Spider-Man: No Way Home's massive reported profits may throw a wrench in the move towards shorter theatrical windows.
While the rise of streaming has long been shaking up traditional theatrical models, the COVID-19 pandemic accelerated things. With movie houses shuttered and audiences weary of going to theaters even after they reopened, many studios began sending their films straight to streaming. The strategy coincided with those same companies launching their own streaming services, requiring engaging content to attract new subscribers. Warner Bros., for instance, sent all of its 2021 theatrical releases to HBO Max day-and-date, drawing the ire of theater exhibitors. But then, along came Spider-Man: No Way Home, which shattered box office records, earning $1.89 billion globally and proving to Sony Pictures that a longer theatrical window could net massive profits.
According to Deadline, No Way Home made more than $610 million in profits, easily justifying its estimated $200 million budget (not to mention marketing costs). It also proved that the traditional "only in theaters" model could still work in the pandemic and streaming age.
"Our theatrical model is driving our success and that is our core business," Sony Pictures Motion Picture Group President Josh Greenstein said. "Our biggest movie ever had the longest window."
While the pandemic certainly shook things up, as theaters began reopening and audiences began tentatively returning, studios were left with a quandary. For a time, attendance was still down, leading to Warner Bros.'s controversial move and Disney sending Black Widow to streaming and theaters at the same time. That latter decision led to star Scarlett Johansson suing Disney. Eventually, WB agreed to a 45-day theatrical window, and NBCUniversal followed suit. This new window, far shorter than the traditional one, would allow theaters limited exclusivity before streamers like HBO Max and Peacock got to strengthen their offerings with relatively fresh films.
Sony, however, is one of the few major studios without a streaming service to flesh out. While the company has bypassed cinemas and licensed some films to streamers, like Hotel Transylvania 4, it mostly believes that the big screen is the best business move. "Streaming is additive to our business," Greenstein said. "It's not our core business. We participate in the streaming economy strategically with certain films. We've licensed some films to streamers during Covid, but our long-term big business model will always be driven by theatrical."
No Way Home broke most box office records when it hit theaters, and its unusually long theatrical window kept the profits coming in. Of course, a film can still do well with a shorter window. The Batman, for example, managed to break $750 million worldwide in just 45 days before jumping to HBO Max. While more Spider-Man films are in the works, not to mention various spinoffs, there's also no guarantee that a theatrical release will be a hit. Sony may have managed a miracle thanks to Marvel Studios' involvement, but the recently released Morbius didn't even come close to No Way Home. For now, it seems both traditional theatrical models and newer strategies involving streaming will have to coexist.
Spider-Man: No Way Home is now available on Digital, Blu-ray, and DVD.
Source: Deadline