COVID-19: The Killer of Traditional Media
- Brett Stephens
- Apr 30, 2024
- 12 min read
The events of the 2020 pandemic were met with challenging obstacles, with limited access to activities that people enjoy, and a threatening issue related to the health of mankind. One of the fun outings that were consistent just a few years ago was going to movie theaters, being able to see the latest films with friends and family. However, when the world shut down, many establishments that were loved by many, especially the cinema, had to close, leading to an eventual change in how the majority of people, especially Americans, found their ways of entertainment. Even though some prominent streaming services were relevant prior to the COVID-19 outbreak, there has been a large amount of investment from massive corporations to take advantage of the “on-demand” forms of entertainment.
Streaming content has never been a new idea, as major corporations, like Netlflix, Amazon, and Hulu, were three organizations who took action and developed methods for customers to order tv shows and movies. Back in the early 2000s, many of these platforms sought after their consumers through non-digital means, by either having physical locations people could go buy physical copies of movies and shows from, or by encouraging them to order them in the mail. Yet, they were able to adapt, as many of the bigger media outlets began their online streaming services. For example, Netflix began their reign of the streaming industry in 2007, which has now led them to create their own production company, as well as pursue their own creative endeavors for their platform.
Alongside Netflix, some of their major competitors in the streaming industry, like Hulu, have also seen significant growth since the impact of the pandemic. Just like Netflix, Hulu was founded in 2007, as it was seen as a combination of NBC Universal and News Corporation. In recent memory, Hulu has been able to market itself as having the ability to broadcast sports live, offering its customers access to games that they may not have already due to cable. Five years ago, Hulu was acquired by the Walt Disney Company, another move that showcases their desire to become the biggest media monopoly in the world. Since 2020, Hulu has also seen similar success as its competitors when looking at the amount of paid subscribers on the platform.
According to Statista, the Walt Disney Company announced that in the beginning of 2024, “...Hulu had 49.7 million paid subscribers, up from 48 million in the corresponding quarter of the previous fiscal year. Hulu has several different pricing plans to cater to varying consumer preferences, with the most basic option including ads costing 7.99 dollars per month and the priciest monthly subscription package fixed at 17.99 dollars (without ads) as of October 2023” (Statista). Another reason why Hulu’s streaming service has grown significantly over the past several years is that they have coupled other popular services together (that the Walt Disney Company owns) to entice customers to utilize other media outlets while saving a couple bucks. Alongside Hulu, the bundle option available includes Disney+ and ESPN+, which further increases the width of content that users can access in this trio.
Another example of a streaming service that is regarded as one of the titans of the industry is Amazon Prime Video, one of the many services provided by billionaire and founder of Amazon, Jeff Bezos. Although Prime shipping has been around since the early 2000s, in 2011, Prime Video was an asset that subscribers could receive if they paid for it. When released, it came out as “Amazon Unbox,” which gave “...added the perk of free access to ‘unlimited, commercial-free instant streaming of more than 5,000 movies and TV shows’ to paying Prime members…” (Pattern). On a larger scale, the whole company of Amazon focuses its attention to fulfilling their consumers’ lifestyle of frequent, online spending, which makes its other features nowhere near as a priority. Bezos understands that while his streaming content is not a major priority for Amazon, he realizes the output Prime Video exclusives have produced in generating revenue overall. “When we win a Golden Globe, it helps us sell more shoes. And it does that in a very direct way. Because if you look at Prime members, they buy more on Amazon than non-Prime members,” Bezos said, at Vox’s Code Conference back in 2016, “and one of the reasons they do that is once they pay their annual fee, they're looking around to see, ‘How can I get more value out of the program?’ And so they look across more categories -- they shop more” (The Motley Fool).
The pandemic was ripe for these streaming companies to entice people, who had no choice but to stay at home, to watch endless amounts of content to their hearts’ content. According to Forbes, “[w]hen the Covid-19 pandemic triggered stay-at-home orders and canceled social plans, consumers turned to online media streaming to fill the void. TV/video streaming services touted exclusive content and low prices to lure viewers, and by June 2020, 48% of US online adults had subscribed to at least one streaming service” (Anjali Lai). Without the hassle of going out to enjoy the theater, people across the globe have found the amenities of the cinema unable to outweigh watching media from the comfort of their home. In general, this has also sparked immense dialogue for the workers of film companies, in all areas of production. These individuals have sometimes had their contracts changed if movie companies decide that their films should bypass the theater and go straight into streaming services, a practice that has been more commonplace in recent memory.
Even with the impacts of 2020 in mind, Americans have still found themselves constantly ditching the idea of going to the cinemas, and now going straight for their remote to enjoy endless amounts of content on various streaming services. It’s taken over every corner of the United States, as, according to Forbes Home, a whopping “...99% of U.S. households now subscribe to at least one or more streaming services, with Netflix, Amazon Prime Video and Apple TV+ topping the charts. This near-universal adoption is a testament to the shift in how entertainment and media are consumed, moving away from traditional models like cable TV to more flexible, on-demand streaming options. The statistic not only reflects the popularity of streaming services but also indicates a significant change in the media landscape, where streaming is now the norm rather than the exception” (Forbes Home). It’s clear that in the eyes of families across America, streaming is the way to acquire entertainment. However, the costs for entertainment has still been a concern.
