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Day: November 6, 2020

The Great Streaming Pivot of 2020 – What Does This Mean for the Future of Movie Theaters?

Posted on by Staff Writer

Prior to the COVID-19 pandemic, movie theaters were already struggling. Movie streaming trends were changing, and customers increasingly found the conveniences of on-demand films appealing. As a result, theater chains found themselves creating VIP membership plans and offering new services. At the time, that kept them afloat as the experience kept movie-goers’ interest alive. But then COVID hit, and everything changed. Though some questioned the future of movie theaters before lockdowns, many do so now. And this might be their final curtain call.

According to recent surveys, only 18 percent of consumers feel comfortable returning to the movie theater. Even as some states have loosened lockdowns and restrictions, attendance hasn’t increased to any significant degree. Even worse, few newly-released are currently scheduled as a result of the effects COVID has had on Hollywood. And with more and more consumers preferring on-demand movies, movie streaming trends aren’t doing theaters any favors either. Streaming wars are now in full force. More than ever, the future of movie theaters looks to be in serious doubt.

“We’re in the business of amusing and entertaining people. If there was ever a time when people needed to be amused and entertained, to escape the stresses of the daily life, it is right now when corona is hitting this country very hard.” – Adam Aron, CEO, AMC Entertainment

A Tale of Two Theaters

The impact of recent events on movie theaters can be highlighted by looking at two key movie chains: AMC and Cinemark. AMC has recently announced it may have to file bankruptcy by the beginning of 2021. Over the past couple of years, AMC has over-extended itself in acquiring a variety of smaller movie theater chains. As a result, the company has over $12.85 billion in liabilities with less than $500 million in cash reserves. Even worse, AMC is hemorrhaging money every month. Last quarter alone, AMC lost $232 million. With attendance down 85 percent, the future of movie theaters for AMC isn’t pretty.

Someone trying to sync their smartphone to their streaming services
The movie-going experience is suffering, while movie streaming trends are on the rise.

Unlike AMC, Cinemark took a more conservative approach over the last few years. Seeing that movie streaming trends were increasing, Cinemark chose to keep more cash on hand. Unlike AMC, Cinemark, therefore, has only $4.6 billion in liabilities and over $900 million in liquidity. But it too is experiencing a negative balance sheet, losing around $50 million each month. While Cinemark may be able to hang on much longer than AMC, it’s questionably whether it can ever regain a profitable status. These realities are why several in the industry question the future of movie theaters long-term.

“We could lose movie theater-going forever. I don’t think any of us want to live in a world where the only option is to take your kids to watch a movie in your own living room, and not have a place to go for a date. This will not be a reversible process.” -Patty Jenkins, Film Director of Wonder Woman

A Rapid Shift in Movie Streaming Trends

Several factors other than the pandemic can be described as accounting for the reluctance to attend movie theaters today. Consumers today have great options for watching movies outside the theater environment. They can stream movies at home or on their mobile devices, which is often more convenient and much less costly. Likewise, some smaller entertainment venues offer a more intimate and casual experience for watching movies as well. These movie streaming trends were already in vogue before COVID struck. COVID simply accelerated the process.

Naturally, the biggest concern for moviegoers today is the risk of being inside with others who could spread infection. Unlike restaurant dining and music concerts, attending a movie theater is not seen as an essential entertainment activity for most. Therefore, many predict the future of movie theaters are in peril because of this. Not only will they be the last to regain attendees even with a COVID-19 vaccine. But movie streaming trends will now pose serious competition for customer attention. And once gone, many do not see them ever returning in their traditional form in the future.

“I would not characterize it as a response to COVID. I would say COVID accelerated the rate at which we made this transition, but this transition was going to happen anyway.” – Bob Chapek, CEO, Walt Disney Company

Seizing the “Movie Streaming Trends” Moment

It’s no secret that major players have now entered the movie streaming business. Not only can viewers download movies from Google Play, Hulu, and YouTube. But they can also access brand new content releases from a number of networks. Netflix remains the leader in this regard, but many others now exist in this space. Disney, NBC Universal, Warner Media HBO Max are among the most well-recognized companies responding to movie streaming trends. Disney appears to be the most notable in terms of gaining traction. More than 60 million subscribers now watch Disney Plus. Likewise, over 100 million viewers have Disney’s package that includes Hulu and ESPN+.

