Following a year marked by widespread interruptions and postponements in the film industry, Warner Bros. initiated a significant change in strategy on December 3.

Just weeks after the studio communicated its intention to proceed with the Christmas debut of “Wonder Woman 1984” despite increasing coronavirus cases, they announced a simultaneous release in cinemas and on HBO Max, the streaming platform belonging to WarnerMedia.

This decision, already considered a pivotal moment with potential implications for the future of movie theaters, proved to be only the first step. On December 3, Warner Bros. declared that it would implement this same approach for all films planned for theatrical release in 2021.

This news was welcomed by audiences anticipating films like “In the Heights” (previously delayed approximately a year due to the pandemic) and “Dune” (also facing a year-long delay). While the director and star of “Wonder Woman,” Patty Jenkins and Gal Gadot, expressed support for this method, believing it was time to share their film with fans, other Warner Bros. filmmakers had reservations.

Notably, Christopher Nolan, director of “The Dark Knight,” voiced his disapproval, stating that Warner Bros. leadership “doesn’t even understand what they’re losing.” He asserted that filmmakers had begun their work “believing they were collaborating with the industry’s leading film studio, only to discover they were now working for a subpar streaming service.” (Nolan’s “Tenet” was released in theaters in the fall, and its disappointing box office performance, particularly domestically, likely influenced Warner’s decision.)

Furthermore, Denis Villeneuve, director of “Dune,” published an opinion piece in Variety, directing criticism towards AT&T, which had acquired Time Warner several years prior. He proposed that the focus on streaming was less a response to the pandemic and more a consequence of the underwhelming debut of HBO Max earlier in the summer.

“Given the difficulties in launching HBO Max, AT&T opted to sacrifice Warner Bros.’ entire 2021 film lineup in a determined effort to capture audience attention,” Villeneuve explained.

Shortly after Warner Bros.’ announcement, Disney unveiled its own ambitious streaming plans for the coming years, outlining a pipeline of 10 Marvel shows, 10 Star Wars shows, 15 Disney/Pixar series, and 15 Disney/Pixar feature films for Disney+.

Disney’s announcements did not generate the same level of debate as Warner’s, as they did not signify a complete overhaul of its theatrical strategy (the Marvel Studios film “Black Widow” remained scheduled for a traditional release in May, for instance), and unlike WarnerMedia, the announcements did not take filmmakers by surprise or raise concerns about their compensation.

Nevertheless, the message to the industry and the public was consistent: While Disney was not abandoning theaters, it clearly prioritized streaming, demonstrating a willingness to revitalize any and all intellectual properties (“Turner and Hooch”! “Swiss Family Robinson”! An “Alien” TV series!) to attract potential subscribers.

These consecutive announcements marked a fitting conclusion to a year of contrasting fortunes within the streaming sector.

Netflix experienced substantial growth in the first quarter of 2020, gaining 15.77 million new subscribers—more than double initial projections. During the early stages of the pandemic, with many people confined to their homes, “Tiger King” became a widespread phenomenon. The service also benefited from its extensive content library, enabling it to consistently release new titles despite widespread production halts. (Production later resumed, while subscriber growth slowed.)

Disney also enjoyed a successful 2020, announcing at its December event that Disney+ had reached 86.8 million subscribers within a year of launch, and its overall streaming services (including Hulu and ESPN+) had grown to 137 million subscribers, compared to Netflix’s 195 million. This was particularly noteworthy considering the limited number of high-profile launches on Disney+. While a wealth of original content was in development, the service’s first year featured two seasons of “The Mandalorian,” a filmed version of the Broadway production “Hamilton,” “Mulan” (requiring a $29.99 additional fee for subscribers), and relatively little else.

Outside of these two major players, results were less impressive. Quibi experienced a prominent failure, ceasing operations after securing nearly $2 billion in funding. Executives Jeffrey Katzenberg and Meg Whitman attributed the shutdown to the pandemic’s disruption of the on-the-go lifestyle Quibi was designed for (the company’s name was an abbreviation of “quick bites”), while also acknowledging that the content they funded may not have resonated with audiences.

Meanwhile, Comcast/NBCUniversal reported nearly 22 million sign-ups for its Peacock streaming service by the end of October, “surpassing our expectations across all engagement metrics in just a few months.” (Peacock offers a free tier, so the majority of sign-ups likely do not represent paying subscribers.)

AT&T reported 12.6 million activated subscribers for HBO Max in December, and while CEO John Stankey expressed satisfaction with the results, Villeneuve was not alone in characterizing the launch as unsuccessful.

Confusion surrounding the differences between HBO Max and traditional HBO, as well as the HBO Go and HBO Now apps, contributed to the challenges. Both Peacock and HBO Max also faced delays in becoming available on major smart TV platforms, Amazon Fire TV and Roku, stemming from disagreements over revenue sharing rather than technical issues. These issues were largely resolved, with HBO Max launching on Amazon Fire TV in November and on Roku shortly before the release of “Wonder Woman.”

Tal Chalozin has been closely monitoring these launches. As CTO of Innovid, a video advertising company (and a partner of Peacock), Chalozin anticipates a promising future for streaming and connected TVs, comparing the initial phases of services like Apple TV+, Disney+, HBO Max, and Peacock to a first encounter.

These services benefited from promotional periods, free subscriptions through partners like Verizon (which owns TechCrunch), and a general environment where audiences were actively seeking home entertainment options.

“Next year, all of these services will transition to a different landscape, where users will need to begin paying for access,” Chalozin stated.

Streaming services will also encounter financial realities. Launching a new streaming service is a substantial investment—for example, despite its success, Disney’s direct-to-consumer division reported a net loss of $580 million in its most recent quarter. While media/telecom executives and Wall Street investors are willing to invest heavily in a streaming-focused future, they will expect to see tangible profits soon—particularly if streaming is intended to offset losses in theatrical and cable revenue.

Chalozin added that many streaming providers will soon realize that the streaming business operates under “e-commerce economics rather than television economics.” Canceling a streaming subscription is considerably easier than terminating a cable package, leading to significant subscriber churn. As more competitors enter the market, attracting new subscribers could become increasingly expensive.

“Eventually, customer acquisition costs could reach $45,” Chalozin predicted. “This becomes difficult to justify when it takes a long time to recoup the investment and subscriber retention rates are shorter.”

Consequently, Chalozin suggested that media companies explore alternative strategies, including bundling and consolidation.

New streaming services will continue to emerge in the near future, with Discovery+ launching on January 4 and ViacomCBS planning to rebrand CBS All Access as Paramount+. However, Chalozin’s conclusion remains clear: difficult decisions lie ahead in 2021.

“Eventually, the novelty will fade, and the free trials will expire,” he said. “Everyone will have experienced ‘The Mandalorian’ and ‘Wonder Woman.’ Now, it’s time to focus on efficiency… to reduce costs wherever possible and adopt a more data-driven approach.”