In general, “Americans are spending an average of $46 per month on streaming services. This figure reflects not just the value placed on entertainment and information access but also the willingness of consumers to invest in a diverse range of streaming options” (Forbes Home). Inflation has been a major concern in keeping up with everyday expenses, but U.S. citizens have no problem keeping up with the demand, as streaming services continue to raise their prices for subscriptions. The inclination that streaming organizations have may be slowly fading in the distance, with “...45% of [streaming] users have canceled at least one streaming subscription in the past year, citing high costs as the primary reason. This decision to cut back on streaming expenses aligns closely with another finding that 44% of people reported that their streaming subscription costs have increased over the past 12 months” (Forbes Home).
These numbers are adding up in the hands of the owners of these streaming services, proving that they are a formidable foe to traditional media outlets. Forbes Home have discovered that this year, the “...video streaming industry has established itself as a colossal economic force, currently valued at an astounding $544 billion. This figure is more than just a testament to the industry's current success—it's a glimpse into a rapidly expanding future. Projections indicate that by 2030, the industry is expected to skyrocket to an impressive $1,902 billion. This projected growth reflects not only the increasing global appetite for digital streaming content but also the technological advancements and innovations that continue to redefine the landscape of entertainment and media consumption” (Forbes Home). This increase is just one of the many areas that have grown in today’s digital climate, including the increased use of artificial intelligence in the public.
Working in the film industry during the peak of the COVID-19 pandemic came with new additions in protecting the workers, doing their best to ensure that movie productions would be shut down less frequently. Many states in America, like Georgia, implemented specific regulations on how to best combat this global concern, with many ideas that have never been introduced to the film industry ever. The Georgia Film Office created the “State Of Georgia Film & Television Production Best Practices To Reduce Contagion Of COVID-19,” which was a manual to guide filmmakers and their crews on the best course of action when dealing with COVID-19 related issues. In this 11 page document, the Georgia Film Office meticulously detailed all areas of production to make sure everyone on set was able to comply with these rules, including sections about the wardrobe department, the art department, onset, communication, and all actors on scene. When at the shooting location, during the height of the pandemic, the organization highly suggested that “...there be personnel specialized in Occupational Risk Prevention or, failing that, a specific person assigned specific ORP tasks. This person should verify that all the protocols and actions set out in this document are complied with, as well as compile and control all the documentation derived from the management of occupational risk prevention. Depending on the size of the shooting, this role should be adapted to the needs of the production company” (Georgia Film Office).
Even something as simple as communicating with other members on set has been changed since 2020. According to the pamphlet, those on set should utilize “...the recommended safety distance of 6 feet, devices such as walkies and mobile technology, Bluetooth and Wi-Fi should be used. These devices should be for individual use only and should be disinfected before and after each day. Devices and replacement batteries should be individually bagged and handed to the user in its bag” (Georgia Film Office). There have been major concerns as to preserving the health of those on set as much as possible, and the less in-person contact on-set, the more likely less COVID-19 related incidents will occur. To help minimize that contact even further, the Georgia Film Office wrote out some important details when looking at the organization of the shooting spaces. In that same document, it states that “[t]he recording area should be marked to ensure that only permitted personnel have access. Access to the shooting space shall have a defined entrance and exit area, and there shall be a designated person to control such access. Differentiated and adequately signposted entry and exit areas shall be established in order to prevent people from crossing over. The number of people who will have access to the shooting space should be minimized” (Georgia Film Office).
One of the most prolific actors of all time, Tom Hanks, has been one of the many voices advocating for encouraging fans of the cinema to continue to participate in it as time progresses. Hanks has been greatly praised for his iconic films, like Forrest Gump, The Terminal, Castaway, and many more movies. In an article released by The New Yorker last year, Hanks was very adamant about his frustrations regarding the takeover of streaming services. “Now you’re finally ready to start the movie that you have all ‘agreed’ to watch. And you think, At last, let’s watch the movie. Seventeen minutes into it, you think, I have no investment in this movie whatsoever. I don’t like this movie. I’m going to leave the room and not bother watching the rest of this movie,” Hanks commented, in context to indecisiveness in watching content on streaming platforms. “That doesn’t happen if you’ve been in a room full of strangers at 7:15. You’re hugely invested in it. All of your sinews, all of your money, all of your time and intent you have mapped out in your life says, I’m going to be in this cinema. And that option is not going to go away. And, if you’re lucky, you will be held in its thrall” (MovieWeb).
Including his concerns on the lack of commitment that can be found through streaming, Hanks also voiced his opinions on the difference in visual qualities that the cinema has that televisions do not have. In 2020, Hanks was the lead in the film, Greyhound, which was set to have a traditional release in movie theaters, making it the only way to view it. However, Apple TV+, a new streaming service at the time, convinced Greyhound’s team to sell them the rights to the film. After much negotiation, Greyhound eventually found its way to solely be on their platform, disappointing the efforts of Hanks and his entire team. The film was delayed from June 12, 2020, release exclusively in the theaters, to a July 10, 2020, Apple TV+ streamable film. In an article released by Kevin Burwick on MovieWeb, Hanks stressed that “...there is a difference in picture and sound quality … There is definitely a change in quality, but the actor knows that watching movies from home is the safe thing to do during these uncertain times.”