It would seem these companies also have a poor outlook for the future of movie theaters. All of them are actively pursuing content, and instead of releasing movies on the big screen, they’re doing it online. In fact, Disney recently announced that it is separating its content and distribution centers. This allows the company to invest more energy into creating movies and other entertainment for its streaming platforms. Without having all the real estate holding costs, movie streaming trends favor this approach. Unfortunately, with fewer large-screen premiers, this bodes poorly for the future of movie theaters as well.

The Need for a New Vision

AMC theaters have chosen to forge ahead and keep their theaters open. Cinemark has done the same but less aggressively. And Cineworld, a UK-based company that owns Regal Cinemas, has decided to close its doors and wait things out. But based on movie streaming trends and consumer concerns, the future of movie theaters isn’t great. A paradigm shift will be needed to get moviegoers to head back to the theater of old. Some have suggested that Disney might purchase AMC in an effort to have a seamless consumer experience. As a result, movie-watchers could access films on demand as well as premiers in a variety of settings. But this seems unlikely to happen in the near future. It might be that traditional movie theaters have run their course. And like drive-in theaters, they will one day simply be a nostalgic novelty to behold.

 

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Tightening Up the Food Supply Chain with Ag-Tech Innovations

Posted on by Staff Writer

When lockdowns began, not everyone expected every store to be suddenly running low on toilet paper and sanitary wipes. Nor did they expect that a variety of food products would subsequently be difficult to find. While the pandemic has revealed many things, one of the most notable is the vulnerability of the food supply chain. The abundance that often seems to be present is simply an illusion. In reality, these systems are much more fragile. And it’s a big reason that investors are looking to Ag-Tech innovations to solve these problems.

In many ways, innovative startups and businesses have strived for a more robust, digital food supply chain. On the distribution and logistics end of things that have already evolved to a great extent. But on the other end of the supply chain, digital systems are not as common. Today, consumers expect convenience and are advancing the Come-to-Me Economy. The promise of Ag-Tech innovations today is to therefore pursue this by focusing more on the farming aspect of things. And numerous companies are bringing some pretty amazing concepts to the table.

“The pandemic exposed how fragile the food system is. Farmers want to get more data about what feeds into their business and are more eager than ever to learn what is happening in the product of food.” – Jim Ethington, CEO of Arable

Ag-Tech Innovations for Farming Decisions

For decades, farmers have applied science in an effort to create better cultivation methods and agricultural yields. But it hasn’t been until lately that these strategies have sought to develop a digital food supply chain process. Startups now are utilizing machine learning and data analysis to help farmers make better choices. By applying these Ag-Tech innovations to farming, better yields and timing of harvests can be realized. This has tremendous potential in production, but likewise, it also has the potential for huge strides in resource use efficiency.

A couple using a laptop in a field
Ag-tech innovations mean a safer and more efficient food supply chain.

Several companies are receiving attention for Ag-Tech innovations in this area. Arable, based in San Francisco, is employing data systems to identify best practices in crop development. In the process, the company provides farmers with insights about the right amount of light, water, and nutrients to provide their crops. To date, Arable has received $38 million in funding. Benson Hill, a St. Louis-based company, recently received $150 million in Series D funding. This startup utilizes genomics and genetic diversity to promote healthier, sustainable foods from farm to table. In both cases, digital food supply chain solutions enhance farming choices for the better.

“The power of genomics and genetic diversity is largely untapped, and we believe that [Benson Hill’s] technology and collaborative model unlocks efficiencies and new product differentiation for stakeholders across the value chain, from farmers to end-consumers.” – Max Clegg, Head of LDC Innovations

Ag-Tech Innovations in Farm Management

Even if crop yields are advanced through digital food supply chain solutions, mismanagement may still occur. While inefficiencies have been addressed at the inventory and store levels there remains some work to do in farming. In many cases, the raw materials must be processed, which may not always be optimized. Likewise, some products, like grains, are routinely stored on-site and require their own inventory management. Streamlining these issues through Ag-Tech innovations can also improve food supply and sustainability.

