The Business of Holiday Movies

If you were to pick from the treasure trove of holiday movies, what would be your favorite? All folks have their go-to film for this time of year, from the memorable 1946 It’s a Wonderful Life to the 1990s Home Alone franchise. But what makes these Christmas films a classic in the first place?

How Holiday Movies Become Classics

It has been a while since a Christmas film has become a classic. Some experts say the last one was 2003’s Elf. But it can be hard to climb to the top of the holiday movies mountain when there is a lot of competition to choose from. Various factors can shape which films become classics during the holiday season.

A common theme among the development of classics is when a film becomes part of the annual routine, whether through family traditions or constant television programming. The family gathers around the TV to watch Die Hard while drinking eggnog and eating popcorn.

The emotional response a movie can create is also critical. In today’s world, many people are seeking joy and hope. What better way to feel these emotions than to watch A Miracle on 34^th Street? Or the viewing public might desire to tap into nostalgia. This can be achieved by streaming A Christmas Story or Jingle All the Way.

Finally, how often holiday movies can be rewatched is a vital factor in their transformation into Christmas classics. Let’s face it: It is never a chore to go through A Charlie Brown Christmas or A Christmas Carol. There is a reason why the networks rebroadcast these same films or specials every year: They eventually become ingrained in our culture.

Ultimately, while repetition is key, holiday movies also need to be enjoyable in the first place!

Hollywood Banks on Holiday Movies

If you logged into your Netflix or Amazon Prime accounts, you would notice these streaming platforms have their own lineups of holiday movies. And they are not only showcasing movies from yesteryear. They are also featuring their own Christmas-themed films.

Put simply, there is no shortage of films to consume before the new year.

But how do the streaming giants make money from holiday movies anyway?

First, because December is typically the month with the most customer cancellations, streaming companies will either produce new festive content or feature the public’s favorites to keep users subscribed. If they know they can watch Frosty the Snowman with their subscription, they will stay tuned.

Surprisingly, there is data to support this. Netflix, for example, has reported that holiday movies drive 23% better retention than non-seasonal declines. Additionally, subscribers who watched Christmas films posted a 38% higher renewal rate.

Next, Christmas is a massive revenue generator for services such as Tubi, Hulu, and Prime Video. More people are at home, more content is consumed, and what people will watch is predictable. Holiday movies have become a crucial component in the annual rituals – and a moneymaker for these companies.

Another facet is the ability to create new customers. Since a multi-generational family will get together for the holidays and watch Home Alone 2 again, individuals may return home and be interested in trying out the service after gaining firsthand experience.

Christmas is the glue that keeps subscribers spending a monthly stipend on a streaming platform.

Most Wonderful Time of the Year

The holiday season has morphed into a vital contributor to the US economy. Everything about Christmas has become integral to the national marketplace, including holiday movies. So, as you and your loved ones sit down and scan through your streaming service’s library, you can finally settle the debate: Die Hard is a Christmas movie after all.

1. A common theme among the development of holiday movie classics is when a film becomes part of the annual routine, whether through family traditions or constant television programming.
2. Because December is typically the month with the most customer cancellations, streaming companies will either produce new festive content or feature the public’s favorites to keep users subscribed.
3. Christmas is a massive revenue generator for streaming services: More people are at home, more content is consumed, and what people will watch is predictable. Holiday movies have become a crucial component in the annual rituals – and a moneymaker.