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The COVID-19 pandemic had a devastating impact on movie theaters, with many cinemas forced to close or operate at reduced capacity. According to a report by the National Association of Theatre Owners, US movie theaters suffered a loss of over $32 billion in revenue in 2020, with many independent cinemas forced to shut their doors permanently.

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The move infuriated cinema owners, talent agencies, and filmmakers who argued it devalued the theatrical experience and disrupted backend profit-sharing models. The Competitors: Disney+ and the Premium PVOD Model The COVID-19 pandemic had a devastating impact on

: Articles from this period detail how the entertainment industry adapted to lockdowns. While traditional broadcast programs continued, there was a massive shift toward "cloud" shooting , where participants filmed themselves at home to be edited later, and a significant move by public figures to social media and live streaming platforms to maintain audience interaction. This period highlighted a massive gap between soaring