Netflix vs. The Film Industry

The argument that streaming services are killing the movie theater industry has been a popular theory for years as many believe that millennials would rather stay home and watch Netflix than go out to the theater; however, in an article by The Hollywood Reporter, John Fithian , President and CEO of the National Association of Theater Owners, seems to lay these concerns to rest when he said, “there has been disruption in this industry, just not in the movie theater industry.” Fithian made this statement during a presentation at CinemaCon while discussing the growth of the movie theater industry and how movies benefit from a global perspective. Many would still argue with Fithian about the health of the industry, but he was able to back up his statement with a study which stated that worldwide revenue hit an all time high of $38.6 billion dollars in 2016, which includes a 40.2 percent increase in income for domestic movie theaters. From there, Fithian told the audience that the study also found that “Open and diverse societies drive movie attendance,” which was exemplified by the United States as it saw a jump in African American movie goers by forty seven percent from 2015-2016. While there is a lot of debate about the effect streaming services are having on the film industry, this seems to make it clear that movie theaters are still doing very well and aren’t going to be usurped by Netflix anytime soon.

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