Streaming vs. Cinema: Is Streaming Really Boosting the Movie Theater Experience?

As streaming continues to reshape how we watch films, recent findings suggest a surprising relationship between streaming and cinema. However, with a decline in box office revenue and shifting consumer preferences, the question arises: Is streaming truly helping or hurting the cinema industry?

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The Streaming-Cinema Connection: A Complex Relationship

Streaming has become the go-to method for consuming films and TV shows. However, according to a recent survey by Roku and the National Research Group (NRG), it hasn’t necessarily spelled doom for the cinema industry.

According to a released summary of the survey, 61% of streaming viewers have attended at least two films in theaters over the past six months, and 74% have been at least once. This data suggests that streaming and cinema can coexist, with avid streamers also being active moviegoers.

Interestingly, high-frequency streamers, those watching at least 20 hours of streaming content per week, are more inclined to visit cinemas monthly (32%) than their low-frequency counterparts (27%). This correlation indicates that a passion for streaming doesn’t negate the allure of the big screen; in fact, it may complement it. Yet, despite this apparent synergy, box office revenues in 2024 are trailing $3 billion behind the previous year, and only 34% of consumers express a preference for seeing new releases in theaters.

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Why Some Films Demand the Big Screen

Streaming viewers do appreciate certain elements that only cinemas can provide. The survey revealed that 50% of respondents believe some movies, such as the blockbuster hit “Oppenheimer,” need to be seen on the big screen. The immersive visual and audio experience, which many consider superior to home entertainment, is a primary draw.

Additionally, the cinema offers a unique social and experiential aspect. About 46% of respondents view moviegoing as a chance for a night out with friends, family, or a date. The same percentage enjoy the experience of being in a theater, and 44% see it as a treat for themselves. The communal and immersive nature of cinema remains a significant factor in attracting audiences, but this experience is fraught with distractions.

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Doubts About Streaming’s Positive Impact on Cinema

Despite the positive connection between streaming and cinema attendance suggested by the survey, there are concerns about the long-term impact of streaming on the theater industry. The 2024 box office is $3 billion behind 2023, indicating a decline in cinema revenue. Furthermore, only 34% of consumers express a desire to see new releases in theaters, with the majority willing to wait for a film’s digital access. This growing lack of moviegoing interest suggests that, while streaming might keep some audiences interested in cinema, it might not be enough to sustain the industry in its traditional form.

The simultaneous release of films via streaming and in theaters further complicates the situation. While 61% of moviegoing streamers said they would be equally interested in watching a release on the big screen or at home if given a choice, this ambiguity highlights a shift in consumer behavior.

As the convenience and affordability of streaming continue to improve, the traditional theater experience might become a special occasion rather than a regular outing.

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Streaming Platforms as Effective Marketing Channels

Despite the convenience of at-home viewing, streaming platforms can be crucial in promoting theatrical releases. According to the survey, 44% of moviegoing streamers say that watching a trailer for a new film on a streaming service would make them more interested in purchasing a ticket. This link suggests that streaming can be an effective marketing tool, helping drive awareness and interest in new theatrical releases.

Ads on streaming services are particularly effective, with 72% of moviegoing streamers paying more attention to ads they see on television than those on social media. Heavy streaming viewers—those who watch at least 20 hours of streaming content per week—are incredibly engaged, with 47% saying they “really enjoy” watching trailers for films they’re excited about, compared to 41% of light streaming viewers. This engagement can translate into increased cinema attendance, especially for films that generate significant buzz.

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The Influence of Moviegoing on Streaming Behavior

The relationship between streaming and cinema is not one-way. Significant moments in moviegoing culture can significantly influence streaming behavior. Awards shows, for example, shape cultural narratives and impact at-home streaming preferences. Following Emma Stone’s Best Actress win at the Academy Awards, searches for “Poor Things” on Roku’s platform increased by 82%, and searches for “Ryan Gosling” saw a 94% spike.

These trends indicate that cinema’s impact and cultural significance can drive interest and activity on streaming platforms, creating a dynamic interplay between the two.

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Free is a Great Price: The Rise of Free Ad-Supported Television (FAST)

FAST providers such as Tubi, Pluto TV, and Freewee are gaining massive momentum, offering consumers a cost-effective alternative to subscription-based services. According to the survey, one in two streamers have ad-supported services, and almost two in three consumers are willing to pay for an ad-supported service if it offers a lower monthly subscription cost. This trend indicates a strong desire for flexible options that cater to different budgets.

Parents with kids at home are particularly open to ad-supported streaming options. FAST viewers are more engaged—44% spend 3+ hours in a typical streaming session—and tend to use another device while streaming. This cross-screen engagement provides ample opportunities for brands to connect with this audience across multiple platforms.

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FilmTake Away: Adapting to New Moviegoing Realities

The relationship between streaming and cinema is complex and evolving. While streaming viewers still frequent theaters and find value in the big-screen experience, the decline in box office revenue and shifting consumer preferences suggest that streaming might alter the traditional moviegoing market more than help it.

Streaming offers convenience, flexibility, and a cost-effective alternative that appeals to modern audiences. While it can be an effective marketing channel for theatrical releases, the growing preference for digital access and the simultaneous release model will draw audiences away from cinemas.

Ultimately, while streaming and cinema can coexist and even complement each other, their future relationship will depend on how the industry adapts to changing viewer habits and preferences. The key challenge lies in maintaining the unique value of the cinema experience in an age where convenience and on-demand access are becoming the norm.

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