Beyond the big screen: secondary channel releases and their impact on the theatrical market

Ninety-day exclusive theatrical windows have been threatened by the age of streaming and the COVID-19 pandemic. Some studios have adopted earlier secondary release strategies, leading to conflicts with talent. However, the extent to which this has impacted box office performance remains unclear. Using a two-stage difference-in-difference analysis, we show that when a film is made available on a secondary channel, it is shown in fewer theatres and has a lower theatrical gross. An event study suggests that the impact increases, the longer the film remains available on a secondary channel. We discuss the implications for both distributors and exhibitors.