facism that demands allegiance. >> president trump playing politics in his mount rushmore address. a distraction from coronavirus as cases climb forcing more mask mandates in the u.s. and also this hour, how covid is change hollywood, how will theaters win back viewers after the virus has passed. we're live from cnn headquarters in atlanta, welcome to our viewers in the u.s. and around the world. hope you're having a happy 4th. i'm natalie allen, this is "cnn newsroom." 5:00 a.m. here on the east coast. thank you for joining us. our top story. u.s. president donald trump is back in washington after doing

exactly what public health experts say should not happen during a worsening pandemic. the president courted a large crowd at mount rushmore that pointedly ignored all of the health precautions about social distancing and face masks. this after the u.s. confirmed more than 150,000 covid-19 cases in just the past three days. yet, the president barely mentioned the pandemic. instead, he railed against what he views as a vast and insidious plot to destroy america. >> in our schools, our newsrooms, even our corporate board rooms, there is a new far left fascism that demands absolute allegiance. if you do not speak its language, performance rituals, recite its mantras and follow

its commandments, then you will be censored, banished, blacklisted, persecuted and punished. it's not going to happen to us. >> president trump also said he will sign an executive order to establish quote a new monument to the giants of our past. we get more on this from cnn's joe johns at mount rushmore. >> reporter: this visit by the president to south dakota featured a fireworks display. the first fireworks display over mount rushmore in 11 years. it featured music, as well as military flyovers and a speech by the president himself. you might have expected the president to talk extensively about coronavirus which is ravaging the united states right now. he only mentioned it once at the very beginning of the speech and he never came back to it, but one of the themes he chose to

hit hardest in this speech was what the president sees as attacks on historic statues all over the country by people who see them as symbols of oppression. the president said he's not going to let the statues be destroyed. he even said he wants to create some type of garden of heroes with statues in the united states but he's not going to let americans destroy the statues that now exist. listen. >> those who seek to erase our heritage want americans to forget our pride and our great dignity so that we can no longer understand ourselves or america's destiny. they would tear down the beliefs, culture and identity that have made america the most vibrant and tolerant society in the history of the earth. >> reporter: the president will be back in washington, d.c. on saturday for yet another

celebration of the july 4th holiday. though it will be scaled down compared to the celebration he had there this time last year. traveling with the president in keystone, south dakota, i'm joe johns, cnn. >> the coronavirus has breached president donald trump's inner circle again. kimber kimberly gorfoil has tested positive. she is reportedly isolating herself. trump jr. has tested negative but is also self-isolating. this comes as at least eight secret service agents who prepped for vice president mike pence's visit to phoenix, arizona, earlier this week now have covid-19, and eight trump advance team staffers who worked on a rally in tulsa, oklahoma, two weeks ago have also tested positive. florida is now averaging more new coronavirus cases per day than any other state in the

u.s. that's not stopping crowds from flocking to some beaches. as the fourth of july weekend gets underway, some beaches down in miami are closed. meantime, the u.s. reported an additional 50,000 new infections for a third day in a row, and cases are rising in 36 states leaving health officials pleading with the public to take precautions. cnn's jason carroll has a look at how states are trying to cope. >> reporter: fireworks shows, parades and beach barbecues, cancelled from coast to coast, over concerns the holiday weekend could fuel a surge in new coronavirus cases. florida now leads the nation in the average number of new reported covid-19 cases per day. the state announced 9,488 new cases friday. >> the numbers are going up in the hospital, the icu beds are filling up, and it's requiring a lot of work and a lot of effort to move patients around to make

a spot for the new patients whether they're covid or not covid. >> reporter: the state's youngest victim, an 11-year-old boy from miami-dade county who died from covid-19 complications. tonight, a 10:00 p.m. curfew goes into effect county wide to discourage holiday goers from heading out. >> there's nothing more american than making a sacrifice by staying home to keep a family member safe, a neighbor safe or a stranger safe. >> reporter: by early friday, crowds had already started gathering on florida's gulf coast on this beach in clear water. health officials seeing record hospitalizations in california where singing and chanltiting i now banned in houses of worship, the concern that the virus will be transmitted through exhaled droplets. in texas, masks are mandate instead 2/3 of the state. the governor who critics say was slow to make the move now says. >> if people gather on fourth of

