In truth, I think this is the first good decision that was made by the ELT since we acquired TW. This is a win-win for us. We get new subscribers for HBO Max (I know a few people who are already considering it due to this news) and we don't lose out on the ticket money since people will still pay to see the movie. Good job, I say.
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News flash. No one is going to sit inside a movie theater and exchange air with everyone who has visited the place and touched anything.
" Since streaming is so much cheaper than going to the movies, there will be even less incentive to go to the theater to see the latest new movies".
Good point...but this is completely uncharted territory. I believe that while some LOVE the idea of never having to go to the movies again (like me), some (like my wife) really miss the experience of going to the theatre. Those folks will be flocking back as soon as they feel it's safe to do so.
It's a good short term move for AT&T, but it could cause Hollywood to implode in the long term.
Post-pandemic, I could imagine that people will continue to demand that movies be released to streaming on the same day they're released i the theater. Other studios will have to follow this move to remain competitive.
Since streaming is so much cheaper than going to the movies, there will be even less incentive to go to the theater to see the latest new movies.
So how does that play out? Hollywood studios' revenues decrease, and they cut back. Or streaming prices go up to make up the difference & keep studios alive.
rearranging the deck chairs on the Titanic.
Should the roll out of the vaccines move us to the path of normalcy and the theater business return to near normal before end of 2021, you would think our leadership would change the plan and negotiate longer windows for the theaters if it meant significant revenue increases on the movies
it will be up to consumers, ultimately, to determine what the end game looks like, MOST WILL BURN THE MOVIE, LOL,
people still want to go to the movies - it will open again and I get hbo max but never used it or signed in and never will.
maybe a good decision in the short term but dumb in the long term especially when they start opening up again.
The virus has k–led the movie theater business, so I don't see anything wrong with this move.
shuffling revenues to appear profitable it is noit a good thing, id–ts will remain id–ts..no vision...LOL
I know the Movie Theater/Cinema business well. The average New Release pulls in $20M in gross receipts (ticket sales) during its pre-cable run. The Production Company (TW, in this case) typically nets out 25% as a gross profit. So... doing the math; AT&T would have to add 333,000 NEW paying annual contract HBO Max subscribers for every movie that they handle in this manner. Or another way to look at it, AT&T has to grow its existing paying customer base 1% for every new release handled in this manner. Dunno'. Sounds plausible.
This move is garnering a lot of media attention. For once, I am a little bit impressed by a leadership decision....
This doesn’t work if subscribers sign up for H-Max and then drop it. Financially T cannot survive this unless the base subscriber is increased exponentially. Then they need ad revenue to be added in as part of the revenue. Movies are too expensive to make to throw them out on H-Max without a substantial increase in monthly sub revenue coming in
"This back-end money comes solely from the box office receipts - how many rear-ends paid to sit in a seat"
You bring up some good points.
I am in Mobility and admittedly don't know jack about the entertainment business.
That said, you make it sound as if the other production companies will be enjoying normal, pre-pandemic level box office revenue next year, while we will not due to this decision. That's not the case. That box office revenue has not been there, and will continue to not be there (at "normal" levels), for some time...regardless of who produced or is starring in the movie. This is why I believe it's a good idea for next year. It will drive the Max sub numbers up for sure. I am glad that they have finally made a bold decision. Seems like we usually are a year too late on most everything.
The back end will still get paid of course. It's just that they are cutting out the theaters portion of the revenue and giving the savings to the customer.
What your premise overlooks are the payout terms negotiated prior to production that spells out the percentage of box office receipts that will be paid to the talent, the executive crew, the advertisers and the distributors.
This back-end money comes solely from the box office receipts - how many rear-ends paid to sit in a seat.
The talent, the production elite - sure, they get paid a bit upfront, but their real millions come from their percentage cut of the ticket sales. You undercut that marketplace and replace it with a free 30 day trial of a streaming service or have people logging in with their cousins password - you ain't making squat in sales.
No revenue - no money for big name talent or big name creators.
You lose the vibe, you lose the customer.
You lose.
Looking forward to downloading all these the day after release.
For sure, haven't been to a movie theater in gotta be 20 years.
Might actually watch a new movie once in a while now...
Finally a brilliant decision
It’s a bold decision and odd to be leading on something rather than following. I applaud the decision as well. Those of you that simply badmouth every move leadership makes should stop and think for a minute. That box office revenue isn’t coming back soon, despite the good news re: a vaccine as of late. It’s still going to be quite some time until you get butts back in theatre seats at pre pandemic numbers. Again, I think it’s a good move. Time will tell.
Another id–t, it is contagious, LOL
Another id–t, it is contagious, LOL