no one company can have stake in a certain amount of

theaters. This means that Netflix could only buy so many theaters, so that they would not own

a monopoly on this commodity.

One last problem that we will probably see is the fact that once the current generations

of people have lived their lives, the world is going to be a much different place. Earlier, I

reminisced on my parents taking me to the theater as a kid and what that was like. Parents

today are likely not doing the same thing, and if they are, it’s not as often. It’s sad because I

grew up loving movies and being able to go to the theaters was an awesome treat. I look at my

toddler cousin though, and know that for him, the case isn’t going to be the same. For him,
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going to watch a movie is going to the living room and setting up Hulu. Parents are drawn to

raise their kids with streaming because of the reasons I listed earlier. It’s quick, easy, and cheap.

All this being said, what could be inferred for the future? It’s already obvious that my cousin is

going to have a very different upbringing, but what’s to say about how he’ll raise his kids? All

the children growing up in the world right now are going to have a much different view of

entertainment than I do, and they’ll pass that on to their kids too. We’re on a downward shift,

and once again, education is the cure. If we don’t teach kids that there’s more to movies than

just streaming, then theaters will surely die. My fondness for theaters keeps me going, and I

fear that if kids these days don’t have the same feeling, then the theaters will become obsolete

and extinct. All we have to do to mitigate this risk is to educate and to pass on the things we

adore to the people we adore.

All in all, we have a lot of ideas to consider. The future is coming quickly, and we have to

prepare for it the best we can. While in the grand scheme of things, theaters are low on the list

of priorities, we still have to keep our humanity. With all the advancements in technology that

we’re seeing today, I don’t think we’ve totally realized how’s its changing human behavior and

general day to day life for everyone. In life, everyone talks about their experiences. People

always ask what you’ve done or what you enjoy doing. What happens when life is more about

the goals or the actions rather than the experiences and journeys you’ve had? That’s why we

have to save the little things. These little things keep us human and keep things fresh. One big

word we hear a lot today is “instant”. Littler amounts of effort are being put into things like

working, playing games, and shopping. It’s less so that we’re going out to get things in life and

more so that those things are just coming right to us. The easier it gets the less joy and pride we
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get from that specific action. That’s why if theaters go away, I believe movies will lose their

sentimental value, and won’t be enjoyed by as many. In my own opinion, theaters are the best

place to watch movies, and it would be a true shame if we let them slip away. On the outside,

this issue may not seem like its as big as it really is. It’s just one more piece in the puzzle, where

everything adds up to something greater. The outcome could be unwanted, but I have a

positive outlook on the future. If people really want to save theaters and perhaps movies as a

whole, then somehow, it will happen, just like it’s supposed to.
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Works Cited

Scholarly:

Brody, Richard. Harris, Lauren. et al. “From Disc to Stream: A Critical Symposium on the

Changing World of Home Video.” Cinéaste, vol. 43, no. 1, 2017, pp. 30–40. JSTOR,

www.jstor.org/stable/26356824. Accessed 5 May 2019

Hilderbrand, Lucas. “The Art of Distribution: Video on Demand.” Film Quarterly, vol. 64, no. 2,

2010, pp. 24–28. JSTOR, www.jstor.org/stable/10.1525/fq.2010.64.2.24. Accessed 5

May 2019

Murphy, David. “Streaming Movies to Overtake Discs, But At What Cost?” PC Magazine, Mar.

2012, p. 1. EBSCOhost, search.ebscohost.com/login.aspx?

direct=true&db=asn&AN=82061415&site=ehost-live. Accessed 5 May 2019

Silver, Jon and McDonnell, John. "Are movie theaters doomed? Do exhibitors see the big

picture as theaters lose their competitive advantage?" Business Horizons, vol. 50, no. 6, 2007,

pp. 491-501, https://www.sciencedirect.com/science/article/pii/S0007681307000857.

