The Popcorn is Cheaper at Home

Black Widow's value is abbreviated (AP/WSJ photo)

Significant but slow-developing issues don't get the public's attention unless a celebrity is involved. Such is the case with how movie actors are compensated now that theaters appear to be dying: [bold added]

Scarlett Johansson, star of the latest Marvel movie “Black Widow,” filed a lawsuit Thursday in Los Angeles Superior Court against Disney, alleging her contract was breached when the media giant released the film on its Disney+ streaming service at the same time as its theatrical debut...

The suit could be a bellwether for the entertainment industry. Major media companies are giving priority to their streaming services in pursuit of growth, and are increasingly putting their high-value content on those platforms. Those changes have significant financial implications for actors and producers, who want to ensure that growth in streaming doesn’t come at their expense.

During its July 9 opening weekend, “Black Widow” grossed $80 million at the domestic box office and $78 million overseas, and generated another $60 million from $30 at-home purchases on Disney+. It was the first time Disney broke out a film’s streaming performance in such detail. Disney shares ticked upward on the news that Monday.

The current model--theatrical release to streaming purchases to DVD sales to premium channels to non-premium channels with ads--is being upended again with the time compression between events, or in Black Widow's case, no delay at all between the theatrical release and initial streaming.

Apparently, Ms. Johansson's contract was not up-to-date with the latest market developments, further aggravated by the lack of future Black Widow opportunities (the character is less marketable because she died in an earlier movie). The issue of actors' compensation will recede as contracts adapt.

Honolulu's Cinerama theater, where I saw It's a Mad
Mad Mad Mad World, How the West Was Won, and
2001, is now an auto parts store.

The important takeaway is this: the coronavirus only accelerated the trend towards streaming as the at-home technology became cheaper and better. Brick-and-mortar theaters have high labor and plant costs, and last year's health issues were the killer blow (the opposite of the killer app that marks the birth of an industry).

No, theaters won't completely disappear but will be more like booksellers where only one or two major chains survive.

I'll start going to the movies again, but it won't be this year.