In a stunning revelation regarding the 2024 box office, it’s clear that Netflix has solidified its throne as the reigning monarch of Hollywood. The year proved to be a mixed bag for the box office. The beginning of 2024 was plagued with disappointments and underperforming films, largely due to the aftermath of the SAG and WGA strikes that disrupted the release schedule in 2023. However, the latter half saw a remarkable turnaround, with blockbuster hits like “Wicked,” “Deadpool & Wolverine,” and “Inside Out 2” revitalizing the cinematic landscape. Ultimately, the global box office closed at $30 billion, a decrease from 2023’s $33.9 billion. Meanwhile, domestic ticket sales also dwindled to $8.75 billion from over $9 billion the previous year. Given the hurdles posed by the strikes and a rough start to the year, it is a wonder the numbers weren’t more dismal.
A standout statistic emerges from this analysis: Netflix’s revenue for the fiscal year ending in September 2024 reached a staggering $37.5 billion, surpassing last year’s total global box office revenue by 25%. While it’s important to note that comparing revenue from a subscription service like Netflix to box office earnings is not entirely straightforward, the implications are clear. Netflix has undeniably established itself as the leader in the streaming arenas, easily outpacing competitors like Disney+, Hulu, Max, Paramount+, and Peacock. The sheer volume of revenue generated by streaming services has obliterated theatrical income, signifying a crucial shift in the entertainment landscape.
Despite the disparity in revenue versus profit, Netflix has become notably profitable, reporting over $17 billion in profit for the fiscal year ending in September 2024, which marks a 31% increase from the previous year. In contrast, traditional theaters are facing severe economic challenges, with Regal’s parent company, Cineworld, recently emerging from bankruptcy and AMC, the largest theater chain globally, grappling with substantial debt.
A noteworthy development was Sony Pictures’ acquisition of Alamo Drafthouse, an indicator that major studios are seeking ways to ensure the theater experience remains viable. This shift complicates Netflix’s position regarding theatrical releases; while theaters would gladly welcome Netflix’s films, the streaming giant treats box office success with indifference, releasing films primarily to meet award qualifications or appease certain creators.
Nevertheless, the box office still holds considerable importance for the overall vitality of the film industry, including streaming. Historically, films that grace theaters tend to perform better on streaming platforms, even if they fail to garner significant box office revenue. A prime example is Nicolas Cage’s “The Unbearable Weight of Massive Talent,” which recently made its way onto Netflix’s top 10 charts, two and a half years after its theatrical debut.
While Netflix’s originals, such as “Back in Action,” may enjoy their moment of glory, the question remains whether they will possess the same enduring appeal as traditional blockbusters. Currently, Netflix’s top 10 movie rankings feature titles like the “Despicable Me” series, “Hotel Transylvania 2,” “Trolls Band Together,” and “The Boss Baby,” reinforcing streaming’s paramount status in Hollywood’s future. However, the health of the theatrical market is critical for maintaining the industry’s momentum. Studios require box office revenue, and movies benefit greatly from the word-of-mouth exposure that only a theatrical run can provide. This creates a symbiotic relationship between streaming and theatrical releases, even as one side clearly reigns supreme.
