Movie theater chains have had a tough few years.
Between COVID shutdowns and the Hollywood strikes…
These companies have been bleeding money trying to bring back audiences.
But now, with a fresh new $2 billion investment, movie theaters across North America have a new ace up their sleeve…
But is it enough to keep the projectors running?
Investing In Movie Theater Chains
Last Month, the National Association of Theater Owners, AKA NATO, a group representing some of the biggest movie theater chains…
Announced a massive new $2.2 billion investment to remodel thousands of theaters nationwide.
NATO, which represents AMC theaters, Regal Cinemas, and Cinemark, will be using the investment to renovate 21,000 screens…
THIS MEANS OVER 70% OF THEATERS IN AMERICA WILL BE A MUCH-NEEDED FACELIFT.
The renovation plans encompass every part of movie theater chains. Inside the actual theater, the latest projection and sound systems will be installed, along with new seating. Movie theater chains will also feature new concession areas, and in some theaters, bowling alleys or arcades.
Most importantly, the renovations include new carpets. Say goodbye to the mildewy scent of 90s carpeting on your way to watching the latest Marvel movie.
This move for movie theater chains is part of a larger strategy shift that makes these companies more competitive. AMC theaters, for example, are shifting their plan to include more diversity…
By offering concert films…
And by banking on the hype of movie popcorn buckets.
Chains are also facing pressure from luxury theater chains…
Like Alamo Drafthouse which offers a higher-end experience.
…And We’re Rolling!
It’s not just theaters that are trying to bring audiences out of their homes…
Earlier this year, Netflix announced it was expanding into the in-person experiences sector, with Netflix House.
As it stands, NATO is confident in its ability to revive movie theater chains and bring them back to their former glory…
And industry analysts agree. Paul Dergarabedian, senior analyst at Comscore, said…
“WHILE THE MOVIE THEATER BUSINESS HAS ITS UPS-AND-DOWNS LIKE ANY OTHER, THE THROUGH LINE IS THAT YOU SHOULD NEVER BET AGAINST THE BIG SCREEN EXPERIENCE AS IT HAS SURVIVED AND THRIVED THROUGH DECADES OF CHALLENGES AND INTENSE COMPETITION…”
It seems clear that despite the challenges…
For now, movie theater chains are going to keep projecting the latest and greatest in cinema.
Be Great,
GCTV Staff
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