july the same way they did on memorial day, it is going to lead to a massive increase in the number of people testing positive, the number of people who will be hospitalized, and it could lead once again to an increase in the number of people who lose their lives. >> reporter: despite having down played the importance of wearing a mask, the country's attorney general says it's imperative. >> if you want college football in the fall, wear a face covering. if you want prom next year, wear a face covering. it can prevent asymptomatic spread and help us overcome the virus. >> health officials did see a spike in coronavirus cases following memorial day weekend. they hope people have learned their lessons. since then, there have been a number of closures, restrictions, but ultimately health officials say what it's going to come down to is people taking the advice of health officials, practicing social distancing, and of course wearing a face covering.

jays jason carroll, cnn, new york. florida's miami-dade county has a curfew to keep people off the streets. the mayor spoke with jim sciutto about why a curfew became necessary. >> we had sanitation and rules that were put together with doctors. if the people follow these steps and rules, the likelihood of contagion is low, but unfortunately a lot of people, especially the young, did not follow these rules, and that's why we had this sharp rise in the young which then inif fecte other people, and that's why we have the increase in cases. >> you talk about the two simple rules, mask wearing and social distance. the president is holding an event without required mask wearing, without social distancing, does that hurt your efforts to try to save lives there in miami, to have the

commander in chief not be willing to follow those rules or ask people at his events to do that? >> well, look, what i have said before about what the president does is he needs to follow what the local rules are. i don't know what local rules are in south dakota. i would expect -- >> why should there be local rules, there's not a health expert in this country who doesn't say wear a mask and social distance. >> yeah, but you follow the -- except that in south dakota, they had 85 cases in the entire state. >> not in tulsa, but, you know. >> even in the state of florida, they have, you know, we have counties with much less. that's why the governor has allowed us local leaders to make rules that are in excess of what he's got in place. that's what we have done in miami-dade, broward, and we are

a lot stricter because the cases are higher than the rest of the state. >> you don't want to see leadership from the president saying you know what, i'm taking this simple accept, i'm wearing a mask, and keep yourself safe even as you come to watch me speak. you don't want that kind of leadership? >> if he comes to miami-dade county i would expect he wears the mask because that's what we make them do down here. >> joining me now is dr. richard dawood, medical director at fleet street clinic in london. we appreciate you coming on. good morning to you, doctor. >> good morning. happy fourth of july. we will see if this holiday causes more spikes. what do you make of these numbers, 50,000 new cases for the third straight day. deaths are down from april. that is positive. the cases are up. as you see it, doctor, why does

the united states have it so bad? >> these numbers are obviously very alarming and they reflect the nonuniform situation you see in the u.s. the fact that new york is over the worst of it and places are in decline where as they're rising elsewhere. it's quite easy to predict the behavior of the virus. what's much harder to do is to protect the behavior of people because that's really what's going to dictate spread from now on. and it's really the individual and public health precautions that we follow that is really pronounced. if we have a vaccine or another magic bullet, that's the only way the spread of the virus can be controlled and it is going to take some very determined action to reduce person-to-person spread before this can be brought under control, and i appreciate the frustration that

everybody feels. we've got the same thing in the uk. everybody feels that they have had enough of this virus. they have had enough of lock down. they want to get out and do what they want to do. they don't want to let anything get in their way, but the consequence of that behavior is going to be to facilitate spread, and you know, we could see even bigger at the moment in some parts of the country, cases rising expo nentially. >> a top member of the trump campaign, donald trump jr.'s girlfriend has tested positive for covid before the president's south dakota july 4th speech. thousands packed that event, doctor. many without masks sitting side by side. the seats were zip tied together per fire code. what are the risk of these types of events, people clustered

