Theater Owners Chief John Fithian Argues Streaming Is Not a ‘Sustainable Business Model’ and Studios Need Cinemas for Profits

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During the pandemic, studios experimented with shrinking the amount of time that their films screened exclusively in cinemas, while spending oceans of money to launch streaming services. But the de…

, the head of the National Association of Theatre Owners, the trade group behind the show, touted the new state of play during his speech to the convention, while praising Apple and Amazon for embracing the big screen with movies like “Air” and the upcoming “Killers of the Flower Moon” and “Napoleon.” Both of these companies will reportedly spend more than $1 billion on theatrical films.

Fithian said that debuting a movie in cinemas makes people more likely to check it out on streaming because it gets more attention for a film. Nine out of ten people are aware when a movie comes out theatrically and 50% of them are more likely to check out that film on streaming. “Movie fans want a theatrical release to help them decide what their best viewing options are,” Fithian argued.

Fithian, who oversaw NATO as COVID shuttered theaters and pushed for federal funds to support the industry, will be replaced by Michael P. O’Leary, who has served in senior positions at the Entertainment Software Association, 21st Century Fox, the Motion Picture Association. He also worked on Capitol Hill and at the Department of Justice.

 

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Theater Owners Chief John Fithian’s Parting Shot at CinemaCon: “We Are Not in the Widget Business”The NATO leader is exiting on a high note as the box office moves beyond the COVID-19 crisis, saying that theatrical and not streaming remains the keystone of the movie industry.
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