Abigail Whitehurst is an entertainment professional and writer for Hollywood Insider based in Los Angeles, CA. Having lived all over the world as part of a military family and having pursued a bachelors of music, she brings a unique outlook to the entertainment industry. A life-long learner and researcher, Abigail is pursuing her masters in entertainment management. She strives to write through the lenses of context, analysis, and Hollywood Insider’s values to bring a fresh perspective to industry trends, entertainment business, and new film and TV releases. Her favorite place is a movie theater, and she’s always hunting for the deeper meaning and studying media as it pertains to culture. Film, TV, and interactive media are some of the most impactful artforms of our day, and they are worth digging into and analyzing. Everything is connected, whether it’s through Bacon numbers or history. When she’s not writing or at the movies, you can find Abbie crocheting or playing video games with her partner.
Aug 3, 2024
Table of Contents
It’s no secret that Hollywood has undergone significant changes in the digital age. Eight- and nine-digit budget films somehow struggle to bring audiences into theaters; cable television, once a prized cash cow, has been all but abandoned by consumers and producers alike; and tech companies capture more and more of the market with every passing year. There are many factors that have contributed to these changes, including the impact of the Covid-19 pandemic and socioeconomic shifts worldwide, but one stands apart from the pack. Since Netflix’s on-demand streaming service really took off in the 2010s, all of the major studios have been entrenched in “The Streaming Wars”, the battle for market share and viewer attention that has had a major impact on both consumers and producers of film and television. The entertainment industry is a far cry from what it once was, for better and for worse, but it feels like things are about to be turned upside down yet again: enter in-person experiences.
In June 2024, there were two extremely interesting developments in the world of entertainment business: Netflix announced the imminent grand openings of Netflix House in King of Prussia, PA and Dallas, TX, and Sony Pictures acquired Alamo Drafthouse under its brand new Experiences Division. Given that Netflix was the initial disruptor that pushed the entertainment industry in the direction of on-demand entertainment at home, their announcement came as a huge surprise. Sony, a black sheep in the industry for not having a streaming service of its own, also turned heads for acquiring a theater chain while theatrical attendance is still struggling to recover post-pandemic. The sharp turn towards in-person experiences is a head-scratcher. Are these gimmicks? Are they bad business decisions? Are Netflix and Sony two steps ahead? And what do popcorn buckets have to do with this?
These decisions didn’t exactly come out of left field. Earlier this year, Disney went through a major internal restructuring, which reorganized the corporate structure into three major segments: Disney Entertainment; ESPN; and Disney Parks, Experiences and Products. Reallocating resources in this manner suggests that the in-person experiences are just as valuable as the movies and shows, the things most would consider the company’s core products. As a leader in the entertainment industry, it’s hard to ignore when Disney does something this drastic. With theatrical attendance still lagging behind pre-pandemic levels, it’s reasonable to suggest that studios expect to make less of a return at the box office (for now), and that they need to ramp up other types of entertainment that they can provide. It’s also hard to ignore the fact that ticket prices for Disney’s theme parks have risen to astronomical levels, but attendance is still incredibly strong. People want magic and mouse ears, two things they can only get at the happiest place on earth (AKA, not on their couch at home).
Netflix House really isn’t such a crazy idea given this shift in thinking in the industry. Plus, Netflix has hosted tons of successful but temporary in-person experiences over the years, from activations at the Mecca of media San Diego Comic Con, to bespoke single IP events like The Bridgerton Queen’s Ball. A permanent, brick and mortar experiential space is the logical next step for Netflix after years of experimentation. And why let Youtubers invite the masses to imitate your most popular shows when you can help audiences scratch the itch of completing the ‘Squid Game’ challenges themselves? Netflix is also capitalizing on cheaper-than-ever commercial real estate by taking over the anchor spaces in shopping malls. In a similar fashion to streaming pulling ahead of movie theaters, online shopping is on the rise while some in-person shopping locations like outlet malls are struggling post-pandemic. Netflix House is absolutely taking advantage of lower overhead costs and rent, but hopefully their one-of-a-kind experiences can boost attendance for the malls they’ve moved into, and online retail doesn’t completely supplant in-person shopping.
No one wants theaters to disappear. Rather than competing with the theater experience, some companies are trying to augment it, differentiate it from the at-home streaming experience in such a manner that it’s worth paying a premium for. If you’ve been to an AMC this year, you’ve probably seen a promotional popcorn bucket for at least one movie. Everything from ‘Despicable Me 4’ to ‘Deadpool and Wolverine’ have had the tasty merch tie-in treatment, but even if you haven’t seen any movies in any theater this year, you probably saw the ‘Dune: Part Two’ popcorn bucket in all of its disgusting, memeable glory online. The point is, you might be able to eat (Netflix branded) popcorn and watch a movie at home, but to get your hands on this limited edition item, you have to go to the theater. The same goes for the industry-wide push for IMAX and 4D experiences. Much of the marketing around ‘Dune: Part Two’ involved the idea that it’s a larger than life story that needs to be experienced in IMAX (completely agree, especially with its incredible soundtrack and the immersive audio of an IMAX theater as opposed to home entertainment). I haven’t heard much of anything about how good or bad Glen Powell’s spin on ‘Twisters’ is, but I have seen countless memes about how insane the 4DX showings with moving seats and fog machines are.
