Since the pandemic, many viewers have been avoiding the cinema - due to rising prices, inconvenience and less enjoyable cinema visits. Studios are responding to this with new distribution strategies that better coordinate cinema, purchase/rental offerings (transactional video on demand) and streaming subscription services.

Disney releases films on Disney+ around three months after their cinema release, often after a short period of exclusivity. Lionsgate relies on longer periods in which films can only be purchased or rented before they appear on its own streaming service Starz. Universal distributes its films to various platforms such as Peacock, Amazon Prime and Netflix in staggered time slots. Paramount is experimenting with different models, Sony is sticking to longer exclusivity periods for Netflix, and Warner Bros. is relying on quick buy/rent offers before the streaming launch.

Despite strong growth, streaming services suffer from high cancellation rates as many users no longer see the price as justified. Studios are therefore using strategic "windowing" to release films at staggered times and prices in order to generate additional revenue and retain subscribers. Success at the box office is becoming more important again because streaming services pay better when films do well in cinemas.

Traditional licence deals also remain an important revenue factor. Studios sell rights in stages to different platforms in order to monetise a film multiple times - for example Universal with Peacock, Amazon Prime and Netflix, or Sony with Netflix and Disney.

Today, film distribution is a complex business that is not just about the timing of release, but also about the optimal utilisation of different channels and time slots. Studios that adopt a flexible and multi-stage approach secure competitive advantages, while rigid models are becoming less and less successful.

FILMTAKE reports in detail.