Netflix
The year 2024 stood as a rollercoaster ride for the box office. The year kicked off on a sour note, with a flurry of underperforming releases and films that failed to bear the burden after the 2023’s SAG and WGA strikes threw the release calendar into chaos. Thankfully, the latter half of the year witnessed a turnaround, with blockbuster hits like “Wicked,” “Deadpool & Wolverine,” and “Inside Out 2” pulling the industry back on its feet. Yet, the overall global box office still fell short compared to 2023, further stalling the industry’s recovery from the 2020 lockdowns. Amidst it all, streaming services, particularly Netflix, solidified their position as the future of entertainment.
Data from Gower Street Analytics, reported by Deadline, revealed that the global box office revenue for 2024 stood at $30 billion, a decline from $33.9 billion in 2023. This figure includes $8.75 billion from domestic ticket sales, a dip from 2023’s $9 billion. Given the strikes and the sluggish start to the year, the situation could have been far worse. However, a striking statistic paints a clear picture – Netflix’s total revenue for the fiscal year ending in September 2024 was an impressive $37.5 billion, 25% more than the total global box office revenue.
While it may seem like comparing apples to oranges since Netflix is a subscription-based streaming platform offering a mix of movies and TV shows, the message is clear. The streaming sector holds the key to Hollywood’s future. Among the streaming platforms, Netflix emerges as an undisputed leader, despite the heavy competition from Disney+, Hulu, Max, Paramount+, Peacock, and smaller services like Shudder.
The Significance of Box Office in the Streaming Dominated Landscape
Netflix
While revenue doesn’t equate to profit, it’s noteworthy that Netflix has been enjoying soaring profitability, recording over $17 billion in profit for the fiscal year ending in September 2024, marking a 31% growth from the previous year. On the other hand, many theater chains are barely managing to stay afloat, with Cineworld, parent company of Regal, having filed for bankruptcy in 2022, and AMC, the world’s largest theater chain, burdened with billions in debt.
This could explain why Netflix isn’t overly concerned about releasing its films in theaters, even though theater owners would gladly receive Netflix’s films, given the right terms. Typically, Netflix only releases its films in theaters for award eligibility or to please certain filmmakers, showing little interest in box office performance.
Having said that, the box office continues to hold significant importance for the overall health of the movie industry, including streaming. Time and again, it has been observed that films released in theaters perform better on streaming platforms, even if they didn’t do well at the box office. Take, for instance, Nicolas Cage’s “The Unbearable Weight of Massive Talent,” which made it to Netflix’s top 10 charts two and a half years post its theatrical release. Hence, while Netflix originals like “Back in Action” enjoy their moments of glory, their long-term success is a question worth pondering.
In conclusion, there’s no denying that streaming is the future of Hollywood, and Netflix, until a dramatic shift occurs, reigns supreme. However, a healthy theatrical marketplace is essential for the smooth operation of Hollywood. The revenue it generates and the word of mouth it creates are instrumental for films, demonstrating a symbiotic relationship between the two, even if one appears to be the dominant force.
Credit: www.slashfilm.com
