Universal Studios Reminds Us How Much Movie Studios Still Need Theaters
The COVID-19 pandemic has been massively disruptive to the market, but it hasn't been equally cruel to all businesses. At particular risk are companies that rely on public gatherings. Expert recommendations, government regulations, and consumer preferences -- as well as moral obligations -- have led to the shuttering of everything from sports arenas to bars.
Among the businesses suffering from the big and sudden changes are movie studios like Comcast-owned (NASDAQ: CMCSA) Universal Studios. Box office receipts, as it turns out, are hard to come by during a pandemic. But Universal has a plan for salvaging the coming weeks and months: It's offering digital rentals of films currently in theaters. For an eyebrow-raising $20 a pop, customers can stream films that are still in the midst of their theatrical run. It's an interesting workaround for a difficult time, and also a reminder of how much films rely on theaters to earn profits.
Image source: Getty Images.
Source Fool.com
