In$2021,$ theater attendance fell due to the$$ Covid$-19$ pandemic. Movie theater operators such as AMC were concerned about the reduction in attendance as well as the following$$ factors:

a$.$ Movie studios including Disney and Warner Brothers were releasing films on the$$ studios' streaming services rather thanor at the same time asreleasing them in movie theaters.

b$.$ The trend toward people watching streaming services such as NetFlix and$$ Disney$+$ at home on$$ wide$-$screen $4$K televisions was accelerating.

$$Sources: R$.$T$.$ Watson$,"$Want to be a Hollywood$$ Player, Covid and Streaming Have Changed All the$$ Rules," Wall Street Journal$,$ January$21,2021.$

Briefly discuss these two concerns in the context of the five competitive forces model.

Part $2$

The first observation is unfavorable to the continued profitability of movie theater operators because