However, since the COVID-19 pandemic, going to a movie theater has become less common in the United States. In a May 2022 study, 41% of respondents said they rarely go to see a movie in theaters, with 18% saying they never go.
The decline in movie theater attendance can be attributed to several factors, including the pandemic and the popularity of streaming services. However, watching a movie on the big screen with other fans is a unique experience that cannot be replicated at home.
The decline of movie theaters in the US can be seen in various statistics. In 2019, the US box office grossed $11.4 billion. In 2020, due to the pandemic, the box office gross plummeted to $2.2 billion, an 81% decline from the previous year.
Streaming may have been blamed for a drop in box office revenue and declining TV ratings, but it turns out it just forced the industry to adapt. Streaming has been blamed for the death of theaters and broadcast television, but as the streaming industry grows it's become evident that's not actually the case.
Is the entertainment industry growing or declining?
The media and entertainment industry overall will have 2.8 percent compound annual growth through 2024. Subscription video on demand revenues will surge, reaching twice the size of the box office in 2024.
Outside a few brand-name movies, theaters are struggling to rally from three years of social distancing and isolation, and decades of growing competition for our shrinking attention spans. Even before screens went dark in response to the COVID-19 pandemic, many Americans were choosing to watch at home — if at all.
Movie ticket sales are crawling back to pre-pandemic levels
According to The Numbers, a publicly available database of movie industry statistics, annual tickets sold for 2023 are expected to reach 922 million. That's compared to 2022, where total tickets sold reached 709 million.
Key Takeaways. Movie theater chain revenue is growing but remains below pre-pandemic levels. First-quarter earnings expected lag 2019 levels. IMAX could benefit from a shift to premium theater experiences and as Chinese customers return following COVID lockdowns.
Film studios put projects slated for 2020 theatrical releases on streaming services in an attempt to recoup some of the revenue that would inevitably be lost. Despite their start as a temporary solution to potential financial ruin, streaming services are here to stay.
While cinemas had some success in fighting the competition of television, they never regained the position and influence they held in the 1930s and 40s, and over the next 30 years audiences dwindled. By 1984 cinema attendances in Britain had declined to one million a week.
AMC Entertainment on Tuesday reported another quarterly loss despite higher revenue from a year ago, as it spent more on operational costs. The world's largest movie theater chain is contending with a massive debt load, dilution of its stock and a film release schedule short on blockbusters.
The theatrical movie business has long proved to be unusually resilient when it comes to economic downturns. In fact, over the last eight recessions, the box office has increased six times and admissions have gone up five times.
Between 2021 and 2022, the net loss of AMC Theatres decreased by almost 300 million dollars, standing at less than one billion U.S. dollars in the latter year. The revenue of movie theater chain AMC more than doubled in the same period.
The industry is expected to recover further to roughly $8.5 billion to $9.5 billion in 2023 as the film slate picks back up to pre-Covid levels. But it would still be a far cry from the $11.4 billion of box office in 2019, the last year before the virus hit the U.S., Comscore data show.
Once grandiose palaces with domed ceilings and ornate plasterwork, hundreds of movie theaters—from New York to Detroit to Hollywood—now stand in ruins. Many others have been converted into nightclubs and bingo halls, churches and bookstores.
What is the outlook for the movie theater industry?
Movie Theaters in the US industry analysis. Demand for movie theaters will significantly decline through the end of 2023 as a result of intense competition from online streaming platforms. The industry experienced its largest drop in performance amid the COVID-19 pandemic, which fueled at-home viewership.
Overall, the future of cinema and theatrical distribution is likely to be shaped by a combination of these and other factors. The industry will need to be innovative and adaptable to meet the changing needs and preferences of audiences.
The global Movie Theater market size was valued at USD 72092.79 million in 2022 and is expected to expand at a CAGR of 4.41% during the forecast period, reaching USD 93402.2 million by 2028.
Empire Cinemas has collapsed into administration with the immediate loss of 150 jobs. Six cinemas in the chain have closed, with a further eight under threat. Administrators BDO said the impact of the Covid pandemic and the cost of living crisis had "significantly affected the companies' business".
Behind all the movie magic there's a long stressful grueling process that breaks you. It either makes you tougher, or more set in your ways. And this ultimately forces you to decide if the film industry is really meant for you or not, and essentially how you want to live your life.
The movie industry is in trouble, too. People spend more time and money on video games than on movies and more time watching YouTube than any other TV network. Big media companies are merging with or buying other big media companies. Some of the companies that were bought may soon be sold.
Think back to two years ago when studios were delaying films nearly every day as the coronavirus pandemic upended Hollywood. The reverberations of those decisions are still being felt today. There's also another reason why theaters may be lacking the normal amount of films: Streaming.
What are movie theaters doing to stay in business?
For big chains like AMC, Regal and Cinemark, the emphasis has been on adding live event streams, like concerts, sports and even Dungeons & Dragons campaigns, and upgrading its theaters with state-of-the-art projectors and sound systems.
