(Bloomberg) -- A new “SpongeBob” movie that was expected to play in theaters will instead go straight to streaming, a blow to cinemas that are cautiously restarting operations after a four-month shutdown.
“The SpongeBob Movie: Sponge on the Run” will debut digitally in the U.S via premium video on demand in early 2021, ViacomCBS Inc. said in a statement Monday. The film will then move exclusively to the company's streaming service CBS All Access. It was initially expected to premiere in theaters on Aug. 7.
U.S. cinemas have been struggling to cope with a lack of revenue and rising debt piles since the coronavirus pandemic forced them to close in March. Their woes were compounded by movie studios, which had to release some films digitally in an effort to recoup their marketing costs during the shutdown, skipping the type of theatrical debut that keeps cinemas afloat.
The “SpongeBob” movie shift suggests studios might make some changes brought on by coronavirus permanent. Releasing a movie in a cinema was once the industry gold standard, but studios had success releasing films digitally during the pandemic and are increasingly launching their own streaming services.
“This launch will be perfectly timed with our continued expansion and planned rebranding of the service in early 2021,” Marc DeBevoise, chief executive officer of ViacomCBS Digital, said in the statement.
Comcast Corp.'s Universal Pictures created an earlier stir when it released “Trolls World Tour” straight to video and said it would probably skip theaters more often in the future. AMC Entertainment Holdings Inc., the largest U.S. chain, then vowed to boycott Universal's movies.
©2020 Bloomberg L.P.
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