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 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.