Understanding this, several Ag-Tech startups are exploring this aspect of the digital food supply chain. Think IQ, a California-based company that recently received $11.6 million in funding, helps farmers track their manufacturing process. Using sensors, they provide manufacturing data from raw materials to processed food to aid decisions about crops, transport, and purchasing. Another startup, TeleSense, uses a remote sensor to digitize post-harvest agricultural goods. Specifically, it helps farmers track the age of storage grains, which are only good for 6 to 8 months. This information provides the basis for better choices in farming management.

“When we look further into the future, we will see innovation, such as remote sensing and ways to connect growers to platforms where they can verify environmentally friendly crops, such as grain. We continue to be impressed at how growers are investing in the future of farming every day.” – Steele Lorenz, Head of Sustainable Business at Farmers Business Network

New Opportunities through Ag-Tech Innovations

The entire goal of more recent Ag-Tech innovations is to enhance existing systems while building consumer trust. By developing a digital food supply chain. The chance to reduce food waste and improve quality exist. But these are not the only potential advantages of these types of innovations. In addition, streamlining farming production techniques can be beneficial for the environment. Given that over 10 percent of all carbon emissions come from agricultural processes, this is a valued opportunity. And it’s one that farmers can take advantage of as well.

One startup based in Cambridge, Massachusetts, is using Ag-Tech innovations to help farmers generate and sell carbon credits. CIBO is helping farms employ regenerative farming practices that reduce their carbon footprint. And with the savings they realize, farms can earn carbon credits that can be sold to other entities for credit. Though not directly part of the farm-to-table product, these types of solutions still utilize a digital food supply chain approach. The benefits they provide affect the entire agricultural and food sector in a positive way.

Investors See Great Things from Ag-Tech Innovations

The opportunity for improvement in efficiency and productivity at the farming level is substantial. Ag-Tech solutions therefore have become highly attractive as an investment interest. In the last year alone, venture capitalists have poured $4.4 billion into these types of startups. And over the last 5 years, this figure reaches $17.7 billion. These numbers highlight the potential investors see in a fully digital food supply chain from start to finish. The tighter this becomes, the more productive and profitable farming businesses will be. And ultimately, this benefits the consumer as well as world hunger challenges at large.

 

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Bright Lights, Dead Viruses – The Boom of Ultraviolet Light Systems

Posted on by Staff Writer

In the midst of the coronavirus pandemic, protecting yourself from virus infection is paramount. Face masks, social distancing, and hand-washing have been the mainstays in this regard. But it has also been recognized that ultraviolet light systems offer disinfection properties as well. As a result, solutions using ultraviolet light disinfection are being pursued, offering another coronavirus-fighting strategy. Not only can such systems save on cleaning costs and chemical use. But they can also be more effective and thorough in the process.

The demand for ultraviolet light disinfection has spawned a number of innovations and startups in this industry sector. The pandemic has been a major catalyst in this regard. In fact, ultraviolet light systems are projected to expand exponentially in the coming years. From products that can be used to clean sporting equipment to systems designed for public spaces, the industry is fast-evolving. Thus far, production and solutions have been unable to keep up with demand. But thanks to several bold businesses, that’s about to change.

“People are afraid. Everyone is looking for ways to clean up these environments — with chemicals, wipes, shields and UV robots. We’re selling a light that you can’t see to kill a germ you can’t see.” – Robert Olson

An Overview of Ultraviolet Light Disinfection

The knowledge that ultraviolet light disinfection occurs isn’t something new. In fact, Niels Finser, a Danish scientist, made the discovery at the turn of the 20th century. But the problem has been the effects that ultraviolet light systems might have on human beings. Traditional ultraviolet light operates at higher wavelengths. These types of ultraviolet light can penetrate human skin and eyes and cause harm. However, ultraviolet light systems on the far end of the spectrum are actually safe. And at the same time, it continues to have germ-killing effects.

an ultraviolet light shining in an operating room
Want to disinfect without chemicals? Ultraviolet light systems might be the answer.

