No, the box office hasn’t fully rebounded from COVID-19 — as evidenced by the valleys (“Shazam: Fury of the Gods,” “Babylon”) in between the peaks (“Top Gun: Maverick,” “The Super Mario Bros. Movie) of the last year.
But despite all of the obituaries, the movie theater industry is poised to recover. A new study even shows that revenues in 2023 will reach $32 billion, a 10% increase on earlier estimates of $29 billion. Though those aren’t pre-pandemic levels of $41 to $42 billion, the revised projections are still a relief for exhibitors. After all, they struggled to stay afloat during the darkest days of the pandemic but have emerged with a renewed confidence in one truth: watching movies from the couch is overrated.
As Hollywood heads to Las Vegas for CinemaCon, Variety spoke to theater owners of circuits big and small all across the country to get a sense of the challenges and triumphs of running a multiplex in post-pandemic times.
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Cinemark
Sean Gamble, CEO
Number of locations: 521 venues across the U.S.
What is the biggest challenge facing movie theaters?
The reduced volume of film content. We’re highly encouraged because the production cycle that was disrupted by COVID is aiming to get back to pre-pandemic levels. And now we’re seeing larger streaming companies get into the space in more meaningful way.
What movie was the saving grace for exhibitors?
“Top Gun: Maverick.” It accelerated all audiences and wound up sizably outperforming what anyone was expecting. It continued to build positive momentum for the business after starts and stops. We’ve continued rolling ever since.
What has been an unexpected winner at your theaters?
“Smile.” It was made for streaming, but released theatrically by Paramount and generated over $200 million in worldwide box office. It’s a small film that delivered significant results.
What genre do you wish there was more of?
We’ve been lacking in family content. We’ve also been lacking raunchy R-rated comedies. They have the potential to deliver meaningful results.
Is superhero fatigue real?
I don’t think so. Compelling stories always prevail.
Streaming services: friend or foe?
We see them as friends. It’s a misrepresentation that streaming and theaters compete with each other. They’re complimentary to each other. Our frequent moviegoers are the most active streamers.
How has inflation or supply chain issues impacted your business?
Sixty percent of the canola oil that we use to pop our popcorn comes from Ukraine. So the war had a big effect on access to canola oil. When there were disruptions to the supply chain, we couldn’t get medium popcorn bags. We had to get creative. Everything seems to have gotten more expensive to make.
How big of a problem is texting during the movies?
We don’t get many complaints. I had a conversation with younger moviegoers because it’s been on my mind. Is not using your phone something that alienates younger moviegoers? Interestingly, the vast majority said they like going to the movies because it’s a moment to unplug.
Atlas Theaters
Gabriel Saluan, VP and owner
Number of locations: Six venues in northeast Ohio
What is the biggest challenge facing movie theaters?
It’s been very inconsistent with the lack of quality movies. We get one good movie and then nothing for five to six weeks. You can’t run a business in that regard.
What has been the saving grace of movie theaters?
“Top Gun: Maverick” brought people of all ages back to theaters last year.
What genre do you wish that studios made more of?
Family comedy is what we’re lacking. Pre-pandemic, we used to have many family comedies around the holidays, and that’s helped us extremely well as an industry.
What’s been an unexpected success?
“M3GAN” was a solid hit. “A Man Called Otto” with Tom Hanks was a pleasant surprise. It’s those mid-level films that have been absent.
Do you believe superhero fatigue is real?
Yes, I do. A prime example is “Ant-Man and the Wasp: Quantumania” and “Shazam 2.” Those were mediocre at best, and they didn’t have legs. After two or three weeks, it was done. Usually a typical superhero movie from Marvel would be strong for five to six weeks. It concerns me. “Guardians of the Galaxy” will be huge, but will it have staying power? That’s part of the problem.
What’s the hottest selling concession snack?
Popcorn and icees.
Would a recession impact the movie business?
Depending on how bad a recession is, yes. We believe in a value-driven concession stand. You’ll get a lot for your money. Also at the box office, you need a decent price structure to allow it to be affordable.