Accessed 5 May 2019

Tryon, Chuck. “Redbox VS Red Envelope, or What Happens when the Infinite Aisle Swings

Through the Grocery Store.” Revue Canadienne D'Études Cinématographiques / Canadian

Journal of Film Studies, vol. 20, no. 2, 2011, pp. 38–54. Accessed 5 May 2019
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Waldfogel, Joel. “How Digitization Has Created a Golden Age of Music, Movies, Books, and

Television.” The Journal of Economic Perspectives, vol. 31, no. 3, 2017, pp. 195–214.

JSTOR, www.jstor.org/stable/44321286. Accessed 5 May 2019

“EDITORIAL: Swimming Upstream.” Cinéaste, vol. 43, no. 1, 2017, pp. 1–1. JSTOR,

www.jstor.org/stable/26356817 . Accessed 5 May 2019

Movies.” International Journal of Arts Management, vol. 17, no. 2, 2015, pp. 19–32.,

www.jstor.org/stable/24587071. Accessed 5 May 2019

Popular:

Arnold, Andrew. “Convenience Vs. Experience: Millennials Love Streaming But Aren't Ready To

Dump Cinema Just Yet.” Forbes, 2017,

https://www.forbes.com/sites/andrewarnold/2017/10/26/millennials-love-streaming-

but-arent-ready-to-dump-cinema-just-yet/#2038ac006311 . Accessed 5 May 2019.

Carpenter, J. William. “Top 5 Companies Owned by Dinsey.” Investopedia, 2019,

https://www.investopedia.com/articles/markets/102915/top-5-companies-owned-

disney.asp. Accessed 5 May 2019.

Estes, Adam Clark. “Netflix Apparently Wants to Buy its Own Theaters, and that’s Honestly a

Good Idea.” Gizmodo, 2018,

https://gizmodo.com/netflix-apparently-wants-to-buy-its-own-theaters-and-h-

1825389898. Accessed 5 May 2019

Gibbs, Alexandra. “Netflix and kill: Is streaming hurting movie theaters?” CNBC, 2016,

https://www.cnbc.com/2016/09/15/netflix-and-kill-is-streaming-hurting-movie-

theaters.html. Accessed 5 May 2019

Lang, Brett. “Netflix Isn’t Killing Movie Theaters, Study Shows.” Variety, 2018,

https://variety.com/2018/film/news/streaming-netflix-movie-theaters-1203090899/.

Accessed 5 May 2019

Moran, Sarah. “Could Netflix Kill the Movie Theater Industry?” ScreenRant, 2014,

https://screenrant.com/netflix-digital-killing-movie-theaters/. Accessed 5 May 2019

Muccigrossi, Anthony. “Online Streaming Services VS. the Movie Theater.” The Tower, 2015,

http://kutower.com/2015/05/08/online-streaming-services-vs-the-movie-theater/.

Accessed 5 May 2019

Snider, Mike. “Theaters Taking Hits from Movie Viewing at Home, Weak Box Office.” USA

Today, 2017,

https://www.usatoday.com/story/money/business/2017/08/02/movie-theaters-

getting-pinched-sluggish-box-office-movies-viewing-home/532256001/.

Accessed 5 May 2019

Whitten, Sarah. “Netflix isn’t Killing Movie Theaters: Viewers who Stream more also go to

Cinemas more.” CNBC, 2019,

https://www.cnbc.com/2019/04/08/netflix-isnt-killing-theaters-people-who-steam-

more-see-movies-more.html. Accessed 5 May 2019

Zambelli, Alex. “A History of Media Streaming and the Future of Connected TV.” The Guardian,

2013,

https://www.theguardian.com/media-network/media-network-

blog/2013/mar/01/history-streaming-future-connected-tv. Accessed 5 May 2019

Zipin, Dina. “How Exactly do Movies Make Money?” Investopedia, 2019,

https://www.investopedia.com/articles/investing/093015/how-exactly-do-movies-

make-money.asp. Accessed 5 May 2019

“How Much Does Netflix Cost?” TechBoomers, 2016,

https://techboomers.com/t/netflix-cost. Accessed 5 May 2019