Luddites were a 19th century movement of textile workers who protested the adoption of automation by breaking into factories and literally smashing the machines. The Luddites believed automation would lower their wages and eventually cost them their jobs. In fact, the opposite happened. The increased productivity made possible by the use of machines led to higher wages and better working conditions. Unfortunately, opposition to progress did not stop with the original Luddites. One industry that has been particularly prone to both innovation and Ludditism is the movie business.
Almost every innovation in movies has faced opposition from some part of the industry—starting with the introduction of sound films. Sound films were opposed by the musicians theaters hired to play music to accompany silent films. Sound pictures were also opposed by filmmakers, including Charlie Chaplin. These filmmakers felt that adding sound would destroy the “visual language” of movies. Of course, sound movies quickly displaced silent movies.
Another example of Ludditism in the film industry was the movie studios' initial reaction to the rise of videocassettes. This was exemplified by Universal Studio’s 1984 lawsuit against Sony for violating Universal’s copyrights by selling VCRs. Fortunately, Universal lost the suit and movie studios eventually embraced the new technology. By the mid-8os, studios were making almost as much from home videos as they made from showing their movies in theaters!
Today many people rent or buy movies from the comfort of their couch thanks to video streaming. Many have a monthly subscription which enables them to watch unlimited movies. Most major movie studios have their own streaming services. Netflix, the leading streaming company, has announced plans to purchase Warner Brothers studios.
Some have raised concerns that if Netflix’s purchase of Warner Brothers is approved by the government it will be the final nail in the coffin for traditional movie theaters. They say that going to a movie theater provides a communal experience that cannot be duplicated by streaming movies at home. However, people can turn streaming into a communal experience and not just by watching a movie with friends and family. They can also go online and discuss the movie with other viewers. Social media platforms are full of forums and pages devoted to discussing movies of every genre and era.
This is a better communal experience than sitting silently in a dark theater—or worse, trying to enjoy the movie while others in the theater talk, text, and loudly enjoy their over-priced popcorn. Don’t forget the communal experience of paying more for one movie ticket than it costs for a month of Netflix. Those concerned about the death of movie theaters belong to a class that could be labeled as social Luddites.
Social Luddites miss displaced businesses that provided them with fond memories they believe cannot be replicated by what has replaced them. Social Luddites mourn record and video rental stores, as well as video game arcades. Some of these bygone institutions may look better filtered through the lens of nostalgia. For example, did my generation really have it better having to pester our moms to drive us to the arcade so we could shove quarters into Pac-Man and Space Invaders machines, compared to today’s generation which enjoys games with real characters and plots, plus graphics we could only dream of in the 80s, all from the comfort of their living room?
Those saying streaming will kill movie theaters are likely to be proven wrong just like those who predicted television, and then the VCR, would kill movie theaters. Instead of dying, movie theaters are more likely to adapt by changing their business model to increasingly rely on epics that are best experienced in a big screen. This means more iMax and 3D.
It is also possible that Netflix and other movie companies will try to integrate their steaming and theatrical movies. For example, they could offer a prequel to an upcoming big screen blockbuster on the streaming platform—or create programs based on popular characters from their biggest hits.
The history of the movie industry is one of a Luddite-style reaction to every new innovation followed by acceptance as the movie companies realize the innovation will enable them to reach more people—and thus earn more profits. The trend toward streaming is no different. Hopefully the government will not block Netflix’s acquisition of Warner Brothers and the movie industry will continue to innovate and ignore the panicked voices of the Luddites.