together like this that the president is holding? >> well, it is highly risky, and dangerous. broadly, outdoor events are usually safer than indoor. there's much less shared space, but when you put people together in very close contact like that, and when you consider how people arrive at such events, what they do, you know, before, during, after, that really boils down to pretty risky environment, and especially when people are being encouraged, you know, they're being told that it's okay not to do any of these public health measures, not to, you know, wear a face covering. i'm not sure how much hand hygiene there is or how much, you know, true buy-in there is to the importance of social distancing. this is a disease that spreads efficiently and effectively from

person to person. >> well, england is ready to start reopening in a few hours, including its famed pubs. they have been closed down for three months, so what can we expect. the prime minister cautions people, and we'll have a live report about it. is now a good time for a flare-up? enough, crohn's. for adults with moderate to severe crohn's or ulcerative colitis, stelara® can provide relief, and is the only approved medication to reduce inflammation on and below the surface of the intestine in uc. you, getting on that flight? back off, uc. stelara® may increase your risk of infections, some serious, and cancer. before treatment, get tested for tb. tell your doctor if you have an infection, flu-like symptoms, sores, new skin growths, have had cancer, or if you need a vaccine. rpls, a rare, potentially fatal brain condition, may be possible. some serious allergic reactions and lung inflammation can occur. lasting remission can start with stelara®. if you've been financially impacted by covid-19,

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to support communities. pubs and restaurants across england are reopening their doors for the first time since coronavirus forced them to close in march. prince william enjoyed cider to celebrate the occasion. the british prime minister is offering this advice. >> enjoy summer safely. i mean, just, i do want people to feel that it's safe to go and enjoy themselves, to enjoy hospitality, but it's got to be done in a responsible way. if not, chris says the risks are there, and they're obvious and i'm afraid that the risks are absolutely manifest in other countries that we know and love well, where, you know, there are difficulties, and we've got to look at that and think we don't want to go down that route.

>> will people heed that advice today. well, cnn's salma joins me live from london where more businesses are about to reopen. hi, salma. >> reporter: hello, we're inside a hair salon. it's a little too early for the pubs but the hair salons are full. i want to introduce you to diana. one of the managers here. sorry to get you right in the middle of your work. tell me what are some of the changes you have had to make so you can abide by the new rules. >> the gown, is the first thing. we've got the temperature gown. we have to remove the sitting area, the waiting area. our clients have to wait outside, and yeah, we have a station downstairs we have been using now. we need to have enough space. >> are you worried about being profitable under these new rules? >> that will not affect the

shop. we have a basement that we weren't using usually, but now we have to use. it won't affect too much, i mean, hopefully. >> reporter: thank you so much, diana. thank you. for this business it seems rules and regulations will be a bit easier to follow while the shop will be profitable. that's a question for so many. the restrictions are you must maintain distance, a meter of space, provide your contact details to a bar and restaurant you go to. the question for so many businesses is can they adapt to this new reality while still being able to make a profit, natalie. >> that's very important, and we have seen na bthat bar owners ie united states have been compromised, they are really struggling. we'll see what the situation is for pubs as well. salma abdelaziz in london. thank you. here in the u.s., the average age of people diagnosed

with covid-19 has dropped dramatically. young people now make up a big chunk of new cases reported each day. many public health officials want bars and night clubs to be shut down or shut down again to try and ease the spread. cnn's brian todd has this. >> reporter: a care free crowd at a bar in austin, texas. many inside not wearing face masks. in jersey city, this bar was cited twice in one weekend for overcrowding. police say hundreds of people were inside not wearing masks or social distancing. at this club in houston, an owner says they required patrons to show they had a mask in order to get in and had the tables spaced out. but he says customers ignored the rules. >> as much distance as we try to put everyone based on the guidelines, it's not the facility. it's the people. >> these scenes from recent days have prompted america's top

voice on the coronavirus outbreak to issue a stern warning about bars. >> bars, really not good. really not good. congregation at a bar inside is bad news. we really got to stop that. >> reporter: in texas, where a coronavirus spike has surged to alarmingly dangerous levels, governor greg abbott admitted he made a mistake with his state's opening. >> if i can go back and do anything, it would be slowing down the reopening of the bars. in the after math, how quickly the coronavirus spread in a bar setting. having a bar setting doesn't work with a pandemic. >> reporter: abbot and his state are not alone. texas is among a dozen states, some of them experiencing massive spikes in cases which have shut down bars completely or have partially shut them or paused reopenings. experts say crowded bars alone don't account for the recent

