In a recent RealClearMarkets column, Norm Singleton pushes back against the familiar panic that accompanies every major technological shift in the movie industry—this time aimed at streaming and Netflix’s proposed acquisition of Warner Brothers.
Singleton reminds readers that resistance to innovation is nothing new. From the earliest days of sound films to the rise of home video and streaming, entrenched interests have repeatedly warned that new technology would destroy movies as we know them. Each time, they were wrong.
As Singleton explains, early critics of sound films feared that talkies would “destroy the visual language of cinema,” while movie studios once went so far as to sue to block the sale of VCRs—only to later discover that home video became a massive revenue stream.
“Almost every innovation in movies has faced opposition from some part of the industry—starting with the introduction of sound films.”
Today, the same pattern is repeating. Critics claim that streaming—and especially a Netflix–Warner Brothers merger—will be the final blow to traditional movie theaters. Singleton argues this view confuses nostalgia with economics and underestimates both consumer choice and market adaptation.
“Those concerned about the death of movie theaters belong to a class that could be labeled as social Luddites.”
Rather than eliminating communal experiences, streaming has expanded them—allowing viewers to watch on their own terms while engaging with others online through forums, social media, and shared fandoms. Singleton notes that this can be a far more meaningful form of engagement than sitting silently in a theater, often at a steep cost.
“This is a better communal experience than sitting silently in a dark theater—or worse, trying to enjoy the movie while others talk, text, and loudly enjoy their over-priced popcorn.”
Importantly, Singleton does not argue that theaters will disappear. Instead, he suggests they will continue to evolve, focusing on big-screen spectacles that are best experienced in person—such as IMAX and 3D—while studios experiment with hybrid theatrical and streaming models.
“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.”
The lesson, Singleton concludes, is clear: innovation has consistently strengthened the movie industry, not weakened it. The real risk lies in allowing government regulators to block progress in an attempt to preserve outdated business models.
“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.”
Singleton’s warning is ultimately about policy as much as film. Markets adapt. Consumers benefit. And when government steps aside, innovation does what it has always done—deliver more choice, better products, and greater prosperity.
Read more at RealClearMarkets by clicking here.
