Is this the future of “A Night out at the Movies”?

With Netflix drawing in more than four times the earnings in the third quarter of 2013, as it did during the same time period in 2012, it’s clear: Internet streaming has captured the elusive status of the ultimate shaker and mover in the world of entertainment. But what does this mean for the film industry? Critics of Internet streaming allege that, now that a trip to the movie theater is no longer necessary, producers will no longer be able to elicit the profits necessary to justify huge film investments. As those in favor of streaming explain, this concern has bothered naysayers since the dawn of the VCR — and so far, to no avail.

The Impact Of Piracy

Long before the days of the Internet, film bootleggers undermined the movie industry by capturing shoddy recordings of hit flicks and distributing them to eager viewers all around the world. This approach to film distribution continues, although, thanks to the Internet, bootlegs are more accessible than ever. And despite the combined efforts of the film industry and such government initiatives as the United States Congressional International Anti-Piracy Caucus, Internet bootlegs play a huge role in film consumption. A 2011 study from the International Intellectual Property Alliance found piracy ultimately resulted in the loss of 375,000 jobs, or, just as alarming, $16 billion in earnings.

Internet Streaming And Movie Theater Attendance

Even when Americans pay for their films, their Internet-inspired lack of desire to visit the theater could very well create a long-term financial disaster for the movie industry. A 2012 survey for Coupon Cabin found six out of 10 Americans visited the movie theater rarely or never, with a full 55 percent claiming their movie habits were largely determined by the economy. When you’re strapped for cash and forced to choose between streaming movies for a month or attending one new film on release, there’s a good chance you’ll stick with the first option. Perhaps, with continued improvements in the economy, this trend will reverse, although, with Netflix rapidly expanding its customer base to an impressive 40 million subscribers, this doesn’t appear to be occurring just yet. And thus, the question remains: are Internet streaming subscriptions and regular movie attendance mutually exclusive?

How The Internet Helps Movies

With such dour numbers related to film attendance, combined with the expansion in streaming helped along by a greater array of local Internet options, the silver screen’s tenure may seem hopeless, at best. But some movie lovers feel the Internet only serves to improve the movie industry. The development of new tech solutions, such as mobile apps Acacia and Actor Genie actually allow directors, producers and actors to complete their jobs in a more efficient manner, thus contributing to significant cost reductions in movie production. What’s more, several big names in tech have made a point of offering massive financial contributions to their favorite film projects. For example, David Ellison, son of tech genius Larry Ellison, combined forces with Paramount to fund such movie hits as “Mission: Impossible – Ghost Protocol” and “True Grit.” By capturing continued interest from tech investors, the film industry can remain viable for years to come.

BTM Guest Writer: Eddie Fuller / Eddie is a gamer, comic reader and all-around entertainment lover.