Introduction: A Defining Moment at CinemaCon
The annual CinemaCon event was when David Ellison made headlines and formulated a very audacious plan for Paramount Pictures. It could be clearly seen from his speech that Paramount Pictures will make certain major changes in the future regarding the way it plans its distribution model – whether it goes with the traditional theatrical release or adopts the streaming version of filmmaking.
A Strong Commitment to Theatrical Releases
The first piece of information from Ellison’s speech concerns the rising interest in theaters on the part of Paramount. In particular, Paramount guaranteed at least 45 days within which their films will only be available for viewing in theaters.
This measure is significant because now the question of theater release windows is one of the most heated issues in the American movie industry. Many studios have decided to abolish theater release windows or reduce them drastically in favor of fast digital distribution via Netflix. Such a move would unequivocally mean that Paramount acknowledges theater release windows too.
The message is quite clear – theater release windows are up-to-date and serve the purpose of being crucial for the commercial success of any movie. Theater owners, who have been struggling for theater release windows, were happy to receive such a message.
Redefining the Streaming Strategy
In highlighting theatres, however, Ellison also took into consideration the streaming strategy of the studio. The company intends to adopt an organised release strategy where movies will run for 90 days on streaming sites before being put up on Paramount+.
This is an indication that Paramount has become more deliberate about its streaming strategy. Rather than releasing movies for their streaming service as soon as possible, Paramount is focusing on generating maximum income from theaters and premium digital streaming. This will give the company time to earn while sustaining customer interest.
The new strategy also emphasizes the significance of the emerging hybrid approach. Instead of pitting streaming services against movie theaters, Paramount Pictures is trying to implement a model in which both platforms prosper.
A Larger Vision for Film Output
Ellison further pointed out that the company would increase the volume of movies released per annum. Paramount intends to make a substantial increase in the number of movies being released into theaters in the future.
It is a strategy in their quest for sustainability in an environment that is filled with numerous options. In their desire to satisfy the demand of the numerous streaming platforms and theatres that require regular supply, it is essential to produce many movies.
Furthermore, using this strategy can also help the company create more prominence within the industry by continuing to churn out movies that keep their brand active and current.
Industry Implications and Competition
Ellison’s statements arrive amid an era when the entertainment industry is experiencing immense changes. Streaming platforms have changed the dynamics of the industry in many ways, leading the way to new business strategies for film producers.
The distinguishing factor of the strategy adopted by Paramount Pictures is the balanced use of both theatrical and digital distribution channels rather than solely concentrating on a strategy based on streaming services only.
This decision will definitely have an effect on other production companies to think about their strategy again. If this strategy works for Paramount, it might inspire many others to use theatrical windows once again.
By Ramses Cantu Lizarraga
A UNLV film student and aspiring journalist covering film, media, and pop culture with a focus on storytelling and industry trends.
Sources:
Variety: David Ellison Pushes Theatrical at CinemaCon
Featured Image Courtesy of Ramses Cantu Lizarraga’s Flickr Page – Creative Commons License
