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Movie Theater Industry Health a Looming Question, Cowen Says

Movie theater industry health “remains very much in question due to COVID-19,” Cowen wrote investors, saying the negative impact will be spread over several years. Digital consumption, meanwhile, will maintain, “if not enhance,” the value of large film libraries, the…

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analyst firm said. The near-term impact of COVID-19 will be “far more modest than that suggested by the total shutdown of the theatrical release window” (see 2102030032), Cowen said. A larger concern is “the health of movie theaters,” which aren’t positioned to survive an extended shutdown, said Monday's report. Even before COVID-19, Cowen forecast 2020 U.S. box office would fall short of $10 billion, the worst year “since at least 2008.” It now expects theaters to be largely closed until midyear. The National Association of Theatre Owners didn't comment Tuesday.