Movie Theater Industry Facing Challenges During COVID–19
The movie theater industry is going through a lot lately. Thanks to a little something called the COVID-19 pandemic, we’ve seen a significant reduction in the number of screens in the U.S. That total number of screens has decreased by around 3,000, so that’s something. It’s not like people want to leave their houses anyway when they can stream movies from the comfort of their couches. And hey, those regional theater chains were not providing valuable service to their local communities.
As for you die-hard theater fans, some theaters are still investing in their technologies. For example, immersive sound and gourmet snacks are what we all care about when we’re watching a movie. And if you’re still unsatisfied, why don’t you lock yourself in the Metaverse, it’s going to be a new reality. I’m sure you can find movie theaters there.
Goodbye Old Multiplex, Hello New Experiences
So, it seems like we have a case of “consumer behavior” here. According to Rolando Rodriguez, chairman of the National Association of Theatre owner, people are just too damn picky these days and can’t be bothered to sit through the same old multiplex experience. Nowadays people want to be squeezed into a tiny theater with only a dozen other people and hope they don’t catch on you.
As for the old medieval-looking theaters, forget about them. There are getting a makeover. Say goodbye to the boring screens and welcome the world of arcades, bowling alleys, and bars. Let’s be real, nowadays going to the movie required a mix of drunken bowling and skeet-ball actions.
Movie Theater Catch Up to the 21st Century
Looks like the movie theater industry is finally catching up to the 21st century. With the threat of streaming services taking over, theaters are now realizing they can’t just rely on outdated technology and popcorn. So, they need to innovate. What better way to do that than by investing in the basics? Better sound? Check. Picture quality? Check. Seating? Check. It’s as if they finally realize that people want to see and hear the movies they’re paying for. Hold up, there’s more. Theaters are now upgrading their food-beverage game too. No more popcorn and watered-down soda, now you can enjoy gourmet meals and craft cocktails while you watch the latest superhero flick.
It seems like Larry Etter has cracked the code to success in the movie theater industry. Create a habit of going to the movies. Why didn’t we think of that before? All they need to do is bribe us with sweet, popcorn, and overpriced candy, and we’ll keep coming back for more. To seal the deal, theaters are now upgrading their projectors to produce better picture quality. They’re removing those outdated digital projectors and installing fancy laser units instead. Apparently, these things can go years without needing replacing. Also, they will save tons of money in the long run.
They are investing in quality sound systems to improve their games. Nothing ruins a good movie like crappy audio. So, now they are partnering with big-shot companies like Dolby to bring in some serious speaker power. Rich Daughtridge, the CEO of warehouse Cinemas, knows what’s up. He’s like, “look, if you want people to drag themselves off their couches and come to the cinema, we need to give them something worth their time.” So, what is worth their time? Seems like a quality sound and picture experience. Theaters are even replacing their old, boring stadium seating with fancy recliners. I guess they’re not bluffing.
Movie Theater Catching On To The Premium Trend
Another trend in the industry is the rise of premium theatrical experiences for blockbuster features. It seems like movie theaters have finally caught on to the fact that some of us are willing to pay a premium for the ultimate movie-watching experience. We’re not talking about just any old premium experience but about the fancy kind. You know where you get to sit in a leather chair that massages you while you watch the latest blockbuster.
According to EntTellignce data, in 2022, 15% of all domestic tickets sold were for these premium screenings. The average ticket price was $15.92. that’s right, some of us are willing to pay $16 dollars just to feel like a king for a couple hours. Also, in 2023, the average has gone up to $17.33 per ticket.
So, it seems like the movie-going experience is no longer just about watching a film. It is about the overall experience, make sure it’s luxurious. Consumers are willing to pump out extra cash to be treated like royalty, and theaters are delivering just that. The premium trend was already gaining attention before the pandemic and is expected to continue. Shelli Taylor, CEO of Alamo Drafthouse, knows this too well. She knows that to stay competitive, the theater must provide a premium experience that people have grown to love and expect.
