What Will Happen to Movie Theaters?

Last night I sat down with my wife and watched Disney's Mulan from the comfort of my own home.  My oldest son joined from his home across the valley and my youngest son did the same from Ohio. We all started the movie at the same time on Disney+ and then texted comments to each other throughout the movie. We are not real big talkers during movies and so we didn't communicate much during the film. This was our first experience with a watch party.

Mulan was an experiment for Disney on how to release films during the COVID-19 pandemic. They spent a lot of money making the film and then had to come up with a way to release the movie and still make money. Unfortunately they also had to compete with their original animated version as well. My sons, their families, and my wife all agree that the original was better. Therefore I don't think it is a fair test to see if releasing a movie for a premium fee is a good way to recoup Disney's investment. We all waited until last night as friends told us not to pay the premium and just wait for it to be free on Disney+. We had thought about paying to watch it earlier but were content to wait. I'm glad we did.

So I have to ask myself if this revenue model would work for other films? I think the answer is yes. I would have gladly paid $20 to see the movie Greyhound. Instead I just signed up for a free trial of Apple TV and got to see it without paying anything. I'm sure I am not the only one willing to pay to see the movie from the comfort of their own home.

So now I have to ask the question, "What will happen to movie theaters after COVID-19?" I much prefer my own home theater to having some kid kick the back of my chair throughout a movie. Large-screen televisions are really inexpensive and anyone can have a spectacular watching experience. Yes there are some like my neighbor who enjoys the theatrical experience but I don't know how big that demographic really is. We will have to see how things shake up next year. Until then, I don't plan to invest much in movie theater chains.