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The Hollywood Conflict: Streaming vs Theatrical

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Los Angeles: Any screenwriter in Hollywood will tell you that screenplays are all about conflict. Conflict should be in every scene, in every act, and on every page. The more layered, the better. So, when actor Scarlett Johansson, star of the Marvel superhero movie Black Widow sued the Walt Disney Company, alleging that the company breached her contract, she added yet another layer of conflict to the streaming vs. theatrical battle currently being waged in the movie industry due, in large part, to the coronavirus pandemic.

Johansson argued that when Disney offered Black Widow on streaming at the same time it played in theatres, it breached her contract, and that this dual release reduced her compensation, which was based partly on box office receipts from what was supposed to be an exclusive run in theatres. While Disney argued that the release of the movie on its streaming platform had significantly enhanced Johansson’s ability to earn additional compensation. This case will surely be closely followed by industry insiders since it publicly begins a debate on how talent and filmmakers should be compensated as the industry business models shift between streaming and theatrical.

In early 2020, as Covid-19 began its deadly march, movie theatres started getting shut and the box office plummeted 80 per cent. At the same time, over-the-top (OTT) media services grew by 37 per cent. The popularity of these platforms became attractive to subscribers because of instant and limitless access to high-quality content at a time many became insulated at home due to the pandemic.

Popular OTT providers include Netflix, Hulu, Amazon Prime, Disney+, HBO Max among many others. In addition, many studios began releasing films directly to consumers via premium video on demand (PVOD) or on their own streaming platforms.

With the introduction of Covid-19 vaccines, the United States and countries worldwide are now looking to emerge from the grip of the coronavirus pandemic. Movie theatres are reopening with certain mask-wearing and social distancing mandates. Around 85 per cent of the US cinemas have reopened, according to Comscore, which is the highest percentage since March 2020. Yet, recent theatrical openings have fallen short of expectations.

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Only Black Widow ($80 million), F9: The Fast Saga ($70 million) and A Quiet Place Part II ($47 million) came close to the opening weekend hauls that would have been expected prior to the pandemic and still fell short of their expected blockbuster prospects in that they were all sequels in popular, pre-existing franchises.

In addition, all three movies had disappointing second-weekend drops. Black Widow saw a 68 per cent tumble in its second weekend, the worst-ever for a Disney released Marvel title, F9: The Fast Saga had a 67 per cent decline while A Quiet Place Part II saw a 59 per cent drop.

Hollywood has now been dealt a new headache with the spread of the Covid-19 Delta variant which may have played a role in recent disappointing box office takes. In a poll conducted 1 August by The Hollywood Reporter, where prospective viewers were asked if they were comfortable going to a movie theatre, across all demographics, percentages were down. In all movie-goers, the poll came in at 70 per cent down from 81 per cent on 11 July. This drop, in less than three weeks, reveals just how the Covid-19 pandemic is making it virtually impossible for studios and movie theatres to formulate a business plan.

As far as the debate on which is more profitable, theatrical or streaming, the answer is complicated and fluid. Not only do production and marketing costs need to be considered but also the ever-changing landscape ushered in by the coronavirus pandemic and its potentially far-reaching effects. When this dark pandemic cloud has lifted, will the consumers be ready for dinner and popcorn movie nights out again, or has being comfy at homes streaming movies with the kids taken a hold? Maybe a bit of both but to what degree?

In Screenrant, Stephen M. Colbert makes the case that movie ticket sales were drying up pre- pandemic while streaming is becoming more profitable, especially for studios with their own streaming service. In addition, studios share around half of their box office with theatres, whereas they get to keep the lion’s share of streaming revenue for their own content on their own platform.

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In Investopedia, Dina Zipin observes that major Hollywood studios can bring in $250 million in profits from a single film, while a respected cable network like HBO can make money off a huge hit like Game of Thrones, which costs millions to shoot. Since unsuccessful projects and financial flops are par for the course, there is no guarantee which shows or potential franchise will be the year’s great moneymaker.

