2024 was, as they say, a mixed year at the box office. Things started off on a dire note as the first half of the year was filled with flops, disappointments, and movies that just couldn't handle the load after the SAG and WGA strikes in 2023 completely shifted the release calendar. Fortunately, things turned around in the second half of the year thanks to hit movies like 'Wicked', 'Deadpool & Wolverine' and 'Inside Out 2' turning the tide. Despite all that, the global treasury finished well below that for 2023, slowing the industry's recovery in the wake of the 2020 lockdown. At the same time, streaming's place as a future was more firmly cemented.

According to Gower Street Analytics (via Deadline), the global box office total for 2024 was $30 billion, compared to $33.9 billion in 2023. That figure includes $8.75 billion in domestic ticket sales, which was down from 2023 when that number topped $9 billion. Given the strikes and last year's slow start, that number could have been much worse. There's a lot to say about that, and we'll dive into it all a little further here in a moment. But there is one eye-opening statistic that helps put all of this into perspective; namely, Netflix's total revenue for the fiscal year ending September 2024 is $37.5 billion (or, to put it another way, 25% more than last year's total global box office).

It's certainly a bit of an apples-to-oranges equation, as Netflix is ​​a subscription streaming service that has both movies and TV shows to attract customers. That said, if there's any question about which part of the business is most important to Hollywood's future, there shouldn't be.

It's also crystal clear that Netflix is ​​the king of the streaming wars despite being just one of many competitors in that space. This means nothing for Disney+, Hulu, Max, Paramount+, or Peacock, not to mention smaller services like Shudder. Together, streaming absolutely eclipses the theatrical market.

While revenue doesn't equal profits, Netflix has, unsurprisingly, become highly profitable of late, posting more than $17 billion in profits for the fiscal year ending in September 2024. That's a 31% increase over the previous year. Meanwhile, many theater chains are struggling just to keep the lights on, with Regal's parent company, Cineworld, went through bankruptcy in 2022 and AMC, the world's largest theater chain, currently saddled with billions in debt. There was also a bombshell development last year when Sony Pictures has acquired the popular Alamo Drafthouse theater chain. That may help the company survive, but it also means that a major studio is now directly investing in theaters, which complicates matters.

This may help explain why Netflix doesn't care so much about releasing its movies in theaters, even if Theater owners would welcome Netflix movies with open arms (under the right conditions). A streamer usually releases their movies in theaters either to ensure they qualify for awards and/or to satisfy certain filmmakers. He just doesn't care about the box office.

That being said, the box office is still incredibly important to the future health of the movie business, including streaming. We've seen time and time again that movies released in theaters do better when streamed. This is a pretty universal rule, even if the film in question is a theatrical flop. For example, Nicolas Cage's 'The Unbearable Weight of Massive Talent' recently climbed into Netflix's top 10 charts two and a half years after its theatrical release. So yes, Netflix originals like Back in Action will have their moment in the sun, but will they have the same kind of staying power? Even right now, Netflix's top 10 movie chart is dominated by Despicable Me, Hotel Transylvania 2, Trolls Band Together and The Boss Baby.

So yes, streaming is undoubtedly the future of Hollywood, and until something dramatically changes, Netflix is ​​the king of that future. But without a healthy theatrical market, it will be harder for Hollywood to operate. Studios need that revenue and, more importantly, movies need the word of mouth that a theatrical release will provide. It remains a symbiotic relationship, even if there is a clearly dominant force on one side of the equation.