By Gavin Boyle
Movie theaters are still struggling five years after lockdowns shut them down, a problem most attributed to lasting changes that have stunted the industry’s return.
“The recovery has been much slower that people hoped,” said Eric Handler, an exhibition industry analyst with Roth Capital Partners. “It’s been a struggle. You’ve had companies go out of business, and most of the major chains closed locations.”
Changes in consumer habits are largely to blame for this issue, though industry changes have contributed to it as well. Many people are now conditioned to simply wait for movies to hit streaming, even though it means waiting a little longer to see new flicks. However, during the pandemic the industry dramatically shortened its window after theater debuts.
During lockdown, some titles hit streaming the same day they became available in theaters, a practice that completely killed their box office popularity. While that practice ended, some titles are still become available on streaming only 17 days after they first hit theaters, a far cry from the 90-day window that used to be the industry standard.
“This is going to be front and center of all our conversations with studios,” said AMC CEO Adam Aron. “It shouldn’t have taken our business five years to come back. Shorter windows are the reason. You have to conclude that all this experimentation has failed. Hollywood is leaving money on the table.”
At the same time, consumers are also hesitant to see movies in theaters because of the rising costs of tickets. While some titles deserve their price, such as a blockbuster action movie, others are simply way too overpriced. To combat this issue, some theaters have experimented with movie-by-movie pricing, offering discounts for less popular genres, such as comedies or dramas.
Some experiences, however, have surged in popularity since the pandemic as consumers are willing to pay higher prices for theater offerings that are impossible to recreate at home. Imax is the biggest winner in this area as ticket sales for the premium format have soared.
“IMAX has emerged strong following the end of industry strikes and the pandemic, with the second quarter of 2024 marking a turning point characterized by significant growth in system sales and installations,” wrote Benchmark analyst Mike Hickey in July 2024. “IMAX raised its full-year 2024 installation guidance to 130-150 systems, up from 128 in the previous year.”
Theater owners have begun to take the cue that consumers want a unique experience, and some have installed other forms of entertainment into their theaters, such as pickleball courts, arcades or bars.
“The pandemic made us realize that we need to diversity,” Bob Badby, the CEO of B&B Theaters, told Variety. “We can’t just depend on studios to provide us with what we need to drive our business.”
Still, others in the industry are optimistic that theaters will return to their former popularity and that a strong lineup of movies is all theaters need to stage their comeback.
“Recovery isn’t at hand, but it’s just around the corner,” Aron said. “You can reach out and almost touch it. And as good as the back half of this year looks, 2026 seems even stronger.”
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