Impact of Warner Bros. releasing its 2021 films in theaters and HBO Max

Breaking down Warner Bros.’ unprecedented move of releasing its 2021 films in theaters and the HBO Max streaming service and the affect the decision will have on the industry.
7:29 | 12/04/20

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Transcript for Impact of Warner Bros. releasing its 2021 films in theaters and HBO Max
Did in a little deeper on this now with ABC news contributor Mike news Mike thanks for joining us longtime atop my friend how think. Bullet impact the film industry and the way we much we watch movies. But things first Diane went happy Friday to you have to stick on it impact the way that we must movies going forward consumer behavior patterns are changing we're change in the way that we shop we used to go into brick and mortar is not regain accustomed to shopping so much on line coach and now we're sitting at home and as global pandemic ever used to receiving content now from the conference of our couch. I think as more Americans and as consumers get comfortable with. Watching us so when Netflix or our favorite streaming platform having our own food of choice having our own beverage of choice which isn't hitting us in the pockets for a 3540 dollars from bucket of popcorn and a soda. I think that we're gonna ends are enjoying that a little bit more and then the idea of trying to convince us Siegel from the couch. To the move mediators going to be that much more challenging because I and what used to happen was the big studios used to say that the black box by block busters for the theater release this but if you're gonna release wonder woman in. Out there. Big budget film now right at home what is now the incentive to go aviator as a whole but I think invented to the business side did that was a consumer science than that this is respected. Patsy take their pro stat I'm actually glad to see Warner doing this I think they recognize that the trend this coming people would not be going back at the gators as a set us fighting yet. Trying to hold on to this old narrative is old tradition of how we receive our content. They're trying to get it had a bit trying to be more advanced. To make sure the consumers used to seeing their movies streaming and the lights and. Other ways. And Mike I am team couch that my husband has a movie about that he cannot wait. To be backing it appeared her with a big giant oversized bucket of popcorn and a whole lot beyond the people around him. Our are there enough people like that. Out their T sheep that the movie your industry alive once this pandemic is over. Diana I love your house entries a great guy now. I think yeah. Let me ask you for the how about Lubbock but here's the think there's just not enough time when you think about it. Televisions are getting so much more cheaper now if you look at the Cyber Monday a Black Friday Seles gave it to inch televisions rod -- billion dollars that the sound bars in the shuffle for that make that surrounds inexperience then becomes so much more cheaper you're seeing packages at a hundred dollars 200 dollars Matt -- able to create the big sound effects that you were normally used in creator now in a conference of your home and think about it if you invest. 200 dollars. For a surround sound system a 182 bucks for television you looking at still under 400 dollars over the course of the year you're saving that much more by staying at home than you would purchasing a ticket going to dinner and dinosaur in the popcorn at home serious savings and got much more on that on the better side for the consumer if you choose to stay home and I think this is why it's going to be it's how was I don't see. People going to the gators on a Friday night release NG rolls the way that we used to there's something alluring about sitting at home now and re used to cheer rating right now you secure raiding social distances with our friends. In our own home now when so it's going to be its housing units conciliator but I think it's taken acute Diane in the music business into remember who live wire Napster the music business didn't see that and bad innovation economy they tried to fight the way they tried to sue their way I did it to keep it to go back to purchasing CDs and a Tuesday what you see now movies music on Friday on digital streaming but think about that diet that they would have. Honda Civic innovation and part of consumer behavior trends early on. The music business might have a better bottom line at caution in what they do now. Don't watch that. The studios are noticing that in their thing hanging it up I think what's happening you to go pandemic why don't we embrace it be innovative that we can increase our bottom line. I had the studios may be embracing it but this interchange not so much AM see years already put out a statement saying they're not happy with this decision and that. You know there they're going to be doing whatever they can preserve dare economics now appears have already taken a huge hit during this pandemic so what is this all means for their. Future. Diana's I love you you always bring so many sides and a point just as important topics. Yes I was talking about the consumer side yes his heart about the studios. But we forget a lot of negotiator some of them are independent distributors and in the aren't Smart town right around Atlanta miss again and we get that there are being hit a deer income Ross into forgetting that a lot of these concession stands out our first jobs for high schools do it right these are first stops for people who are looking for employment so this does actually have a ripple effects of the local economy aspect of it from individuals being able have a chance to work and also to -- -- we think about those theaters because dining tickets that Smart script but it just. There's still a very small business dynamic when you really think about it that in the long run and so distributors are gonna take a very hard hit there is no if men out of buts about it there's no way I can spend that has the harsh. Reality and to what they need to do Diana's find a way to be innovative as well date can't sue they ran out of this. Again we saw what happened in the music business when you protests and when he soup. You end up having succumbed so when I will encourage those temperatures are doing just finding ways to be inundated with the space that they had asked. And find new ways to create more innovative digital technology in con tint. To bring may be a hybrid system that is both streaming and some type of physical space for Cuba can receive the content and then finally the other streaming services should we expect similar announcements on the line. Absolutely I think we're now gonna be enough I thought streaming right because you have distinct class you have to look he had Amazon I ninety had HBO Mack who's really making a huge plate lately but the content that there be receiving. A gonna start seeing streaming service is really go at each other in a very competitive way that's good for the can stay is two advantage of that diet. That's good for the consumer right because we get cheaper subscriptions because when you are describing to Disney Hulu Amazon Netflix. Accepting of description assembly Democrats are seeing a competitive. Our pricing structure should begin to go down due to competition. But the other side and that we haven't talked about the content creators write a particular content creators wrote women who entity content creators who are people of color normally those individuals and demographics don't get the marketing budgets that they need to get people to go from their homes that the eight years. But now it you're watching it on the streaming site and you can get it on demand. People are more than likely willing to take a chance on new content creators and new film titles are new projects. But also to people are curious since Laura content because we are sitting at home and after that two hour. Film ends you're looking for more right and though you may humans are exporting curiosity or the recommendations that but due to an algorithm that hand so I think there is an advantage for consumers and for content creators more importantly why you do always thought the price army my news out of many things about your. Yeah.

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

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