spikes but they say the natural social atmospheres are particularly dangerous. >> bars are places where people are not wearing masks, places where people aren't social distancing and after some drinks you lose your inhibitions and are less cautious. >> reporter: the doctors we spoke to say there's almost no way to nmake an indoor bar setting safe. indoors, they say, especially if there's loud music playing at a bar is like a petri dish for the spread of the virus. >> if it's noisy, music playing, the ambient noise is going to make you talk louder, when you talk louder, you expel droplets from your mouth. >> reporter: another part of this so called perfect storm of infection experts say is the average age of many people who go to bars. >> they feel invincible because they're young, and quite frankly throughout the beginning of this pandemic it's mostly been

messaging about older folks and people with preexisting health conditions as vulnerable. >> has the pandemic killed the bar scene completely. the medical experts we spoke to don't believe it has. they believe traditional crowded bars would make a comeback. they say that can't be until we have proven vaccines and herd immunity, and they say that could take another year or so. brian todd, cnn, washington. independence day in the u.s. celebrates the ideals of freedom and equality. some americans say those ideals still are not available to everyone. we'll have a story for you about that next. also, a recap of president trump's divisive friday night speech at mount rushmore, where he mentioned the coronavirus pandemic only once.

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welcome back to our viewers in the u.s. and around the world. i'm natalie allen and you're watching cnn newsroom. as the covid-19 pandemic rages here in the u.s. president trump attracted a large holiday crowd at mount rushmore. there was no social distancing and face masks were rare. the president barely mentioned the coronavirus, but he railed against what he called a merciless campaign to erase u.s. history. in 1852, african-american author and abolitionist frederick douglass gave a famous speech called what to the slaves is the fourth of july. today that tension lives on in different forms and for some, it

still casts a shadow over independence day. here's cnn's layeyla santiago. >> reporter: fireworks, parades, ceremonies, the celebration of u.s. independence once declared by founding fathers that wrote all men are created equal, that they are endowed by their creator with certain unalienable rights, among these, life, liberty and the pursuit of happiness. the very rights celebrated on independence day are the same rights that millions of americans say they and their ancestors have not been allowed to enjoy. >> what does independence day mean to you? >> i will always be a proud american, but that doesn't mean i don't realize the faults and the flaws that this country has. >> reporter: for historian and author jesse harlan, that includes the injustice that has led to unrest across the

country, the inequalities in communities of color highlighted by a pandemic. >> i think it's fair to sometimes question whether america loves african-americans as much as we love. >> we can solve these problems if we do it together. >> reporter: for 93-year-old opal lee, independence must commemorate the freedom of all, including juneteenth, the day enslaved people in texas learned that all those enslaved in confederate states had been freed. >> i'm advocating we have juneteenth from the 19th to the fourth of july. you know slaves weren't free on the fourth of july. >> reporter: as americans face a reckoning over racism, past and present, there's no message of healing from the white house. instead, president trump is calling a black lives matter street mural a symbol of hate after new york city announced it would be painted in front of

trump tower. he's also demanding protection for symbols of the confederacy at campaign rallies. >> the unhinged left wing mob is trying to vandalize our history, desecrate our monuments. >> reporter: during diplomatic visits. >> not going to happen, not as long as i'm here. >> reporter: even on twitter, and he's refusing to sign anything changing the names of military bases named after confederate leaders. >> i am hopeful that we will as a country decide the confederacy is something to be studied, not something to be glorified and we're able to celebrate who we are when we celebrate independence day. >> reporter: president trump kicked off the independence day weekend standing at mount rushmore from front of a monument of two slave owners and land wrestled away from native americans for a national monument. let's get more perspective

