OPINION: Did the online release of 'The Interview' mark the end for theaters?

Written by Dallas Hyland

It has been said that the difference between genius and insanity is measured by success. 

Taking that litmus into account when considering this weekends unprecedented online release of the motion picture, The Interview, one would be hard pressed to say it was not a bold and successful move on the part of Sony Pictures.

While it has been quantified that the company was in fact hacked by North Korea, and that a subsequent series of threats gave theaters cold feet thus thwarting the release of the comedy, it is hard not to at least consider the notion that some of this was by design.

Anyone who attends opening releases of movies at a theater surely shares the sentiment of feeling somewhat ripped off these days. An average family of five attending a movie will spend upwards of $80 to $100 after tickets are purchased and overpriced treats are paid for. Add to this the feeling of being a target market for advertisers with the pre-show advertorial clips and the thrill and excitement once associated with a theater venture somewhat wanes does it not?

Contrast this with paying only $5.99 for the entire family to stream the movie at home with as many guests as they like, serving up the same treats purchased at the store for literally a fraction of the cost. 

Viewers have up to 48 hours to watch the film once started or can opt to purchase it for $14.99 and have unlimited use immediately, not having to wait for the theater cycle to finish and release on DVD or online. Do the math on that and it is clear that even this price out does the theater option by a shot.

Based on this statistic alone, and the fact that the final count of online views is still unknown, it is not hard to see that movie theaters are going to be in a tough place as they are cost prohibitive in a somewhat fickle supply and demand market.

While Sony may not have intended this, the byproduct of this landmark release will likely be a competitive market in movies whereby theaters will have to compete for the business they once enjoyed having a corner on.

We have all had to eat the costs theaters doled out if we wanted to see the movie when it was released, or we could wait until its more affordable after-release. Personally, I did the latter unless it was a really good movie in my estimation. I like you, have to admit I would much rather see some films on a big screen with a host of others and all that comes with the experience, but often feel that a monopoly of sorts in theaters and movies leaves me with little choice. It’s simple economics.

People will likely still want to go to theaters for the experience but this historic release will likely give way to more like it and the natural affect will be theaters having to compete for first viewing business. This will surely drive theaters to lower their costs, or simply close their doors.

Welcome to our world movie theaters.