Mario’s box office breakthrough: the exception, not the norm, in family entertainment

This has prompted many to declare that family entertainment is back after a down period brought on by Covid-19. However, a closer look reveals that family entertainment never really went away – it simply transitioned to streaming platforms.

While the success of the Mario movie may seem like a resurgence for the big screen, it’s important to remember that this is the exception, not the norm. Several key factors are driving families towards streaming as their primary source of entertainment, leaving movie theaters struggling to keep up.

A ballooning price point

First, the rising cost of the traditional movie-going experience is pushing families to seek more affordable and predictable options. In 2022, the average movie ticket cost $11.75. Comparatively, the average ticket price in 2007 was just $6.88, per The New York Times.

As ticket prices continue to climb, streaming offers a cost-effective alternative, with a wide range of subscription options available. Furthermore, the emergence of ad-supported streaming services provides access to quality content at little or no cost, making it even more appealing for budget-conscious families.

Underwhelming experiences

Despite the increasing cost of movie attendance, the in-theater experience has remained largely stagnant. Theaters often suffer from subpar facilities, a limited number of premium screens and unpredictable audience behavior.

These issues are particularly concerning for families who are investing significant time and money into their theater outings, only to be disappointed by the overall experience. According to a study by The Hustle, on average, a family of four spends nearly $70 to see a movie.

Beloved content comes to streaming

Meanwhile, the streaming landscape has become a hotbed for premium family-themed content, with beloved characters, intellectual properties and brands making the jump to digital platforms.

This shift has driven viewership up, as families flock to streaming services to access their favorite shows and movies. At the same time, new family-oriented content and characters are emerging on platforms like YouTube, TikTok and others, which are now launching long-form content on streaming platforms. The popularity of the family-oriented streaming service HappyKids, most notably, has been fueled by both legacy and new media trends, featuring content from well-known brands like Lego, Mattel and My Little Pony, as well as digital native properties such as Cocomelon and Blippi.

Co-viewing is the new norm

Finally, the rise of co-viewing has played a significant role in the shift toward streaming for family entertainment. 94% percent of parents, for example, have increased co-viewing in the last year.

As streaming platforms continue to expand their offerings, families are increasingly opting for shared viewing experiences in the comfort of their own homes. This provides greater flexibility in terms of scheduling and convenience, while also fostering a more intimate bonding experience over shared entertainment.

Scoping out the future of family entertainment

Ultimately, the success of The Super Mario Bros. Movie at the box office is a noteworthy exception in the family entertainment landscape.

However, it doesn't signal a reversal of the ongoing trend toward streaming as the primary source of family entertainment. With cost-effective options, an ever-growing library of quality content and the increasing popularity of co-viewing, streaming platforms have solidified their position as the go-to destination for families seeking quality entertainment experiences.

Movie theaters will need to adapt and innovate if they hope to reclaim their place with families around the world.

Karsten Weide is principal and chief analyst at W Media Research.