Movie theater owners are putting in considerable effort to bring back customers after more than three years since the pandemic occurred, reducing the number of new films released and preventing visitors. This summer, the cinemas are relying on the release of many new movies like “The Little Mermaid,” “Barbie,” and movies like Spider-Man and Indiana Jones to get people back into theaters. In case the visitors return to theaters, they may notice a shift in the overall environment as movie theaters were already in the process of modernizing before the pandemic, bringing in better and more comfortable seating, larger screens, better sound equipment, and more food and beverage options.
However, because of the pandemic, many theaters had thin revenues when they eventually entered in 2020 and may have only survived thanks to federal relief programs established for challenges brought by Covid-19. This year, cinemas are investing millions of dollars to upgrade their facilities and enhance moviegoing experiences for everyone. There is a sense of urgency within the cinema revenue generation sector as more people choose to stream movies at home, which often comes at a lower price compared to physical theaters. Theaters are shifting their focus to provide the public with more interactive elements to make the whole experience unique.
For instance, the installation of reclining heated lounge chairs that come with built-in tables and buttons to request orders from waiters is becoming more common. Seats now synchronize with the movie’s plot to provide physical effects such as a blast of air during a windy scene. Similarly, some auditoriums now boast screens on the sides and at the front. This season’s movie releases come with diverse and more sophisticated menu options, even including sushi and I.P.A drinks.
Theaters are offering various activities such as building gangplanks over arcade floors, which are more than 22 feet above the ground level, and even include a kitchen and lobby bar with television screens showing early games before the main feature begins. The cost of a theater visit has gone up considerably since these upgrades and improvements, particularly for movies shown on the most modern screens like ScreenX and RealD 3D, which cost on average 65% more.
These improvements come at a time when the box office earnings are failing to match prepandemic levels. The industry may take years to recover from losses brought by the pandemic, which may ultimately hinder operator plans to make investments to remain competitive within the cinema industry. The focus now lies on smaller theaters with fewer screens that offer better services and experiences for those within the vicinity. These new technologies come with hefty price tags that operators may struggle to afford.
Some are shedding locations while others are taking in help from landlords or developers who provide renovation costs in exchange for tapping into the theater’s foot traffic. As box office hits like “The Super Mario Bros. Movie” continue to take place, banks are becoming more comfortable loaning money for capital improvements. The addition of IMAX systems, for instance, is what most aspiring theaters would like to have, which costs about one million dollars, not counting installation costs like the need to knock down walls to create enough space. Despite the upgrades, the arrival of trendy and exciting movies is what ultimately brings customers back, and operators are hopeful for summer releases to continue the momentum.
