Since movie theaters like Regal and AMC (NYSE: AMC) have been closed due to the COVID-19 pandemic, the impact on the film industry has been staggering. When it comes to the box office specifically, the global loss has already reached $7 billion. By the end of May, losses could reach $17 billion.
China's film market, second only to the United States, has taken the biggest hit with an estimated $2 billion in losses as of March. Global players of the film industry experiencing deep financial setbacks also include Japan, South Korea, Italy, and France.
Considering that theaters haven't been open to the public and won't be for the foreseeable future, many film production companies have delayed upcoming theatrical releases across the board, some until later this year and others until the following year.
Disney (NYSE: DIS)delayed Mulan (live-action) and Black Widow (the latest Avengers film). Universal Pictures (NASDAQ: CMCSA): Fast and Furious 9. Disney's Pixar: Soul. Lionsgate (NYSE: LGF.A): John Wick: Chapter 4. Sony Pictures (NYSE: SNE): Peter Rabbit 2: The Runaway, Ghostbusters: Afterlife, and No Time to Die (the fifth James Bond film with Daniel Craig). Warner Bros (NYSE: T):The Batman, The Flash, Wonder Woman 1984, and The Many Saints of Newark (prequel to The Sopranos). Universal and Paramount's (NASDAQ: VIACA)Paramount Pictures: Sonic the Hedgehog, Top Gun: Maverick, A Quiet Place Part II, and The Spongebob Movie: Sponge on the Run.
In addition to delaying theatrical releases, movie studios also started participating in streaming releases after films only played in theaters for about a month, such as with Universal's The Hunt, The Invisible Man, and Emma.
"Rather than delaying these films or releasing them into a challenged distribution landscape, we wanted to provide an option for people to view these titles in the home that is both accessible and affordable," NBCUniversal CEO Jeff Shell said in a press release.
Universal and Steve Spielberg's Dreamworks Pictures even released Trolls World Tour for streaming on the same day it was in theaters. Generally speaking, the time from a major release playing in theaters to DVD release is at least 90 days.
As a result of this changing landscape, the Academy of Motion Picture Arts and Sciences (AMPAS) has approved different rules governing the Academy Award's Best Picture: streamed films will be eligible, but only for one year.
"There is no greater way to experience the magic of movies than to see them in a theater. Our commitment to that is unchanged and unwavering," said David Rubin, president, and CEO Dawn Hudson. "Nonetheless, the historically tragic COVID-19 pandemic necessitates this temporary exception to our awards eligibility rules."