from thomas gift. he's in washington, a lecturer in political science at university college london. good to see you. thank you for coming on. >> thank you, natalie. >> the president's speech was divisive. he spoke from the same play book. let's listen here to one quote. >> our children are taught in school to hate their own country and to believe that the men and women who built it were not heroes but that were villains, the radical view of american history is a web of lies. >> and that was just one quote. you hardly heard anything about unity in his speech, and a former u.s. ambassador to russia said it was perhaps the most un-american speech given by a president on the fourth of july. what do you think of his message which basically was centered on

protecting controversial monuments and of course he had harsh words for people who want to take them down. >> well, natalie, i think last night was a harbinger of what was seen by trump between now and november, stoking division, and it wasn't at all a united speech as you said on the eve of july 4th, and the terminology used, phrases like new far left fascism, and referring to his opponents as angry mobs, i think it's a tone that we can expect from the president going forward. of course as you also said almost completely absent from this speech was a discussion of the increase in covid-19 cases would suggest that the president is trying to change the narrative that's going on here. and it also shows that trump was doubling down on his strategy since he's taken since day one that is not folkicussing on the persuasion of swing voters. >> right, and as you mentioned,

he only had one mention of the coronavirus pandemic in that speech. and this is a tactic that he has decided to take, it seems, but do you think he'll stay the course on this with the u.s. seeing these incredible spikes in cases? >> well, i don't think that trump is looking away from the coronavirus necessarily, but he's certainly searching for opportunities to deflect from the fact that the number of covid-19 cases in the u.s. has soared recently. we saw 50,000 new cases the united states reached for the first time just a few days ago. i think it's too early to say whether trump can bounce back from that. he's certainly been hurt politically in recent weeks as evidenced by his reduced favorability numbers. i think his reelection team is cognizant that the status quo isn't working. i would expect trump to continue to go on offense, change the conversation as much as possible, and distract from perceived mishandling of the

coronavirus. that's exactly what he did at mount rushmore last night. >> a new global study says there's a new version of the deadly coronavirus that has spread from europe to the u.s. it is more infectious than previous versions and yet it does not appear to be making people any sicker. the study was published in the journal "cell" and goes on to say this new version is the dominant one being spread around the world. what does this mean for all of us. cnn spoke with erica olman sapphire, a professor who worked on the study. >> together we looked at 29,000 viral sequences, a thousand patients and multiple laboratory systems and what we see is a mutation emerged in the coronavirus at the end of february, and by one month later it had become globally dominant. the mutant virus is now the virus that has taken over the

planet. what we found is what is what we call fitter, it is more fit. it replicates two to nine times better in the laboratory, and also better in patients. it grows higher yield. >> does that mean it's stronger? does that mean it spreads faster? does that mean it's nor dangerous? >> exactly. those are the right questions. we don't know about spread. that's a different kind of experiment where we have to look at transmission from one phase to another. we haven't done that yet. we know that there's something fitter about it where it can replicate better or make more copies of itself and there are a lot of laboratories exploring why. the other question, is it worse. we looked at the antibodies in the blood of san diegans, and we found they could neutralize the new virus as well as the old virus. so for those people, their human immune system was up to the job. when we looked at a thousand patients in the hospital, in the united kingdom, there wasn't a

difference between whether they were treated in the icu or inpatient or outpatient. their age, their sex and their underlying conditions were what determined the severity of the disease. there are a lot of things we don't know. we don't know if the change in the virus could change someone from being asymptomatic to symptomatic. if they were asymptomatic, they didn't come to the hospital to be counted so it's possible it could transmit better if there were more copies of it. it's possible it could catch hold in your cells better if it's more fit. it it's possible it could make more people that were previously asymptomatic. those are studies we need to do now. >> regardless, you need this information to get to any of that, which is so fascinating, and i hope this is not a dumb question, but if the virus is mutated, can it mutate again? do your findings -- does it mean it's more or less likely to mutate again? >> every time a virus rep

replicates, it's a roll of a dice whether it will pick up mutation. most mutations are bad. we like those. but sometimes it finds one that's better. the ability of the virus to pick up the mutation, and that mutation to take over the globe in a month is alarming. it could very well happen again. now, this kind of virus has some proof reading capacity to fix errors in its genome, hiv doesn't, hepatitis c doesn't. this virus does. it knmutates more slowly. with 10 million cases around the world, that's a roll of the dice. we are concerned that additional mutations could arise and so we are all as a body of scientists keeping an eye on that. south africans are battling more than the coronavirus. tuberculosis is a severe problem, and covid-19 might be helping tb spread. we'll have a live report from

