To what extent is digital distribution vital to the media area you have studied?
Digital Distribution is vital to the film industry, especially in current times. In recent history, digital distribution has become increasingly important. At first, movie exhibition took place entirely in theaters, then VHS, BETA tapes and eventually DVD’s were available to rent or buy and movies played on cable TV channels. Then, digital services entered the industry and people could rent or buy movies and subscribe to streaming services that allowed them to view films without ever leaving their home. Now, movies are skipping theaters altogether because of the coronavirus pandemic.
Currently, the coronavirus has had a large influence on increasing the digital distribution of films, to a point where the industry almost entirely relies on it. For example, studios like Walt Disney Pictures, who have their own streaming service, are using synergy to capitalize on global theater closures. Disney had a movie, Onward, scheduled to be released in movie theaters, but instead of delaying the release of the movie, they released it digitally. Disney made the film free with a subscription to their streaming service, Disney plus, and made it available to rent or buy on other streaming services. While this film was successful, it may have been even more successful if it was released in theaters. According to Box Office Mojo, Onward made around $61,500,000 while The Angry Birds Movie, which was released in movie theaters made about $106,000,000 domestically. From personal experience, I can say that I have a subscription to ‘Disney Plus’ and I watched Onward without any surcharges, meaning Disney did not make any additional profit from me.
Beauty and the Beast, released in 2017, made almost 1.3 billion dollars worldwide and some of those earnings can be attributed to digital distribution. Beauty and the Beast was released on Digital HD almost 3 months after it was released in theaters. The movie was also released onto ‘Netflix’, but taken off quickly, because Disney decided not to renew their contract. Disney made this decision because at that time they were brewing ‘Disney plus’ and wanted to keep the film ‘in-house’. Guardians of the Galaxy Vol 2, made a lot of profits digitally as well. For example, while the movie was available to buy on DVD and Blu-ray on August 22, 2017, you could buy the movie on Amazon Video and iTunes on August 8. The film was released digitally first, because it is much more popular to buy movies from home instead of on a DVD. Now, the movie is available to buy or rent on many different services and is available with a subscription to Hulu, showing that digital distribution is still making Guardians of the Galaxy Vol 2 profitable even three years after the movie was released.
Overall, digital distribution is vital to the film industry. Before the pandemic, digital sales had shown their worth through popularity and profits. Not only do many production studios rely on digital sales to make their movie successful, but now many rely almost entirely on digital sales. Although only releasing a film digitally may not be as profitable as also releasing it in movie theaters, it may be a better alternative to delaying the release for an uncertain amount of time. In conclusion, the film industry is always evolving and digital distribution is critical to the industry’s future.
