How COVID-19 changed the movie industry

At the Cannes Film Festival, the business of film hopes for a comeback.
5:54 | 07/19/21

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Transcript for How COVID-19 changed the movie industry
Emmy nominations were released this week and just like the Oscars streaming dominated at the Cannes Film Festival in France organizers tried resuming some of the festival's traditions. As streaming takes over the movie industry is well. ABC's in as delicate Tara reports on how the festival looked this year. After being canceled and 20/20. The first time since world war two and how it could change going forward it was just strange sight to see. For years and actors once again walking the red carpet Basilan. While throngs of photographers snapped away after more than two years the Cannes Film Festival is back. Some hoping it'll kick start cinemas come back. With go to the movies put on hold for more than a year star is found it overwhelming to get back to normal actor Matt Damon tearing out after the standing ovation he received at the premiere his new film Stillwater. I'm really glad that we're here this year because I think this will all look back and go. That that's remember kind of launching out of Covert and and and what a way to do it could be on the glitz and glamour a little downside of the festival is also resuming the oxy gene world's biggest movie market and actually defend them is really the business have found. Where the last sexy and exciting part of the film passed out hundreds of directors producers seals agency and distributors flocking to tan small seaside town in the south of France to get your movies made console into distributed set up. Just behind the main theater where premieres felt so it's really in a different part of the convention center. And here he's got rows and rows of foods lined up for independent producers and distributors for instance monarch films were the cinema management group just to name a few actually kind of looks like a science there. Power players eager to get back to work hoping deal struck here this year will serve as evidence that business of film is also making comeback. The industry taking a massive hit during the pandemic. Theaters closing and production coming to his stand Stell. The ax call revenue dropping from 42 point three billion dollars and when he nineteenth to just twelve billion in twenty twining according to the motion picture association's annual reports. Here's many quite as seal the agent for California pictures he's been coming to Cannes for years how it changed. The way we watched anything now I mean whether where watching just the Internet on FaceBook Netflix who do whatever I mean work have more eyeballs now on our computer and our phones she says the streaming boom was probably the single biggest disrupt your. Tensions between traditional theaters in streaming platforms had been growing. The problem really came to a head during that can't dent with a controversial release of trolls world tour marking the beginning of a new era. I hit pops. In April of 21. Theaters closed nationwide. Universal Pictures sent shockwaves through Hollywood by deciding to release the film online. AMC the country's largest cinema chain. Responding by temporarily refusing to run universal movie so used to being more at eight professional understanding that you would wait a period of time before you released but now it's really subject to the production and the producer and a feud was eventually resolved but it number of other studios have since then followed suit Disney the parent company of ABC news deciding to release films like Milan and Luka online signals and messages account. More all people killed and Warner media's saying the company would release all of its 20/20 one films on each BO Max this same day they hit theaters executives insist the shift is temporary but the change even prompted the Oscars to change air eligibility rules for his movies first had to be released in theaters to qualify. The academy is now allowing movies released online to participate. And that man released on newly. Eventually winning best picture and Netflix winning seven awards and 35 nominations the most of any studio this year. What the nomads are doing is nothing different than what the pioneers. That's not a piece and can now own festival organizers here deciding to maintain our environments that movie must first air in theaters to be able to qualify. Netflix there for declining to compete in can. And streaming companies and exploded and they needed a lot more verdict which is great because now their asking for more are not ideal our distributor focused on the Latin American market sees upside to decode it streaming them more product is being asked for so that's good but there's also was certain uneasiness in the industry. The fear is streaming services could put theaters at risk. And as more and more platforms begin producing their own contents independent producers and distributors could also find themselves sidelined. Some say studios can't continue bypassing theaters says there's just no substitute for box office revenue and the next couple years it's going to be elect when he bats are Netflix I'm sure Tony piper HBO it's all gonna start going up to where that's going to be unsustainable that I feel are thinks it'll be the opposite. There's going to be more and more stream that from right and with competition the press this will go down. I think it's really not expensive but all right now compared to like tickets in the cinema. Another big question now whether streaming will change the type of con tent that's being put out. On public out of there an American producer attending his first canceled custom. If you see Vick quantity of the content you're seeing lower quality and sense of the story of how things on time. It's unclear what happens next but some aren't hopeful the end of the pandemic will mean a return to theaters no one wants to be in a small apartment got to go out and see people and go to the movies. As people go to church for religion that you go to the cinema to watch a good film some pointing out it was the Great Depression that inspired Hollywood's gold mini bus. Reporting for respect and I'm in as solid but Herat ABC news in hand.

This transcript has been automatically generated and may not be 100% accurate.

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