Over the course of many years, the entertainment industry has been changed substantially. Movie theaters have been hurt immensely, by the growth of online streaming websites. This has also put a strain on movie producers. Netflix and Amazon have led the way, while movie theaters have been forced to take a backseat. What is the current state of the film industry and what will it look like in the future?
Looking For Subsidies
For the past few decades, Florida was known as one of the hottest locations for the film industry. Producers and directors absolutely loved the sunshine state, because it gave them the ability to save money, while filming their latest works. In recent years, this has changed substantially. More and more Floridians, who were once able to acquire work with the studios, have now been forced to head elsewhere. The current filming of “No Postage Required” in downtown Tampa is the exception.
And, there is one single reason for this devastating turn of events. Hillsborough County offers a 10% incentive for filming movies within the area. The state of Florida offers nothing at all. Meanwhile, Georgia and other states have stolen the spotlight, by offering major incentives to studios willing to shoot their movies within the state. In some cases, Georgia offers incentives reaching as high as 30%! Suffice to say, Georgia has become the new Hollywood.
China Taking Over
Meanwhile, it would appear as though America is being taken over by outsiders. Within the past two years, Chinese investors have started to invest in American entertainment companies. The Dalian Wanda Group, which is based out of China, intends to secure 2 separate billion-dollar film deals within the United States this year alone. The company’s chairman, Wang Jianlin, has already bought a controlling at of Legendary Entertainment. This effectively made Wanda the first Chinese company to own a big Hollywood studio. And the group has already spoken with Viacom leaders to try and acquire their stake in Paramount Pictures.
Chinese investors see big potential for the American market. So, it is highly likely that such moves will become more and more frequent in the upcoming years.
Streaming Takes Hold
It has been no secret that the cable industry has been wrecked by online streaming. With the ability to work an abundance of movies online free, consumers simply have very little reason to keep paying for their cable subscriptions each and every month. Comcast, AT&T, Frontier and others have seen major decreases in their cable subscribers and this is expected to continue well into the future. Cutting the cord has become the trend and consumers have discovered that accessing their entertainment content online is more effective and less costly.
Streaming companies, such as Hulu, Netflix, and Amazon have taken over. It should also be noted that movie theaters have saw a major decrease in foot traffic, thus impacting their bottom line.
How will it all play out in the future? It remains to be seen, but it is almost certain the film industry is in for a major revolution. The days of movie theaters are likely numbered. They’ll be allowed a lifeline, until the streaming giants are able to convince movie producers to premiere their movies online exclusively.