How New Technology is Helping Theaters Stand Out in the Age of Movie Streaming

Streaming has had a profound impact on cinema. Prompted by this, Kyle Buchanan, in a recent article in the New York Times, asked a bunch of Hollywood execs, producers and directors how movies must adapt in the next few years. The general consensus is that the industry has to innovate, or it will be left behind.

The prevalence of streaming has clearly changed viewing habits, increasing convenience, flexibility, and value for audiences. And with ultra-high definition at home, and technology like big screen 4K televisions and powerful, affordable soundbars offering cinema-like surround sound, there’s also less distinction, certainly for casual viewers, between the home and theatrical experience.

With major studios now even enjoying financial success debuting their big releases on platforms like Netflix and Disney+, streaming has become a critical part of release strategy. Its understandable popularity therefore poses the question: how are theaters fitting into this new equation?

Evolution

In Buchanan’s interview, J.J. Abrams, director of several blockbuster hits including Star Wars: The Force Awakens and The Rise of Skywalker, noted in the past how cinema’s evolution in the 21st century has been an gradual one. However, now things are changing very quickly. The producer of Get Out, Jason Blum, concurred, suggesting there was a distinct anxiety in Hollywood over the last 12 months about how dramatically this flux was now occurring.

Their thoughts come only weeks after a belligerent James Mangold, director of Logan and Cop Land, called the theatrical experience “tragically bad”. He bemoaned “extortionate prices”, poor standards in picture projection, and sound reproduction, and why anyone would want to spend time in the presence of a stranger chowing down on an “enchilada”.

But while his attack on the current theatrical experience in the United States was forthright and damning, Mangold remained optimistic that things could change for the better believing audiences still crave the “big screen” experience. After all, his criticisms appear to be fixable components of the theatrical package.

And as Jonathan Eig writes on Curnblog, streaming is the latest major competitor to an industry which is historically good at overcoming them. Radio in the 1920s, television in the 1950s, and video cassettes in the 1980s were all consumer revolutions that challenged theatrical exhibition. Yet, cinema on the big screen prevailed and in 2018 it posted record highs with $11.88 billion in revenue. One year on, despite the increase in streaming competition, US studios raked in more than $11 billion again as part of the global box office’s record revenues of $42.5 billion.

Embracing Innovation

“Adapt or die” says Kyle Buchanan rather ominously. However, like other sectors, the film studios and cinema chains are doing just that, embracing technology to help differentiate the theatrical experience from the one we see in our homes. Cinema doesn’t have to reinvent the wheel, instead it can seek ways to complement its core product.

Take the online casino industry, for example, and the way operators such as Betway have taken advantage of faster internet speeds and more powerful smartphones to provide live casinos with real dealers present on screen. The games, such as roulette, poker, and blackjack, are no different than what you’d expect to find in a bricks and mortar establishment, but technology has brought a sense of convenience and flexibility.

It’s a similar reason why McDonald’s fast-tracks its food orders with touchscreen kiosks, making the process far easier. Elsewhere, the travel and tourism sector has begun to utilize augmented reality to offer a more personalized service to customers, enabling them to control typical features such as lights and room temperature. In cinemas, we have witnessed IMAX and AMC both experiment with VR suites to complement the movies they’re screening.

Other technologies have also surfaced to underline new potential for theaters. IMAX, which boasts some of the biggest screens in the world, is continually innovating including by working directly with filmmakers such as Christopher Nolan. Furthermore, Dolby Laboratories, through its groundbreaking audio technology, is similarly evolving, recently releasing Dolby Atmos, which adds to the surround sound experience with audio that comes from above and below.

Elsewhere, CJ 4DPLEX is the Seoul-based developer of ScreenX and 4DX. These two formats enhance the traditional way we view a movie on the big screen by retrofitting cinemas with unique new components. ScreenX uses multi-projection to create a 270-degree viewing experience, meaning audiences need to turn their heads left and right to see the extremities of the film’s image. Meanwhile, 4DX established a multi-sensory exhibition, where a moving seat is complemented by additional effects such as water, wind, and lighting. The company enjoyed its strongest year in 2019, and the company also recently announced a new partnership with Disney.

Cinema’s new chapter

Fundamentally, cinemas must offer an experience that audiences are both willing to leave their house for, and can’t get at home. In the theater’s new battle with online streaming, its success going forward may be determined by how audiences embrace innovative technology in the pursuit of something new and unique.