Cinema revenues in Australia are projected to decline gradually over the next 5 years primarily due to cheaper substitutes on offer for consumers
Netflix has paved the way for cinema disruption and distributed 75 original films in 2018
Fellow disrupter MoviePass has continued to struggle due to an unprofitable business model
The pinnacle of cinema in Australia occurred at the turn of the millennium when one of the most popular forms of entertainment for kids and adults alike was to go to the local movie cinema and see the latest Hollywood blockbuster. Over the past two decades there has been a massive change to the cinema landscape with consumers turning to cheaper alternatives as technology improves such as the introduction of the DVD and more recently SVOD platforms. Traditional distributors and exhibitors have been relatively conservative in their reaction to the changing market as they have tried to maintain revenues by increasing pricing and have consequently barely scratched the surface of innovation.
To assess the direction of Cinema in Australia it is important to analyse the performance of disruptors such as Netflix and MoviePass. It is similarly important to examine what traditional distributors are doing to innovate, such as Disney’s recently announced SVOD service.