The problems for shooting during the pandemic went beyond the actors playing these roles; executives in the industry, like directors and producers who had to weigh the costs of filming. One of the most well-known directors and producers in the industry, Tyler Perry, had to completely change the layout of his studios to be able to film his plethora of television and film projects. Located in Atlanta, Tyler Perry Studios during COVID-19 provided “...private air travel for cast and crew to building what Perry referred to as ‘luxury mobile hotel rooms.’ 315 in total! Add to that a mountain of PPE gear, doubling the size of housekeeping, and having two full-time COVID compliance officers that enforced safety protocols overseen by Emory University’s Dr. Carlos Del Rio, Dr. Sanjay Gupta, and Dr. Colleen Kraft” (Tyler Perry Studios). Perry was in the middle of filming one of his successful television series, Sistas, for the BET network, so he understood that regardless of the challenges in creating this work, it had to happen to ensure that those working there would have a wage. On his website, they stated that “... the cast and crew and everybody wore their masks when they weren’t on set because [he did] know for a fact that masks [helped] stop the spread — scientifically, [he knew] … And everybody adhered to that, even though [they] were all testing negative” (Tyler Perry Studios).
The impacts of the pandemic are still being felt in the pockets and attendance numbers of the cinema. According to a recent poll by HarrisX (IndieWire polling), they found that, “[t]he competition continues between streaming services and the Hollywood engine. While we still see evidence of loyal movie-goers in recent box office numbers, our study shows that 2 in 3 movie watchers prefer to stream movies at home. Despite this causing some upheaval for the industry, it also means that the demand for content is only increasing – nearly half of consumers say they stream movies weekly, more than 7x as frequently as those who do so in theaters” (IndieWire). Even though the access of streaming is a major reason why most adults prefer to enjoy films at their home rather than at the theater, economic concerns may play a major role in the decline of cinemas. In another questionnaire released by HarrisX, they discovered that “...(53 percent) of those who do not frequent theaters cited the cost of movie tickets as a major reason; 42 percent also mentioned the cost of concessions. While those recliners were a pretty solid motivator for the theater crowd, an even larger percentage (40%) of the streaming lovers cited the ‘comfort of viewing at home versus in a theater’ as a reason to wait” (IndieWire).
Streaming enjoyers like to splurge on multiple streaming services, being able to diversify their options when choosing something to watch. United States citizens, specifically, like the idea of having many options when debating on choosing their content. According to Forbes Home, “...it emerges that Americans, on average, maintain subscriptions to approximately 2.9 streaming services each month. This statistic provides a clear indicator of the diverse viewing preferences and the desire for varied content among U.S. consumers. It also reflects a balance between the allure of multiple streaming options and the practical considerations of subscription costs” (Forbes Home).
One of the biggest theater chains in the United States is American Multi-Cinema, more commonly known as AMC. This cinema chain has been around for more than one-hundred years, being one of the oldest movie theater companies ever. Like all of these organizations, they took significant financial hits due to the COVID-19 pandemic, being forced to shut down their business for important health concerns. As AMC is one of the largest chains nationwide, they took one of the most substantial deficits during the events of 2020. According to Variety, in their first quarter earnings for 2021, their cinema “...revenues fell 88% to $162.5 million, down from $1.4 billion in the year-ago period. The company’s losses for the three-month period ending in December topped out at $946.1 million, down from a loss of $13.5 million in the year-ago period. AMC also reported a loss of $3.15 per share compared to a 35-cent loss per share in the same period in 2020” (Variety).
Those numbers were extremely alarming at the time, but fortunately, AMC was able to pull itself out of the red and has made significant strides to restore their business since reopening. Although AMC was in a large amount of financial trouble, some movie theater groups were not so lucky. The Metropolitan Theatres Corporation recently filed for bankruptcy this year in Los Angeles, ending a run of 101 years in California. The oldest theater in L.A. suffered during 2020, as CEO David Corwin stated that “[t]he pandemic was devastating to the business. Plus the strikes and increased cost of labor, rent, and utilities. A lot of companies are having similar conversations” (Los Angeles Magazine). Corwin is doing his best to revitalize his family-owned business, but his story is just one of the many stories many smaller-chain cinemas have had to face in light of the pandemic and the rise of streaming services.
On-demand content has become the new wave since the events of COVID-19, meaning the eventual decline of previous success movies theaters had. Families across the globe are able to discover modern methods of entertainment in more convenient ways than ever before, a testament to the rise of the digital age. Going to the movie theaters has always been the most convenient option in seeing the latest projects from various Hollywood directors and producers. The COVID-19 pandemic has been the ultimate factor in all of the majors changes brought upon the traditional method in observing media, but the events of 2020 have forever changed the way people across the globe watch their favorite TV shows and movies.
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