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it's not just coronavirus causing serious health issues in south africa. when a person there feels sick with the flu like symptoms related to covid-19, they can't assume that's what it is. that's because south africans also are dealing with another potentially deadly respiratory infection, tuberculosis, an illness that spreads the same way as coronavirus. joining me now from cape town, south africa, is cnn correspondent david mckinsey, he has been looking into this for us. david, hello to you. >> reporter: that's right, natalie. tuberculosis is an endemic problem in south africa, as is hiv aids. these epidemics have hammered the country for years now. public health officials say because everyone is focussing on covid-19, things like

tuberculosis could be on the rise and could have extremely damaging effects. >> this is what you were coughing off. >> yes, it was a lot. >> it didn't take long for him to realize just how serious his could have had become. >> were you nervous about going to get treatment because of covid? >> i don't have a choice. at the time i was vomiting blood. it was terrible, really. >> reporter: the doctor told him it wasn't covid-19, what he had was tuberculosis, a disease that kills upwards of 66,000 south africans per year. weeks into his treatment, he's responding well. >> and there's a lot of kids also in the houses that they are staying in. >> reporter: that's danger point. >> very dangerous. >> reporter: health care workers worry that for every success, they are now missing many many

more. so there hasn't been screening since the lock down? >> yeah. people have been scared of covid, did not want us to come in their houses, and i really think they believe we have covid ourselves. >> we are already seeing quite an impact on the ground. >> reporter: dr. linda gail becker worked through the worst of south africa's epidemic of hiv, and is worried the gains could be lost because of a focus on covid-19. >> i think it was right that people had to galvanize, but i do think, you know, this cannot be at the expense of other diseases whether we know we have every day significant morbidity and mortality, and so it is about sort of walking and chewing at the same time. >> reporter: nationwide, the government lab says tb testing is down 50%. diagnosis down 33%. >> that is ongoing infection in

community which is the very thing we're trying to curtail. >> reporter: even as lock down eases, people continue to stay away from hiv/tb mobile screening sites across cape town. pre-covid, they averaged 30 tests per day here. now they tell me they are lucky to see just a handful of people. and south africa's well intended focus against a new virus may just, again, give rise to one of the world's oldest diseases. well, natalie, it's not just a problem here in south africa. there's been a significant dropoff according to the figures in this country, in china, and in india, in new tb cases being identified and people staying on their medication. now, the danger of that of course is more people sick, more people dying, and also the developing of drug resistant tuberculosis which is also a problem, and that's just one disease. if you look at other infectious diseases like measles, for

example, that over the years has been a huge amount of focus put on vaccinations, because vaccinati vaccination drives are also slowing and stopped because of the danger of covid-19, that means even more people, many of course children, are at risk here on the continent and elsewhere in the world. now, one public health official told me they expect kind of a certain range of deaths for covid-19 here in south africa. but they're worried that the effect of tb, hiv, and other issues could be substantially worse than that and that effect could roll over in the years ahead, likely decades of work by public health officials here on the continent might slip because everyone's focussing on this new disease. they say it's important, of course, to focus on covid-19, but the unintended consequences could be much worse and they warn that this is an issue that people are just not paying attention enough to.

natalie. >> so complicated and so very disturbing. thank you so much for that report, david mckenzie there in cape town. after a quick break here, summer is here and normally that would mean block buster hollywood movies, but the pandemic has all but shut down film production. what that means for hollywood's future and your movie watching.

