The film industry is in for a shocker on Tuesday as it is expected to announce a number of changes aimed at mitigating the impact of the digital revolution on movies.
A number of big names in the industry have already announced plans to shutter theaters, including Disney, Paramount, Warner Bros. and Lionsgate.
These moves could further strain the film industry’s already fragile financial position and push it toward bankruptcy.
The most notable move will be the decision by major movie studios to halt the sale of theatrical ticket-selling rights to their films, according to a New York Times report.
This could be the most controversial step of all, given that this will effectively allow studios to shut down their theaters and make their films available for streaming and other distribution.
The move comes as the industry continues to face an unprecedented level of competition from streaming services and online video platforms.
This week, Netflix announced plans for an initial roll out of its streaming service in theaters, and it has been rumored that Warner Bros.’ own DC Entertainment is moving toward a similar move.
This could make the movie industry’s financial situation even worse, especially given the massive amount of money that the studios will have to pay to operate theaters in the future.
For instance, in 2020, theaters will be expected to sell about $2.5 billion in tickets.
Theoretically, that means studios could make more money from ticket sales than from movie ticket sales.
The film industry has already faced the threat of an online-only apocalypse.
In April, AMC announced that it was closing its movie theater chain after only 10 years of operations, leaving a gaping hole in the film supply chain.
The company also announced plans in 2018 to close its theater in Nashville, Tennessee, and its movie theaters in Orlando, Florida, and Dallas, Texas.
While this move is a significant blow for the film business, the Hollywood Chamber of Commerce said it is not surprising given that many of the industry’s big names and major studios have already made similar announcements.
“The fact that the industry is preparing to shut its doors in such a major way is not unusual.
We expect that many major Hollywood names and studios will continue to operate their theaters in some form or another for some time,” the Chamber said in a statement.
“It’s simply a matter of time until they do the same to their cinemas.”
Despite the Hollywood backlash, the movie theaters that remain open are likely to continue operating, as the companies have already started negotiating with studios to extend their lease for the next five years.
According to the New York Post, the studios are also negotiating to extend the film-on-demand deal that will last through 2027.