What’s the sweet spot of number of trailers to play before a movie?
Three. We don’t believe in 20-25 minutes of previews. People get irritated.
Alamo Drafthouse
Shelli Taylor, CEO
Number of locations: 39 venues across the U.S.
What is the biggest challenge facing movie theaters?
This self-fulfilling prophecy of “people aren’t coming back to the movies.” I actually disagree. The couch is overrated. People are hungrier than ever to have social experiences. We’re letting headlines lead with streamers.
What genre do you wish there was more of?
I don’t know if it’s a genre as much as it is movies like “Parasite,” “Everything Everywhere All at Once” or “Triangle of Sadness” that come out of nowhere and surprise the heck out of everyone. Non-tentpoles that ignite people’s hearts and become memorable.
Is superhero fatigue real?
If you talk to my teenager, probably not. People still want it. But it can’t be the only genre. You have to have a balance.
What’s the best-selling concession snack?
We make all of our food from scratch. Our hand-breaded chicken tenders are our top seller. If you haven’t had ’em, you should because they’re delicious.
How has inflation or supply chain issues impacted your business?
We’re seeing it impact everything, from wages to construction materials. Because of the COVID shutdown, we didn’t know what was available. We’re famous for our pickle fries, and we couldn’t serve them for a year because we couldn’t get the right pickles.
What’s the sweet spot of number of trailers to show before a movie?
My gut says three to five, depending on the length.
If you had a magic wand and could fix or change one aspect of the industry, what would it be?
We all need to reinvest in our theaters. The business model for movie theaters was already difficult before COVID. COVID made this extraordinarily high hurdle for theater owners, but we can’t let our theaters get old or beat up.
Ragtag Cinema
Arin Liberman, executive director
Number of locations: One venue in Columbia, Missouri
What is the biggest challenge facing your theater?
We’re still seeing audiences come back slowly. Everyone’s habits have been wildly interrupted. Some screenings get full, but those are few and far between. In smaller towns, there’s an older demographic that’s still nervous about going back.
What movie has been a saving grace?
“Everything Everywhere All at Once” stands out. It captured a diverse range of moviegoers. We had almost an equal distribution of age ranges.
How are you offsetting a decline in the number of new releases?
Our community is responding well to eventized repertory stuff. When you bring something back that has nostalgia or is one-night-only or has a speaker or panel, it’s fun to revisit with a new lens.
What is something that Hollywood gets wrong about moviegoing in smaller towns?
We like to have a personal touch. I’ve been to movies at multiplexes where it was a lackluster experience because the lighting went down or the projector was turned off. I think that comes from unnecessary budget cuts. Even if something goes wrong, because, of course, we’re not perfect, there’s a human who can communicate that and has a vested interest and even a relationship with the audience. The community element is so important.
University Mall Theaters
Mark O’Meara, owner
Number of locations: Two venues in northern Virginia
What has been the saving grace of movie theaters?
“Top Gun: Maverick” and “Minions: The Rise of Gru.” Everything else has been dribs and drabs.
What has been an unexpected box office winner at your theaters?
I thought “The Super Mario Bros. Movie” would be a family movie. But there’s teens, college kids… it’s shocking how broad the audience is.
What type of movie do you wish that Hollywood made more of?
Mid-budget movies. “Air” just blew up, and you knew the ending! You get lost in the story. We need more of those.
Netflix: friend or foe?
When they don’t have a theatrical window, it doesn’t help anyone. But they also prove that people love content. We’re obsessed with content. If we could figure out a way to screen their movies like Amazon did with ‘Air,” it’ll help everyone.
Is superhero fatigue real?
At my arthouse venue, it is. But I have people who come to my other theater who can’t wait for them. They’re very loyal.
Would a recession impact the industry?
Historically, it’s always good for us. When times are tough, people go to the movies. They want to escape. It’s that simple.
What aspect of moviegoing needs an upgrade?
We need to be better connected social media-wise.
What’s the sweet spot of number of trailers to play before a movie?
Three or four. People can’t remember them if you show more. Plus, I want to offer more showtimes.