We have written a great deal about how much trouble Hollywood is in. The traditional movie studios are in hot water, seeing box office receipts drying up. There are many reasons for this but it really doesn't matter. The results speak for themselves.

Many seem to feel streaming is the cause of this decline. Actually, Netflix, the leading streaming platform, is seeing a similar decline. We will touch upon this in a moment.

All of this is causing a major shift in the entertainment landscape.

This business is no different than any other. The goal is to minimize risks. Studios are going to recoil for spending big money on speculation. That is what movies are turning into.

Movies Losing Their Place

The latest box office numbers are not encouraging. This is causing estimates for 2025 to be down. We already saw a major decline from the pre-COVID days.

We are seeing a major pullback in the number of films being made.

Now, as theaters face yet another crisis year, with big projects delayed by strikes — the next "Mission: Impossible" and "Captain America: Brave New World" are just two of the high-profile titles pushed from 2024 to 2025 — and grim box office estimates, Netflix is pulling back on original films. The streamer told Variety it plans to make 25 to 30 narrative US features a year after a stated goal three years ago of releasing one original title a week.

As we can see, even Netflix is getting into the act. They are pulling back the number of films they are creating.

Think of what the chart will look like with 25-30 films.

It is a genre that streaming entities are going to have to cut away from.

Netflix and other streamers face a growing problem keeping subscribers, who are canceling more of their services. Part of their answer is to lean into procedurals or long-running TV series that can keep audiences coming back. Movies may cost less to make but might just get watched once. It's partly why streamers will shift away from the genre, Wedbush analyst Michael Pachter told Business Insider.

If streamers are going to shift away from the films, that is going to take a toll considering where the movie theater business is at.

The economics simply are not lining up for streamers.

TV shows are more accommodating of ads than movies. They also account for more watch time than movies do. Netflix's recent engagement report revealed movies made up just 11 of its tOP 100 most-streamed titles for the first half of 2023, according to an analysis by Puck News. More watch time means more ads streamers can show viewers.

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WWE Coming To Netflix

There is a reason why Netflix threw $500 million to get the right to WWE for 10 years. This is a shift that is taking place.

As stated, these entities are not speculators. They have to bet on sure things. It is why they keep rolling out franchises in an effort to keep the gravy train rolling.

We see how this is playing out with the NBA contract.

Here is the future: the rights to sporting events will go through the roof. Advertisers know people tune in for that. This is what companies want.

Certainly, WWE is not consider sports, at least in the traditional sense. It is, however, entertainment that people tune in for, on a regular basis. The problem with streaming is the fact that people unsubscribe after they see what they want. This applies to movies along with seasonal sports.

Perhaps Netflix wasn't so stupid for their payment for something that is year round. In light of some of the numbers being tossed around for the NBA contracts, this is a steal.

Of course, this is a league that is actually seeing its ratings drop and the rights are still exploding. What do you think will happen when the NFL contracts come up. The Super Bowl, as an example, are seeing its numbers consistently jump.

Are Movies Done?

The short answer is no.

We will still have feature length films for a long time to come. Notice none of these numbers are pushing to zero.

What we are going to see is consolidation. These media companies are now having to deal with Big Tech stepping into the game. Here is where things could get very interesting. They are fighting for the same sports rights as the other studios.

The only way for the traditional entities to compete is to cut elsewhere. This means if there is money being spent on sports rights is going up, something else has to be reduced.

We can see this is going to come from the other side of the business. That means television shows and films will have less money available.

This industry was always after the eyeballs and, unfortunately for movies, they are going elsewhere.

We are dealing with a trend that is becoming more solidified with each year that goes by. If 2025 is another decline, that will be 3 in a row. Considering what happened 4+ years ago, that is a remarkable change.

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