Movie Theaters Are Spending Big to Get Customers Off the Couch

Movie Theaters Are Spending Big to Get Customers Off the Couch
People walk by the AMC 34th Street theater in New York City on March 5, 2021. Evan Agostini/Invision/AP
Mark Gilman
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Movie theaters across the United States have been making significant changes to their presentation, both in how the films are seen and what surrounds them in the theater complex. In an effort to revitalize in-person movie viewing since the COVID-19 pandemic that made many rather comfortable with watching streaming at home, theaters have spent millions of dollars in order to provide a unique experience for their customers.

But no matter how much money is being spent to make that visit more engaging, the number of movies being distributed to theaters is still affecting the bottom line.

“Obviously, for us, the windfall will begin this week with the release of ‘Red One’ next weekend, with ‘Gladiator 2’ and ‘Moana 2’ after that. We’ve been able to sell tickets,” Rich Daughtridge, president and CEO of Warehouse Cinemas in Maryland, said.

Daughtridge, who also serves as president of the Independent Cinema Alliance, told The Epoch Times that for the industry in general, 2024 has been all about trying to keep revenue numbers up with fewer releases.

“Because of the strike, things just haven’t gotten back to normal. There have been fluid dates set by major studios and delays in production, meaning movies have been pushed out six to nine months,” he said.

Last year, the Writers Guild of America conducted a 148-day work stoppage that affected releases in 2024, which, as of this week, were 25 fewer than in 2023, with only a month and a half left. Box office revenue, in turn, is down by 13 percent.

Even with numbers down this year, the ever-optimistic movie theater industry continues to invest in the consumer experience.

Earlier this month, for example, AMC Theatres, the largest theatrical exhibitor in the United States, announced that it would be investing $1 billion to $1.5 billion over the next four to seven years in what the chain calls the AMC Go Plan for its locations, including those in Europe.

The company is promoting an “even greater selection of premium experiences, immersive sight and sound enhancements, more comfortable seating and upgraded theaters, as well as other initiatives,” it said in a statement.

“With AMC’s Go Plan, AMC is officially going back on offense,“ AMC CEO Adam Aron said in the statement. ”First and foremost, that means investing in the theatrical experience in our movie theaters, both at AMC locations in the U.S. and ODEON Cinemas in Europe. This Go Plan is AMC’s most aggressive, forward-looking theatrical investment initiative this decade, and will greatly enhance the moviegoing experience for millions of our U.S. guests.”

This summer, Regal Cinemas, the second-largest movie theater chain in the United States, announced it had secured $250 million to upgrade its theaters with luxury recliners and other amenities. The announcement followed a September 2022 Chapter 11 bankruptcy filing by its parent company, Cineworld.

Paul Glantz, co-founder and CEO of Emagine Entertainment, operating in five Midwestern states, said the key to survival for his theaters has been continually upgrading his venues to make them more than a conventional movie theater, giving customers more reasons to go.

“I’ve never thought of our venues as being movie houses,” Glantz told The Epoch Times. “We have bowling alleys in a few and meeting space and by far a more extensive food service than most. All of that has been added to our business model. It’s about enhancing the guest experience, so when they leave their homes, they’re entertained. If we can’t give them a compelling reason to leave their home, we won’t survive. Our industry got too complacent for a while.”

According to the National Association of Theatre Owners, which represents owners worldwide, complacency is apparently not an issue in 2024. The association announced in September that its eight largest theater chains in the United States and Canada—representing more than 21,000 screens and 67 percent of box office receipts—plan to invest more than $2.2 billion to modernize and upgrade theaters of all sizes over the next three years.

According to Daniel Loria, senior vice president of content strategy and editorial director of Box Office Company, companies aren’t building new theaters, so the chain owners have to invest in the venues that already exist.

“The United States is a mature movie market, and you’re not going to see new theaters popping up. The shift that’s happening is the current screens available are being optimized. What we’ve seen is in a post-pandemic world, the real draw has been on the experiences inside and outside the theater,” Loria told The Epoch Times.

“We now have premium large format presentations with premium large format, IMAX or panoramic screens, and a huge investment in that. Audiences are responding. You’re seeing customers willing to pay a premium to have the best experience in the house. Outside, you’re seeing a big draw to get people to stick around and spend money in the theaters and not leave, with more amenities like alcohol service and restaurants.”

Glantz agreed, saying that the key to his theaters’ popularity has been the chain’s ability to provide an experience that customers can’t find in their living rooms.

“We were able to figure out before the rest of the world that what we have to do for our guests that they can’t get at home is create the largest screens in the Midwest,“ he said. ”Premium large formats are attractive to them. In spite of the ups and downs of the industry, it has absolutely made the difference in keeping us in the black.”

Mark Gilman
Mark Gilman
Author
Mark Gilman is a media veteran, having written for a number of national publications and for 18 years served as radio talk show host. The Navy veteran has also been involved in handling communications for numerous political campaigns and as a spokesman for large tech and communications companies.