A case study of the hybrid streaming/theatrical model could be illustrated by A24’s release of the medieval fantasy, The Green Knight starring Dev Patel. A24 pumped up the social media buzz about the movie which also benefited from Patel as a huge draw as a leading man. A24 chose not to put it on PVOD but waited until the perfect time as restrictions eased to release the film in theatres. Then, in a new mixed release strategy, slated a one-day streaming event. The film opened No. 2 in theatres on 30 July 30, right behind Jungle Cruise, outperforming expectations with close to a $7 million weekend take. The data from the one-day streaming event on 18 August has not yet been released.

With FDA granting full approval of the Pfizer vaccine and with increased calls for proof of vaccinations by employers, as well as by restaurants, gyms, bars, concerts, and sporting venues and movie theatres, it adds a new layer in our return to “normal.” The page on how talent, studios, streaming services, movie studios, and others in the industry will deal with this is yet to be written.

Hollywood

The man who dubbed Harry Potter for the world is stunned by Mumbai traffic

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MUMBAI: Jacques Barreau has spent two decades helping Hollywood speak the world’s languages. From The Lord of the Rings to Harry Potter, the dubbing specialist at TransPerfect Media has built a career on making stories travel seamlessly across borders. Yet nothing in his global playbook quite prepared him for Mumbai’s streets.

On his first trip to India, Barreau is not sightseeing but sprinting between workshops and conferences, evangelising the craft of localisation. “I’m not enjoying it at all; I’m just working,” he says cheerfully. “Work, work, work. But I’m very happy and excited to share my knowledge. I just have to come back to discover more of India.” For now, India remains largely unseen beyond studios and seminar rooms.

The culture shock, however, has arrived in full force, on the roads.

“What surprises me is how people don’t get killed every day while riding their motorcycles in the traffic,” he says, still sounding incredulous. He has seen congestion in Vietnam, Rio de Janeiro and São Paulo. Mumbai, he insists, is another league. “Everybody is crossing in all directions. I’ve never seen anything like it in my life.”

Food, at least, poses no such puzzle. Barreau approaches Indian cuisine the way he approaches dubbing: as variation on a universal theme. “Indian food is just a local variation of world cuisines,” he shrugs. “It’s all the same with different variations. Overall, it’s all good.”

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That instinct for finding common structure beneath surface difference runs through his philosophy of sound and storytelling. As a classically trained musician and jazz player, Barreau leans on ideas from The Golden Number, a book on proportion he studied at the conservatory. The same ratios, he argues, shape concertos, paintings and even a snail’s shell. Art, at its core, follows patterns.

“Proportions are very important. They’re very similar across different art forms all over the world,” he says. A concerto has an introduction, development and conclusion; so does a well-built story. The principle travels.

Voice acting, in his view, is no different from music. The task is to grasp the creator’s intent, then reinterpret it without betrayal. “I understand how a character works, then I adapt it to my language, to my culture,” he explains. Indians, Chinese and Italians do the same for their audiences. Local flavour, global skeleton.

Barreau’s mission in India is to pass on that thinking to a new generation of voice talent. The Taj Mahal remains on his wish list, deferred to a future trip. For now, the classroom calls louder than the tourist trail.

He may help films cross borders for a living, but Mumbai has reminded him that some crossings, especially at rush hour, demand more courage than craft.

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Sony’s subscription story hits pause in a paid-user pullback

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MUMBAI: When the music keeps playing but fewer listeners stay on the dancefloor, it’s hard not to notice. Sony Group Corporation’s latest financial disclosures point to a sharp slowdown in paid subscriber momentum across its platform businesses, tempering an otherwise steady revenue performance.

At Sony Pictures Entertainment (SPE), operating income fell 11 per cent year on year to Rs 1,635 crore, down from Rs 1,850 crore a year earlier. Quarterly sales declined 12 per cent to Rs 19,050 crore, compared with Rs 21,740 crore in the same period last year, reflecting softer performance across films and television.

The pressure was most visible in motion pictures. Revenue from theatrical, home entertainment and streaming slid 7 per cent to Rs 6,575 crore, down sharply from Rs 9,200 crore a year earlier. While Sony released five theatrical titles during the quarter, the comparison was weighed down by the absence of a breakout hit like Venom: The Last Dance, which alone generated roughly Rs 3,970 crore in the corresponding quarter last year.

