At the Movies: Battling Box-Office Blues in an Age of Streaming

From subscription services with generous discounts on concessions to comfier theaters, the film industry is moving aggressively to get more people off their sofas and to the box office, says Drew Borst of Goldman Sachs Research, so far with mixed results. Some efforts (think: reclining seats) are likely to prove more successful than others (think: forays into alternative content like eSports), he says. But one constant is likely to be a heavier reliance on big-budget blockbusters to draw audiences even as TV ups its game. "In television, the hits keep getting smaller and smaller and smaller as the supply has ballooned. It's become a crowded marketplace, and it's difficult for even a very well-produced, high-quality series to stand out," Borst says. "In movies, it's just the opposite. The hits are getting bigger and bigger...in the United States, but also globally." This podcast was recorded on May 16, 2018. All price references and market forecasts correspond to the date of this recording. This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this podcast does not constitute research or a recommendation from any Goldman Sachs entity to the listener. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. The views expressed in this podcast are not necessarily those of Goldman Sachs, and Goldman Sachs is not providing any financial, economic, legal, accounting or tax advice or recommendations in this podcast. In addition, the receipt of this podcast by any listener is not to be taken as constituting the giving of investment advice by Goldman Sachs to that listener, nor to constitute such person a client of any Goldman Sachs entity. Copyright 2018 Goldman Sachs & Co. LLC. All rights reserved. Learn more about your ad choices. Visit megaphone.fm/adchoices