Alamo Drafthouse, and theater chains like it, are tapping into this elevated theater experience in a different way. The draw to Alamo Drafthouse is in the form of tastier food, fancier drinks, comfier seats, and an overall better experience than that of an average movie theater. Bringing a family to the movies can really add up as ticket prices rise over time, but a good meal and great service raises the value of a trip to the theater. Something with a premium price tag needs a premium experience to justify it. The fact that a ticket to a single movie at the theater can cost as much as a month on a streaming service is a huge hurdle for companies that want to lure audiences out of their homes post-pandemic, but these gimmicks and augmentations are really helping. ‘Twisters’ shattered its box office expectations on opening weekend, and ‘Dune: Part Two’ nearly doubled the first installment’s performance. Last year’s mega-hits ‘Barbie’ and ‘Oppenheimer’ were propelled by an organic cultural phenomenon– dubbed “Barbenheimer” on social media– unlike any other. Millions of theater-goers DIYed a double feature of the two movies. Some theaters even picked up on this and scheduled back-to-back screenings (‘Oppenheimer’ to start, ‘Barbie’ to finish, obviously). The keyword here is that it was an organic movement, meaning film studios will have an extremely difficult time manufacturing anything like it ever again, but it won’t keep them from trying other tricks to get butts in seats at the movies. Nor should it!
Sony’s open violation of the Paramount Decrees marks a huge turning point in the industry, and not just because it goes against a 1938 court ruling (and to be fair, Netflix broke the rules first when they started producing their own content for their platform). Regulation against consolidation, monopolization, and vertical and horizontal integration is necessary as ever in the entertainment industry, but industry-wide bets on in-person experiences represent something bigger. There’s more to life than consuming an endless stream of entertainment at home, and it’s my sincere hope that consumer sentiment and behavior are changing after years of pandemic-induced anxiety. An experience economy, where value is placed on verbs over nouns, is on the horizon, and studios are starting to embrace it. There’s no going back. Nothing will ever be the way it was. But it can be better.
Click here to read The Hollywood Insider’s CEO Pritan Ambroase’s love letter to Cinema, TV and Media. An excerpt from the love letter: The Hollywood Insider’s CEO/editor-in-chief Pritan Ambroase affirms, “We have the space and time for all your stories, no matter who/what/where you are. Media/Cinema/TV have a responsibility to better the world and The Hollywood Insider will continue to do so. Talent, diversity and authenticity matter in Cinema/TV, media and storytelling. In fact, I reckon that we should announce “talent-diversity-authenticity-storytelling-Cinema-Oscars-Academy-Awards” as synonyms of each other. We show respect to talent and stories regardless of their skin color, race, gender, sexuality, religion, nationality, etc., thus allowing authenticity into this system just by something as simple as accepting and showing respect to the human species’ factual diversity. We become greater just by respecting and appreciating talent in all its shapes, sizes, and forms. Award winners, which includes nominees, must be chosen on the greatness of their talent ALONE.
I am sure I am speaking for a multitude of Cinema lovers all over the world when I speak of the following sentiments that this medium of art has blessed me with. Cinema taught me about our world, at times in English and at times through the beautiful one-inch bar of subtitles. I learned from the stories in the global movies that we are all alike across all borders. Remember that one of the best symbols of many great civilizations and their prosperity has been the art they have left behind. This art can be in the form of paintings, sculptures, architecture, writings, inventions, etc. For our modern society, Cinema happens to be one of them. Cinema is more than just a form of entertainment, it is an integral part of society. I love the world uniting, be it for Cinema, TV, media, art, fashion, sport, etc. Please keep this going full speed.”
Abigail Whitehurst is an entertainment professional and writer for Hollywood Insider based in Los Angeles, CA. Having lived all over the world as part of a military family and having pursued a bachelors of music, she brings a unique outlook to the entertainment industry. A life-long learner and researcher, Abigail is pursuing her masters in entertainment management. She strives to write through the lenses of context, analysis, and Hollywood Insider’s values to bring a fresh perspective to industry trends, entertainment business, and new film and TV releases. Her favorite place is a movie theater, and she’s always hunting for the deeper meaning and studying media as it pertains to culture. Film, TV, and interactive media are some of the most impactful artforms of our day, and they are worth digging into and analyzing. Everything is connected, whether it’s through Bacon numbers or history. When she’s not writing or at the movies, you can find Abbie crocheting or playing video games with her partner.
Abigail Whitehurst is an entertainment professional and writer for Hollywood Insider based in Los Angeles, CA. Having lived all over the world as part of a military family and having pursued a bachelors of music, she brings a unique outlook to the entertainment industry. A life-long learner and researcher, Abigail is pursuing her masters in entertainment management. She strives to write through the lenses of context, analysis, and Hollywood Insider’s values to bring a fresh perspective to industry trends, entertainment business, and new film and TV releases. Her favorite place is a movie theater, and she’s always hunting for the deeper meaning and studying media as it pertains to culture. Film, TV, and interactive media are some of the most impactful artforms of our day, and they are worth digging into and analyzing. Everything is connected, whether it’s through Bacon numbers or history. When she’s not writing or at the movies, you can find Abbie crocheting or playing video games with her partner.
Abigail Whitehurst is an entertainment professional and writer for Hollywood Insider based in Los Angeles, CA. Having lived all over the world as part of a military family and having pursued a bachelors of music, she brings a unique outlook to the entertainment industry. A life-long learner and researcher, Abigail is pursuing her masters in entertainment management. She strives to write through the lenses of context, analysis, and Hollywood Insider’s values to bring a fresh perspective to industry trends, entertainment business, and new film and TV releases. Her favorite place is a movie theater, and she’s always hunting for the deeper meaning and studying media as it pertains to culture. Film, TV, and interactive media are some of the most impactful artforms of our day, and they are worth digging into and analyzing. Everything is connected, whether it’s through Bacon numbers or history. When she’s not writing or at the movies, you can find Abbie crocheting or playing video games with her partner.
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