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 Hollywood
has instituted month’s long production delays and theater shutdowns due to the
Covid-19 pandemic. The three largest U.S. theater chains: AMC Entertainment,
Cineworld Group PLC's Regal Cinemas and Cinemark Holdings Inc. have all closed
their doors in response to guidance from health experts advising against large
gatherings. Of course this means may films scheduled for release during the
closure will have to be pushed back or else find other avenues of release. Major
studios have already postponed film release dates and are releasing some titles
directly to sale or on-demand, skipping over the exclusive theatrical release
window. Which future films and much of the overall outlook will depend on how
long theaters are closed. AMC has said it expects the closures to last at least
six to 12 weeks. Many industry experts believe if the business closures go on
longer than expected or business does not return to normal after the quarantine
period ends, it could reshape the entire entertainment industry. At the very
least it could mean studios release more films direct-to-consumer on streaming
platforms, while exhibitors close properties and work with studios on altering
the theatrical release window for would-be blockbusters and tent pole films.
Most industry analysists feel at this time the 2020 box office will end down
just 12.4% and 2021 may be a record year, up 16.7% over 2020. Total U.S. box
office revenue for the week ended March 15, the final week that U.S. theaters
had their doors open was $88.6 million, down 57.3% from $207.9 million in the
same week of 2019. That is the lowest weekly result since 2001.
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