5 Years Ago, The Least Likely Movie Imaginable Changed Hollywood Forever
Static Media
If you’re a parent with a kid of a certain age, there’s a damn good chance you’ve seen at least one of the “Trolls” movies. They are wildly popular and now ranks as one of the more successful toy-to-screen adaptations in modern Hollywood history. The first “Trolls” film was released in 2016 during Hollywood’s 2010s franchise boom. It was a solid hit that gave rise to a sequel, which arrived in the form of 2020’s “Trolls World Tour.” On the surface, that movie seemed to be an unassuming, harmless animated follow-up to a hit film aimed at kids. In reality, it helped change Hollywood forever.
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Let’s rewind the clocks a bit. It’s March 2020 and movie theaters all around the world have been forced to close due to the COVID-19 pandemic. The box office is on life support, with drive-ins making an unexpected comeback. Hollywood studios are fearful of an uncertain future and are busy looking for answers. It’s at this point that Universal Pictures decided to make the unprecedented move to release a brand new, big-budget film that was intended for theaters at home for people to watch for a premium fee. Hence, the birth of Premium Video On Demand, aka PVOD.
Notable 2020 films such as “Bloodshot” and “Birds of Prey,” among others, were released on VOD early after having their theatrical runs cut short by the pandemic. This was an understandable measure in a time of critics. However, “Trolls World Tour” had yet to hit the big screen, so Universal’s change in strategy was something else altogether. It proved to be a decision that permanently altered the way we watch movies, for better or worse — and, once again, it all rested on the shoulders of an animated sequel about singing Trolls dolls.
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Let’s rewind the clock even further back for a moment. The notion of renting movies at home and VOD as we know it was nothing new in early 2020, but it had largely been reserved for smaller movies or films that had already gone through their theatrical life cycle. Be that as it may, as DVD sales began to decline, studios wanted to make up that revenue somewhere.
Trolls World Tour became a first-of-its-kind smash hit
Universal Pictures
As The Wall Street Journal reported in 2010, Time Warner Cable Inc. made a pitch to Hollywood at large where people could watch a movie at home 30 days after its theatrical release for $20 or $30. It didn’t go over well. Going over even less well was Universal’s release of its comedy “Tower Heist” on VOD for an eye-popping $60 back in 2011 just three weeks after it hit theaters. Cinemark boycotted the movie, so Universal backed down rather quickly.
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In other words, studios were flirting with this idea for a full decade before the pandemic. All the while, movie theater owners were arguing against the notion, suggesting it would eat into their profits. The pandemic simply created a scenario that took away the bargaining chip that theaters had, with Universal pulling the trigger on the PVOD experiment, releasing “Trolls World Tour” on April 10, 2020, for $20 at home. It was, by all accounts, a resounding success.
In just three weeks of release on VOD, “Trolls World Tour” made around $100 million in revenue for Universal. Yes, the movie was also playing in theaters, but that did little good when the vast majority of theaters around the world were closed. For context, the first “Trolls” made $342 million worldwide during its entire theatrical run, with theaters keeping about half of the money from ticket sales. With VOD, studios keep a larger share of the revenue. For studios, the benefit was crystal clear. For theaters, it was a nail in the coffin of sorts. It was an allegedly temporary measure that became a permanent one. That decision forever altered the general public’s viewing habits in the process, making it far more easy to just stay home even after the threat of the pandemic had eased.
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Theater chains were none too pleased with Universal’s decision. AMC, the biggest chain in the world, banned all Universal movies in April 2020 in response. The ban obviously didn’t stick, but it goes to show just how upset those who rely on box office to keep their business alive were. The film’s actors weren’t exactly happy either, as they later demanded bonuses that they would have received had the sequel crossed certain box office milestones. It’s perhaps telling that 2023’s “Trolls Band Together” did get a theatrical release, with the VOD release coming just a month after its big screen debut.
Trolls World Tour helped reshape the movie industry, for better and worse
Universal Pictures
In the years that followed, studios embraced PVOD heartily, with streaming also becoming a far more dominant force during the pandemic. While very few movies of this size go straight to VOD now, the theatrical window has collapsed, with many titles available just 17 days after they first hit theaters. AMC and other chains are currently all but begging Hollywood to extend the theatrical window to 45 days (which still would have been relatively short before the pandemic). Whether or not that happens remains to be seen, but studios have little motivation to give in.
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Unlike box office, studios rarely share VOD numbers. However, the New York Times reported that Universal had made more than $1 billion from PVOD titles in just three years. Universal has continued to argue that VOD is good for business and is “supplemental” to box office. Other studios have followed suit, reserving long, exclusive theatrical runs for the biggest of big movies only.
All of this has trained people to stay home, with the “wait to stream” mentality taking root. Many viewers get downright indignant when they can’t stream a movie now, even if it’s only been in theaters for a short time. All the while, the global box office hasn’t come close to reaching pre-pandemic levels again. Theaters still face a somewhat uncertain future, five years removed from all of this.
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At the same time, VOD has helped provide studios with a secondary revenue source that didn’t exist previously. With DVD not what it once was, this can act as a safety net. Then again, movies like “Top Gun: Maverick” or “Avatar: The Way of Water” still crush it on VOD even after long theatrical runs. The argument between studios and theaters on this persists.
We’re certainly not going to settle any industry-wide debates here today. It’s just remarkable in reflection that “Trolls World Tour,” a movie that /Film called “Loud, garish,” and “not quite as Bad as the first one,” was at the forefront of such a sea change. Anything that came as a result is not this movie’s fault, to be certain, but it earned its place in cinema history all the same.