Television production revenues also weakened. The TV unit posted sales of Rs 5,960 crore, a 10 per cent decline from Rs 6,620 crore a year ago, despite a steady pipeline of scripted shows and long-running broadcast staples such as Jeopardy! and Wheel of Fortune. The numbers underline a broader challenge facing global studios: strong content output does not automatically translate into subscriber growth or retention.

The media networks business offered some relief, with revenue rising 10 per cent year on year to Rs 6,430 crore. Sony ended calendar 2025 with 535.2 million subscribers across its television channels, but the latest quarter signalled slower paid subscriber momentum across platforms, as audiences increasingly reassess subscription value amid rising costs and abundant choice.

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The same theme echoed in Game & Network Services. Operating income rose 19 per cent to Rs 11,080 crore, helped by higher software sales and currency benefits. However, segment revenue dipped 4 per cent, and PlayStation 5 hardware sales fell to 8 million units, down from 9.5 million units a year earlier, a notable drop in what is typically the strongest quarter for console sales. While PlayStation Network monthly active users climbed to 132 million, up from 129 million, engagement growth has yet to fully offset softer paid conversion and hardware momentum.

In contrast, Sony’s music division struck a stronger chord. Quarterly sales climbed 13 per cent to Rs 42,320 crore, while operating income rose 9 per cent to Rs 8,300 crore, driven by robust streaming and catalogue performance across global artists. Music once again emerged as the group’s most resilient entertainment pillar.

Yet beneath the topline, Sony acknowledged a material drop in paid subscribers across parts of its networked and digital entertainment platforms, reflecting tougher consumer choices and intensifying competition.

The impact was most visible in Sony’s Game & Network Services and Pictures segments, where growth in digital services revenue was partly offset by slower subscriber additions and higher churn. While digital software and network services revenue still grew, hardware sales declined and platform engagement softened, signalling pressure on recurring subscription income

Sony’s filings show that although network services revenue rose during the period, the pace lagged earlier quarters, underlining the challenge of retaining paid users in a market increasingly crowded by global streaming, gaming and short-form content alternatives. In the Pictures business, direct-to-consumer revenues were weighed down by weaker subscriber traction, even as traditional media networks delivered modest gains.

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The broader backdrop is changing consumer behaviour. With price hikes, subscription fatigue and a flood of competing platforms, users are becoming more selective about what they pay for and what they drop. Sony’s results suggest it is not immune to this shift, even as it continues to invest in content, technology and platform upgrades.

That said, Sony’s diversified portfolio offered a cushion. The Music segment posted solid growth, supported by streaming and publishing revenues, while Imaging & Sensing Solutions delivered one of the strongest performances of the year, helped by demand from smartphone and automotive customers

For now, the message is clear, Sony’s engines are still running, but the subscription gears need tightening. In an era where loyalty is rented month-to-month, even the biggest platforms are learning that keeping users paying can be harder than getting them to sign up in the first place.

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Amazon bets on AI studio to slash costs and speed up film making

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SEATTLE: Amazon is rolling out a new artificial intelligence initiative at Amazon MGM Studios to accelerate film and television production, as soaring budgets squeeze output and the entertainment industry braces for disruption.

The company has set up an internal unit dubbed AI Studio, led by Albert Cheng, a veteran entertainment executive, to develop tools designed to cut costs and fast-track creative processes. A closed beta programme will launch in March with selected industry partners, with early results expected by May.

Cheng described the unit as a small, agile “startup” operating under founder Jeff Bezos’s “two pizza team” philosophy, made up largely of product engineers and scientists alongside a smaller creative and business group.

Amazon is publicly embracing AI to tackle the rising expense of producing shows and films, which has limited the number of projects studios can fund. Cheng said the technology would accelerate production but not replace human creativity, stressing that writers, directors, actors and designers would remain involved at every stage.

The move comes amid growing unease in Hollywood, with leading actors voicing fears that AI could erode jobs and reshape the industry.

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Amazon has also been pushing AI adoption across its businesses following the largest layoffs in its history, cutting around 30,000 corporate roles since October, including positions at Prime Video. The company pointed to productivity gains from AI as one factor behind the restructuring.

At Amazon MGM Studios, the AI team is focusing on tools that bridge the gap between consumer AI applications and the precision required for cinematic production, including improving character consistency across scenes and integrating with industry-standard creative software.
 

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