Once this madness is all over, the entertainment industry is going to be changed forever. Whether or not that is for the better remains to be seen, but in the short-term, it's going to be a struggle for movie theaters and studios. Because of that, a new report from industry analyst Michael Nathanson is predicting sweeping changes to come, with an emphasis on streaming services and media consolidation.

Michael Nathanson of MoffettNathanson recently released a report filled with predictions for what the movie and TV business will look like on the other side of this. One of the biggest implications is the expectation that more mergers will occur, much like the landmark Disney/Fox merger last year. Here's what Nathanson had to say about it.

"Aside from Disney and their control of Disney+/Hulu and (AT&T/WarnerMedia's) Warner Bros. with HBO Max, the three other majors (Sony, Paramount, Universal) and the two minis (MGM and Lionsgate) will likely need to consolidate to increase selling clout and accelerate cost savings. Indeed, this is what occurred in the recorded music industry over time as six once-mighty global recorded music companies merged into three healthier ones."

The music industry saw mass consolidation as the digital revolution rolled on throughout the 2000s. The emphasis with content in the movie and TV world now has shifted strongly to streaming. This is nothing new, but the situation at hand has forced the issue a bit, leaving studios like Lionsgate that don't have a major streaming arm exposed. Michael Nathanson expects that most scripted content will move to streaming as a result.

"Heading into 2020, we had argued that the fundamental pillars of media were starting to crack. Now, we fear that they will crumble as customer behavior permanently shifts to streaming models. The impact should be felt in both the traditional TV ecosystem and the film industry as content producers reexamine the economics of producing linear TV content and feature films. As a result, when this is all done, the top streaming platforms, Netflix, Amazon and Disney, will emerge with the lion's share of scripted content creation."

Unfortunately for those who enjoy the theatrical experience, the outlook is bleak. Nathanson predicts fewer movie theaters in the U.S., as well as rising ticket prices. Though, Nathanson does suggest that theatrical distribution will remain an important part of the studio ecosystem. It's just that the types of movies that will play in theaters might change. Specifically, mid-budget movies may strictly be a streaming play in the future.

"We question how much capital the studios will be willing to allocate to movies... It is the small- to medium-sized budget movies that we worry about. We have already seen the share of movies that generate under $100 million at the domestic box office fall from 52 percent in 2010 to 39 percent in 2019, and we expect this trend to accelerate further. Mid-budget, non-tentpoles will not be worth the cost and expense of traditional theatrical distribution."

Essentially, it will be blockbusters, such as marvel movies and big-budget action flicks that will maintain a healthy life in theaters after the dust settles. This is all just one analyst's predictions, but it lines up with what we're seeing in the industry right now as the current situation unfolds. Undoubtedly, even if these predictions don't come to fruition as laid out here, the Hollywood we once knew is, in essence, already a thing of the past. This news was previously reported by The Hollywood Reporter.