Kevin O'Leary Counters Claims That Streaming Signals Demise of Movie Theaters

As Netflix Inc. (NASDAQ:NFLX) approaches a potential acquisition of Warner Bros. Discovery's (NASDAQ:WBD) film and television assets valued at approximately $82.7 billion, some observers have raised concerns regarding the long-term viability of traditional movie theaters. Contrary to the often-cited narrative suggesting that streaming services may herald the end of theatrical venues, investor and television personality Kevin O'Leary offers a different perspective on the evolving content consumption landscape. O'Leary articulates his views through a recent message on X, emphasizing that the perceived rivalry is less about streaming versus theaters and more accurately described as a competition for the finite daily attention span of viewers. People today access movies through a multitude of formats including smartphones, tablets, home televisions, and theatrical screens. This variety in viewing options represents the most diverse array of content distribution methods ever seen. Highlighting a fundamental constraint in content consumption, O'Leary notes: "The only restraining aspect of content consumption is how many hours people are awake." This perspective reframes the discourse from one of direct competition between platforms toward an understanding of aggregate media engagement limited by human factors. Addressing the resilience of theatrical exhibition, O'Leary points to Amazon.com Inc. (NASDAQ:AMZN) as an exemplar of continued investment in cinema releases, underscoring the unique experiences that theaters provide which cannot be replicated in home settings. Cinematic technologies such as 70-millimeter film formats and sophisticated Dolby surround sound systems offer immersive sensory dimensions that remain challenging to duplicate in residential environments. From O'Leary's viewpoint, such high-end technical offerings underpin the sustained relevance of movie theaters. He remarks that major tentpole releases, especially action films, typically prompt audiences to seek out venues featuring adequate surround sound and large-format screens, factors he deems essential in the ongoing "media war" for consumer engagement. Despite O'Leary's confidence in the theater's staying power, quantitative data reflect a pronounced shift in consumer habits toward streaming platforms, which dominate in terms of viewing frequency. A poll conducted by the AP-NORC Center for Public Affairs Research found that approximately 75% of U.S. adults have opted to stream a newly released movie at least once over the prior year. Cinema attendance remains substantial, with 66% of Americans reporting theater visits, but monthly movie-going habits appear less common, with only 16% engaging at this frequency. This rate falls to roughly half of the cohort displaying regular streaming behavior, indicating a changing paradigm in content consumption driven by convenience and cost considerations. Financially, going to a movie theater represents a growing expense. Data referenced by the Associated Press from EntTelligence notes that the average U.S. ticket price rose from $11.76 in 2022 to $13.17 in the current period. This increase likely contributes to consumers' willingness to delay cinema visits in favor of waiting for films to be available on streaming services - a sentiment expressed by individuals such as Maryneal Jones from North Carolina, who conveyed a reluctance to pay around $12 per ticket. Jones's remarks typify a broader consumer calculus balancing cost against viewing preferences, with some opting to experience films in social or domestic environments via subscription-based platforms rather than public theaters. In sum, while streaming services command prevalent usage rates and offer economical viewing options, the unique sensory and communal atmosphere provided by technologically advanced theaters retains a niche appeal, according to O'Leary. The interplay between evolving viewer habits and the enduring cinematic experience frames a nuanced competitive environment in media consumption, where content platforms coexist rather than solely displace one another.