DIY VIRAL
Overall, 2024 was a mixed year at the box office. Things started off on a dire note as the first half of the year was full of flops, disappointments and films that just couldn't handle the load after the 2023 SAG and WGA strikes completely upended the release calendar. Fortunately, things turned around in the second half of the year thanks to popular movies like 'Wicked', 'Deadpool & Wolverine' and 'Inside Out 2' turning the tide. Despite all this, global box office revenue was well below 2023 levels, slowing the industry's recovery from the 2020 lockout. At the same time, streaming's place as the future was more firmly established.
According to Gower Street Analytics (via Deadline), the 2024 global box office total was $30 billion, up from $33.9 billion in 2023. That figure includes $8.75 billion in domestic ticket sales that were less than in 2023, when the figure exceeded $9 billion. Given the strikes and slow start last year, the number could have been much worse. There's a lot to say about that, and we'll get into that a bit further in a moment. But there is one eye-opening statistic that helps put it all into perspective; namely, Netflix's total revenue for the fiscal year ending September 2024 was $37.5 billion (or, to put it another way, 25% more than the total global box office last year).
It's definitely an apples-to-oranges equation, as Netflix is a subscription streaming service that offers both movies and TV shows to attract customers. However, if there was any question about which section of the business is most important to Hollywood's future, there shouldn't be.
It's also pretty clear that Netflix is the king of the streaming wars despite being just one of many competitors in the field. Not to mention Disney+, Hulu, Max, Paramount+ or Peacock, not to mention smaller services like Shudder. Together, streaming absolutely eclipses the theater market.
Box office is still important, even if streaming is the dominant force
While revenue doesn't equal profits, Netflix has, unsurprisingly, become very profitable recently, posting more than $17 billion in profits for the fiscal year ending in September 2024. This is 31% more than the previous year. Meanwhile, many theater chains are struggling just to keep the lights on, with Regal's parent company, Cineworld, went bankrupt in 2022 and AMC, the largest theater chain in the world, currently billions in debt. There was also an explosive development last year when Sony Pictures bought the popular Alamo Drafthouse theater chain. This may help the company survive, but it also means that a major studio is now directly invested in theaters, which complicates matters.
This may help explain why Netflix doesn't care so much about releasing its movies in theaters, even if theater owners would welcome Netflix movies with open arms (with the right rules). A streamer typically only releases their films theatrically to ensure they qualify for awards and/or to cater to certain filmmakers. It just doesn't care about the box office.
All that said, the box office remains extremely important to the future of the movie business, including streaming. We've seen time and time again that movies released in theaters do better streaming. This is a pretty universal rule, even if the film in question is a theatrical flop. For example, Nicolas Cage's The Unbearable Weight of Massive Talent recently made Netflix's Top 10. two and a half years after its theatrical release. Yes, Netflix originals like Back in Action will have their moment in the sun, but will they have the same staying power? Even at this point, Despicable Me, Hotel Transylvania 2, Trolls Band Together and The Boss Baby dominate the top 10 movies on Netflix.
So yes, streaming is definitely the future of Hollywood, and until something dramatically changes, Netflix is the king of that future. But without a healthy theater market, it will be harder to keep Hollywood alive. Studios need that revenue, and more importantly, movies need the word-of-mouth that they generate in theaters. It is still a symbiotic relationship, even if there is a clearly dominant force on one side of the equation.
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DIY VIRAL
