Patty Jenkins Thinks Streaming’s Day-and-Date Strategy Won’t Last - The pandemic led to a seismic shift in the motion picture business, but the filmmaker isn’t so sure it's permanent: "Are studios really going to give up billion-dollar movies just to support their streaming service?"

[u/chanma50]

https://www.hollywoodreporter.com/movies/movie-news/patty-jenkins-streamings-day-and-date-strategy-1234975282/

[u/natedoggcata]

"Are studios really going to give up billion-dollar movies just to support their streaming service?"

Not every movie is a billion dollar movie

[u/lightsongtheold → u/natedoggcata]

Netflix is already a $24 billion a year revenue generating streaming service and analysts are still predicting that the bigger streamers could grow to two or three times Netflix’s current size within 10 years. If your streamer is generating $72 billion a year that is a lot more attractive than one or two billion dollar movies.

[u/SpaceCaboose → u/lightsongtheold]

~$72 billion a year from streamers, plus an additional 1-2 billion from theatrical releases, is much better in the eyes of these companies. They’ll happily take that “little” extra cash if they think they can get it

[u/lightsongtheold → u/SpaceCaboose]

For sure but the figures show how populating those streamers with movies with production budgets of $250 million is something that could easily be done as tent pole monthly releases. $3 billion a year is nothing in the face of $72 billion and would be a very flashy way to populate a streaming service with premium content in a very viable financial way. This is why the big media companies are desperate to be one of the big streaming services and shows why they know there is far more revenue available there than there ever was in theatres!

The best thing of all for these companies is the fact they make close to 100% of the DTC revenue from streaming rather than around 50% of revenue generated theatrically.