By definition, ultraviolet light is not visible to the naked eye. However, three wavelength spectral groups have been defined for ultraviolet light. UV-A light ranges from 315 to 400nm in wavelength, and UV-B light ranges from 280-315nm. These groups are effective at killing bacteria, viruses, and other pathogens. But they are not able to be employed around people. UV-C light, however, which ranges from 100 to 280nm, has the potential to be safe as well as germ-fighting. This is the ultraviolet light range many new innovations are exploring.

“The fact that far-UVC light can be used in the presence of people is a real differentiating factor. By harnessing these benefits as part of a user-friendly product that can be quickly deployed, we hope to provide a much-needed boost to our partners across the entertainment industry who are currently struggling to attract wary customers.” – Zoran Veselic, President and COO, Christie

Innovative Ultraviolet Light Systems Offerings

Traditional ultraviolet light systems and products have been around for decades. Indeed, with the pandemic, industry leaders have seen a rise in their demand grow substantially. As a result, the industry is pivoting in its responses. Philips’ ultraviolet light division, Signify, has ramped up its own product 8-fold as a result. But in addition, several other startups and new companies have entered the market as well. The following are some that are introducing some exciting ultraviolet light disinfection products today.

  • Juganu

This Israeli-based startup recently launched the first indoor circadian ultraviolet light system in the world. Called its “J. Project System,” its product emits high-quality surface light mixed with UV-A and UV-C light. Its ultraviolet light disinfection rate is 99.9 percent, and it’s completely safe around people. Its systems have already been deployed in parts of Central and South America. And with a recent $18 million in Series C funding, Juganu plans to launch in the U.S. as well.

  • Christie (Ushio Inc.)

Using Ushio Inc.’s patented ultraviolet light system, Care 222, Christie has developed a line of safe ultraviolet light disinfection products. Ushio Inc. evolved out of technology developments that began at Columbia University. Today, it offers safe ultraviolet light products that kill 99.7 percent of germs. And likewise, it too is safe around people. The intended use for Christie’s products for a variety of entertainment venues, such as theme parks, stadiums, and museums. Likewise, they’re ideal for bathrooms and lobby areas as well.

  • Waypoint Interiors

This Everett-based company has been around since 1994 as an aerospace solutions business. But after the pandemic, it set its sights on develop ultraviolet light systems to help disinfect planes. Partnering with Hubbell Lighting, Waypoint designed Viralite, which emits two types of light. The first light, which is blue, disinfects air cabins while in use and is safe around people. The second light, which is ultraviolet light, disinfects all surfaces when the plane is empty. Waypoint Interiors is ready to mass-produce its ultraviolet light disinfection product. And they hope to serve not only planes but buses and trains as well.

“After more than 10 years of waiting, in 2020, the UV LED market could ramp up and reach the billion-dollar mark very rapidly. There is good in everything bad, and the recent COVID-19 pandemic has created some perfect use-cases for the technology to spread across a rapidly-changing disinfection/purification market.” – Pars Mukish, Business Unit Manager, Solid-State Lighting & Display, Yole[iii]

An Industry About to Explode

The ultraviolet and LED lighting industry has had steady growth for years. In 2019, the industry was estimated to be $144 million globally in value. This then more than doubled in 2020 to over $300 million. Now, forecasters suggest the industry will be worth roughly $2.5 billion by the year 2025. This is all a result of the pandemic and the demand for ultraviolet light disinfection solutions and safe spaces. The ability to develop products that are both safe and effective has been the key to meeting market demand. And newcomers to the scene appear to be answering the call.

 

Want to make 2021 a better year than 2020? Then check out PROJECT BOLD LIFE: The Proven Formula to Take on Challenges and Achieve Happiness and Success.

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