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the washington redskins football team is reviewing its name in response to demands from major sponsors. the name has long been criticized as racist and offensive to native americans. here's carolyn mana reporting. >> reporter: the washington redskins released a statement saying they have been having internal discussions over the last couple of weeks and plan to conduct a thorough review on whether or not a change needs to be made to the team's name. team owner dan snyder has said for years that he has no plans to change the name of the team

but in this recent statement he said something else. saying this process allows the team to take into account not only the proud tradition and history of the franchise but also input from our alumni, the organization, sponsors, the nfl and the local community it is proud to represent on and off the field. nfl commissioner roger goodell quickly added his support to the team's announcement also saying in a statement, in the last few weeks we have had ongoing discussions with dan and we are supportive of this important step. the mention of sponsors in snyder's statement is important here as we have seen snyder pressured in the past, but this comes after ad week reported investment firms totaling $640 billion who were concerned about brands not aligning with their stance on diversity and inclusion. and that is a very loud alarm bell for an owner, particularly in a climate surrounding a global pandemic.

summer is typically the season for big hollywood block busters but with the coronavirus shutting down theaters and pushing back release dates, hollywood faces a dilemma, wait or go ahead and sell movies online. richard quest has more. >> good day so far? today, tomorrow, it's all the same. >> reporter: it was back in january when palm springs, andy sandberg's new romantic comedy was on track to make a big splash. it had sold at sun downs for a record price, reportedly more than $17 million. the buyers hulu, and the distributor neon had agreed for a dual release, it would go to the theaters first, and then online. then came coe havevid. now the movie theaters are shut across the united states and in the rest of the world. >> it's one of those infinite time whip situations you might have heard about. >> reporter: the producers said

good-bye to the idea of a splashy theatrical release, and instead palm springs will premier on hulu on july the 10th. and there will be a few drive-in theaters as well. >> it was something that, you know, andy and i and the director and everybody, you know, we're looking forward to. so we're definitely bummed out a little bit, but that's the world we're in right now. >> reporter: to release or not to release, that is the question that faces all of hollywood now. the studios have delayed big budget films like christopher nolan's tenet, and disney's mulan, hoping movie theaters will reopen, studios cannot wait forever, some are choosing instead to rent or sell the movie direct to viewers, known as pvod or premium video on demand. >> if theaters do not open in july or even if they do, and then they close down or if

attendance is just bare, i guarantee that one of these big block buster films is going to take a chance, and go pvod, and we're going to have the answer to how much a film can gross on this streaming format. can it make a billion dollars? >> reporter: more niche films like kids movies, indy comedies and horror are already releasing on streaming service or on demand, and what's more, they're finding captive, profitable audiences. >> there are other kinds of trolls. >> reporter: trolls world tour actually brought in more money for universal through on demand than the first trolls movie did in the theaters. as for palm springs, the producer dylan sellers says putting the film on indefinite hold wasn't really an option because they're a small studio and need to recoup the costs. even without theatrical release, he says, they will turn a profit. >> i think if you talk to the

folks at hulu, they'll tell you that this has been an incredible attraction for their viewers. it is surpassing all their expectations in terms of, you know, audience subscriber interest. >> reporter: the clear losers in all of this are the movie theaters. the movie chain amc is now warning it has serious doubts it can even stay in business. viewers were already shifted online. the pandemic has sped up this transition. >> the battle is being won by streaming right now, and for the foreseeable future, that's going to continue. >> reporter: block busters to be sure will probably always be shown in the movie theaters first at least for now. richard quest, cnn, new york. >> thanks for watching, i'm natalie allen, i'll see you this time tomorrow. "new day" is next. it's pretty inspiring the way families

redefined the word 'school' this year. it's why, at xfinity, we're committed to helping kids keep learning through the summer. and help college students studying at home stay connected through our university program. we're providing affordable internet access to low income families through our internet essentials program. and this summer, xfinity is creating a virtual summer camp for kids at home- all on xfinity x1. we're committed to helping all families stay connected. learn more at xfinity.com/education.

. with new cases rising in at least 36 states hospitals in some of the hardest hit areas are struggling to keep up. >> if people gather on fourth of july the same way they did on memorial day it could lead once again to an increase in the number of people who lose their lives. >> notice thing more american than by staying home to keep a family member safe or a stranger safe. >> this is an administration that can't seem to come up with a plan. virus has reached the president in a circle. >> the girlfriend of donald trump jr. and a top fundraiser