Investor Kevin O'Leary Says Movie Theaters Are Not Dead — 'The Only Restraining Aspect of Content Consumption is How Many Hours People Are Awake'

Critics of the possible $82.7 billion agreement for Netflix Inc. (NASDAQ:NFLX) to acquire the film and television assets of Warner Bros. Discovery (NASDAQ:WBD) fear the deal will be the death of movie theaters, but "Shark Tank" investor Kevin O'Leary says, "Factually, that's not correct." In a post on X, O'Leary argued that the competition isn't between streaming and theaters but a fight for human attention. "People watch movies on their phones, their tablets, their home TVs, in theaters," he said. "There's never been a more diversified way of screening content. "The only restraining aspect of content consumption is how many hours people are awake," he added. Don't Miss: An EA Co-Founder Shapes This VC Backed Marketplace—Now You Can Invest in Gaming's Next Big Platform Missed Tesla? EnergyX Is Tackling the Next $200 Billion Opportunity — Lithium O'Leary said Amazon.com Inc. (NASDAQ:AMZN) is a prime example of why the big screen remains vital. Amazon continues to fund major theatrical releases because certain cinematic experiences cannot be replicated in a living room. Theaters that lean into high-end technology, such as 70-millimeter screens and the Dolby surround sound, he said. "Those experiences cannot be emulated in a home," O'Leary said. "If you've got a big-tent release, an action film particularly, most people would want to see that in an adequate surround sound, large screen. You need every tool you can get in the media war." While O'Leary says movie theaters aren't going anywhere, shifting consumer behavior shows that streaming at home is winning the volume game. About 75% of U.S. adults chose streaming a new release at least once in the past year, according to an AP-NORC Center for Public Affairs Research poll. See Also: Buffett's Secret to Wealth? Private Real Estate—Get Institutional Access Yourself Although 66% of Americans still visited a cinema, only 16% maintained a monthly movie-going habit, nearly half the rate of frequent streamers, according to the poll. Driven by rising ticket prices and the post-pandemic desire for convenience, the data suggests that the couch has replaced the cinema as a preferred venue for routine viewing. The average cost of a movie ticket in the U.S. is $13.17, the Associated Press reported, citing data firm EntTelligence. In 2022, it was $11.76. "There's some movies I would like to see, and I say to myself, I'll just wait until they show them on TV or I'll go visit a friend who has those apps," Maryneal Jones of North Carolina told the AP. But I just don't want to pay 12 bucks." Read Next: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100. From Moxy Hotels to $12B in Real Estate — The Firm Behind NYC's Trendiest Properties Is Letting Individual Investors In. Image: Shutterstock