Covid, Strikes & Streaming: Fewer Movies Hit the Big Screen

The number of theatrical movie releases in the U.S. and Canada has seen a notable decline since the onset of the Covid-19 pandemic in 2020. Back then, widespread production shutdowns and public health restrictions disrupted the film industry's pipeline, resulting in fewer films being completed and released in the years that followed. Compounding the issue, the 2023 dual Hollywood strikes by writers (WGA) and actors (SAG-AFTRA) caused further disruption, halting nearly all scripted film production for several months.

Studios have also shifted their focus toward streaming platforms, increasingly choosing to release lower-budget productions directly to home viewers and focusing their theatrical output on big-budget productions, blockbusters and proven franchises. Economic pressures and changing audience behavior have made wide theatrical releases riskier, especially for independent films and smaller productions.

As a result, Hollywood has become more cautious and selective, leading to lower theatrical output. According to Box Office Mojo, 675 movies, including wide and limited releases, arrived in North American theaters last year, up 52 percent from the post-Covid low of 442 in 2021, but still 25 percent below the 2019 level and 19 percent below the 2010-2019 average.

With evolving viewing habits, shorter theatrical windows and a growing emphasis on digital distribution, the future of theatrical film releases appears to be more streamlined, with fewer but larger productions hitting the big screen. Meanwhile, the long tail of low and mid-budget productions has found a new home in the many streaming platforms, making it easier and more financially attractive for studios to forego theatrical distribution and bring their movies straight to people’s homes.