The outbreak of COVID-19 has impacted the film industry enormously, from production delays to massive layoffs. To support our community of industry professionals and film lovers, CIE presented a special internal Speaker Series, entitled “Film Industry Under COVID-19,” on May 3 We were thrilled to have Maria Lo Orzel, Head of Asia Task Force at Producers Guild of America, and Derrick Hsu, Chief of Staff to the President at Stampede Ventures, join us to discuss industry trends, short- and long-term impacts, and post-pandemic plans.
The Pandemic: Crisis vs Opportunity?
Derrick: Although many productions are shut down, the shift to streaming services is an ongoing trend. Notably, animations, especially content for kids and family, sees increasing popularity due to the work-from-home order. Streaming platforms that already caught the animation trends feel less pressured by advertisers during the pandemic.
Maria: There may be a huge demand for content after the pandemic. Filmmakers and producers should better prepare themselves during this hard time.
Trends: Streaming Services vs Traditional Networks
Derrick: Film studios used to have both theatrical and VOD channels as sources of revenue but are now left with the latter channel. As the benchmark of streaming content is getting better, companies should consider improving cinema experience.
Maria: The theatrical window is a business requirement driven by the market. Especially in Europe and the US, the theatrical release is still in demand; it is a marketing tool and part of the expense, rather than income, in our business models. On the other hand, streaming services are like food delivery to your home, whose developments do not shut down theatrical opportunities but make “the pie” bigger.
Take Action: From Individual to Industry
For professionals: Keep creating. Make the full use of digital platforms, such as Tik Tok, Instagram, and Youtube, to absorb and present quality content.
For companies: While executives at big companies are looking at their budgets more closely, branding should never stop in the midst of chaos.
The Guild: As always, through collecting and sharing resources, the various guilds in the industry are there to support their members to find grants, loans, etc.
Post-Pandemic Production: COVID-19 as a topic?
Derrick: For the theater market, the pandemic can hardly turn into an event movie. For the streaming market, subscribers would welcome broader kinds of content to attract new users while keeping current ones engaged.
Maria: Positivity is what the audience will look for after the virus. Just like the Golden Age of Hollywood after the Great Depression, story-telling after the pandemic may value positive content that reflects on topics, such as how the society should move on and how to treat each other with more respect. Therefore, there may not be a trend in producing movies about the virus unless it’s a unique angle.
Short-form Video is the New Wave
During the pandemic, we see increased popularity of short-form video content and the success of Tik Tok or Youtube who caught the trends. Big brands and stars have reaped the benefits of embracing short-form video content, especially on social media. Among these platforms, Quibi, as a developing OTT platform, faces many controversies over its business model. There are voices questioning its 100k budget per minute, the old-school “star-driven” model, and the similar UI/UX to Netflix. Its UX design may not be the best way to interact with the audience or differentiate from other similar platforms. What’s behind these criticisms is people’s need for innovations.
Exploration and cross-pollination are two effective ways that lead to successful innovations.
Final Words:
“It is a time of challenge, but also a time to re-examine what we have done and explore what we can make. Many film festivals have been delayed or moved online, and CIE also canceled its Monthly Mixers, unfortunately. But our love for films never dies. Innovation is what both speakers mentioned the most, so we encourage everyone in the CIE community to: Keep imagining, creating, innovating, and shining.”