Theater chains invest $2.2 billion to revamp cinemas
A new era for movie theaters
The eight largest theater chains in the U.S. and Canada have announced a massive investment of over $2.2 billion to modernize and upgrade more than 21,000 screens over the next three years. This ambitious plan aims to enhance everything from sound and projection quality to dining experiences, and even includes unique attractions like pickleball courts and ziplines in some locations.
A positive outlook for the future
Michael O’Leary, president and CEO of the National Association of Theatre Owners (NATO), expressed optimism about the future of the cinema industry. “Across the industry, we’re feeling that perhaps we’ve turned a corner. The audiences are coming back to the theaters. There’s just a very positive kind of feeling about the future,” he said.
Addressing pandemic and strike impacts
The upgrade plans come as the industry continues to recover from the pandemic and Hollywood strikes, which have significantly affected the exhibition business. Summer box office totals are still about 13% below last year, and moviegoers frequently complain on social media about dirty theaters, uncomfortable seats, and substandard projection.
Enhancing the moviegoing experience
O’Leary emphasized the importance of improving common areas, lobbies, and concession stands to ensure they are new, fresh, and well-maintained. “It’s making sure that the seats are comfortable and there’s a whole range of seating options available to moviegoers. Making sure that all of those things exist and that you have good lighting, good signage, but also in the actual auditorium itself that you have great sound and great projection,” he explained.
Major theater chains on board
The theater chains that have committed to these investment goals include AMC Entertainment Inc., Regal Cinemas, Cinemark USA, Inc., Cineplex, Marcus Theatres Corp., B&B Theatres, Harkins Theatres, and Santikos Entertainment. NATO projects that theaters will use the funds for laser projection technology, immersive sound systems, more comfortable seating, state-of-the-art air conditioning, lighting, signage, and carpeting.
Meeting consumer demands
“Consumers today are very demanding and they want to have a range of things that they can do in any given setting,” O’Leary noted. This means adding attractions like pickleball courts, ziplines, arcades, bowling alleys, and more to keep moviegoers entertained at theater complexes, in addition to offering dining and cocktails.
A commitment to a unique experience
NATO Executive Board Chair and CEO of B&B Theatres, Bob Bagby, highlighted the importance of providing the best possible experience for theatergoers. “Today’s consumers rightly demand the best possible experience when they visit our theaters. Operating a theater today is a capital-intensive operation,” he said. “This investment of resources is the next step in our industry’s ongoing commitment to ensuring that going to the theater remains a unique and special experience for generations to come.” B&B Theatres has already opened locations that include pickleball and bowling, among other activities.
Revitalizing communities
O’Leary also praised the efforts of independent theaters in revitalizing their communities. He cited the example of New Canaan, Connecticut’s Playhouse Theater, which has a unique feel and includes an upstairs members lounge with a bar. Closed during the pandemic, it reopened in June. “They have brought it back to life and it’s really a special place,” O’Leary said.
Conclusion
The significant investment by the major theater chains in the U.S. and Canada marks a new era for the cinema industry. By enhancing the moviegoing experience and meeting the demands of modern consumers, theaters are poised to remain a unique and special destination for entertainment. Whether it’s through improved sound and projection, comfortable seating, or additional attractions like pickleball and ziplines, the future of movie theaters looks bright and promising.