- Movie theatres across the United States are set to re-open over first half of September
- Success of OTT platforms during COVID-19 lockdown had led to concerns about future viability of movie theatres
- Successful launch of ‘Tenet’, a Hollywood spy action thriller released in international markets ahead of its US domestic release, has revealed significant amount of pent-up demand from avid movie goers
- The Movie Studio is currently engaging in filming process of three major motion pictures
Film production companies have been forced into a temporary lull over the past few months, as COVID-19 related restrictions led to wide-ranging cinema closures around the world. This past week, however, has brought about the initial signs that a recovery may be afoot, promising news to companies like The Movie Studio (OTC: MVES), an independent Florida-based film studio. Cinemas are back in business, following the longest hiatus since movie theatres first came into being in the early 20th century, heralded by the launch of Warner Bros.’ “Tenet”, a spy action thriller. Simultaneously, over the first half of September, nearly 40% of U.S cinemas are expected to resume operations – a move keenly awaited by various stakeholders within the US film industry.
As of the end of August, less than 1,000 U.S. theatres were estimated to be open, of which 300 were classed as drive-in cinemas. However, over the first ten days of September, three of the largest U.S. movie theater chains—namely AMC Theaters, Cinemark Theaters and Regal Cinemas—are set to re-open anywhere from up to 40% of their theatres to the public. The move has been mirrored by a marked increase in film marketing in recent weeks. During the two week period between August 7 and August 20, U.S movie studios spent $10.5 million advertising their upcoming film releases on national TV networks – with approximately 2,219 individual advertisements airing during that interim. In contrast, a mere $216,965 was spent in total by movie studios engaging in national TV marketing efforts in the previous two-week period – July 20 through August 6 (http://ibn.fm/Yrmj4).
The COVID-19 pandemic has led to a remarkable shift in the film industry’s business practices. The OTT industry has seen a surge of interest, with the likes of Netflix and Disney+ adding 26 million and 54.5 million paid subscribers over the first half of the year, respectively (http://ibn.fm/Lu958). The increase in viewership along with the spate of original content programming launched on both platforms had led to doubts on whether home-bound viewers would ever return to the cinemas in similar numbers to those seen prior to the outbreak. However, the release of Tenet has shown that there has been a significant amount of pent-up demand built up amongst cinema viewers over the past few months.
Unusually for a major Hollywood theatrical release, Tenet was released across the globe on August 26 with the US domestic release scheduled for September 3. However, the film has reportedly already grossed over $53 million in worldwide box office revenues following its first weekend release, proceeds which have already placed it 9th on the list of 2020’s top-grossing US films from international markets (http://ibn.fm/1FfHn).
The Movie Studio is currently engaging in the filming of three major motion pictures, namely ‘Pegasus’ – a family drama aimed towards general audiences; action-packed adventure movie ‘The Last Warhead’; and catering to the crime film genre, ‘Cause & Effect’ (http://ibn.fm/jdXb9). With cinema audiences seemingly anxious to return to movie theatres, film producers such as The Movie Studio Inc. stand to benefit as mainstream film releases once again become an option for movie studios looking for alternatives to OTT content launches.
For more information about the company, visit www.TheMovieStudio.com.
NOTE TO INVESTORS: The latest news and updates relating to MVES are available in the company’s newsroom at http://ibn.fm/MVES
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