North American movie exhibitors are set to invest $2.2 billion in new theater upgrades to take advantage of a broader Hollywood box office recovery this year.
On Thursday, the National Association of Theatre Owners said its members were investing fresh money into the theatrical experience over the next three years to continue to draw moviegoers from their homes after major studios like Inside Out 2, Deadpool and Wolverine and Despicable Me 4 packed the local multiplex earlier this year.
“There’s no question that movie fans of all ages love going to their local theater to see great films on the big screen. But competition for consumers’ hard-earned dollars is fiercer than ever,” said NATO President and CEO Michael O’Leary, as theater owners continue to face stiff competition in the streaming era.
The new investment in cinemas also comes at a time when the exhibition industry is also looking to shake off the excesses of the pandemic and strike era with a steady supply of big Hollywood productions and other event films looking ahead to 2025.
“Going to the movies is an unparalleled entertainment experience and exhibitors strive to make every visit to their theaters memorable. This investment reflects that commitment in a tangible way that all moviegoers will be able to see and enjoy,” added O’Leary.
The new theatrical investment will come from eight theater chains in the United States and Canada: AMC Entertainment Inc., Regal Cinemas, Cinemark, Cineplex, Marcus Theatres Corp., B&B Theatres, Harkins Theatres and Santikos Entertainment. Together, the national and regional chains have more than 21,000 screens and generate just over two-thirds of North American box office revenue.
Theater renovations with the installation of luxury recliners and other amenities are not new to the exhibition industry. But taking advantage of the industry’s current recovery, which included the summer success of Kingdom of the Planet of the Apes and Tornadoes — requires acknowledging that the box office per-viewer metric is determined in part by viewers paying more for Imax and other premium theater offerings.
The latest investment from North American theater owners will go toward upgrading locations with laser projection technology and surround sound systems, better food and beverage options, adding arcades and bowling alleys to locations, and improving theater air conditioning, lighting, signage and carpeting.
