As the world grappled with the challenges brought on by the Covid-19 pandemic, the entertainment industry saw a significant shift in how movies were released. Studios initially embraced the theatrical day-and-date model when cinemas were closed, allowing for simultaneous releases in theaters and on streaming platforms. However, it quickly became apparent that there is immense value in the traditional theatrical release model. Theaters serve as an advertisement for a movie’s longevity in subsequent home entertainment windows, providing a platform for films to reach a wider audience and generate higher revenue.
In 2023, streaming platforms such as Apple entered the conversation by recognizing the importance of theatrical releases to eventize their movies. While streaming services offer convenience and accessibility for viewers, they also understood the necessity of the theatrical experience to build anticipation and excitement around their content. The financial data compiled for Deadline’s Most Valuable Blockbuster Tournament showcases the significance of theatrical releases in driving revenue and maximizing the impact of a film’s debut.
A standout example of the value of a theatrical release is Universal/Blumhouse’s “Five Nights at Freddy’s,” a feature adaptation of the popular video game. Despite initial doubts, the horror pic exceeded expectations with its theatrical release, delivering impressive box office numbers both domestically and globally. The success of “Five Nights at Freddy’s” demonstrated that, while day-and-date releases may have their challenges, there are instances where a theatrical debut can significantly contribute to a film’s overall performance.
Universal’s marketing approach for “Five Nights at Freddy’s” played a crucial role in the film’s success. By focusing on authenticity and attention to detail, the studio was able to connect with fans of the original game and build excitement leading up to the release. The involvement of the game’s creator, Scott Cawthon, in the development of the movie further enhanced its appeal to the dedicated fanbase. Social media played a key role in promoting the film, with a wide reach and enthusiastic engagement from horror franchise fans.
While “Five Nights at Freddy’s” proved to be a profitable venture for Universal, there were missed opportunities in terms of revenue generation. The decision to forgo an Imax release over opening weekend potentially cost the studio millions in box office earnings. However, the film’s success in driving Peacock subscriptions and the additional revenue from TV and streaming deals offset some of these losses. Talent participation in the film’s success also contributed to the overall profitability, with net profits reaching an impressive $161 million.
The case of “Five Nights at Freddy’s” highlights the enduring value of theatrical releases in the evolving landscape of the entertainment industry. While streaming platforms continue to shape the way we consume content, the theatrical experience remains a crucial component in maximizing a film’s reach and revenue potential. By striking a balance between theatrical and streaming releases, studios can capitalize on the unique strengths of each platform to create a successful and profitable film.