Disney just happens to be the ones positioned to reap the benefits of Covid’s impact.īut that’s irrelevant because we’re talking about the distribution costs Things will change as the rest of the industry adapts. that are front-loaded to the theatrical window, and now Disney is (seemingly) getting a windfall. So now companies like Disney, who have their own platform, who have existing agreements with digital service providers that are generally very friendly to Disney, who have existing agreements with actors/etc. negotiate for points on box office revenue, not so much for streaming. Traditionally, theatrical was the most lucrative window there was. The contracts content providers have with digital platforms are very different from the ones they have with theaters, and the existing agreements they have with talent and other people working in the industry to actually make movies are based on the assumption that there’s a theatrical window to share profits from. Now, streaming/VOD/digital purchase has replaced theatrical windows. That was all well and fine back then, because the digital windows matched the physical release windows - and both of those windows always came after the theatrical window.Ĭovid closing theaters fucked that all up. Basically, the “home video street date” was the same date that things became available on digital platforms. We do need new terms, and businesses are having to amend all of their existing content contracts in order to build in those new terms.īefore Covid, there weren’t movies available for streaming/VOD/digital purchase until after the theatrical window closed. That’s exactly what’s going on in the industry right now though.
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